Stock Option Plans, Shares Reserved and Warrants

3 Months Ended

Jun. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Plans, Shares Reserved and Warrants

Note 6: Stock Option Plans, Shares Reserved and Warrants

On April 1, 2014, the Company issued options to purchase 86,300 shares of common stock to officers and employees of the Company under the 2009 Equity Incentive Plan with an exercise price of $6.32 per share. The options were granted as a discretionary bonus for performance during the year ended March 31, 2014 and vested immediately. These options were valued using the Black-Scholes option pricing model, the expected volatility was approximately 28% and the risk-free interest rate was approximately 3%, which resulted in a calculated fair value of $239,051 which was accrued as compensation during the year ended March 31, 2014.

On April 1, 2014, the Company issued options to purchase 283,800 shares of common stock to officers and employees of the Company under the 2009 Equity Incentive Plan with an exercise price of $6.32 per share. These options were valued using a Black Scholes model; the expected volatility was approximately 28% and the risk-free interest rate was approximately 3%. The calculated fair value of the options was $786,126.

The Company recorded $110,502 of share based compensation expense during the three months ended June 30, 2014. The following summarizes outstanding stock options at June 30, 2014:

	Number of Stock Options	Weighted Average Remaining Contractual Life		Weighted Average Exercise Price	Number of Stock Options Vested
2009 Equity Incentive Plan	774,722	8.10 Years	$	6.07	461,357

 The following summarizes warrants outstanding at June 30, 2014:

	Warrant Shares		Exercise Price Per Share		Date Issued	Expiration Date
Old Adamis Warrants		58,824	$	8.50	November 15, 2007	November 15, 2015
Consultant Warrants		635	$	3.40	January 29, 2010	January 29, 2015
2013 Private Placement		836,692	$	5.95-12.16	June 26, 2013	June 25, 2018
Consultant Warrants		17,647	$	3.74	July 11, 2011	July 11, 2016
Underwriter Warrants		186,000	$	7.44	December 12, 2013	December 12, 2018
Underwriter Warrants		27,900	$	7.44	December 16, 2014	January 16, 2019
Total Warrants		1,127,698

At June 30, 2014, the Company has reserved shares of common stock for issuance upon exercise of outstanding options and warrants, and options and other awards that may be granted in the future under the 2009 Equity Incentive Plan, as follows:

Warrants	1,127,698
2009 Equity Incentive Plan	1,862,620
Total Shares Reserved	2,990,318