9. Stockholders' Equity (Tables)
|
9 Months Ended |
Sep. 30, 2012
|
Equity [Abstract] |
|
Assets and Liabilities acquired |
The assets acquired and liabilities assumed from the publicly-held
company were as follows:
Cash and cash equivalents |
|
$ |
337 |
|
Liabilities assumed |
|
|
(21,206 |
) |
Net |
|
$ |
(20,869 |
) |
|
Warranty Activity |
A summary of the Companys warrant activity during
the nine months ended September 30, 2012 is presented below:
|
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
|
Weighted |
|
|
Average |
|
|
|
|
|
|
|
|
|
Average |
|
|
Remaining |
|
|
Aggregate |
|
|
|
Number of |
|
|
Exercise |
|
|
Contractual |
|
|
Intrinsic |
|
Warrants |
|
Shares |
|
|
Price |
|
|
Term |
|
|
Value |
|
Balance Outstanding, December 31, 2011 |
|
|
456,000 |
|
|
$ |
0.33 |
|
|
|
|
|
|
|
Issued |
|
|
6,187,264 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
Exercised |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Forfeited |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Expired |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
Balance Outstanding, September 30, 2012 |
|
|
6,643,264 |
|
|
$ |
0.43 |
|
|
|
4.7 |
|
|
$ |
47,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable, September 30, 2012 |
|
|
6,643,264 |
|
|
$ |
0.43 |
|
|
|
4.7 |
|
|
$ |
47,332 |
|
|
Compensation Expense for Stock Options Granted |
The following table summarizes the assumptions
the Company utilized to record compensation expense for stock options granted to employees during the nine months ended September
30, 2012 and 2011:
|
|
For the Nine |
|
|
For the Nine |
|
|
|
Months Ended |
|
|
Months Ended |
|
Assumptions |
|
Septmber 30, 2012 |
|
|
Septmber 30, 2011 |
|
Expected life (years) |
|
|
2.5 - 3.8 |
|
|
|
N/A |
|
Expected volatility |
|
|
44.2 |
% |
|
|
N/A |
|
Weighted-average volatility |
|
|
44.2 |
% |
|
|
N/A |
|
Risk-free interest rate |
|
|
0.31% - 0.60 |
% |
|
|
N/A |
|
Dividend yield |
|
|
0.00 |
% |
|
|
N/A |
|
Expected forfeiture rate |
|
|
1.4 |
% |
|
|
N/A |
|
|
Stock Options Activity to Employees |
A summary of the Companys stock option activity for
employees and directors during the nine months ended September 30, 2012 is presented below:
|
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
|
Weighted |
|
|
Average |
|
|
|
|
|
|
|
|
|
Average |
|
|
Remaining |
|
|
Aggregate |
|
|
|
Number of |
|
|
Exercise |
|
|
Contractual |
|
|
Intrinsic |
|
Options |
|
Shares |
|
|
Price |
|
|
Term |
|
|
Value |
|
Balance Outstanding, December 31, 2011 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Granted |
|
|
4,779,371 |
|
|
$ |
0.61 |
|
|
|
|
|
|
|
Exercised |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Forfeited |
|
|
(190,000 |
) |
|
$ |
1.00 |
|
|
|
|
|
|
|
Expired |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Balance Outstanding, September 30, 2012 |
|
|
4,589,371 |
|
|
$ |
0.59 |
|
|
|
4.8 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected to vest, September 30, 2012 |
|
|
4,531,194 |
|
|
$ |
0.59 |
|
|
|
4.8 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable, September 30, 2012 |
|
|
166,665 |
|
|
$ |
0.35 |
|
|
|
5.0 |
|
|
$ |
- |
|
|
Stock Options Grants to Non-Employees |
The following table summarizes the assumptions the Company
utilized to record compensation expense for stock options granted to non-employees during the nine months ended September 30, 2012
and 2011:
|
|
For the Nine |
|
|
For the Nine |
|
|
|
Months Ended |
|
|
Months Ended |
|
Assumptions |
|
Septmber 30, 2012 |
|
|
Septmber 30, 2011 |
|
Expected life (years) |
|
|
3.5 |
|
|
|
N/A |
|
Expected volatility |
|
|
44.2 |
% |
|
|
N/A |
|
Weighted-average volatility |
|
|
44.2 |
% |
|
|
N/A |
|
Risk-free interest rate |
|
|
0.60 |
% |
|
|
N/A |
|
Dividend yield |
|
|
0.00 |
% |
|
|
N/A |
|
A summary of the Companys stock option activity for
non-employees during the nine months ended September 30, 2012 is presented below:
|
|
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
|
|
|
Weighted |
|
|
Average |
|
|
|
|
|
|
|
|
|
Average |
|
|
Remaining |
|
|
Aggregate |
|
|
|
Number of |
|
|
Exercise |
|
|
Contractual |
|
|
Intrinsic |
|
Options |
|
Shares |
|
|
Price |
|
|
Term |
|
|
Value |
|
Balance Outstanding, December 31, 2011 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Granted |
|
|
175,000 |
|
|
$ |
1.00 |
|
|
|
|
|
|
|
Exercised |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Forfeited |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Expired |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Balance Outstanding, September 30, 2012 |
|
|
175,000 |
|
|
$ |
1.00 |
|
|
|
4.5 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected to vest, September 30, 2012 |
|
|
175,000 |
|
|
$ |
1.00 |
|
|
|
4.5 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable, September 30, 2012 |
|
|
- |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|