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Subsequent Events
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Note 9. Subsequent Events

On July 21, 2017, the Company completed a self-directed offering of 460,250 units of the Company's equity securities (the "Units") at a price of $2.44 per unit for $1,123,010 in aggregate proceeds (the “July 2017 Private Placement”). Each unit consists of (a) one share of common stock and one Series G Stock Purchase Warrant (the “Series G Warrants”) allowing the holder to purchase one (1) share of the Company’s common stock at a price of $2.68 per share for a period of five years. The warrants may be exercised on a cashless basis. Of the 460,250 Units purchased, KCC purchased 410,000.

 

The relative fair value of the common stock was estimated to be $635,010. The relative fair value of the Series G Warrants was estimated to be $488,000 as determined based on the relative fair value allocation of the proceeds received. The Series G Warrants were valued using the Black-Scholes option pricing model using the following variables: market price of common stock - $2.92 per share; estimated volatility – 102.23%; 5-year risk free interest rate – 1.81%; expected dividend rate - 0% and expected life - 5 years.

 

The Company intends to use the proceeds from the July 2017 Private Placement for general corporate purposes, including the continued research and development of the Company’s SkinGunTM and CellMistTM technologies and for working capital.

 

The July 2017 Private Placement was conducted pursuant to exemptions from the registration requirements afforded by, among others, Rule 506(c) of Regulation D ("Regulation D") and Regulation S ("Regulation S"), as promulgated under the Securities Act of 1933, as amended. Accordingly, the Offering was available only to investors who reasonably verify to the Company that they are "accredited investors," as such term is defined in Rule 501(a) of Regulation D or who are not U.S. Persons, as such term is defined in Rule 902 of Regulation S.