[ ]
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Preliminary Proxy Statement
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[ ]
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Confidential, for Use of the SEC Only (as permitted by Rule 14a-6(e)(2))
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[X]
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Definitive Proxy Statement
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[ ]
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Definitive Additional Materials
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[ ]
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Soliciting Material Pursuant to 14a-12
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1.
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Title of each class of securities to which transaction applies:
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2.
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Aggregate number of securities to which transaction applies:
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3.
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
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4.
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Proposed maximum aggregate value of transaction:
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5.
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Total fee paid:
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1.
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Amount Previously Paid:
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2.
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Form, Schedule or Registration Statement No.:
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3.
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Filing Party:
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4.
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Date Filed:
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Sincerely,
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Jon S. Saxe
Chairman of the Board of Directors
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YOUR VOTE IS IMPORTANT
All stockholders are cordially invited to attend the Annual Meeting in person. However, to ensure your representation at the Annual Meeting, you are urged to vote by Internet, telephone or e-mail as promptly as possible. Submitting your vote assures that a quorum will be present at the Annual Meeting and avoid the additional expense of duplicate proxy solicitations. Any stockholder attending the Annual Meeting may vote in person, even if he or she has returned a proxy.
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||
1.
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to
elect five directors to our Board of Directors, each to serve until the next Annual Meeting of Stockholders, or until his respective successor is elected and qualified;
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2.
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to approve the amended and restated 2016 Equity Incentive Plan, formerly the 2008 Stock Incentive Plan (the “
2016
Plan
”), and ratify all issuances thereunder
to date;
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3.
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to approve, on an advisory basis, the compensation of our Named Executive Officers;
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4.
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to conduct an advisory vote to indicate how frequently stockholders believe we should conduct an advisory vote on the compensation of our Named Executive Officers;
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5.
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to ratify the appointment of OUM & Co. LLP as our independent auditors for the fiscal year ending March 31, 2017; and
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6.
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to vote upon such other matters as may properly come before the Annual Meeting or any adjournment or postponement of the Annual Meeting.
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By Order of the Board of Directors,
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Shawn K. Singh
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Chief Executive Officer and Director
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Name
|
Age
|
Position
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||
Jon S. Saxe (1) | 80 | Director, Chairman of the Board | ||
Shawn K. Singh
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53
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Chief Executive Officer and Director
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||
H. Ralph Snodgrass, Ph.D.
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66
|
Founder, President, Chief Scientific Officer and Director
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||
Brian J. Underdown, PhD.
(2)
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75
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Director
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||
Jerry B. Gin, Ph.D, MBA
(3)
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72
|
Director
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(1)
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Chairman of the Audit Committee and member of the Compensation Committee and Corporate Governance and Nominating Committee.
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(2)
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Member of the Audit Committee and chairman of the Compensation Committee and Corporate Governance and Nominating Committee.
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(3)
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Member of the Audit Committee.
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Fees Earned or
Paid in Cash
(1)
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Option and Warrant
Awards
(2)
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Other
Compensation
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Total
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|||||||||
Name
|
($)
|
($)
|
($)
|
($)
|
||||||||
Jon S. Saxe
(3)
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$
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52,500
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$
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324,816
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(6)
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$
|
-
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$
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377,316
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|||
Brian J. Underdown, Ph.D.
(4)
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$
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57,500
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$
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324,400
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(6)
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$
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-
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$
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381,900
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|||
Jerry B. Gin, Ph.D., M.B.A
(5)
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$
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-
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$
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181,103
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(7)
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$
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-
|
$
|
181,103
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(1)
|
The amounts shown represent fees earned for service on our Board of Directors, and Audit Committee, Compensation Committee and Corporate Governance and Nominating Committee during the fiscal year ended March 31, 2016, which we accrued in full at that date and a portion of which has been paid to the director through the date of this Proxy Statement.
