NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared by ArtVentive Medical Group, Inc. and its Subsidiary, ArtVentive Medical Group, Canada Inc., (the Company) pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC) and should be read in conjunction with our annual report on Form 10-K for the year ended December 31, 2015 as filed with the SEC under the Securities and Exchange Act of 1934 (theExchange Act). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, as permitted by the SEC, although we believe the disclosures which are made are adequate to make the information presented not misleading. The condensed consolidated financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position at March 31, 2016 and the results of our operations and cash flows for the periods presented.
The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year, or any other period.
NOTE 2 - ORGANIZATION
The Company is a medical device company focused on developing, manufacturing and marketing a family of endoluminal occlusion devices, known as the Endoluminal Occlusion System (EOS). Through its patented technology, the Company has developed minimally invasive occlusion devices and procedures capable of achieving immediate, complete, and permanent occlusion of peripheral vasculature. EOS was developed by the Company and serves as a proprietary technology platform for several major clinical areas including peripheral and neurological vascular disorders, women's health, interventional oncology and cardiology procedures.
The Company was incorporated on January 23, 2007. The Companys fiscal year end is December 31. To date, the Companys activities have been committed to the development of EOS, intellectual property, animal studies, human studies, patent filings, and developing a regulatory strategy for initial clinical indications pertinent to European, manufacturing and FDA submissions and approvals, corporate operations and the raising of equity capital. The Company conducted the required human clinical studies during 2011, achieving 100% clinical and procedural success, validating the safety and efficiency of the EOS
TM
device. The Company received its CE Mark certification for EOS on May 30, 2013. In 2014, the Company began commercialization and commenced marketing with its European distributors. On December 3, 2014, the Company received FDA approval for EOS for marketing and sales in the United States.
We currently have one wholly-owned subsidiary, ArtVentive Medical Group, Canada Inc.
NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The consolidated financial statements include the transactions of the Company and its Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the Companys financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Such estimates include deferred tax assets
7
arising as a result of the operating loss carry forwards. Actual results could differ from those estimates. The Companys periodic filings with the SEC include, where applicable, disclosures of estimates, assumptions, uncertainties and markets that could affect the financial statements and future operations of the Company.
Common Stock Issued for Services
Services purchased and other transactions settled in the Companys common stock and stock options are recorded at the estimated fair value of the stock issued and options granted if that value is more readily determinable than the fair value of the consideration received.
Earnings Per Share of Common Stock
In accordance with accounting guidance now codified as FASB ASC Topic 260,
Earnings per Share
, basic earnings (loss) per share is computed by dividing net income (loss) by weighted average number of shares of common stock outstanding during each period.
Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period.
The Company had the following potential common stock equivalents at March 31, 2016:
|
|
|
Common stock warrants
|
|
2,415,000
|
Common stock options
|
|
370,000
|
Total common stock equivalents
|
|
2,785,000
|
Since the Company recorded net losses for the three months ended March 31, 2016 and 2015, the effect of considering any common stock equivalents, if outstanding, would have been anti-dilutive. Therefore, a separate computation of diluted earnings (loss) per share is not presented.
The following table sets forth the computation of earnings per share:
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
March 31, 2015
|
Net income (loss)
|
|
$
|
(543,041)
|
|
$
|
(888,182)
|
Weighted average common shares outstanding
|
|
|
63,643,586
|
|
|
59,765,175
|
Net (loss) per share
|
|
$
|
(0.01)
|
|
$
|
(0.01)
|
Property and Equipment
The Company records property and equipment at cost and uses straight-line depreciation methods over estimated useful lives of 5-7 years.
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
Computer equipment
|
|
$
|
22,124
|
|
$
|
22,124
|
Office furniture
|
|
|
4,746
|
|
|
4,746
|
Less: Accumulated depreciation
|
|
|
(10,809)
|
|
|
(9,582)
|
Net property and equipment
|
|
$
|
16,061
|
|
$
|
17,288
|
Inventory
The Companys inventory is valued at the lower of cost or market using the first-in, first-out (FIFO) method. As of March 31, 2016 and December 31, 2015, all inventory consisted of finished goods.
