7. Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Summary of stock option activity

	Nine Month Period Ended
	September 30, 2015
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		1,390,770		$	1.50
Granted		1,290,881		$	2.06
Exercised		(87,856	)	$	1.14
Forfeited		(3,438	)	$	3.77
Outstanding at September 30, 2015		2,590,357		$	1.79
Stock options exercisable at September 30, 2015		1,215,230		$	1.41

Weighted average assumptions of share based payment

	Three Month Period Ended				Nine Month Period Ended
	September 30,				September 30,
	2015		2014		2015		2014
Risk free interest rate		1.77%		1.93%		1.77%		2.02%
Dividend yield		0.0%		0.0%		0.0%		0.0%
Expected term (in years)		7		7		7		7
Volatility		105%		105%		105%		105%

Stock compensation expense

	Three Month Period Ended				Nine Month Period Ended
	September 30,				September 30,
	2015		2014		2015		2014
Research and development costs	$	26,751	$	1,064	$	53,109	$	18,550
Sales and marketing costs		26,746		7,624		51,771		12,910
General and administrative costs		93,955		46,671		159,405		111,947
Cost of product sales		30,807		18,966		72,345		40,094
Total	$	178,259	$	74,325	$	336,630	$	183,501