XML 72 R61.htm IDEA: XBRL DOCUMENT v3.10.0.1
Equity (Details Textual)
1 Months Ended 3 Months Ended 6 Months Ended
Dec. 11, 2018
USD ($)
$ / shares
shares
Dec. 10, 2018
USD ($)
Nov. 08, 2018
USD ($)
Nov. 07, 2018
USD ($)
shares
Jun. 07, 2018
USD ($)
shares
Mar. 14, 2018
USD ($)
$ / shares
shares
Mar. 12, 2018
USD ($)
$ / shares
shares
Oct. 23, 2017
$ / shares
shares
May 05, 2015
Sep. 21, 2018
USD ($)
$ / shares
shares
Apr. 26, 2018
shares
Oct. 27, 2017
USD ($)
shares
Mar. 22, 2017
USD ($)
$ / shares
shares
Feb. 28, 2017
shares
Jul. 26, 2016
USD ($)
Employees
$ / shares
shares
May 23, 2016
shares
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
$ / shares
shares
Equity (Textual)                                        
General and administrative expenses                                 $ 1,047,376 $ 280,709 $ 1,864,584 $ 333,417
Placement agent fees           $ 2,585,091                            
Fair value of warrants                                     1,074,140  
Warrant exercisable, description           The Series “A” warrants are exercisable as of September 14, 2018, and expire five and a half (5.5) years from the date of issuance. The Series B warrants are exercisable as of September 14, 2018, and expire thirteen (13) months from the date of issuance.                            
Stock option expense                                     1,864,584 343,082
Aggregate gross proceeds                                     500,000
Amendment Agreement [Member] | Investor [Member]                                        
Equity (Textual)                                        
Issuance of common stock   $ 420,168                                    
Sale of stock, description   The Company and the Investor entered into an Amended Agreement (the “Amendment Agreement”, together with the Purchase Agreement, the “Agreements”) pursuant to which the parties reduced the aggregate gross proceeds to the Company to $500,000 (the “Reduced Purchase Price”) in the transaction. The private placement closed (the “Closing”) on December 10, 2018. As a result, the Investor owns a total of 420,168 shares of the Common Stock (the “Shares”), on a $1.19 per share purchase price, or approximately 3.1% of the Company’s issued and outstanding shares of Common Stock on a pre-transaction basis. The Agreements set forth a one-year restrictive period. An appropriate legend has been affixed to the certificate for the Shares.                                    
Aggregate gross proceeds   $ 500,000                                    
Share Purchase Agreement [Member] | Investor [Member]                                        
Equity (Textual)                                        
Sale of stock, description     The Company agreed to sell to the Investor and the Investor agreed to purchase from the Company, through a private placement, such number of shares of the common stock, no par value per share, of the Company (“Common Stock”), that shall be issuable at a purchase price per share equal to 120% of the average closing price of the Common Stock on NASDAQ Stock Market over the five consecutive trading day period immediately prior to the closing of the transaction for aggregate gross proceeds to the Company of $1,000,000.                                  
Aggregate gross proceeds     $ 1,000,000                                  
2014 Stock Incentive Plan [Member]                                        
Equity (Textual)                                        
General and administrative expenses                                 0 0 0 $ 9,665
Options granted | shares                             150,000          
Number of employees | Employees                             2          
Options vesting period                             1 year          
Exercise price of options | $ / shares                             $ 1.1          
Grant date fair value of options | $ / shares                             $ 0.77          
Volatility rate                             99.68%          
Risk free interest rate                             1.15%          
Expected life                             5 years          
Options exercised | shares                           75,000            
Fair value of options                             $ 11,597          
2014 Stock Incentive Plan [Member] | General and Administrative Expense [Member]                                        
Equity (Textual)                                        
Options granted | shares                                       10,000
Options vesting period                                       10 years
Exercise price of options | $ / shares                                       $ 2.01
Warrant [Member]                                        
Equity (Textual)                                        
Issuance of common stock, shares | shares                     4,000,000                  
Service agreement [Member]                                        
Equity (Textual)                                        
Fair value of common stock         $ 508,000                              
Issuance of common stock, shares | shares         400,000                              
Securities Purchase Agreement [Member]                                        
Equity (Textual)                                        
Sale of stock, shares | shares             2,000,000                          
Exercise price per share | $ / shares             $ 1.50                          
Amount of sale of stock             $ 3,000,000                          
Sale of stock, description             The placement agent received a cash commission fee equal to 7.5% of the gross proceeds. The offering closed on March 14, 2018. The offering of the 2 million shares was made pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-222098), which was originally filed with the SEC on December 15, 2017, and was declared effective by the SEC on February 16, 2018. The Company agreed in the purchase agreement that it would not issue any common stock for 60 calendar days following the closing of the offering and each of the Company’s executive officers and directors agreed to a lock-up period of 60 days from the date of the purchase agreement.                          
