Common Stock

 

During the quarter ended March 31, 2015, the Company issued 763,681 shares of common stock at $2.00 per share for cash proceeds of $1,527,362.

 

Accumulated Other Comprehensive Loss

 

For three months ended March 31, 2015 and 2014, the Company recorded $72,261 and $1,605,817, respectively, of foreign currency translation adjustment as accumulated other comprehensive loss.

 

Warrants

 

During the three months ended March 31, 2015, in connection with the sale of its equity securities, the Company issued five-year warrants to its subsidiary CAP, who acted as placement agent, to purchase 53,000 shares of its common stock at $2.00 per share. Similarly, during the three months ended March 31, 2014 the Company issued five-year warrants for the purchase of 99,994 shares of Series A Preferred at an exercise price of $2.30 per share to CAP. CAP, in turn, awarded such warrants to its registered representatives and recorded $37,392 and $86,695, of stock-based compensation expense for three months ended March 31, 2015 and 2014, respectively, within general and administrative expense in the condensed consolidated statements of operations.

 

A summary of warrants activity during three months ended March 31, 2015 is presented below:

 

								Weighted
					Weighted			Average
					Average			Remaining
		Number of			Exercise			Life			Intrinsic
		Warrants			Price			In Years			Value
Outstanding, December 31, 2014			1,069,674		$	2.26
Issued			53,000		$	2.00
Exercised			-			-
Expired			-			-
Outstanding, March 31, 2015			1,122,674		$	2.26			3.3		$	18,913
Exercisable, March 31, 2015			1,122,674		$	2.26			3.3		$	18,913

 

A summary of outstanding and exercisable warrants as of March 31, 2015 is presented below:

 

			Warrants Outstanding					Warrants Exercisable
								Weighted
					Outstanding			Average			Exercisable
Exercise			Exercisable		Number of			Remaining			Number of
Price			Into		Warrants			Life In Years			Warrants
$	1.59		Common Stock			46,130			0.3			46,130
$	2.30		Preferred Stock			973,544			3.3			973,544
$	2.00		Common Stock			103,000			4.9			103,000
			Total			1,122,674			3.3			1,122,674

 

Stock Options

 

The Company has computed the fair value of options granted using the Black-Scholes option pricing model. There is currently no public trading market for the shares of AWLD common stock underlying the Company’s 2008 Equity Incentive Plan (the “2008 Plan”). Accordingly, the fair value of the AWLD common stock was estimated by management based on observations of the cash sales prices of AWLD equity securities. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. This estimate will be adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate, when it is material. The expected term of options granted to consultants represents the contractual term, whereas the expected term of options granted to employees and directors was estimated based upon the “simplified” method for “plain-vanilla” options. Given that the Company’s shares are not publicly traded, the Company developed an expected volatility figure based on a review of the historical volatilities, over a period of time, of similarly positioned public companies within its industry. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the options. The Company estimated forfeitures related to options at an annual rate of 5% for options outstanding at March 31, 2015.

 

There were no stock options granted during the three months ended March 31, 2015 and 2014.

 

During the three months ended March 31, 2015 and 2014, the Company recorded stock-based compensation expense of $232,736 and $136,215, respectively, related to stock option grants, which is reflected as general and administrative expenses in the condensed consolidated statements of operations. As of March 31, 2015, there was $1,269,315 of unrecognized stock-based compensation expense related to stock option grants that will be amortized over a weighted average period of 3.2 years, of which $254,861 of unrecognized expense is subject to non-employee mark-to-market adjustments

 

A summary of options activity during the three months ended March 31, 2015 is presented below:

 

		Number of Options			Weighted Average Exercise Price			Weighted Average Remaining Life (in years)			Intrinsic Value
Outstanding, December 31, 2014			7,806,836		$	2.85
Granted			-			-
Exercised			-			-
Expired			(592,496)			1.96
Forfeited			-			-
Outstanding, March 31, 2015			7,214,340		$	2.92			3.1		$	-
Exercisable, March 31, 2015			4,416,740		$	3.13			2.4		$	-

 

The following table presents information related to stock options at March 31, 2015:

 

		Options Outstanding						Options Exercisable
		Weighted						Weighted			Weighted
Range of		Average			Outstanding			Average			Average			Exercisable
Exercise		Exercise			Number of			Exercise			Remaining Life			Number of
Price		Price			Options			Price			In Years			Options
$2.48 - $2.50		$	2.48			5,279,000		$	2.48			3.2			2,692,500
$2.51 - $3.50		$	2.72			40,711		$	3.16			2.0			40,711
$3.51 - $4.50		$	3.85			1,859,000		$	3.85			1.3			1,647,900
$4.51 - $9.50		$	8.03			19,868		$	8.03			0.1			19,868
$9.51 - $41.78		$	33.94			15,761		$	33.94			0.1			15,761
$2.48 - $41.78		$	2.92			7,214,340		$	3.13			2.4			4,416,740