Quarterly report pursuant to Section 13 or 15(d)

STOCK BASED COMPENSATION

v3.19.1
STOCK BASED COMPENSATION
3 Months Ended
Mar. 31, 2019
STOCK BASED COMPENSATION [Text Block]

NOTE 6 – STOCK BASED COMPENSATION

a.         Options Granted to employees

            The table below summarizes the terms of options for the purchase of shares in the Company granted to employees during the period from January 1, 2019 to March 31, 2019:

    No. of     Fair Value at  
    Options Exercise   Grant Expiration
    Granted Price Vesting Period ( in thousands ) Period
 


Employees



55,500



$5.07
Quarterly over a
period of 2 years
commencing in July
2019



$207



10 years

            The fair valuation of these option grants is based on the following assumptions:

  During the Period from
  January 1, 2019 to
  March 31, 2019
Value of one common share $5.07
Dividend yield 0%
Expected stock price volatility 91.25%
Risk free interest rate 2.47%
Expected term (years) 5.56

b.         Options Granted to non-employees

            The table below summarizes all the options for the purchase of shares in the Company granted to consultants and service providers during the period from January 1, 2019 to March 31, 2019:

    No. of     Fair Value at  
    Options Exercise   Grant Expiration
    Granted Price Vesting Period ( in thousands ) Period
 


Non-employees



5,000



$5.07
20% immediately and
the rest over a period
of 4 year on an annual
basis



$22



10 years

            The fair valuation of these option grants is based on the following assumptions:

  During the Period from
  January 1, 2019 to
  March 31, 2019
Value of one common share $5.07
Dividend yield 0%
Expected stock price volatility 91.77%
Risk free interest rate 2.62%
Expected term (years) 10

c.         Shares and Warrants for the purchase of shares in the Company g ranted to non-employees

            During December 2018, the Company granted to consultants 2,858 warrants, each exercisable at $7.00 per share for three years. The fair value of those warrants as of the date of grant using the Black-Scholes valuation model was $8 thousand.

            In December 2018, the Company entered into an investor relation services, marketing and related services agreement. Under the terms of the agreement, the Company agreed to grant the consultant 10,000 shares of restricted common stock, of which the first 2,500 shares vested on the signing date, and 7,500 shares are to vest monthly over 3 months commencing January 2019. As of March 31, 2019, 10,000 shares were fully vested. The fair value of the shares was $51 thousand using the fair value of the shares on the vesting dates, out of which $14 thousand was recognized during the one month ended December 31, 2018 and $37 thousand was recognized during the three months ended March 31, 2019.

            In December 2018, the Company entered into another investor relations services, marketing and related services agreement. Under the terms of the agreement, the Company agreed to grant the consultant 40,000 shares of restricted common stock, of which the first 6,667 shares vested on the signing date, and 33,333 shares are to vest monthly over 5 months commencing January 2019. As of March 31, 2019, 26,667 shares are vested. The fair value of the shares was $137 thousand using the fair value of the shares at the vesting date, out of which $37 thousand was recognized during the one month ended December 31, 2018 and $100 thousand was recognized during the three months ended March 31, 2019.

d.         Options Granted to employees of Masthercell Global for the purchase of shares in Masthercell Global

            The rows below summarize the terms of options granted to employees of Masthercell Global INC during the period from December 1, 2018 to December 31, 2018 and January 1, 2019 to March 31, 2019, respectively:

    No. of     Fair Value at  
    Options Exercise   Grant Expiration
    Granted Price Vesting Period ( in thousands ) Period
 


Employee



80,776



$13.52
Over 5 years.
Approximately 20%
of the options are
performance based.



$651



10 years
 


Employee



16,667



$13.52
Over 5 years.
Approximately 56%
of the options are
performance based.



$134



10 years

            The fair valuation of these option grants is based on the following assumptions:

  December 1, 2018 to
  March 31, 2019
Value of one common share $12.28
Dividend yield 0%
Expected stock price volatility 69%
Risk free interest rate 2.78%
Expected term (years) 7