| Stockholders' Deficiency | 6. Stockholders’ Deficiency Preferred Stock The Company has authorized
a total of 5,000,000 shares of preferred stock, par value $0.001 per share. As of December 31, 2017 and 2016, 1,250,000 shares
were designated as 9% Cumulative Convertible Preferred Stock (non-voting, “9% Preferred Stock”); 37,500 shares were
designated as Series B Convertible Preferred Stock (non-voting, “Series B Preferred Stock”); 205,000 shares were designated
as Series A Junior Participating Preferred Stock (non-voting, “Series A Junior Participating Preferred Stock”); and
1,700 shares were designated as Series G 1.5% Convertible Preferred Stock. Accordingly, as of December 31, 2017, 3,505,800 shares
of preferred stock were undesignated and may be issued with such rights and powers as the Board of Directors may designate. There were no shares of
9% Preferred Stock or Series A Junior Participating Preferred Stock or Series G 1.5% Convertible Preferred Stock outstanding as
of December 31, 2017 and 2016. Series B Preferred Stock
outstanding as of December 31, 2017 and 2016 consisted of 37,500 shares issued in a May 1991 private placement. Each share of Series
B Preferred Stock is convertible into approximately 0.00030 shares of common stock at an effective conversion price of $2,208,375
per share of common stock, which is subject to adjustment under certain circumstances. As of December 31, 2017 and 2016, the shares
of Series B Preferred Stock outstanding are convertible into 11 shares of common stock. The Company may redeem the Series B Preferred
Stock for $25,001, equivalent to $0.6667 per share, an amount equal to its liquidation preference, at any time upon 30 days prior
notice. Series G 1.5% Convertible Preferred Stock On April 17, 2016, the
remaining 259.7 unconverted shares of Series G 1.5% Convertible Preferred Stock outstanding (including accrued but unpaid dividends)
issued in 2014 were automatically and mandatorily converted into 242,173 newly issued shares of common stock at a conversion price
of $1.0725 per share and provided no right to receive a cash payment. There were no shares of Series G Preferred Stock outstanding
at any time in 2017. There were $1,165 of accrued dividends in respect to the Series G Preferred Stock for the year ended December
31, 2016. Common Stock On August 16, 2016, at
a special meeting of the stockholders of the Company, the stockholders approved an amendment to the Company’s Second Restated
Certificate of Incorporation (i) to effect, at the discretion of the Company’s Board of Directors, a three hundred twenty
five-to-one (325-to-1) reverse stock split of all of the outstanding shares of the Company’s common stock, par value $0.001
per share, and (ii) to set the number of the Company’s authorized shares of stock at 70,000,000 shares, consisting of 65,000,000
shares designated as common stock, par value $0.001 per share, and 5,000,000 shares designated as preferred stock, par value $0.001
per share. On September 1, 2016, the Company filed a Certificate of Amendment to the Company’s Second Restated Certificate
of Incorporation with the Secretary of State of the State of Delaware to effect the approved amendment. Pursuant to the amendment,
an aggregate of 191.068 fractional shares resulting from the reverse stock split were not issued, but were to be paid out in cash
(without interest or deduction) in an amount equal to the number of shares exchanged into such fractional share multiplied by the
average closing trading price of the Company’s common stock on the OTCQB for the five trading days immediately before the
Certificate of Amendment effecting the reverse stock split was filed with the Delaware Secretary of State ($6.7899 per share, on
a post reverse stock split basis) for an aggregate of $1,298. 2015 Unit Offering On August 28, 2015, the
Company entered into a Second Amended and Restated Common Stock and Warrant Purchase Agreement (the “Purchase Agreement”)
with various accredited investors (each, a “Purchaser”, and together with purchasers in subsequent closings in the
private placement, the “Purchasers”), pursuant to which the Company sold units for aggregate cash consideration of
$721,180, with each unit consisting of (i) one share of the Company’s common stock, representing an aggregate of 105,517
shares of common stock, and (ii) one warrant to purchase two additional shares of common stock, representing an aggregate of 211,034
