Stockholders' Equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Stockholders' Equity

6. Stockholders’ Equity:

Securities Purchase Agreement

On May 15, 2015, the Company and Mayne Pharma entered into a Securities Purchase Agreement (the “Purchase Agreement”) pursuant to which, in consideration of Mayne Pharma’s investment of $2.5 million in the Company, the Company issued (i) 33,333,333 shares of Common Stock and (ii) a warrant to purchase 33,333,333 shares of Common Stock (the “Warrant”) for an aggregate purchase price of $2,500,000, or $0.075 per share. The transaction contemplated by the Purchase Agreement formally closed on May 18, 2015. The Warrant is immediately exercisable, subject to certain restrictions, at an exercise price of $0.075 per share and expires on May 15, 2020.

Employee Stock Plans

Total stock-based compensation for the nine months ended September 30, 2015 was approximately $1.3 million and is related to certain Restricted Stock Units (“RSUs”) granted in 2014 and 2015 in connection with the Company’s 2014 Equity Incentive Plan. The expense is classified as research and development expense and general and administrative expense in the accompanying condensed 2015 statement of operations. There was approximately $2.0 million in unamortized stock-based compensation relating to the RSUs at September 30, 2015, which is expected to be recognized over the next 35 months. On August 14, 2015, 1.6 million RSUs were granted to various Board members and the Company Secretary and shall vest upon the earlier to occur of (i) September 5, 2017 or (ii) the approval by the FDA of a New Drug Application (“NDA”) for any Company product candidate with a cancer indication utilizing the Company’s licensed SUBA-itraconazole technology. The grant date fair value related to these RSUs totaled approximately $0.2 million and will be recognized over the vesting period through September 2017.

An additional 750,000 RSUs were granted on August 14, 2015 to various employees and contractors of the Company and shall vest over three years through August 14, 2018. The grant date fair value related to these RSUs totaled approximately $0.1 million and will be recognized over the vesting period through August 2018.The fair value of the RSUs was determined using the quoted market price of the Common Stock on the date of issuance and the number of shares expected to vest.