8
As the Company begins its transition from the research and development phase to production, management has estimated the cost of units sold to be equal to the revenue generated on those units. Other direct cost that may be associated with the production of these units has been reflected in research and development expenses.
Foreign Currency Translations
The Companys functional and reporting currency is the U.S. dollar. All transactions initiated in other currencies are translated into U.S. dollars using the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the U.S. dollar at the rate of exchange in effect at the balance sheet date. Unrealized exchange gains and losses arising from such transactions are deferred until realization and are included as a separate component of stockholders equity (deficit) as a component of other comprehensive income or loss. Upon realization, the amount deferred is recognized in income in the period when it is realized.
Cash and Cash Equivalents
Cash and cash equivalents consist principally of funds on hand, on deposit with banks and liquid investment funds having maturity of three months or less at the time of the purchase. The Company has no cash equivalents. The Company had funds on deposit of $10,106 as of March 31, 2016.
Receivables
The accounts receivable balance of $24,976 as of March 31, 2016 is comprised of balances due from six customers totaling $8,311, $4,800, $3,280, $2,915, $2,850 and $2,790. The accounts receivable balance as of December 31, 2015 was comprised of balances due from four customers totaling $5,760, $5,568, $3,210, and $3,580. The balance of the allowance for bad debts was $0 as of March 31, 2016 and December 31, 2015.
Revenue Recognition
Revenue for the sale of goods in the course of the ordinary activities is measured at the fair value of the consideration received or receivable, net of returns. Revenue for sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of the goods can be estimated reliably, there is no continuing involvement with the goods, and the amount of revenue can be measured reliably.
Concentrations of Credit Risk
Certain financial instruments, which subject the Company to concentration of credit risk, consist of cash and accounts receivable. The Company maintains cash balances at financial institutions, which, from time to time, may exceed Federal Deposit Insurance Corporation insured limits of $250,000. As of March 31, 2016, the Company had no deposits in excess of federally insured limits in its U.S. bank. The Company has not experienced any losses with regard to its bank accounts and believes it is not exposed to any risk of loss on its cash in bank accounts. As of March 31, 2016, six customers represented 100% (33.3%, 19.25%, 13.15%, 11.69%, 11.43% and 11.19%) and as of December 31, 2015, four customers represented 100% (31.8%, 30.7%, 17.7% and 19.8%) of our accounts receivable.
As of March 31, 2016 and December 31, 2015, Medical Murray, accounted for more than 10% of our purchases and accounts payable.
NOTE 4 NOTES PAYABLE
On April 1, 2014, the Company borrowed $250,000 from an unrelated party and issued a note payable due on or before December 31, 2014, with interest at 3% per annum. On December 31, 2014, the Company and the lender executed an extension of the note, which is due on or before December 31, 2017. The interest remains at 3%. The lender may convert all or part of the debt, including interest, into common stock of the Company at any time at the rate of $1.00 per share.
9
On April 1, 2014, the Company borrowed an additional $250,000 from an unrelated party and issued a note payable due on or before December 31, 2014, with interest at 3% per annum. On December 31, 2014, the Company and the lender executed an extension of the note, which is due on or before December 31, 2017. The interest remains at 3%. The lender may convert all or part of the debt, including interest, into common stock of the Company at any time at the rate of $1.00 per share.
