Quarterly report pursuant to Section 13 or 15(d)

Shareholders' Equity

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Shareholders' Equity
6 Months Ended
Jun. 30, 2016
Equity [Abstract]  
Stockholders' Equity
Shareholders’ Equity
 
Common stock
 
The Company estimates the fair value of employee stock options and warrants granted using the Black-Scholes Option Pricing Model. Key assumptions used to estimate the fair value of warrants and stock options include the exercise price of the award, the fair value of the Company’s common stock on the date of grant, the expected warrant or option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on the Company’s common stock. 

During the six months ended June 30, 2016 and in consideration of capital contributions by Aurora of $972,000 pursuant to the capital contribution agreement with Aurora, the Company issued 972,000 warrants to Navitus with an exercise price ranging from $0.15 - $0.21.

The warrants vest immediately and the Company valued the common stock warrants using the Black Scholes Option Pricing Model. The values for the three month periods ended June 30, 2016 and 2015, were $98,540 and $68,507, respectively, and were $154,374 and $492,487 for the six month periods ended June 30, 2016 and 2015, respectively.