warrants. This financing represented the initial closing of a private placement of up to $3,000,000. On September 28, 2015, the
Company completed a second closing of the Purchase Agreement with various additional Purchasers, pursuant to which the Company
sold units for aggregate cash consideration of $218,530, with each unit consisting of (i) one share of the Company’s common
stock, representing an aggregate of 31,973 shares of common stock, and (ii) one warrant to purchase two additional shares of common
stock, representing an aggregate of 63,946 Warrants. On November 2, 2015, the Company completed a third closing of the Purchase
Agreement with various Purchasers, pursuant to which the Company sold units for aggregate cash consideration of $255,000, with
each unit consisting of (i) one share of the Company’s common stock, representing an aggregate of 37,309 shares of common
stock, and (ii) one warrant to purchase two additional shares of common stock, representing an aggregate of 74,618 warrants. This
third closing brought the aggregate amount raised under this private placement as of November 2, 2015 to $1,194,710. The unit price in each
closing of the private placement was $6.8348 (the “Per Unit Price”). The Warrants are exercisable through September
30, 2020 and may be exercised at a price of $6.8348 for each share of Common Stock to be acquired upon exercise. The Purchasers
consisted of non-affiliated investors, other than Dr. James S. Manuso, the current President and Chief Executive Officer of the
Company, who invested $250,000 in the initial closing of the private placement, and one other investor who invested $301,180 in
the private placement and became an affiliate of the Company by virtue of his aggregate stock holdings in the Company. The Warrants
do not contain any cashless exercise provisions or reset rights. No registration rights
were granted to any Purchaser in this private placement with respect to (i) the shares of common stock issued as part of the units,
(ii) the warrants, or (iii) the shares of common stock issuable upon exercise of the warrants. Placement agent fees, brokerage
commissions, and similar payments were made in the form of cash and warrants to qualified referral sources in connection with certain
sales of the shares of common stock and warrants, while other sales, including the sale to Dr. James S. Manuso, did not result
in any fees or commissions. Accordingly, the amount of such fees, on a percentage basis, varies in each closing. The fees paid
to such referral sources for the initial closing in cash totaled $47,118, or 6.5% of the aggregate amount paid for the units sold.
The fees paid in warrants for the initial closing to such referral sources (the warrants paid to qualified referral sources are
referred to herein as the “Placement Agent Warrants”) consist of warrants for 6,894 shares of common stock, or that
number of shares equal to 6.5% of the number of shares of common stock issued as part of the units, but not the shares underlying
the warrants. In connection with the second closing, fees paid to referral sources in cash totaled $18,603, or 8.5% of the aggregate
amount paid for the units sold, and 2,722 Placement Agent Warrants were issued, or warrants for that number of shares equal to
8.5% of the number of shares of common stock issued as part of the units, but not the shares underlying the Warrants. In connection
with the third closing, fees paid to referral sources in cash totaled $25,500, or 10% of the aggregate amount paid for the units
sold, and 3,731 Placement Agent Warrants were issued, or warrants for that number of shares equal to 10% of the number of shares
of common stock issued as part of the units, but not the shares underlying the Warrants. Placement Agent Warrants are exercisable
until September 30, 2020 at the Per Unit Price. The Placement Agent Warrants have cashless exercise provisions. One of the placement
agents that received Placement Agent Warrants is Aurora. Both Arnold S. Lippa and Jeff E. Margolis, officers and directors of the
Company, have indirect ownership interests in Aurora through interests held in its members, and Jeff E. Margolis is also an officer
of Aurora. As a result, both Arnold S. Lippa and Jeff E. Margolis, or entities in which they have interests, will receive a portion
of the Placement Agent Warrants awarded in this private placement. In addition to the above