Long-term debt consists of the following:
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
December 31, 2015
|
|
|
|
|
|
|
|
Note payable to a private party, interest at 3.0%,
interest and principal due December 31, 2017
|
|
$
|
250,000
|
|
$
|
250,000
|
Note payable to a private party, interest at 3.0%,
interest and principal due December 31, 2017
|
|
|
250,000
|
|
|
250,000
|
|
|
|
500,000
|
|
|
500,000
|
Less current maturities of long-term debt
|
|
|
-
|
|
|
-
|
Long-term debt
|
|
$
|
500,000
|
|
$
|
500,000
|
Maturities on long-term debt are as follows:
|
|
|
|
2016
|
|
$
|
-
|
2017
|
|
|
500,000
|
|
|
$
|
500,000
|
NOTE 5 - STOCKHOLDERS EQUITY
Effective April 22, 2008, the Company forward-split its issued common stock on a ratio of 5.8 shares for each original share. As a result of this transaction, 11,078,000 shares were issued. Effective February 12, 2010, the Company forward-split its issued common stock on a ratio of 1.65 shares for each one prior share. As a result of this transaction, 8,442,200 shares were issued. Consideration for the issue of additional shares has been charged against additional paid in capital. The forward stock splits adjustments have been applied retroactively.
Stock issuances in private placements during the three months ended March 31, 2016 and the years ended December 31, 2015 and December 31, 2014 are as follows:
|
|
|
|
|
|
Stock Issuance Date
|
|
Common
Shares
|
|
|
Proceeds
Received
|
|
|
|
|
|
|
January 7, 2014
|
|
400,000
|
|
$
|
400,000
|
February 11, 2014
|
|
400,000
|
|
|
400,000
|
March 6, 2014
|
|
300,000
|
|
|
300,000
|
May 23, 2014
|
|
100,000
|
|
|
100,000
|
June 24, 2014
|
|
1,000,000
|
|
|
1,000,000
|
July 23, 2014
|
|
500,000
|
|
|
500,000
|
August 29, 2014
|
|
250,000
|
|
|
250,000
|
September 29, 2014
|
|
150,000
|
|
|
150,000
|
September 30, 2014
|
|
100,000
|
|
|
100,000
|
October 15, 2014
|
|
100,000
|
|
|
100,000
|
November 7, 2014
|
|
80,000
|
|
|
80,000
|
November 28, 2014
|
|
70,000
|
|
|
70,000
|
December 4, 2014
|
|
250,000
|
|
|
250,000
|
December 15, 2014
|
|
250,000
|
|
|
250,000
|
December 29, 2014
|
|
250,000
|
|
|
250,000
|
|
|
|
|
|
|
10
|
|
|
|
|
|
Total for year ended December 31, 2014
|
|
4,200,000
|
|
$
|
4,200,000
|
|
|
|
|
|
|
|
|
|
|
|
|
January 23, 2015
|
|
250,000
|
|
$
|
250,000
|
February 27, 2015
|
|
150,000
|
|
|
150,000
|
March 15, 2015
|
|
100,000
|
|
|
100,000
|
March 31, 2015
|
|
150,000
|
|
|
150,000
|
April 23, 2015
|
|
150,000
|
|
|
150,000
|
May 4, 2015
|
|
100,000
|
|
|
100,000
|
May 29, 2015
|
|
500,000
|
|
|
500,000
|
June 1 2015
|
|
500,000
|
|
|
500,000
|
July 17, 2015
|
|
200,000
|
|
|
200,000
|
August 8, 2015
|
|
50,000
|
|
|
50,000
|
August 27, 2015
|
|
300,000
|
|
|
300,000
|
September 28, 2015
|
|
250,000
|
|
|
250,000
|
October 26, 2015
|
|
150,000
|
|
|
150,000
|
November 20, 2015
|
|
100,000
|
|
|
100,000
|
December 12, 2015
|
|
100,000
|
|
|
100,000
|
|
|
|
|
|
|
Total for year ended December 31, 2015
|
|
3,050,000
|
|
$
|
3,050,000
|
|
|
|
|
|
|
January 18, 2016
|
|
15,000
|
|
$
|
15,000
|
|
|
|
|
|
|
Total for three months ended March 31, 2016
|
|
15,000
|
|
$
|
15,000
|
On May 5, 2015, 980,800 shares were issued for finders fees valued at $980,800.
On August 12, 2015, 25,000 shares were issued for finders fees valued at $25,000.
On January 22, 2016, 80,000 shares were issued for finders fees valued at $80,000.