|
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(2)
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The amounts in the Option and Warrant Awards column represent the aggregate grant date fair value of warrants or options to purchase shares of our common stock awarded to Mr. Saxe, Dr. Underdown and Dr. Gin, and the effect of modifications to prior grants of warrants to Mr. Saxe and Dr. Underdown occurring during our fiscal year ended March 31, 2016, computed in accordance with the Financial Accounting Standards Board’s Accounting Standards Codification Topic 718, Compensation – Stock Compensation ("
ASC 718"
). The amounts in this column
do not
represent any cash payments actually received by Mr. Saxe, Dr. Underdown or Dr. Gin with respect to any of such warrants or options to purchase shares of our common stock awarded to them during the fiscal year ended March 31, 2016. To date, Mr. Saxe, Dr. Underdown and Dr. Gin have not exercised such warrants or options to purchase common stock, and there can be no assurance that any of them will ever realize any of the ASC 718 grant date fair value amounts presented in the Option and Warrant Awards column.
|
(3)
|
Mr. Saxe has served as the Chairman of our Board, the Chairman of our Audit Committee and a member of our Compensation Committee and Corporate Governance and Nominating Committee throughout our fiscal year ended March 31, 2016. At March 31, 2016, Mr. Saxe holds: (i) 1,875 restricted shares of our common stock; (ii) fully-vested options to purchase 12,250 registered shares of our common stock; and (iii) warrants to purchase 83,250 restricted shares of our common stock, of which 82,438 shares are exercisable and of which the remaining 812 shares became exercisable on April 1, 2016.
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(4)
|
Dr. Underdown has served as a member of our Board, as the Chairman of our Compensation Committee and Corporate Governance and Nominating Committee and as a member of our Audit Committee throughout our fiscal year ended March 31, 2016. At March 31, 2016, Dr. Underdown holds: (i) fully-vested options to purchase 9,250 registered shares of our common stock, and (ii) warrants to purchase 82,500 restricted shares of our common stock, of which 81,875 shares are exercisable as of March 31, 2016 and of which the remaining 625 shares became exercisable on April 1, 2016.
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(5)
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Dr. Gin was appointed to our Board and as a member of our Audit Committee on March 29, 2016. At March 31, 2016, Dr. Gin holds an option to purchase 25,000 registered shares of our common stock granted in connection with his appointment to the Board, in accordance with the director compensation policy described above.
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(6)
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The table below provides information regarding the warrant awards and modifications we granted to Mr. Saxe and Dr. Underdown during fiscal 2016 and the assumptions used in the Black Scholes Option Pricing Model to determine the grant date fair values of the respective awards and modifications.
|
Warrant
Grant
9/2/2015
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Warrant Modification
11/11/2015
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Total
|
||||||||||
Mr. Saxe
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284,066
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40,750
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324,816
|
|||||||||
Dr. Underdown
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284,066
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40,334
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324,400
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|||||||||
$
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568,132
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$
|
81,084
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$
|
649,216
|
Weighted Average (except shares)
|
||||||||||||
Before
|
After
|
|||||||||||
Market price per share
|
$
|
9.11
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$
|
6.50
|
6.50
|
|||||||
Exercise price per share
|
$
|
9.25
|
$
|
9.80
|
7.00
|
|||||||
Risk-free interest rate
|
1.15
|
%
|
1.68
|
%
|
1.72
|
%
|
||||||
Volatility
|
77.19
|
%
|
76.21
|
%
|
78.56
|
%
|
||||||
Expected term (years)
|
5.00
|
4.90
|
4.99
|
|||||||||
Dividend rate
|
0
|
%
|
0
|
%
|
0
|
%
|
||||||
Fair value per share
|
$
|
5.68
|
$
|
3.53
|
4.02
|
|||||||
Aggregate shares
|
100,000
|
165,750
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165,750
|
Mr. Saxe and Dr. Underdown were each granted warrants to purchase 50,000 restricted shares of our common stock. We modified warrants to purchase an aggregate of 83,250 shares and 82,500 shares held by Mr. Saxe and Dr. Underdown, respectively.
