Annual report pursuant to Section 13 and 15(d)

Share-Based Compensation (Tables)

v3.2.0.727
Share-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2013
Schedule of Share-Based Compensation Expense is Classified in Consolidated Statements of Comprehensive Loss

Share-based compensation expense is classified in the consolidated statements of comprehensive loss as follows:

 

         Year ended December 31,      
         2013              2012      

Research and development expenses

  $ 60,980       $ 41,851   

Administrative expenses

    370,524         297,929   
    $         431,504       $         339,780   
Schedule of Stock Options Valuation Assumptions

Key assumptions used in the Black-Scholes option pricing model on the date of grant for options granted to employees are as follows:

 

      December 31,  
      2013      2012  

Expected dividend yield (%)

     -         -   

Expected volatility (%)

     73.39         77.00   

Risk-free interest rate (%)

     0.92         0.49   

Expected life of option (years)

     4.00         3.25   

Weighted-average share price ($)

     0.29         0.37   

Weighted-average exercise price ($)

     1.22         0.91   

Model used

     Black-Scholes         Black-Scholes   
Joint Share Ownership Plan Awards [Member]  
Schedule of Stock Options Valuation Assumptions

The Company used the following weighted-average assumptions for the 2012 JSOP awards:

 

        December 31,  
        2012  

Expected dividend yield (%)

       -   

Expected volatility (%)

       76.00   

Risk-free interest rate (%)

       0.57   

Expected life of option (years)

       3.00   

Weighted-average share price ($)

       0.17   

Weighted-average exercise price ($)

       0.17   

Model used

       Monte Carlo   
Employee Stock Option [Member]  
Summary of Employee Stock Option Activity

The following is a summary of employee stock option activity for the years ended December 31, 2013 and 2012:

 

         
      Number
of shares
   

Weighted-
average
exercise

price

     Weighted-
average
remaining
life (years)
    

Aggregate
intrinsic

value

 

Outstanding as of January 1, 2012

     4,068,024      $ 0.31         

Granted

     960,000        0.91         

Exercised

     (19,535     0.04          $ 8,726   

Forfeited

     (23,009     2.04         
  

 

 

         

Outstanding as of December 31, 2012

     4,985,480        0.42         
          

Exercisable as of December 31, 2012

     3,752,296        0.29         4.28       $ 423,487   
          

Outstanding as of January 1, 2013

     4,985,480        0.42         

Granted

     2,304,000        1.22         

Exercised

     (55,379     0.04          $ 10,663   

Forfeited

     (2,011,671     1.22         
  

 

 

         

Outstanding as of December 31, 2013

     5,222,430        0.47         4.68       $ 432,392   
          

Vested or expected to vest as of December 31, 2013

     5,222,430        0.47         4.68       $ 432,392   
          

Exercisable as of December 31, 2013

     4,063,646      $             0.30         3.72       $     432,392   
Summary of Status of Company's Non-Vested Employee Stock Option Shares

A summary of the status of the Company’s non-vested employee stock option shares as of December 31, 2013 and the changes during the year ended December 31, 2013 is as follows:

 

      Number of shares         Weighted-average
grant date fair
value
 

Balance as of January 1, 2013

     1,233,184      $                 0.11   

Granted

     2,304,000        0.07   

Vested

     (454,400     0.14   

Forfeited

     (1,924,000     0.07   
  

 

 

   

Balance as of December 31, 2013

     1,158,784      $ 0.08   
Non Employee Stock Options [Member]  
Summary of Key Assumptions Used in Black-Scholes Option Pricing Model on Date of Grant for Options Granted to Non-Employees

Key assumptions used in the Black-Scholes option pricing model on the date of grant for options granted to non-employees are as follows:

 

      December 31,  
      2013      2012  

Expected dividend yield (%)

     -         -   

Expected volatility (%)

     78.25         73.79   

Risk-free interest rate (%)

     1.75         1.09   

Expected life of option (years)

     5.90         6.92   

Weighted-average share price ($)

     0.26         0.23   

Weighted-average exercise price ($)

     0.52         0.52   

Model used

     Black-Scholes         Black-Scholes   
Summary of Non-Employee Stock Option Activity

The following is a summary of non-employee stock option activity for the years ended December 31, 2013 and 2012:

 

        Number of
shares
       Weighted-
average
exercise
price
       Weighted-
average
remaining
life (years)
       Aggregate
intrinsic
value
 

Outstanding as of January 1, 2012

       -         $ -             

Granted

               416,000           0.52             

Exercised

       -           -             

Forfeited

       -           -             
    

 

 

                

Outstanding as of December 31, 2012

       416,000           0.52             

Exercisable as of December 31, 2012

       24,000           0.31           4.73         $ 0   

Outstanding as of January 1, 2013

       416,000           0.52             

Granted

       -           -             

Exercised

       -           -             

Forfeited

       -           -             
    

 

 

                

Outstanding as of December 31, 2013

       416,000           0.52           5.90         $ 49   

Vested or expected to vest as of December 31, 2013

       416,000           0.52           5.90         $ 49   

Exercisable as of December 31, 2013

       128,000         $             0.48                       4.38         $             49