NOTE 6 - GOING CONCERN AND LIQUIDITY CONSIDERATIONS
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. As of March 31, 2016, the Company had a negative working capital balance of $1,092,166 and an accumulated deficit of $18,605,886. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management is in the process of evaluating various financing alternatives for operations, as the Company will need to finance future research and development activities and general and administrative expenses through fund raising in the public or private equity markets. Management believes that it will be able to secure the necessary financing as a result of ongoing financing discussions with third party investors and existing shareholders. However, there is no assurance that the Company will be successful with those initiatives, and it does not have any firm commitments from investors at this time.
NOTE 7 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
The Company has reviewed Accounting Standards Update (ASU) through ASU No. 2016-11 which contain technical corrections to existing guidance or affect guidance to specialized industries or entities. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.
11
NOTE 8 - PROVISION FOR INCOME TAXES
The Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income, regardless of when reported for tax purposes. Deferred taxes are provided in the financial statements under ASC Topic 740,
Income Taxes
, to give effect to the resulting temporary differences which may arise from differences in the bases of fixed assets, depreciation methods, allowances, and start-up costs based on the income taxes expected to be payable in future years. Exploration and development stage deferred tax assets arising as a result of net operating loss carry forwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods. Tax operating loss carry forwards generated during the period from January 23, 2007 (date of inception) through March 31, 2016 of approximately $18.4 million will begin to expire in 2027. Accordingly, deferred tax assets of approximately $7,731,000 (2015 $7,594,000) related to net operating loss carryforwards and $168,000 related to stock-based compensation were offset in full by the valuation allowance.
The Company has no tax positions at March 31, 2016 and December 31, 2015 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.
The Companys tax returns for the years ended December 31, 2015, 2014, 2013 and 2012 are open for examination under Federal Statute of Limitations and for the years ended December 31, 2015, 2014 and 2013 under the State of California Statute of Limitations.
The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company had no accruals for interest and penalties since inception.
A reconciliation of the provision for income tax expense with the expected income tax computed by applying the federal statutory income tax to income before provision for income taxes is as follows:
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
|
|
|
2016
|
|
|
2015
|
Income tax (benefit) computed at
|
|
|
|
|
|
|
Federal statutory tax rate of 34%
|
|
$
|
(184,634)
|
|
$
|
(290,518)
|
Change in valuation allowance
|
|
|
232,639
|
|
|
366,053
|
State taxes (net of federal benefit)
|
|
|
(48,005)
|
|
|
(75,535)
|
|
|
$
|
-
|
|
$
|
-
|
NOTE 9 - WARRANTS AND OPTIONS
During the year ended December 31, 2015, the Company granted 3,050,000 warrants to purchase shares of Common Stock of which all have a 1-year exercise term, of which 2,400,000 remain outstanding at March 31, 2016. During the quarter ended March 31, 2016, 15,000 warrants were issued. The Company valued all warrants utilizing a Black-Scholes option-pricing model and the fair value was recorded as additional paid-in capital.
