Shareholders' Equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Stockholders' Equity

Shareholders’ Equity

Common stock

The Company estimates the fair value of employee stock options and warrants granted using the Black-Scholes Option Pricing Model. Key assumptions used to estimate the fair value of warrants and stock options include the exercise price of the award, the fair value of the Company’s common stock on the date of grant, the expected warrant or option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on the Company’s common stock. 

During the three months ended September 30, 2015 and in consideration of capital contributions by Aurora of $436,000 pursuant to the capital contribution agreement with Aurora, the Company issued 436,000 warrants to Navitus with an exercise price ranging from $0.25 - $0.35.

The warrants vest immediately and the Company valued the common stock warrants using the Black Scholes Option Pricing Model for the three and nine months ended September 30, 2015 at $68,507 and $492,487, respectively.

During the nine months ended September 30, 2015, the Company issued 600,000 shares of stock options, which are vesting over a period of 36 months, and 1,305,000 shares of common stock to the board of directors for their services which are vested immediately.