described placement agent fees, brokerage commissions, and similar payments that were made in the form of cash and warrants to
qualified referral sources, the Company also paid $10,164 in cash to other professionals for services related to the three closings. The shares of common stock
and warrants were offered and sold without registration under the Securities Act in reliance on the exemptions provided by Section
4(a)(2) of the Securities Act as provided in Rule 506(b) of Regulation D promulgated thereunder. None of the shares of common stock
issued as part of the units, the warrants, the common stock issuable upon exercise of the warrants, the Placement Agent Warrants
or the shares of common stock issuable upon exercise of the Placement Agent Warrants were registered under the Securities Act or
any other applicable securities laws, and unless so registered, may not be offered or sold in the United States except pursuant
to an exemption from the registration requirements of the Securities Act. Unit Exchange Agreement During April and May 2016,
the Company entered into Unit Exchange Agreements with certain warrant holders who had acquired units in connection with the Second
Amended and Restated Common Stock and Warrant Purchase Agreement on August 28, 2015, September 28, 2015 or November 2, 2015. The
Unit Exchange Agreements provided for the warrant holders to exchange (i) existing warrants to purchase an aggregate of 217,187
shares of the Company’s common stock, plus (ii) an aggregate of $529,394 in cash, in return for (i) an aggregate of 108,594
shares of the Company’s common stock with a total market price of $728,859 (average $6.7275 per share), and (ii) new warrants
to purchase an aggregate of 108,594 shares of the Company’s common stock with an exercise price of $4.8750 per share, exercisable
for cash or on a cashless basis through the original expiration date of September 30, 2020. For accounting purposes,
for those unit warrant holders accepting the Company’s exchange offer, the Company evaluated the fair value of the incremental
consideration paid to induce the unit warrant holders to exchange their original warrants for exchanged warrants and determined
that the Company did not incur any cost with respect to the exchange transactions. Information with respect to the Black-Scholes
variables used in connection with the evaluation of the fair value of the exchange consideration is provided at Note 3. 1st 2016 Unit Offering On January 8, 2016, the
Company initiated a new equity private placement, consisting of units of common stock and warrants, up to an aggregate of $2,500,000,
with each unit consisting of (i) one share of common stock, and (ii) one warrant to purchase two additional shares of common stock.
During the nine months ended September 30, 2016, the Company entered into purchase agreements with nine accredited and four non-accredited,
non-affiliated investors, pursuant to which an aggregate of 43,003 shares of common stock and an aggregate of 86,006 warrants were
sold, generating gross proceeds of $309,985. Included in the gross proceeds
of $309,985 received was $25,350 received on June 30, 2016 from the sale of 3,517 shares of common stock and an aggregate of 7,034
warrants to an unrelated entity with which the Company simultaneously entered into one-year agreement for investor relations services. The unit price in the private
placement closings was $7.2085. The warrants are exercisable at $7.9300, for each share of common stock to be acquired, and expire
on February 28, 2021. The warrants have cashless exercise provisions and contain certain “blocker” provisions limiting
the percentage of shares of the Company’s common stock that the purchaser can beneficially own upon conversion to not more
than 4.99% of the issued and outstanding shares immediately after giving effect to the warrant exercise. In the case of an acquisition
in which the Company is not the surviving entity, the holder of the warrant would receive from any surviving entity or successor
to the Company, in exchange for the warrant, a new warrant from the surviving entity or successor to the Company, substantially
in the form of the existing warrant and with an exercise price adjusted to reflect the nearest equivalent exercise price of common
stock (or other applicable equity interest) of the surviving entity that would reflect the economic value of the warrant, but in
