Stockholders' Equity

1 Months Ended

Jan. 31, 2014

Equity [Abstract]

Stockholders' Equity

Note 8 - Stockholders’ Equity

(A) Common Stock Transactions

2012

The Company issued 5,054,000 shares for cash proceeds of $5,054,000 ($1.00/share).

2013

As a result of the reverse merger (see Note 1) the Company had a deemed issuance of 800,000 shares of common stock.

From July 1, 2013 through December 31, 2013, the Company issued 3,333,375 shares of common stock to investors in exchange for $5,000,000 in proceeds in connection with the private placement of the Company’s stock.

Common Stock Subscribed

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. As of January 31, 2014, the shares had not been issued.

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.

In December 2013, the Company sold 533,333 shares of common stock to investors in exchange for $800,000 in proceeds in connection with the private placement of the Company’s stock. As of January 31, 2014, the shares had not been issued.

In connection with the 2013 private placement the Company incurred fees of $1,604,000 consisting of $872,106 in cash and 386,666 warrants with a fair value of $731,894. 

(B) Options

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

	Options		Weighted Average Exercise Price
Outstanding – January 1, 2012		-	$	-
Exercisable – January 1, 2012		-	$	-
Granted		223,404	$	1.00
Exercised		-	$	-
Forfeited/Cancelled		-	$	-
Outstanding – December 31, 2012		223,404	$	1.00
Exercisable – December 31, 2012		223,404	$	1.00
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		-	$	1.00
Exercised		-	$	-
Forfeited/Cancelled		-	$	-
Outstanding – January 31, 2014		541,404	$	1.00
Exercisable – January 31, 2014		434,177	$	1.00

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		541,404	3.76 years	$	1.00	434,177	$	1.00

At January 31, 2014 and December 31, 2013 and 2012, the total intrinsic value of options outstanding and exercisable was $1,082,808, $812,106 and $0, respectively.

As of January 31, 2014, the Company has $2,015 in stock based compensation related to stock options that is yet to be vested. The weighted average expensing period of the unvested options is .7 years. 

(C) Warrants

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

	Warrants		Weighted Average Exercise Price
Outstanding – January 1, 2012		-	$	1.00
Exercisable – January 1, 2012		-	$	-
Granted		505,400	$	1.50
Exercised		-	$	-
Forfeited/Cancelled		-	$	-
Outstanding – December 31, 2012		505,400	$	1.00
Exercisable – December 31, 2012		505,400	$	1.00
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

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-$1.50		922,067	3.98 years	$	1.23	922,067	$	1.22

At January 31, 2014 and December 31, 2013 and 2012, the total intrinsic value of warrants outstanding and exercisable was $1,635,801, $1,144,767 and $0, respectively.