The following is a summary of the Companys warrant activity as of March 31, 2016:
|
|
|
|
|
|
|
|
Warrants
|
|
|
Weighted
Average
Exercise
Price
|
|
|
|
|
|
|
Outstanding - December 31, 2014
|
|
4,200,000
|
|
$
|
1.50
|
Granted
|
|
3,050,000
|
|
|
1.50
|
Exercised
|
|
-
|
|
|
-
|
Forfeited
|
|
(4,200,000)
|
|
|
1.50
|
Outstanding December 31, 2015
|
|
3,050,000
|
|
$
|
1.50
|
Exercisable December 31, 2015
|
|
3,050,000
|
|
$
|
1.50
|
12
|
|
|
|
|
|
|
|
|
|
|
|
Granted
|
|
15,000
|
|
$
|
1.50
|
Exercised
|
|
-
|
|
|
-
|
Forfeited
|
|
(650,000)
|
|
$
|
1.50
|
Outstanding March 31, 2016
|
|
2,415,000
|
|
$
|
1.50
|
Exercisable March 31, 2016
|
|
2,415,000
|
|
$
|
1.50
|
Warrants outstanding and exercisable at March 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrants Outstanding
|
|
Warrants Exercisable
|
|
Exercise
Price
|
|
Number
Outstanding
|
|
Weighted
Average
Remaining
Contractual
Life (in Years
)
|
|
Weighted
Average
Exercise Price
|
|
|
Number
Exercisable
|
|
|
Weighted
Average
Exercise Price
|
$
|
1.50
|
|
50,000
|
|
0.04 years
|
|
$
|
1.50
|
|
|
|
50,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
150,000
|
|
0.06 years
|
|
$
|
1.50
|
|
|
|
150,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
100,000
|
|
0.09 years
|
|
$
|
1.50
|
|
|
|
100,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
500,000
|
|
0.15 years
|
|
$
|
1.50
|
|
|
|
500,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
500,000
|
|
0.17 years
|
|
$
|
1.50
|
|
|
|
500,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
200,000
|
|
0.29 years
|
|
$
|
1.50
|
|
|
|
200,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
300,000
|
|
0.41 years
|
|
$
|
1.50
|
|
|
|
300,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
250,000
|
|
0.49 years
|
|
$
|
1.50
|
|
|
|
250,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
150,000
|
|
0.57 years
|
|
$
|
1.50
|
|
|
|
150,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
100,000
|
|
0.64 years
|
|
$
|
1.50
|
|
|
|
100,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
100,000
|
|
0.70 years
|
|
$
|
1.50
|
|
|
|
100,000
|
|
|
$
|
1.50
|
$
|
1.50
|
|
15,000
|
|
0.80 years
|
|
$
|
1.50
|
|
|
|
15,000
|
|
|
$
|
1.50
|
Warrant activity is as follows:
Warrants issued during the first quarter of 2016, totaled 15,000.
Warrants issued during 2015, totaling 650,000, expired during the first quarter of 2016.
Warrants issued during 2014, totaling 4,200,000, expired during 2015.
Effective April 16, 2015, 50,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective April 23, 2015, 150,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective May 4, 2015, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective May 28, 2015, 500,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective June 1, 2015, 500,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective July 17, 2015, 200,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
13
Effective August 12, 2015, 25,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective August 27, 2015, 300,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective September 28, 2015, 250,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective October 26, 2015, 150,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective November 20, 2015, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective December 12, 2015, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
Effective January 18, 2016, 15,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year.
The following is a summary of the Companys stock options activity:
|
|
|
|
|
|
|
|
Options
|
|
|
Weighted
Average
Exercise
Price
|
Granted 2015
|
|
265,000
|
|
$
|
1.00
|
Exercised 2015
|
|
(50,000)
|
|
|
0.001
|
Forfeited 2015
|
|
(150,000)
|
|
|
1.00
|
Outstanding December 31, 2015
|
|
370,000
|
|
$
|
1.00
|
Exercisable December 31, 2015
|
|
230,000
|
|
$
|
1.00
|
|
|
|
|
|
|
Granted
|
|
-
|
|
$
|
-
|
Exercised
|
|
-
|
|
|
-
|
Forfeited
|
|
-
|
|
|
-
|
Outstanding March 31, 2016
|
|
370,000
|
|
$
|
1.00
|
Exercisable March 31, 2016
|
|
230,000
|
|
$
|
1.00
|
Options outstanding and exercisable at March 31, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
|
Range of
Exercise
Price
|
|
Number
Outstanding
|
|
Weighted Average
Remaining
Contractual
Life (in Years)
|
|
Weighted
Average
Exercise Price
|
|
|
Number
Exercisable
|
|
|
Weighted
