Quarterly report pursuant to Section 13 or 15(d)

Stock Options and Warrants

v2.4.0.8
Stock Options and Warrants
 3 Months Ended
Aug. 31, 2014
Stock Options and Warrants

Note 5 - Stock Options and Warrants

The Company has one active stock-based equity plan at August 31, 2014, the CytoDyn Inc. 2012 Equity Incentive Plan (the “2012 Plan”), which was approved by shareholders at the Company’s 2012 annual meeting to replace the 2004 Stock Incentive Plan. The 2012 Plan provides for the issuance of up to 3,000,000 shares of common stock pursuant to various forms of incentive awards allowed under the 2012 Plan. As of August 31, 2014, the Company had 938,903 shares available for future stock-based grants under the 2012 Plan.

During the three months ended August 31, 2014, the Company granted options to purchase a total of 300,000 shares of common stock to directors with an exercise price of $.66 per share. These option awards vest at 25% per quarter over one year. The grant date fair value related to these options was $.33 per share.

Compensation expense related to stock options and warrants was approximately $137,500 and $226,000 for the three months ended August 31, 2014 and August 31, 2013, respectively. The grant date fair value of options and warrants vested during the three month periods ended August 31, 2014 and August 31, 2013 was $82,500 and $1,115,000, respectively. As of August 31, 2014, there was approximately $715,000 of unrecognized compensation expense related to share-based payments for unvested options, which is expected to be recognized over a weighted average period of 1.59 years.

The following table represents stock option and warrant activity as of and for the three months ended August 31, 2014:

 

     Number of
Shares		     Weighted
Average
Exercise Price		      Weighted
Average
Remaining
Contractual
Life in Years		      Aggregate
Intrinsic Value		  

Options and warrants outstanding – May 31, 2014

      30,806,361      $ 1.13         3.29       $ 177,042   
  

 

 

    

 

 

     

 

 

     

 

 

  

Granted

      300,000        0.66         —           —     

Exercised

      —          —           —           —     

Forfeited/expired/cancelled

      (170,000 )      1.27         —           —     

Options and warrants outstanding – August 31, 2014

      30,936,361        1.13         3.06         2,238,219   
  

 

 

    

 

 

     

 

 

     

 

 

  

Outstanding exercisable – August 31, 2014

      29,519,694      $ 1.14         3.02       $ 2,091,969