Stock Option Plans, Shares Reserved and Warrants

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Plans, Shares Reserved and Warrants

Note 9: Stock Option Plans, Shares Reserved and Warrants

The following summarizes the stock option activity for the six months ended June 30, 2018 below:

						Weighted Average
	2009 Equity Incentive Plan			Weighted Average Exercise Price		Remaining Contract Life
Outstanding Options as of December 31, 2017		6,726,594		$	5.05	8.17 years
Options Granted		2,778,289			2.96	9.66 years
Options Exercised		(4,166	)		3.35	—
Options Cancelled/Expired		(148,474	)		4.87	—
Outstanding Options as of June 30, 2018		9,352,243		$	4.43	8.30 years
Exercisable at June 30, 2018		4,969,386		$	5.20	7.05 years

The aggregate intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) of the 9,352,243 and 6,726,594 stock options outstanding at June 30, 2018 and December 31, 2017 was approximately $1,052,000 and approximately $2,980,000, respectively. The aggregate intrinsic value of 4,969,386 and 3,835,992 stock options exercisable at June 30, 2018 and December 31, 2017 was approximately $179,000 and $1,009,000, respectively.

The following summarizes warrants outstanding at June 30, 2018:  

	Warrant			Exercise Price		Date	Expiration
	Shares			Per Share		Issued	Date
Old Adamis Warrants		58,824		$	8.50	November 15, 2007	November 15, 2018
Underwriter Warrants		28,108		$	7.44	December 12, 2013	December 12, 2018
Underwriter Warrants		4,217		$	7.44	January 16, 2014	January 16, 2019
Preferred Stock Series A-1 Warrants		1,183,432		$	4.10	January 26, 2016	January 26, 2021
Bear State Bank, Collateral to Line of Credit		1,000,000	*	$	0.0001	March 28, 2016
Preferred Stock Series A-2 Warrants		192,414		$	2.90	July 11, 2016	July 11, 2021
2016 Common Stock, Private Placement		700,000		$	2.98	August 3, 2016	August 3, 2021
Total Warrants		3,166,995

*Exercisable upon default of the Line of Credit or if the Company has not paid in full all amounts that are required to be paid to the Lender under the loan documents on or before the maturity date of the loan, see Note 7 and Note 10 for further details.

The following table summarizes the RSUs outstanding at June 30, 2018:  

	RSU Shares			Price  Per Share at  Grant Date		Date of Grant
Non-Employee Board of Directors		350,000	(1)	$	8.46	May 25, 2016
Company Executives		950,000	(1)	$	3.50	March 1, 2017
Company Executives		342,212	(2)	$	2.83	February 21, 2018
Total RSUs		1,642,212

(1) The RSUs will fully vest on the seventh anniversary of the date of grant if the recipient has provided continuous service or upon change of control or upon death or disability.

(2) The RSUs vest ratably annually over a period of three years if the recipient has provided continuous service or upon change of control or upon death or disability. 

Expense related to RSUs for the three months ended June 30, 2018 and 2017 was approximately $305,000 and $225,000, respectively; and for the six months ended June 30, 2018 and 2017, expense related to RSUs was approximately $563,000 and $370,000, respectively. 

At June 30, 2018, the Company has reserved shares of common stock for issuance upon exercise of outstanding options and warrants, convertible preferred stock shares, and options and other awards that may be granted in the future under the 2009 Equity Incentive Plan, as follows:

Warrants	3,166,995
Restricted Stock Units (RSU)	1,642,212
2009 Equity Incentive Plan	9,352,243
Total Shares Reserved	14,161,450