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(7)
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The table below provides information regarding the option award we granted to Dr. Gin during fiscal 2016 and the assumptions used in the Black Scholes Option Pricing Model to determine the grant date fair value of the award as reported in the table above:
|
Market price per share
|
$
|
8.00
|
||
Exercise price per share
|
$
|
8.00
|
||
Risk-free interest rate
|
1.83
|
%
|
||
Volatility
|
102.94
|
%
|
||
Expected term (years)
|
10.00
|
|||
Dividend rate
|
0
|
%
|
||
Fair value per share
|
$
|
7.24
|
||
Option shares granted
|
25,000
|
●
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overseeing our accounting and financial reporting process;
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●
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selecting, retaining and replacing our independent auditors and evaluating their qualifications, independence and performance;
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●
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reviewing and approving scope of the annual audit and audit fees;
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●
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monitoring rotation of partners of independent auditors on engagement team as required by law;
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●
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discussing with management and independent auditors the results of annual audit and review of quarterly financial statements;
|
●
|
reviewing adequacy and effectiveness of internal control policies and procedures;
|
●
|
approving retention of independent auditors to perform any proposed permissible non-audit services;
|
●
|
overseeing internal audit functions and annually reviewing audit committee charter and committee performance; and
|
●
|
preparing the audit committee report that the SEC requires in our annual proxy statement.
|
●
|
reviewing and approving our compensation programs and arrangements applicable to our executive officers (as defined in Rule I 6a-I (f) of the Exchange Act), including all employment-related agreements or arrangements under which compensatory benefits are awarded or paid to, or earned or received by, our executive officers, including, without limitation, employment, severance, change of control and similar agreements or arrangements;
|
●
|
determining the objectives of our executive officer compensation programs;
|
●
|
ensuring corporate performance measures and goals regarding executive officer compensation are set and determining the extent to which they are achieved and any related compensation earned;
|
●
|
establishing goals and objectives relevant to CEO compensation, evaluating CEO performance in light of such goals and objectives, and determining CEO compensation based on the evaluation;
|
●
|
endeavoring to ensure that our executive compensation programs are effective in attracting and retaining key employees and reinforcing business strategies and objectives for enhancing stockholder value, monitoring the administration of incentive-compensation plans and equity-based incentive plans as in effect and as adopted from time to time by the board;
|
●
|
reviewing and approving any new equity compensation plan or any material change to an existing plan; and
|
●
|
reviewing and approving any stock option award or any other type of award as may be required for complying with any tax, securities, or other regulatory requirement, or otherwise determined to be appropriate or desirable by the committee or board.
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●
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monitoring the size and composition of the board;
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●
|
making recommendations to the board with respect to the nominations or elections of our directors;
|
●
|
reviewing the adequacy of our corporate governance policies and procedures and our Code of Business Conduct and Ethics, and recommending any proposed changes to the board for approval; and
|
●
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considering any requests for waivers from our Code of Business Conduct and Ethics and ensure that we disclose such waivers as may be required by the exchange on which we are listed, if any, and rules and regulations of the SEC.
|
●
|
by will and by the laws of descent and distribution; and
|
●
|
during the lifetime of the participant, to the extent and in the manner authorized by the Committee by gift or pursuant to a domestic relations order to members of the participant’s Immediate Family (as defined in the 2016 Plan).
|
●
|
increase in share price;
|
|
●
|
earnings per share;
|
|
●
|
total stockholder return;
|
|
●
|
operating margin;
|
|
●
|
gross margin;
|
|
●
|
return on equity;
|
|
●
|
return on assets;
|
|
●
|
return on investment;
|
|
●
|
operating income;
|
|
●
|
net operating income;
|
|
●
|
pre-tax profit;
|
|
●
|
cash flow;
|
|
●
|
revenue;
|
|
●
|
expenses;
|
|
●
|
earnings before interest, taxes and depreciation;
|
|
●
|
economic value added; and
|
|
●
|
market share.
|
●
|
an acquisition of securities possessing more than fifty percent (50%) of the total combined voting power of our outstanding securities but excluding any such transaction or series of related transactions that the Committee determines shall not be a Corporate Transaction;
|
●
|
a reverse merger in which we remain the surviving entity but: (i) the shares of common stock outstanding immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of securities, cash or otherwise; or (ii) in which securities possessing more than fifty percent (50%) of the total combined voting power of our outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger;
|
●
|
a sale, transfer or other disposition of all or substantially all of the assets of the Company;
|
●
|
a merger or consolidation in which the Company is not the surviving entity; or
|
●
|
a complete liquidation or dissolution.
