Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS AND WARRANTS

v3.19.1
STOCK OPTIONS AND WARRANTS
3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Note 12 - STOCK OPTIONS AND WARRANTS

 Options

 

On May 15, 2018, the Board of Directors approved and adopted the BioCorRx Inc. 2018 Equity Incentive Plan (the “Plan”). The Plan provides for the issuance of up to 450,000 shares of Common Stock, through the grant of non-qualified options (the “Non-qualified Options”), incentive options (the “Incentive Options” and together with the Non-qualified Options, the “Options”), restricted stock (the “Restricted Stock”) and unrestricted stock to directors, officers, consultants, advisors and employees.

 

The Plan shall be administered by the Board or, in the Board’s sole discretion, by the committee administering the Plan (the “Committee”). Subject to the terms of the Plan, the Committee’s charter and applicable laws, and in addition to other express powers and authorization conferred by the Plan.

  

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from using the Company’s historical stock prices. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined in the accounting standards codification.

 

The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.

 

The following table summarizes the stock option activity for the three months ended March 31, 2019:

 

    Shares    

Weighted-Average

Exercise Price

   

Weighted-Average

Remaining

Contractual Term

   

Aggregate

Intrinsic

Value

 
Outstanding at December 31, 2018     791,850     $ 8.09       7.7     $ 1,188,065  
Grants     -                       -  
Exercised     -                          
Expired     (1,500 )   $ 20.00       -       -  
Outstanding at March 31, 2019     790,350     $ 8.07       7.5     $ 657,540  
Exercisable at March 31, 2019     711,600     $ 7.42       7.3     $ 657,540  

 

The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $4.00 as of March 31, 2019, which would have been received by the option holders had those option holders exercised their options as of that date.

 

The following table presents information related to stock options at March 31, 2019:

 

Options Outstanding        
            Weighted     Options Exercisable  
            Average     Exercisable  
  Exercise   Number of     Remaining Life     Number of  
  Price   Options     In Years     Options  
                     
$ 0.01-2.50     330,350       7.2       330,350  
  2.51-5.00     35,000       1.3       35,000  
  5.01andup     425,000       8.2       346,250  
        790,350       7.5       711,600  

 

The stock-based compensation expense related to option grants was $950,815 and $78,535 during the three months ended March 31, 2019 and 2018, respectively.

 

As of March 31, 2019, stock-based compensation related to options of $633,876 remains unamortized and is expected to be amortized over the weighted average remaining period of 2 months.

  

Warrants

 

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock:

 

Warrants Outstanding     Warrants Exercisable  
Exercise Prices     Number Outstanding    

Weighted

Average

Remaining

Contractual

Life

(Years)

   

Weighted

Average

Exercise

Price

   

Number

Exercisable

   

Weighted

Average

Remaining

Contractual

Life (Years)

 
$ 20.00       10,000       2.67     $ 20.00       10,000       2.67  
  25.00       12,750       0.27       25.00       12,750       0.27  
  100.00       62,500       2.14       100.00       62,500       2.14  
$ -       85,250       1.92     $ 79.40       85,250       1.92  

 

The following table summarizes the warrant activity for the three months ended March 31, 2019:

 

   

Number of

Shares

   

Weighted

Average

Exercise

Price Per

Share

 
Outstanding at December 31, 2018     85,250     $ 79.40  
Issued     -       -  
Exercised     -       -  
Expired     -       -  
Outstanding at March 31, 2019     85,250     $ 79.40