STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Preferred Stock In December 2014, the Company amended and restated its articles of incorporation to reduce the total number of authorized shares of preferred stock. The amended and restated articles of incorporation authorize the issuance of up to 5,000,000 Common Stock Shelf Registration On July 29, 2015, the Company’s registration statement on Form S-3, as filed with the SEC on July 23, 2015, was declared effective using a “shelf” registration process. Under this shelf registration statement, the Company may issue, in one or more offerings, any combination of Common Stock, preferred stock, senior or subordinated debt securities, warrants, or units, up to a total dollar amount of $ 100 April 5, 2017 Equity Offering On April 5, 2017, the Company closed on the sale of an aggregate of 2,222,222 10,000,000 4.50 On April 11, 2017, the Company closed the sale of an additional 333,333 1,500,000 11,500,000 $ 10,300,000 4.50 November 4, 2015 Controlled Equity Offering On November 4, 2015, the Company entered into a Controlled Equity Offering SM 25,000,000 Under the Sales Agreement, Cantor may sell Shares by any method permitted by law and deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended, including sales made directly on NASDAQ, on any existing trading market for the Common Stock or to or through a market maker. In addition, under the Sales Agreement, Cantor may sell the Shares by any other method permitted by law, including in privately negotiated transactions. The Company may instruct Cantor not to sell Shares if the sales cannot be effected at or above the price designated by the Company from time to time. The Company is not obligated to make any sales of Shares under the Sales Agreement, and if it elects to make any sales, the Company can set a minimum sales price for the Shares. The offering of Shares pursuant to the Sales Agreement will terminate upon the earlier of (a) the sale of all the shares subject to the Sales Agreement and (b) the termination of the Sales Agreement by Cantor or the Company, as permitted therein. From November 4, 2015 through December 31, 2015, the Company sold 28,880 225,000 282,394 1,659,000 196,000 held in escrow and From October 1, 2017 through November 7, 2017, the 157,398 980,000 468,672 6.30 2,863,000 The Company pays a commission rate of 3.0 50,000 The Company intends to use the net proceeds raised through “at the market” sales for research and development activities, which include the funding of additional clinical studies and costs of obtaining regulatory approvals in countries not covered by the CE Mark, capital expenditures and other costs necessary to expand production capacity, support of various sales and marketing efforts, product development and general working capital purposes. As a result of the repricing of the warrants which occurred in connection with the April 2017 equity offering, the Company recorded a dividend of $ 335,731 Stock-Based Compensation Stock Options: Total share-based employee, director, and consultant compensation for the three months and nine months ended September 30, 2017 and 2016 amounted to approximately $ 960,000 124,000 1,851,000 599,000 28,000 29,000 73,000 121,000 932,000 95,000 1,778,000 478,000 Weighted Weighted Average Average Remaining Exercise Price Contractual Shares per Share Life (Years) Outstanding, December 31, 2016 2,762,177 $ 4.69 6.0 Granted 1,180,950 5.45 9.7 Forfeited (17,640) 4.65 Expired (32,120) 36.33 Exercised (74,180) 3.56 Outstanding, September 30, 2017 3,819,187 $ 4.68 6.8 The fair value of each stock option was estimated using the Black Scholes pricing model which takes into account as of the grant date the exercise price (ranging from $ 3.45 6.20 10 66.8 80.8 0 1.24 1.85 Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise September 30, Exercise Remaining Intrinsic Price 2017 Price Life (Years) Value $0.88 - $11.48 3,819,187 $ 4.68 6.8 $ 6,045,932 Options Exercisable Number Weighted Exercisable at Average Aggregate September 30, Exercise Intrinsic 2017 Price Value 2,592,062 $ 4.31 $ 5,125,994 Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2017 912,547 $ 2.55 Granted 1,180,950 0.58 Forfeited (1,000) 2.41 Vested (865,372) 2.36 Non-vested, September 30, 2017 1,227,125 $ 0.62 As of September 30, 2017, the Company had approximately $ 470,000 On February 24, 2017, the Board of Directors granted options to purchase 953,200 3,284,000 821,000 1,478,000 In April 2015, the Board of Directors also granted 960,000 7,747,200 240,000 1,936,000 75,000 414,000 1,941,660 1,539,000 129,500 725,200 1,668,500 Performance Based Stock Awards: Pursuant to a review of the compensation of the senior management of the Company, on June 7, 2016, the Board of Directors granted 80,000 375,200 31,000 77,000 Pursuant to a review of the compensation of the senior management of the Company and managements’ performance in 2016, on February 24, 2017, the Board of Directors granted 125,000 700,000 58,000 175,000 Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2017 53,335 $ 4.69 Granted 125,000 5.60 Vested (68,332) 5.24 Non-vested, September 30, 2017 110,003 $ 5.38 Warrants: Number of Shares Warrant Exercise Warrant To be Purchased Price per Share Expiration Date 113,600 $ 3.750 June 21, 2018 110,000 $ 3.125 September 30, 2018 48,960 $ 7.500 March 11, 2019 717,000 $ 4.500 March 11, 2019 30,000 $ 9.900 January 14, 2020 1,019,560 In connection with its March 11, 2014 offering, the Company issued warrants to purchase 816,000 717,000 |