4.	Stockholders’ Equity:

Employee Stock Plans

On March 13, 2018, as compensation for 2017 service, management was awarded 570,000 stock options pursuant to the Company’s 2014 Equity Incentive Plan (the “Plan”) with an exercise price of $0.2722 and Black-Scholes value of $0.22 per share that vested on the grant date. Independent Board members were awarded a total of 188,000 stock options pursuant to the Plan with an exercise price of $0.2722 and Black-Scholes value of $0.22 that also vested on the grant date. 75,000 common shares were issued to the former Secretary of the Company for the prior year’s service.

In addition, Board members were awarded approximately 1.1 million stock options pursuant to the Plan with an exercise price of $0.2722 and Black-Scholes value of $0.23 that vest on the first anniversary of the grant date. The grant date fair value of common stock options was determined using the Black-Scholes model on the date of issuance and the number of shares expected to vest. The total Black-Scholes value of the March 13, 2018 stock options grants was approximately $0.4 million.

On June 15, 2018, as compensation for 2018 service, Board members were awarded a total of 912,000 stock options pursuant to the Company’s 2014 Equity Incentive Plan (the “Plan”) with an exercise price of $0.33 and Black-Scholes value of $0.273 per share that vest on the first anniversary of the grant date.

Total stock-based compensation for the nine months ended September 30, 2018 was approximately $0.4 million and is primarily related to common stock options issued pursuant to the Plan in March and June 2018. The expense is classified as research and development expense and general and administrative expense in the accompanying condensed statements of operations. As of September 30, 2018, there were 3,424,000 outstanding common stock options under the Plan of which 1,408,000 were vested. There was approximately $0.3 million in unamortized stock-based compensation at September 30, 2018.

Dividend Payment

On July 15, 2018, the Company paid a bi-annual dividend payment of approximately $0.06 million to Mayne Pharma by issuing 184,798 shares of common stock. The number of shares was calculated by dividing the principal value of the dividend owed by the volume-weighted average price of the common stock, as defined, for the dividend period.