Series A warrants [Member]                                        
Equity (Textual)                                        
Common stock price per share | $ / shares           $ 1.75                            
Sale of stock, shares | shares           2,000,000                            
Series B warrants [Member]                                        
Equity (Textual)                                        
Common stock price per share | $ / shares           $ 1.75                            
Sale of stock, shares | shares           2,000,000                            
2014 Stock Incentive Plan [Member]                                        
Equity (Textual)                                        
Common stock issued for services, shares | shares 200,000                                      
Common stock price per share | $ / shares $ 0.89                                      
Compensation expenses                                 178,000   $ 178,000  
Fair value of common stock $ 178,000                                      
Compensation committee, description                                     The Board of the Company and the Compensation Committee of the Board (the “Committee”) approved (i) an increase in the annual salaries of Lei Cao, Chief Executive Officer, Tuo Pan, acting Chief Financial Officer, and Zhikang Huang, Chief Operating Officer (the “C-Level Executives”), effective January 1, 2019, and (ii) a one-time award of a total of 950,000 of the common stock from the shares reserved under the Company’s 2014 Stock Incentive Plan (the “Plan”) to the C-Level Executives, Chief Technology Officer, Yafei Li and the following members of the Board, effective December 31, 2018, for their valuable contributions to the Company in fiscal 2018: Jing Wang, Tieliang Liu and Bradley A. Haneberg. The Committee recommended and the Board determined to make the following stock grants under the Plan: (i) Chief Executive Officer, Lei Cao, is entitled to a one-time stock award grant of 400,000 shares, (ii) acting Chief Financial Officer, Tuo Pan, is entitled to a one-time stock award grant of 140,000 shares, (iii) Chief Operating Officer, Zhikang Huang, is entitled to a one-time stock award grant of 180,000 shares, (iv) Chief Technology Officer, Yafei Li is entitled to a one-time stock award grant of 80,000 shares, (v) Board member Jing Wang is entitled to a one-time stock award grant of 50,000 shares, (vi) Board member Tieliang Liu is entitled to a one-time stock award grant of 50,000 shares and (vii) Board member Bradley A. Haneberg is entitled to a one-time stock award grant of 50,000 shares. The Company recorded compensation expense of $731,500 for the three and six months ended December 31, 2018.  
Employees [Member]                                        
Equity (Textual)                                        
Shares vested                                     $ 364,000  
Shares of restricted common stock issued | shares               130,000                        
Restricted common stock vesting, description               One quarter of the total number of common shares became vested on each of November 16, 2017, February 16, 2018, May 16, 2018 and August 16, 2018.                        
Compensation expenses                                 0 91,000 91,000 $ 91,000
Restricted share price | $ / shares               $ 2.80                        
Legal expenses                                 63,500   127,000  
Options vesting, description               One quarter of the total number of common shares became vested on each of November 16, 2017, February 16, 2018, May 16, 2018 and August 16, 2018.                        
Consultants [Member]                                        
Equity (Textual)                                        
Common stock issued for services, shares | shares                   430,000     250,000     250,000        
Common stock price per share | $ / shares                   $ 1.10                    
Shares of restricted common stock issued | shares       50,000                                
Restricted common stock value issued                         $ 632,500              
Compensation expenses                                 21,667   21,667  
Fair value of common stock                   $ 473,000                    
Fair value of warrants       $ 65,000                                
Restricted share price | $ / shares                         $ 2.53              
Service agreement period                 18 months                      
Consulting expense                                     105,417 105,417
Consultants Four [Member]                                        
Equity (Textual)                                        
Shares of restricted common stock issued | shares                       200,000                
Restricted common stock value issued                       $ 548,000                
Compensation expenses                                 0 137,000 137,000 $ 137,000
Consultants Five [Member]                                        
Equity (Textual)                                        
Consulting expenses                                 0   $ 473,000  
Consultants Three [Member]                                        
Equity (Textual)                                        
Consulting expenses                                 $ 52,708 $ 52,709