the surviving entity. No registration rights
were granted to the purchasers in the private placement with respect to (i) the shares of common stock issued as part of the units,
(ii) the warrants, or (iii) the shares of common stock issuable upon exercise of the warrants. No placement agent fees,
brokerage commissions, finder’s fees or similar payments were made in the form of cash or warrants to qualified referral
sources in connection with the sale of the shares of common stock and warrants. The Company paid $3,429 in cash to other professionals
for services related to the seven closings. 2nd 2016 Unit Offering On December 29, 2016, the
Company entered into purchase agreements with certain accredited investors, pursuant to which, the Company sold units in a private
placement for aggregate cash consideration of $125,000, with each unit consisting of (i) one share of common stock, and (ii) one
warrant to purchase an additional share of common stock. On December 30, 2016, the Company sold additional units to additional
investors for aggregate cash consideration of $60,000 in a second and final closing, bringing the total aggregate consideration
paid in the private placement to $185,000 through December 31, 2016. On December 31, 2016, the private placement terminated pursuant
to its terms. The price per unit in the initial closing of the private placement was $1.42. The warrants were exercisable until
December 31, 2021 and would have been exercisable at 110% of the per unit price, or $1.562 per share of common stock. The warrants
had a cashless exercise provision and certain “blocker” provisions limiting the percentage of shares of common stock
of the Company that the purchaser would have been able to hold upon exercise. The warrants were also subject to a call by the Company
at $0.001 per share upon ten (10) days written notice if the Company’s common stock closes at 200% or more of the unit purchase
price for any five (5) consecutive trading days. The investors were not affiliates of the Company. In total, 130,284 shares of
common stock were purchased in the private placement, together with warrants to purchase an additional 130,284 shares of Common
Stock. In addition, as set forth
in the purchase agreements, each purchaser had the option, but not the obligation, to exchange the entire amount invested in the
private placement (but not less than the entire amount), in such purchaser’s sole discretion, into any subsequent offering
of the Company until the earlier of (i) the completion of subsequent offerings by the Company aggregating at least $15 million
of gross proceeds to the Company, or (ii) December 31, 2017. If exchanged, the amount to be invested in a subsequent offering would
be 1.2 times the amount of the initial investment in the private placement, or 1.4 times the amount of the initial investment if
the Company had entered into financing transactions pursuant to Sections 3(a)(9) or 3(a)(10) of the Securities Act of 1933, as
amended, or other financing arrangements that had full-ratchet anti-dilution provisions (i) without a floor, or (ii) with an indeterminate
and potentially infinite number of shares issuable pursuant to such provisions. If neither termination condition had been reached,
and the Company had more than one subsequent offering, the purchaser could have elected to exchange into any subsequent offering,
regardless of whether such purchaser has already exchanged into a subsequent offering; provided, however, that the amount invested
in such subsequent offering would only and always be 1.2 (or 1.4, as applicable) times the amount of the initial investment. In the case of an acquisition,
as defined in the agreement, in which the Company was not the surviving entity, the holder of each warrant would receive from any
surviving entity or successor to the Company, in exchange for such warrant, a new warrant from the surviving entity or successor
to the Company, substantially in the form of the existing warrant and with an exercise price adjusted to reflect the nearest equivalent
exercise price of common stock (or other applicable equity interest) of the surviving entity that would reflect the economic value
of the warrant, but in the surviving entity. Unlimited piggy-back registration
rights had been granted with respect to the common stock, and the common stock underlying the warrants, unless such common stock