Average
Exercise Price
|
|
$
|
1.00
|
|
35,000
|
|
1.84 years
|
|
$
|
1.00
|
|
|
|
35,000
|
|
|
$
|
1.00
|
$
|
1.00
|
|
10,000
|
|
1.92 years
|
|
$
|
1.00
|
|
|
|
10,000
|
|
|
$
|
1.00
|
$
|
1.00
|
|
10,000
|
|
2.74 years
|
|
$
|
1.00
|
|
|
|
10,000
|
|
|
$
|
1.00
|
$
|
1.00
|
|
50,000
|
|
7.67 years
|
|
$
|
1.00
|
|
|
|
50,000
|
|
|
$
|
1.00
|
$
|
1.00
|
|
10,000
|
|
8.81 years
|
|
$
|
1.00
|
|
|
|
10,000
|
|
|
$
|
1.00
|
$
|
1.00
|
|
100,000
|
|
9.08 years
|
|
$
|
1.00
|
|
|
|
100,000
|
|
|
$
|
1.00
|
$
|
1.00
|
|
40,000
|
|
9.21 years
|
|
$
|
1.00
|
|
|
|
-
|
|
|
$
|
1.00
|
$
|
1.00
|
|
15,000
|
|
9.41 years
|
|
$
|
1.00
|
|
|
|
15,000
|
|
|
$
|
1.00
|
$
|
1.00
|
|
100,000
|
|
9.48 years
|
|
$
|
1.00
|
|
|
|
-
|
|
|
$
|
1.00
|
14
The Companys stock option activity is as follows:
Effective November 2, 2010, the Board of Directors of the Company granted 50,000 non-statutory stock options to a current consultant at an exercise price of $.001 per share with the vesting date of November 2, 2013 and an expiration date of November 2, 2016. These options were exercised on August 7, 2015.
Effective February 1, 2013, the Board of Directors of the Company granted 20,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1, 2013 and an expiration date of February 1, 2018.
Effective February 1, 2013, the Board of Directors of the Company granted 5,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1, 2013 and an expiration date of February 1, 2018.
Effective February 1, 2013, the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1, 2013 and an expiration date of February 1, 2018.
Effective March 1, 2013, the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of March 1, 2013 and an expiration date of March 1, 2018.
Effective December 27, 2013, the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of December 27, 2013, and an expiration date of December 27, 2018.
Effective January 1, 2015, the Board of Directors of the Company granted 200,000 non-statutory stock options to a then current employee at an exercise price of $1.00 per share with 50,000 of the shares vested on January 1, 2016 and the additional 75% of the shares exercisable on each of the next succeeding three anniversaries of January 1. The 50,000 vested stock options remain outstanding, while the 150,000 non-vested options were forfeited through a voluntary resignation on September 4, 2015.
Effective January 23, 2015, the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of January 23, 2015, and an expiration date of January 23, 2025.
Effective April 30, 2015, the Board of Directors of the Company granted 100,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of April 30, 2015, and an expiration date of April 30, 2025.
Effective June 15, 2015, the Board of Directors of the Company granted 40,000 non-statutory stock options to a current employee at an exercise price of $1.00 per share with 25% of the shares exercisable on June 15, 2016 and an additional 25% exercisable on each of the next succeeding three anniversaries of June 15, on a cumulative basis, so that the option, or any unexercised portion, shall be fully exercisable on and after June 15, 2019. The stock options have an expiration date of June 15, 2025.
Effective August 28, 2015, the Board of Directors of the Company granted 15,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of August 28, 2015, and an expiration date of August 28, 2025.
Effective September 22, 2015, the Board of Directors granted 100,000 stock options deemed an Incentive Stock Option (ISO) to a current employee, at an exercise price of $1.00 per share with 25% exercisable on September 22, 2016; and an additional 25% exercisable on each of the next succeeding three anniversaries of September 22nd, on a cumulative basis, so that the Option, or any unexercised portion, shall be fully exercisable on and after September 22, 2019. The stock options have an expiration date of September 22, 2025.
15
The Company valued these options utilizing a Black-Scholes option-pricing model and the fair value was recorded as additional paid-in capital.
NOTE 10 - SUBSEQUENT EVENTS
The Company evaluated all events or transactions that occurred after March 31, 2016, up through the date these unaudited condensed consolidated financial statements were issued and it was determined there were no reportable events.
16