Quarterly report pursuant to Section 13 or 15(d)

Equity

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Equity
6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Note 5 – Equity
 
On May 2, 2016, the Company amended and restated its certificate of incorporation to increase the number of shares issuable to 80,000,000 of which 5,000,000 shares of preferred stock and 75,000,000 shares of common stock are authorized.
 
Preferred Stock
 
We are authorized to issue up to 5,000,000 shares of preferred stock. Our certificate of incorporation authorizes the board to issue these shares in one or more series, to determine the designations and the powers, preferences and relative, participating, optional or other special rights and the qualifications, limitations and restrictions thereof, including the dividend rights, conversion or exchange rights, voting rights (including the number of votes per share), redemption rights and terms, liquidation preferences, sinking fund provisions and the number of shares constituting the series. As of June 30, 2016, there was no designated preferred stock.
 
Common Stock
 
On May 31, 2016, the Company completed its IPO and sold 1,540,026 shares of the Company’s common stock. The IPO price per share was $6.00. The Company received net proceeds of $8,464,183 after deducting underwriting discounts, commissions and direct offering expenses payable by us. Pursuant to our agreement with our underwriters, as additional compensation, we issued the underwriters warrants to purchase 107,802 shares of common stock exercisable for a period of 5 years from date of issuance at an exercise price of $7.50 per share. The relative fair value of these warrants was $374,763 calculated using the Black-Scholes option-pricing model. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 1.39% (2) expected life of 5 years, (3) expected volatility of 80.61%, and (4) zero expected dividends.
 
In August 2015, the Company agreed to issue 4,600,000 shares of common stock to its director and officers for subscriptions of $4,600 cash to be received. As of June 30, 2016, the Company had not collected the proceeds for $3,000 of the subscriptions.
 
During the period from January 1, 2016 through May 2, 2016, the Company sold 234,296 common shares for $702,888. These shares are subject to the following lock-up agreement, from and after the later of six months after issuance or 90 days from the effective date of our IPO registration statement until the one-year anniversary thereof, (a) the holder of the shares can sell up to 10% of the purchased shares per month, subject to a maximum sale on any trading day of 8% of the daily volume of the common stock; (b) if the common stock price is over $7.00 per share for five consecutive trading days then the holder of the shares can sell up to 20% of the purchased shares per month, subject to a maximum sale on any trading day of 10% of the daily volume of the common stock; and (c) if the common stock price is over $12.00 per share then the holder of the shares is not restricted from making any sales until such time as the common stock price falls back below $12.00 per share.  
 
On June 20, 2016, the Company agreed to issue 24,000 shares of common stock to PCG Advisory Group, the Company’s investor relations firm, for services provided. The fair value of these shares was $157,688 based on the market price on the grant date.
 
Adoption of 2015 Stock Plan
 
On December 5, 2015, the Board of Directors of the Company approved the Company’s 2015 Stock Plan, which was amended on April 22, 2016. The expiration date of the plan is December 5, 2025 and the total number of underlying shares of the Company’s common stock available for grant to employees, directors and consultants under the plan is 2,500,000 shares. The awards under the 2015 Stock Plan can be in the form of stock options, stock awards or stock unit awards.
 
As of June 30, 2016, the Company has options to purchase 200,000 common shares outstanding. All of the options outstanding were issued on December 10, 2015. These options are exercisable at $0.20 per share and had a remaining contractual term of 9.5 years and an intrinsic value of $1,286,000   on June 30, 2016. Options to purchase 50,000 common shares vest each year beginning on December 10, 2016. During the six months ended June 30, 2016, the Company recorded stock option expense of $3,808. As of June 30, 2016, none of the options were exercisable   and unamortized expense related to these options was $23,582.