Temporary Equity and Stockholders’ Deficiency
|3 Months Ended|
Mar. 31, 2018
|Temporary Equity And Stockholders’ Deficiency||
12. TEMPORARY EQUITY AND STOCKHOLDERS’ DEFICIENCY
Series B Preferred Stock
The Series B stockholders are entitled to cumulative cash dividends at an annual rate of 8% of the Series B liquidation value (equal to face value of $10 per share), as defined, payable when, as and if declared by the Board of Directors. Cumulative dividends earned by the Series B stockholders were $155,791 and $3,053 for the three months ended March 31, 2018 and 2017, respectively. Cumulative unpaid dividends in arrears related to the Series B totaled $438,354 and $284,564 as of March 31, 2018 and December 31, 2017, respectively.
During March 2018, the Company issued 116,284 shares of common stock at $0.70 per share to settle its 2017 obligation, (an aggregate of $81,399) representing the Company’s 401(k) matching contributions) to the Company’s 401(k) profit-sharing plan.
Accumulated Other Comprehensive Income (Loss)
For three months ended March 31, 2018 and 2017, the Company recorded $(285,609) and $200,259, respectively, of foreign currency translation adjustment as accumulated other comprehensive income (loss).
A summary of warrants activity during the three months ended March 31, 2018 is presented below:
A summary of outstanding and exercisable warrants as of March 31, 2018 is presented below:
On February 14, 2018, the Company granted five-year options for the purchase of 1,304,328 shares of the Company’s common stock under the 2016 Plan, which options for the purchase of common stock were granted to certain employees of the Company. The options had an exercise price of $0.77 per share and vest 25% at the first anniversary of date of grant, with the remaining shares vesting ratably on a quarterly basis over the following three years. The options had an aggregate grant date fair value of $610,985, which will be recognized ratably over the vesting period. The company has computed the fair value of options granted using the Black-Scholes option pricing model. Assumptions used in applying the Black-Scholes option pricing model are as follows:, risk free interest rate of 2.56%, expected term of 5 years, expected volatility of 43.5%, and expected dividends of 0.00%. There were no stock options granted during the three months ended March 31, 2017.
During the three months ended March 31, 2018 and 2017, the Company recorded stock-based compensation expense of $183,220 and $163,424, respectively, related to stock option grants, which is reflected as general and administrative expenses in the accompanying condensed consolidated statements of operations. As of March 31, 2018, there was $1,900,595 of unrecognized stock-based compensation expense related to stock option grants that will be amortized over a weighted average period of 2.5 years, of which $515,369 of unrecognized expense is subject to non-employee mark-to-market adjustments.
A summary of options activity during the months ended March 31, 2018 and December 31, 2017 is presented below:
The following table presents information related to stock options at March 31, 2018:
The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details.
Reference 1: http://www.xbrl.org/2003/role/presentationRef