As of September 30, 2012, the weighted-average remaining contractual
life of outstanding warrants and options is 2.19 and 5.38 years,
respectively.
Non-Employee Stock Compensation
Under the terms of a consulting agreement dated February 2010, the
Company issued fully vested warrants to Fountainhead to purchase up
to 39,063,670 shares of the Company's common stock at $0.0125 per
share. The warrants are valid from February 10, 2010 for a period of
five years. The fair value of these warrants was estimated using the
Black-Scholes option pricing model and was amortized over the
two-year life of the consultancy agreement, to February 2012. For the
nine months ended September 30, 2012, $20,397 was recognized as
share-based compensation in connection with this agreement.
During the nine months ended September 30, 2012, the Company issued
an aggregate of 666,666 shares of common stock, valued at $15,000, to
each of Steven Girgenti and Oscar Bronsther for services rendered to
the board of directors. For the nine months ended September 30, 2012,
a total of $30,000 was recognized as share-based compensation for the
issuance of these shares.
During the nine months ended September 30, 2012, the Company issued
an aggregate of 416,670 shares of common stock, valued at $9,375, to
each of Alvaro Pascual-Leone, Jason Barton and Jose Romano and
277,780 shares of Common Stock, valued at $6,250, to Josef Zihl for
services rendered to the Scientific Advisory Board of NovaVision. For
the nine months ended September 30, 2012, an aggregate of $34,375 was
recognized as share-based compensation for the issuance of these
shares.
Under the terms of a one-year consultancy agreement with Mr. Jerrald
Ginder dated March 2011, as amended June 2011, the company issued an
aggregate of 20,666,667 restricted shares of common stock of
the Company. The stock was valued by the Company at $420,000 and was
amortized over the life of the agreement as share-based compensation
expense. For nine months ended September 30, 2012, aggregate
compensation recognized in respect of the Consulting Agreement, as
amended, was $109,570. The consultancy was fully expensed as of March
31, 2012. This Agreement is further discussed in Note 14.
In June 2011, the Company entered into a one-year Consulting
Agreement with GreenBridge Capital Partners, IV, LLC, to provide
consulting and advisory services to the Company. Under the terms of
this agreement, GreenBridge was to receive up to 15,500,000 shares of
the Company's common stock. The stock was valued by the Company at
$348,750 and was amortized over the life of the agreement as
share-based compensation expense, in accordance with the performance
under that agreement. As further discussed in Note 14, in May 2012
the Company exercised its option to repurchase 10,333,333 shares.
Accordingly, a total of $116,250 was recognised as expense under this
agreement. As at December 31, 2011, $113,344 had been recognized and
for the nine months ended September 30, 2012, $2,906 was recognized
as share-based compensation in connection with this agreement.
In April 2012 the Company entered into a consultancy agreement with
Brunella Jacs, LLC for certain corporate and strategic advisory
services. Under the terms of the agreement, Brunella Jacs was issued
1,333,333 shares of Common Stock, valued at $30,000. For nine months
ended September 30, 2012, aggregate compensation recognized in
respect of this agreement was $30,000.
On May 14, 2012, the Company entered into a three-month Consulting
Agreement with OneSource Advisors, LLC to provide consulting and
advisory services to the Company, which was amended on August 31,
2012. Under the terms of the Consulting Agreement, on September 30,
2012 OneSource received warrants to purchase up to 700,000 of the
Company's Common Stock for a period of three years from May 14, 2012
at a price of $0.03 per share. The fair value of these warrants was
estimated at $8,708 using the Black-Scholes model and the full value
was recognized immediately
Aggregate stock-based compensation expense charged to operations on
employee options and on stock and warrants granted to the above
non-employees for the nine months ended September 30, 2012 is
$235,956. As of September 30, 2012, there was $0 of total
unrecognized compensation costs related to warrant and stock awards
and non-vested options.
Stock-based compensation expenses related to employee options and
warrants granted to non-employees are recognized as the stock options
and warrants are earned. The fair value of the stock options or
warrants granted is estimated at the grant date, using the
Black-Scholes option pricing model, and the expense is recognized on
a straight-line basis over the shorter of the period over which
services are to be received or the life of the option or
warrant. The grant date fair value of employee share options and
similar instruments is estimated using the Black-Scholes option
pricing model on the basis of the fair value of the underlying