Shareholders' Deficit

9 Months Ended

Sep. 30, 2015

Stockholders' Equity Note [Abstract]

Shareholders' Deficit

4. Shareholders’ Deficit

Common Stock  

During the nine months ended September 30, 2015, holders of Convertible Debentures with a face value of $130,777 converted their debentures into 2,705,306 shares of restricted common stock. In addition, associated with these debentures, the Company paid $27,062 in accrued interest by issuing 528,609 shares of restricted common stock and recorded a gain on extinguishment of debt of $119,369.

Warrants 

During the nine months ended September 30, 2015, in conjunction with the sale of Convertible Debentures, the Company issued five year common stock purchase warrants to acquire up to 13,981,485 shares to holders of the Debentures. These warrants have exercise prices ranging from $0.06 to $0.09 per share.

In January 2015, the Company issued a warrant exercisable into up to 300,000 shares of common stock in exchange for services provided by a consultant. The value of these warrants, $2,848, was determined using the Black-Sholes Option pricing model and was included as non-cash expenses and additional paid-in capital during the nine months ended September 30, 2015.

The balance of all warrants outstanding as of September 30, 2015 is as follows:

	Warrants			Weighted Average Exercise Price
Outstanding at January 1, 2015		103,430,075		$	0.11
Granted		14,281,485		$	0.08
Exchanged cancelled		—		$	—
Exchanged issued		—		$	—
Cancelled		(9,459,694	)	$	0.31
Exercised		—		$	—
Outstanding at September 30, 2015		108,251,866		$	0.08
Exercisable at September 30, 2015		108,251,866		$	0.08

Stock Options

Options outstanding as of September 30, 2015 are as follows:  

	Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (1)
Outstanding at January 1, 2015		34,293,800		$	0.02		8.49
Granted		5,900,002		$	0.01		9.36
Cancelled		(1,679,167	)	$	0.03		—
Exercised		(450,000	)	$	0.01		—
Outstanding at September 30, 2015		38,064,635		$	0.02		8.40	$	—
Exercisable at September 30, 2015		18,728,251		$	0.02		8.29	$	—
Weighted average fair value of options granted during the period		5,900,002		$	0.01

(1) These amounts represent the excess, if any, between the exercise price and $0.01, the closing market price of the Company’s common stock on September 30, 2015 as quoted on the Over-the-Counter Bulletin Board under the symbol “SCIE”.

In February 2015, the Company’s Board of Directors authorized the issuance of stock options exercisable into up to 5,900,002 shares of common stock at an exercise price of $0.01 per share to a group of employees, directors and consultants. A portion of the options contained vesting criteria conditioned on certain milestones being achieved by the Company. If the milestones are not achieved, the options are subject to being cancelled. During the nine months ended September 30, 2015, two directors exercised stock options into 450,000 shares of common stock at an exercise price of $0.01 per share

At September 30, 2015, total unrecognized estimated employee compensation cost related to non-vested stock options granted prior to that date is $415,052, which we expect to be recognized over the next four years.