was eligible to be sold without volume limits under an exemption from registration under any rule or regulation of the SEC that
permitted the holder to sell securities of the Company to the public without registration. The Company is obligated
to pay placement agent fees, brokerage commissions, finder’s fees or similar payments totaling up to $13,875 to an unaffiliated
qualified referral source as well as warrants up to 7.5% of number of units sold in the private placement. The Company paid $4,000
in cash to other professionals for services related to the closings. The shares of common stock
and warrants were offered and sold without registration under the Securities Act in reliance on the exemptions provided by Section
4(a)(2) of the Securities Act as provided in Rule 506(b) of Regulation D promulgated thereunder. None of the shares of common stock
issued as part of the units, the warrants, the common stock issuable upon exercise of the warrants or any warrants issued to a
qualified referral source. have been registered under the Securities Act or any other applicable securities laws, and unless so
registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements
of the Securities Act. The Company evaluated whether
the warrants or the exchange rights met criteria to be accounted for as a derivative in accordance with Accounting Standard Codification
(ASC) 815 and determined that the derivative criteria were not met. Therefore, the Company determined no bifurcation and separate
valuation was necessary and the warrants and exchange right should be accounted for with the host instrument. The Company then
looked to how the host instrument should be classified and determined that it cannot be classified as permanent equity as there
is a potential that the Unit investment amount could be exchanged for debt (convertible or otherwise) or for redeemable preferred
stock. Since the exchange right expires within one year, the Company concluded that the Unit investment would be appropriately
classified as a current liability as of December 31, 2016. 1 st On March 10, 2017 and March
28, 2017, the Company sold units to investors for aggregate gross proceeds of $350,000, with each unit consisting of one share
of the Company’s common stock and one common stock purchase warrant to purchase one share of the Company’s common stock
(the “1 st nd st On July 26, 2017, the Company’s
Board approved an offering of securities conducted via private placement (the “2 nd nd nd st nd st nd nd st nd nd st nd nd 2 nd On August 29, 2017, September
27, 2017, September 28, 2017, October 5, 2017, October 25, 2017, November 29, 2017, December 13, 2017, December 21, 2017, December
22, 2017 and December 29, 2017 the Company sold units in the 2 nd st nd nd nd The terms of the 2 nd nd st nd st nd st nd nd Information with respect
to the issuance of common stock in connection with the settlement of debt obligations is provided at Note 5. Common Stock Warrants A summary of warrant activity
for the year ended December 31, 2017 is presented below.
Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years)
Warrants outstanding at December 31, 2016 540,198 $ 4.84842 3.93
Issued 1,194,500
Reduction through transactions in conjunction with -
Unit Exchange Agreements (270,283 )
Warrants outstanding at December 31, 2017 1,464,415 $ 2.68146 4.88
Warrants exercisable at December 31, 2016 540,198 $ 4.84842 3.93
Warrants exercisable at December 31, 2017 1,464,415 $ 2.68146 4.88 The exercise prices of
common stock warrants outstanding and exercisable are as follows at December 31, 2017:
Exercise Price Warrants Outstanding (Shares) Warrants Exercisable (Shares) Expiration Date
$ 1.0000 916,217 916,217 September 20, 2022
$ 1.2870 41,002 41,002 April 17, 2019
$ 1.5620 130,284 130,284 December 31, 2021
$ 2.7500 8,000 8000 September 20, 2022
$ 4.8500 5,155 5,155 September 23, 2019
$ 4.8750 108,594 108,594 September 30, 2020
$ 5.0000 5,000 5,000 September 22, 2019
$ 5.1025 10,309 10,309 January 29, 2019
$ 6.5000 8,092 8,092 February 4, 2019
$ 6.8348 145,758 145,758 September 30, 2020
$ 7.9300 86,004 86,004 February 28, 2021
1,464,415 1,464,415 Based on a fair market
value of $1.14 per share on December 31, 2017, the intrinsic value of exercisable in-the-money common stock warrants was $128,270
as of December 31, 2017. A summary of warrant activity
for the year ended December 31, 2016 is presented below.
Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years)
Warrants outstanding at December 31, 2015 482,288 $ 7.10125
Issued 244,845
Note exchanges (40,940 )
Unit exchanges (108,594 )
Expired (37,401 ) -
Warrants outstanding at December 31, 2016 540,198 $ 4.84842 3.93
Warrants exercisable at December 31, 2015 482,288 $ 7.10125
Warrants exercisable at December 31, 2016 540,198 $ 4.84842 3.93 The exercise prices of
common stock warrants outstanding and exercisable are as follows at December 31, 2016:
Exercise Price Warrants Outstanding (Shares) Warrants Exercisable (Shares) Expiration Date
$ 1.2870 41,002 41,002 April 17, 2019
$ 1.5620 130,284 130,284 December 31, 2021
$ 4.8500 5,155 5,155 September 23, 2019
$ 4.8750 108,594 108,594 September 30, 2020
$ 5.0000 5,000 5,000 September 22, 2019
$ 5.1025 10,309 10,309 January 29, 2019
$ 6.5000 8,092 8,092 February 4, 2019
$ 6.8348 145,758 145,758 September 30, 2020
$ 7.9300 86,004 86,004 February 28, 2021
540,198 540,198 Based on a fair market
value of $2.80 per share on December 31, 2016, the intrinsic value of exercisable in-the-money common stock warrants was $223,328
as of December 31, 2016. Stock Options On March 18, 2014, the
stockholders of the Company holding a majority of the votes to be cast on the issue approved the adoption of the Company’s
2014 Equity, Equity-Linked and Equity Derivative Incentive Plan (the “2014 Plan”), which had been previously adopted
by the Board of Directors of the Company, subject to stockholder approval. The Plan permits the grant of options and restricted
stock with respect to up to 325,025 shares of common stock, in addition to stock appreciation rights and phantom stock, to directors,
officers, employees, consultants and other service providers of the Company. On June 30, 2015, the Board
of Directors adopted the 2015 Stock and Stock Option Plan (the “2015 Plan”). The 2015 Plan initially provided for,
among other things, the issuance of either or any combination of restricted shares of common stock and non-qualified stock options
to purchase up to 461,538 shares of the Company’s common stock for periods up to ten years to management, members of the
Board of Directors, consultants and advisors. The Company has not and does not intend to present the 2015 Plan to stockholders
for approval. On August 18, 2015, the Board of Directors increased the number of shares that may be issued under the 2015 Plan
to 769,231 shares of the Company’s common stock. On March 31, 2016, the Board of Directors further increased the number of
shares that may be issued under the 2015 Plan to 1,538,461 shares of the Company’s common stock. On January 17, 2017, the
Board of Directors further increased the number of shares that may be issued under the 2015 Plan to 3,038,461 shares of the Company’s
common stock. On December 9, 2017, the Board of Directors further increased the number of shares that may be issued under the 2015
Plan to 6,985,260 shares of the Company’s common stock. On August 18, 2015, the
Company entered into an employment agreement with Dr. James S. Manuso to be its new President and Chief Executive Officer. In connection
therewith, and in addition to other provisions, the Board of Directors of the Company awarded Dr. Manuso stock options to purchase
a total of 261,789 shares of common stock, of which options for 246,154 shares were granted pursuant to the Company’s 2015
Plan and options for 15,635 shares were granted pursuant to the Company’s 2014 Plan. The stock options vested 50% on August
18, 2015 (at issuance), 25% on February 18, 2016, and 25% on August 18, 2016, and will expire on August 18, 2025. The exercise
price of the stock options was established on the grant date at $6.4025 per share, which is equal to the simple average of the
most recent four full trading weeks, weekly Volume Weighted Average Prices (“VWAPs”) of the Company’s common
stock price immediately preceding the date of grant as reported by the OTC Markets, as compared to the closing market price of
the Company’s common stock on August 18, 2015 of $7.0200 per share. The aggregate grant date fair value of these stock options
calculated pursuant to the Black-Scholes option-pricing model was $1,786,707. During the years ended December 31, 2017 and 2016,
the Company recorded charges to operations of $0 and $569,222, respectively, with respect to these stock options. Additional information
with respect to other provisions of the employment agreement is provided at Note 9. On August 18, 2015, the
Company also entered into employment agreements with Dr. Arnold S. Lippa, its new Chief Scientific Officer, Robert N. Weingarten,
its then Vice President and Chief Financial Officer, and Jeff E. Margolis, its Vice President, Treasurer and Secretary. Mr. Weingarten
resigned from the Company in February 2017. In connection therewith, and in addition to other provisions, the Board of Directors
of the Company awarded to each of those officers stock options to purchase a total of 30,769 shares of common stock pursuant to
the Company’s 2015 Plan. The stock options vested 25% on December 31, 2015, 25% on March 31, 2016, 25% on June 30, 2016,
and 25% on September 30, 2016, and will expire on August 18, 2022. The exercise price of the stock options was established on the
