Stockholders' Equity

6 Months Ended

Jul. 31, 2014

Equity [Abstract]

Stockholders' Equity

Note 8 - Stockholders’ Equity

(A) Common Stock Transactions

During January 2014, the Company sold 300,000 shares of common stock to investors in exchange for $450,000 in proceeds in connection with the private placement of the Company’s stock. The shares were issued in March 2014.

In connection with the private placement the Company incurred fees of $102,166 consisting of $58,500 in cash and 30,000 warrants with a fair value of $43,666.

During March 2014, the Company sold 236,667 shares of common stock to investors in exchange for $355,000 in proceeds in connection with the private placement of the Company’s stock. The shares were issued in June 2014.

In connection with the private placement the Company incurred fees of $80,536 consisting of $46,150 in cash and 23,667 warrants with a fair value of $34,386.

During April 2014, the Company sold 416,668 shares of common stock to investors in exchange for $625,001 in proceeds in connection with the private placement of the Company’s stock. The shares were issued in June 2014.

In connection with the private placement the Company incurred fees of $141,791 consisting of $81,250 in cash and 41,667 warrants with a fair value of $60,541.

During May 2014, the Company sold 133,333 shares of common stock to investors in exchange for $200,000 in proceeds in connection with the private placement of the Company’s stock. The shares were issued in June 2014.

In connection with the private placement the Company incurred fees of $82,796 consisting of $26,000 in cash and 17,333 warrants with a fair value of $56,796.

Common Stock Subscribed

During June 2014, the Company sold 66,668 shares of common stock to investors in exchange for $100,000 in proceeds in connection with the private placement of the Company’s stock. The shares were not issued as of July 31, 2014.

In connection with the private placement the Company incurred fees of $33,258 consisting of $13,000 in cash and 8,667 warrants with a fair value of $20,258.

(B) Options

The following is a summary of the Company’s option activity:

	Options			Weighted Average Exercise Price
Outstanding – January 1, 2013		223,404		$	1.00
Exercisable – January 1, 2013		-		$	-
Granted		318,000		$	1.00
Exercised		-		$	-
Forfeited/Cancelled		-		$	-
Outstanding – December 31, 2013		541,404		$	1.00
Exercisable – December 31, 2013		428,845		$	1.00
Granted		-		$	-
Exercised		-		$	-
Forfeited/Cancelled		-		$	-
Outstanding – January 31, 2014		541,404		$	1.00
Exercisable – January 31, 2014		434,177		$	1.00
Granted		59,000		$	2.95
Exercised		-		$	-
Forfeited/Cancelled		(36,000	)	$	-
Outstanding – July 31, 2014		564,404		$	1.20
Exercisable – July 31, 2014		472,404		$	1.22

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		505,404	3.52 years	$	1.00		417,904	$	1.00
$	2.95		50,000	4.73 years	$	2.95		50,000	$	2.95
$	2.97		9,000	4.75 years	$	2.97		4,500	$	2.97

At July 31, 2014 and January 31, 2014, the total intrinsic value of options outstanding and exercisable was $429,593 and $1,082,808, respectively.

As of July 31, 2014, the Company has $84,351 in stock-based compensation related to stock options that is yet to be vested. The weighted average expensing period of the unvested options is 1.48 years.

(C) Warrants

The following is a summary of the Company’s warrant activity:

	Warrants		Weighted Average Exercise Price
Outstanding – January 1, 2013		505,400	$	1.00
Exercisable – January 1, 2013		-	$	-
Granted		386,667	$	1.50
Exercised		-	$	-
Forfeited/Cancelled		-	$	-
Outstanding – December 31, 2013		892,067	$	1.22
Exercisable – December 31, 2013		892,067	$	1.22
Granted		30,000	$	1.50
Exercised		-	$	-
Forfeited/Cancelled		-	$	-
Outstanding – January 31, 2014		922,067	$	1.22
Exercisable – January 31, 2014		922,067	$	1.22
Granted		189,334	$	2.02
Exercised		-	$	-
Forfeited/Cancelled		-	$	-
Outstanding – July 31, 2014		1,111,401	$	1.36
Exercisable – July 31, 2014		1,013,401	$	1.25

Warrants Outstanding						Warrants 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-$2.50	1,111,401	3.71 years	$	1.36		1,013,401	$	1.25

At July 31, 2014 and January 31, 2014, the total intrinsic value of warrants outstanding and exercisable was $607,390 and $1,635,801, respectively.