| Stockholder's Equity | Note 4 –Stockholders’
Equity Common stock In May 2017, BioPharma commenced a private
placement of 1,116,400 units of Common Stock and Warrants at a price of $1.25 per unit. Each unit consisted of ten shares of Common
Stock, one Class A Warrant to purchase one share of Common Stock at $0.25 per share, one Class B Warrant to purchase one share
of Common Stock at $0.38 per share and one Class C Warrant to purchase one share of Common Stock at $0.50 per share. As of June
30, 2017, 778,400 units had been sold, for total gross proceeds of $973,000, including 387,200 units which were subscribed but
for which funds had not been received. The 3,872,000 shares underlying the subscribed units in the amount of $484,000 were included
as issued and outstanding shares at June 30, 2017, and the related $484,000 subscription receivable was recorded as a component
of stockholders’ equity on the June 30, 2017 consolidated balance sheet. Subsequent to June 30, 2017, the Company received
proceeds of $484,000 for the subscribed shares. In July and August 2017, BioPharma sold an additional 338,000 units (3,380,000
shares) for gross proceeds of $422,500. On August 10, 2017, BioPharma adopted
the “2017 Stock Incentive Plan” and granted an aggregate of 6,400,000 shares of BioPharma Common Stock to five officers
and directors of the Company, valued at $800,000 ($0.125 per share). One-third of each grant vested as of the initial date of grant
(August 10, 2017), and 8-1/3% upon the end of each calendar quarter beginning December 31, 2017. As of December 31, 2017, 3,733,341
of the shares issued (valued at $466,667) are subject to forfeiture until vesting occurs. On August 25, 2017, BioPharma entered
into consulting agreements with two unrelated individuals for (i) developing and maintaining social media portals and (ii) identifying
and developing potential strategic partners for the Company’s various drug development activities. The agreements are each
for a three month term, payable monthly in shares of the Company’s common stock, valued at $0.125 per share, of an aggregate
304,800 shares and 138,000 shares, respectively. As of December 31, 2017, an aggregate 442,800 shares, valued at $55,350, have
been issued to the two individuals for services rendered pursuant to the consulting agreements. On September 1, 2017, BioPharma commenced
a private placement sale of its common stock at $0.25 per share. The Company sold 100,000 shares for gross proceeds of $25,000,
before offering costs of $4,916. Warrants The relative fair value of the warrants
attached to the common stock issued in the May 2017 private placement of units was estimated at the date of grant using the Black-Sholes
pricing model. The relative fair value attached to the common stock component is $1,139,573 and the relative fair value of the
warrants is $255,927 as of the grant date. The following table summarizes information
about warrants outstanding at December 31, 2017:
Number Exercise Price Expires
Class A 968,400 $ 0.25 Jan. 31, 2018
Class B 1,052,400 $ 0.38 May 7, 2018
Class C 1,058,400 $ 0.50 July 14, 2018 During the quarter ended December 31,
2017, warrants were exercised as follows:
Number Exercise Price Gross Proceeds
Class A 148,000 $ 0.25 $37,000
Class B 64,000 $ 0.38 $24,320
Class C 58,000 $ 0.50 $29,000 |
