| Equity
|
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|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Level 1: | Valuations for assets and liabilities traded in active markets from readily available pricing sources such as quoted prices in active markets for identical assets or liabilities. |
Level 2: | Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. |
Level 3: | Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. |
· | Exercise price - We determined the exercise price based on valuations using the best information available to management at the time of the valuations. |
· | Volatility – We estimate the stock price volatility based on industry peers who are also in the early development stage given the limited market data available in the public arena. |
· | Expected term - The expected term is based on a simplified method which defines the life as the average of the contractual term of the options and warrants and the weighted-average vesting period for all open awards. |
· | Risk-free rate - The risk-free interest rate for the expected term of the option or warrant is based on the average market rate on U.S. treasury securities in effect during the quarter in which the awards were granted. |
· | Dividends – The dividend yield assumption is based on our history and expectation of paying no dividends. |
|
1) | UM 1490 – transmucosal delivery of cannabinoids |
2) | UM 5070 – treatment for methicillin-resistant Staphylococcus aureus ("MRSA") infections |
3) | UM 8790 – ocular delivery of cannabinoids |
|
For the year ending December 31,
|
||||
2015
|
$
|
130,100
|
||
2016
|
165,700
|
|||
2017
|
85,900
|
|||
2018
|
-
|
|||
2019
|
-
|
|||
Thereafter
|
-
|
|||
Total
|
$
|
381,700
|
|
· | Contemporaneous valuation prepared by an independent third-party valuation specialist effective as of June 30, 2014 and October 31, 2014, |
· | Its results of operations, financial position and the status of research and development efforts and achievement of enterprise milestones, |
· | The composition of, and changes to, the Company's management team and board of directors, |
· | The lack of liquidity of its common stock as a private company, |
· | The Company's stage of development, business strategy and the material risks related to its business and industry, |
· | The valuation of publicly-traded companies in the biotechnology sectors, |
· | External market conditions affecting the biotechnology industry sectors, |
· | The likelihood of achieving a liquidity event for the holders of its common stock, such as an initial public offering ("IPO") or a sale of the Company, given prevailing market conditions, and |
· | The state of the IPO market for similarly situated privately held biotechnology companies. |
OPTIONS OUTSTANDING
|
||||||||||||||||
Shares Available
for Grant
|
# of Shares
|
Price per Share
|
Wtd Average
Exercise Price
|
|||||||||||||
Balance at December 31, 2013
|
||||||||||||||||
Approval of authorized shares
|
3,200,000
|
|||||||||||||||
Options granted
|
(1,730,000
|
)
|
1,730,000
|
$
|
0.42
|
$
|
0.42
|
|||||||||
Options exercised
|
||||||||||||||||
Options cancelled
|
||||||||||||||||
Balance at December 31, 2014
|
1,470,000
|
1,730,000
|
$
|
0.42
|
$
|
0.42
|
||||||||||
Options granted
|
(40,000
|
)
|
40,000
|
$
|
3.00
|
$
|
3.00
|
|||||||||
Options exercised
|
-
|
-
|
||||||||||||||
Options cancelled
|
-
|
-
|
||||||||||||||
Balance at March 31, 2015
|
1,430,000
|
1,770,000
|
$
|
0.48
|
$
|
0.48
|
Three Month Ended March 31,
|
|||
2015
|
2014
|
||
Dividend yield
|
0.00%
|
NA
|
|
Volatility factor
|
75.00%
|
NA
|
|
Risk-free interest rate
|
1.68%
|
NA
|
|
Expected term (years)
|
6.5
|
NA
|
|
Weighted-average fair value of options granted during the periods
|
$6.08
|
NA
|
|
|
|
Level 1: | Valuations for assets and liabilities traded in active markets from readily available pricing sources such as quoted prices in active markets for identical assets or liabilities. |
Level 2: | Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. |
Level 3: | Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. |
· | Exercise price - We determined the exercise price based on valuations using the best information available to management at the time of the valuations. |
· | Volatility – We estimate the stock price volatility based on industry peers who are also in the early development stage given the limited market data available in the public arena. |
· | Expected term - The expected term is based on a simplified method which defines the life as the average of the contractual term of the options and warrants and the weighted-average vesting period for all open awards. |
· | Risk-free rate - The risk-free interest rate for the expected term of the option or warrant is based on the average market rate on U.S. treasury securities in effect during the quarter in which the awards were granted. |
· | Dividends – The dividend yield assumption is based on our history and expectation of paying no dividends. |
|
For the year ending December 31,
|
||||
2015
|
$
|
130,100
|
||
2016
|
165,700
|
|||
2017
|
85,900
|
|||
2018
|
-
|
|||
2019
|
-
|
|||
Thereafter
|
-
|
|||
Total
|
$
|
381,700
|
|
OPTIONS OUTSTANDING
|
||||||||||||||||
Shares Available
for Grant
|
# of Shares
|
Price per Share
|
Wtd Average
Exercise Price
|
|||||||||||||
Balance at December 31, 2013
|
||||||||||||||||
Approval of authorized shares
|
3,200,000
|
|||||||||||||||
Options granted
|
(1,730,000
|
)
|
1,730,000
|
$
|
0.42
|
$
|
0.42
|
|||||||||
Options exercised
|
||||||||||||||||
Options cancelled
|
||||||||||||||||
Balance at December 31, 2014
|
1,470,000
|
1,730,000
|
$
|
0.42
|
$
|
0.42
|
||||||||||
Options granted
|
(40,000
|
)
|
40,000
|
$
|
3.00
|
$
|
3.00
|
|||||||||
Options exercised
|
-
|
-
|
||||||||||||||
Options cancelled
|
-
|
-
|
||||||||||||||
Balance at March 31, 2015
|
1,430,000
|
1,770,000
|
$
|
0.48
|
$
|
0.48
|
Three Month Ended March 31,
|
|||
2015
|
2014
|
||
Dividend yield
|
0.00%
|
NA
|
|
Volatility factor
|
75.00%
|
NA
|
|
Risk-free interest rate
|
1.68%
|
NA
|
|
Expected term (years)
|
6.5
|
NA
|
|
Weighted-average fair value of options granted during the periods
|
$6.08
|
NA
|
|
|
|
|
|
|
|
|
|
|