Quarterly report pursuant to Section 13 or 15(d)

Stock Options

v3.8.0.1
Stock Options
9 Months Ended
Sep. 30, 2017
Stock Options [Abstract]  
Stock Options
8. Stock Options

 

Employee Stock Options 

 

A summary of employee stock option activity as of September 30, 2017 and changes during the nine months then ended are presented below:

 

    Shares     Weighted
Average 
Fair Value
Per Share
    Weighted
Average
Exercise
Price Per
Share
    Weighted
Average
Remaining 
Terms 
(in years)
    Aggregate 
Intrinsic
Value
 
                               
Outstanding - December 31, 2016     295,051     $ 1.25     $ 3.00       9.86       -  
Granted     598,552       1.22       4.28       -       -  
Exercised     -       -       -       -       -  
Cancelled     -       -       -       -       -  
Outstanding – September 30, 2017     893,603     $ 1.23     $ 3.86       9.41     $ 736,937  
                                         
Exercisable – December 31, 2016     128,299     $ 1.25     $ 3.00       9.86     $ -  
Exercisable – September 30, 2017     670,153     $ 1.22     $ 4.15       9.46     $ 450,921  

 

For the three months ended September 30, 2017, the Company recognized stock-based compensation expense of $439,821. For the nine months ended September 30, 2017 and 2016, the Company recognized stock-based compensation expense of $649,204 and $119,146, respectively. This expense is included in payroll and related expenses in the accompanying condensed consolidated statements of operations. 

 

As of September 30, 2017, the Company had $260,773 of total unrecognized compensation costs related to non-vested stock options, which will be expensed over a weighted average period of 1.39 years. The intrinsic value is calculated as the difference between the fair value of the stock price at year end and the exercise price of each of the outstanding stock options. The fair value of the stock price at September 30, 2017 was $4.28 per share.

 

In March 2017, Paul Galvin, the Company’s Chief Executive Officer, and Mahesh Shetty, the Company’s Chief Financial Officer, were granted options to purchase 185,425 and 132,446 shares of the Company’s common stock, respectively, the exercise price of which was contingent on the offering price of the Public Offering. 185,425 of such options have an exercise price of $5.00 per share and 132,446 have an exercise price of $6.00 per share. These options vested during the three months ended September 30, 2017, when certain performance conditions were met. The fair value of these options upon issuance amounted to $370,558.

 

Non-Employee Stock Options

 

In September 2017, in connection with an advisory agreement entered into by the Company (the “Advisory Agreement”), a consultant was granted options to purchase 50,000 shares of the Company’s common stock, with an exercise price of $6.25. The options vest when certain performance conditions are met. These performance conditions consist of the purchase of fifty modular units from the Company. As of September 30, 2017, these options have not vested.