Quarterly report pursuant to Section 13 or 15(d)

NOTE 7 - OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS (Tables)

v3.3.0.814
NOTE 7 - OPTIONS, RESTRICTED STOCK UNITS AND WARRANTS (Tables)
9 Months Ended
Sep. 30, 2015
Disclosure Text Block Supplement [Abstract]  
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] The following table presents information related to stock options at September 30, 2015:

Options Outstanding
   
Options Exercisable
 
           
Weighted
       
           
Average
   
Exercisable
 
Exercise
   
Number of
   
Remaining Life
   
Number of
 
Price
   
Options
   
In Years
   
Options
 
$
1.01-2.00
     
1,169,642
     
5.4
     
877,642
 
 
2.01-3.00
     
5,935,548
     
6.6
     
4,204,492
 
 
3.01-4.00
     
300,000
     
9.5
     
300,000
 
         
7,405,190
     
6.5
     
5,382,134
 
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] A summary of the stock option activity and related information for the 2012 Plan for the nine months ended September 30, 2015 is as follows:

               
Weighted-Average
       
         
Weighted-Average
   
Remaining
   
Aggregate
 
   
Shares
   
Exercise Price
   
Contractual Term
   
Intrinsic Value
 
Outstanding at January 1, 2015
   
5,990,190
   
$
2.25
     
6.7
     
3,267,692
 
Grants
   
1,425,000
     
2.70
     
10.0
     
-
 
Exercised
   
  (10,000
)
   
2.09
                 
Canceled
   
  -
                         
Outstanding at September 30, 2015
   
7,405,190
   
$
2.34
     
6.5
   
$
-
 
Exercisable at September  30, 2015
   
5,382,134
   
$
2.35
     
6.5
   
$
-
 
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block] During the nine months ended September 30, 2015, the Company granted an aggregate of 1,425,000 options to purchase the Company’s common stock in connection with the services rendered at exercise prices from $1.74 to $3.99 per share for a term of seven years. Vesting is as follows:

  450,000  
50% immediately, 50% at first year anniversary
  130,000  
1/4 per quarter, over one year
  65,000  
50%, immediately, 50% performance contingent
  300,000  
1/12 per month beginning first month anniversary
  480,000  
Exercisable immediately
  1,425,000    
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] The fair value of the granted options for the nine months ended September 30, 2015 was determined using the Black Scholes option pricing model with the following assumptions:

Dividend yield:
   
-0-
%
Volatility
 
118.56% to 130.30
%
Risk free rate:
 
1.19% to 2.37
%
Expected life:
 
7 to 10 years
 
Estimated fair value of the Company’s common stock
 
$
1.40 to $3.99
 
Estimated forfeiture rate
   
0
%
Nonvested Restricted Stock Shares Activity [Table Text Block] The following table summarizes the restricted stock activity for the nine months ended September 30, 2015:

Restricted shares issued as of January 1, 2015
   
-
 
Granted
   
175,000
 
Total restricted shares issued as of September 30, 2015
   
175,000
 
Vested restricted shares as of September 30, 2015
   
(-
)
Unvested restricted shares as of September 30, 2015
   
175,000
 
Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Table Text Block] The following table summarizes information with respect to outstanding warrants to purchase common stock of the Company, all of which were exercisable, at September 30, 2015:

Exercise
   
Number
   
Expiration
 
Price
   
Outstanding
   
Date
 
$
0.001
     
383,320
   
January 2020
 
$
1.50
     
3,940,057
   
February 2018 to September 2018
 
$
1.84
     
35,076
   
January 2020
 
$
2.00
     
100,000
   
August 2018
 
$
2.02
     
30,755
   
January 2020
 
$
2.50
     
100,000
   
August 2018
 
$
2.75
     
228,720
   
August 2019 to September 2019
 
$
3.67
     
214,193
   
December 2018 to January 2019
 
$
3.75
     
1,340,556
   
April 2019 to March 2020
 
         
6,372,677
       
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] A summary of the warrant activity for the nine months ended September 30, 2015 is as follows:

               
Weighted-Average
       
         
Weighted-Average
   
Remaining
   
Aggregate
 
   
Shares
   
Exercise Price
   
Contractual Term
   
Intrinsic Value
 
Outstanding at January 1, 2015
   
5,113,990
   
$
1.71
     
3.6
     
6,041,436
 
Grants
   
3,022,471
     
2.79
     
2.2
     
-
 
Exercised
   
  (164,184
)
   
  1.58
                 
Canceled
   
  (1,599,600
 
$
  2.50
                 
Outstanding at September 30, 2015
   
6,372,677
   
$
2.03
     
3.0
   
$
536,265
 
                                 
Vested and expected to vest at September 30, 2015
   
6,372,677
   
$
2.03
     
2.8
   
$
536,265
 
Exercisable at September 30, 2015
   
6,189,345
   
$
2.02
     
2.8
   
$
536,265