On May 3, 2016, the Company awarded 2,000,000 shares of Restricted Stock to members of the Board of Directors and management in a private placement in reliance upon an exemption from registration afforded by Section 4(a)(2) of the Securities Act. The shares subject to this grant, are outside the 2013 Plan and 100% shall fully vest on the second anniversary of the date of grant. In addition, in the event of a Change of Control (as such term is defined in the 2013 Plan) 100% of the grants will immediately vest. 

 

Restricted stock activity for the nine months ended June 30, 2016 is as follows:

 

Non Vested at September 30, 2015		-
Awarded		2,000,000
Vested		-
Forfeited		-
Non Vested at June 30, 2016		2,000,000

 

The weighted average restricted stock award date fair value information for the nine months ended June 30, 2016 is as follows:

 

Non Vested at September 30, 2015		$	-
Awarded			0.39
Vested			-
Forfeited			-
Non Vested at June 30, 2016		$	0.39

 

For the three and nine months ended June 30, 2016, compensation expense recorded for the 2016 restricted stock awards was approximately $62,000. Of this amount approximately $18,000 was recorded to research and development expenses, and approximately $44,000 was recorded in general and administrative expenses in the Company’s unaudited interim consolidated statements of operations.