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Mezzanine and Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2019

Stockholders' Equity Note [Abstract]

Stock Option Transactions Under Stock Option Plans

The Company’s outstanding stock options consisted of the following:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Options outstanding at January 1, 2019	647,240		$	5.62	4.13	$	9.2
Options granted	45,000		18.11		—	—
Options exercised	(111,000	)	4.56		—	1.4
Options forfeited	—		—		—	—

Options outstanding at June 30, 2019	581,240		$	6.79	3.44	$	5.8

Options exercisable at June 30, 2019	547,490		$	5.74	3.18	$	5.8

Outstanding stock options granted to primary care physicians to purchase shares of APC’s common stock consisted of the following:



	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Options outstanding at January 1, 2019	853,800	$	0.167	0.75	$	0.5
Options granted	—	—		—	—
Options exercised	—	—		—	—
Options expired/forfeited	—	—		—	—

Options outstanding and exercisable at June 30, 2019	853,800	$	0.167	0.25	$	0.5

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

During the six months ended June 30, 2019, the Company granted 45,000 stock options to certain ApolloMed board members which were recognized at fair value, as determined using the Black-Scholes option pricing model and the following assumptions:



	June 30, 2019
Expected Term	3.0 years
Expected volatility	100.27		%
Risk-free interest rate	2.51		%
Market value of common stock	$	18.11
Annual dividend yield	—		%
Forfeiture rate	0		%

Summary of Share-Based Compensation Expense of Stock Option Awards Granted

Share-based compensation expense related to option awards granted to primary care physicians to purchase shares of APC’s common stock, are recognized over their respective vesting periods, and consisted of the following:



	Three Months Ended June 30,
	2019		2018
Share-based compensation expense:

General and administrative	$	202,382	$	202,382

	$	202,382	$	202,382



	Six Months Ended June 30,
	2019		2018
Share-based compensation expense:

General and administrative	$	404,764	$	404,764

	$	404,764	$	404,764

Warrants Outstanding

The Company’s outstanding warrants consisted of the following:



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Warrants outstanding at January 1, 2019	3,331,995		$	9.93	2.97	$	33.1
Warrants granted	—		—		—	—
Warrants exercised	(41,624	)	9.41		—	0.3
Warrants expired/forfeited	—		—		—	—

Warrants outstanding at June 30, 2019	3,290,371		$	9.93	2.48	$	22.3



Exercise Price Per Share		Warrants Outstanding	Weighted Average Remaining Contractual Life	Warrants Exercisable	Weighted Average Exercise Price Per Share
$	9.00	1,053,269	1.29	1,053,269	9.00
10.00		1,408,220	2.80	1,408,220	10.00
11.00		828,882	3.44	828,882	11.00

9.00 –11.00		3,290,371	2.48	3,290,371	$	9.93

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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