grant date at $6.4025 per share, which is equal to the simple average of the most recent four full trading weeks, weekly VWAPs
of the Company’s common stock price immediately preceding the date of grant as reported by the OTC Markets as compared to
the closing market price of the Company’s common stock on August 18, 2015 of $7.0200 per share. The aggregate grant date
fair value of these stock options calculated pursuant to the Black-Scholes option-pricing model was $609,000. During the years
ended December 31, 2017 and 2016, the Company recorded charges to operations of $0 and $407,493, respectively, with respect to
these stock options. Additional information with respect to other provisions of the employment agreement is provided at Note 9. Additionally, on August
18, 2015, the Board of Directors of the Company awarded stock options for 9,231 shares of common stock to each of seven other individuals
who are members of management, the Company’s Scientific Advisory Board, independent members of the Board of Directors, or
outside service providers pursuant to the Company’s 2015 Plan, representing stock options for a total of 64,617 shares of
common stock. The stock options vested 25% on December 31, 2015, 25% on March 31, 2016, 25% on June 30, 2016, and 25% on September
30, 2016, and will expire on August 18, 2020 as to stock options for 27,693 shares of common stock and August 18, 2022 as to stock
options for 36,924 shares of common stock. The exercise price of the stock options was established on the grant date at $6.4025
per share, which is equal to the simple average of the most recent four full trading weeks, weekly VWAPs of the Company’s
common stock price immediately preceding the date of grant as reported by the OTC Markets, as compared to the closing market price
of the Company’s common stock on August 18, 2015 of $7.0200 per share. The aggregate grant date fair value of these stock
options calculated pursuant to the Black-Scholes option-pricing model was $430,800. During the years ended December 31, 2017 and
2016, the Company recorded charges to operations of $0 and $223,089, respectively, with respect to these stock options. On December 11, 2015, the
Company entered into a consulting agreement for investor relations services, which provided for the payment of a fee for such services
through the granting of non-qualified stock options to purchase a total of 8,791 shares of common stock pursuant to the Company’s
2015 Plan. The stock options vested in equal installments on the last day of each month during the term of the consulting agreement,
ranging from December 11, 2015 through March 31, 2016, and will expire on December 11, 2020. The exercise price of the stock options
was established on the grant date at $6.825 per share, which was the closing market price of the Company’s common stock on
the date of grant. The aggregate grant date fair value of these stock options calculated pursuant to the Black-Scholes option-pricing
model was $58,286. During the years ended December 31, 2017 and 2016, the Company recorded charges to operations of $0 and $50,286,
respectively, with respect to these stock options. On March 31, 2016, the
Board of Directors of the Company awarded stock options for a total of 523,075 shares of common stock in various quantities to
twelve individuals who are members of management, the Company’s Scientific Advisory Board, independent members of the Board
of Directors, or outside service providers pursuant to the Company’s 2015 Plan. The stock options vested 25% on each of March
31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, and will expire on March 31, 2021. The exercise price of the
stock options was established on the grant date at $7.3775 per share, which was the closing market price of the Company’s
common stock on such date. The aggregate grant date fair value of these stock options, as calculated pursuant to the Black-Scholes
option-pricing model, was $3,774,000. During the years ended December 31, 2017 and 2016, the Company recorded a charge to operations
of $0 and $3,469,500 dollars, respectively, with respect to these stock options. On September 12, 2016,
the Company entered into an agreement for consulting services, which provided for the payment of a fee through the granting of
a non-qualified stock option to purchase a total of 2,608 shares of common stock pursuant to the Company’s 2015 Plan. The
stock option was fully vested on the date of grant and will expire on September 12, 2021. The exercise price of the stock option
was established on the grant date at $5.7500 per share, which was the closing market price of the Company’s common stock
on the date of grant. The aggregate grant date fair value of the stock option, calculated pursuant to the Black-Scholes option-pricing
model, was $14,384, which was charged to operations on the date of grant. On July 26, 2017, the Board
of Directors of the Company awarded stock options for a total of 25,000 shares of common stock to one individual who is a member
of management pursuant to the Company’s 2015 Plan. The stock options vested 25% upon grant, 25% on September 30, 2017 and
50% on December 31, 2017. T |
