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General form of registration statement for all companies including face-amount certificate companies

9. Stockholders' Equity (Tables)

v2.4.0.6
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 Company’s 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 Company’s 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 Company’s 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