|
Name and Position
|
Issuances under the
Amended and Restated
2016 Equity Incentive Plan
|
|||
No. of Shares
(1)
|
||||
Shawn K. Singh
|
75,000 | |||
Chief
Executive Officer and Director
|
||||
H. Ralph Snodgrass, Ph.D.
|
– | |||
President, Chief Scientific Officer
|
||||
Mark A Smith, MD, Ph.D.
|
30,000 | |||
Chief Medical Officer
|
||||
Jerrold D. Dotson
|
– | |||
Vice President, Chief Financial Officer, Secretary
|
||||
Outside Directors
|
– | |||
Employees (excluding
executive officers)
|
– | |||
Total
|
105,000 |
(1)
|
All Awards issued under the 2016 Plan to date have been in the form of stock options exercisable, subject to vesting provisions, at $3.49 per share for a period 10 years from June 19, 2016. As of the date of this Proxy Statement, none of the stock options issued under the 2016 Plan have vested or otherwise become eligible for exercise by the grantee.
|
Name
|
Age
|
Position
|
||
Shawn K. Singh
|
53
|
Chief Executive Officer and Director
|
||
H. Ralph Snodgrass, Ph.D.
|
66
|
Founder, President, Chief Scientific Officer and Director
|
||
Mark A. Smith, M.D., Ph.D.
|
60
|
Chief Medical Officer
|
||
Jerrold D. Dotson
|
63
|
Vice President, Chief Financial Officer and Secretary
|
Name and Principal Position
|
Fiscal
Year
|
Salary
($)
|
Bonus
($)
|
Option and
Warrant Awards
(7)
($)
|
All Other Compensation
($)
|
Total
($)
|
|||||||||||||||
Shawn K. Singh
(1)
|
2016
|
347,500
|
-
|
1,629,574
|
(8)
|
-
|
1,977,074
|
||||||||||||||
Chief Executive Officer
|
2015
|
347,500
|
(4)
|
-
|
688,050
|
(9)
|
-
|
1,035,550
|
|||||||||||||
H. Ralph Snodgrass, Ph.D
.
(2)
|
2016
|
305,000
|
-
|
985,025
|
(8)
|
-
|
1,290,025
|
||||||||||||||
President, Chief Scientific Officer
|
2015
|
305,000
|
(5)
|
-
|
458,700
|
(9)
|
-
|
763,700
|
|||||||||||||
Jerrold D. Dotson
(3)
|
2016
|
250,000
|
-
|
635,297
|
(8)
|
-
|
885,297
|
||||||||||||||
Vice President, Chief Financial Officer, Secretary
|
2015
|
250,000
|
(6)
|
-
|
229,350
|
(9)
|
-
|
479,350
|
(1)
|
Mr. Singh became VistaGen California’s Chief Executive Officer on August 20, 2009 and our Chief Executive Officer in May 2011, in connection with the Merger. In our fiscal years ended March 31, 2016 and 2015, Mr. Singh’s annual base cash salary, pursuant to his January 2010 employment agreement, was contractually set at $347,500. To conserve cash for our operations during fiscal 2015 and 2014, Mr. Singh voluntarily agreed to receive cash payments of less than his contractual base cash salary. The figures reported above reflect the amount of Mr. Singh’s salary that we expensed for accounting purposes in our financial statements for the respective fiscal years. As discussed in note (4) below, only $82,813 was actually paid in cash to Mr. Singh in our fiscal year ended March 31, 2015. The difference between the amounts expensed in fiscal 2015 and 2014 for accounting purposes and the amounts actually paid to Mr. Singh was accrued in fiscal 2015 and 2014 for payment in the future, $153,064 of which was paid during fiscal 2016. Mr. Singh also received cash payments during fiscal 2016 of $25,242 in payment of amounts previously accrued for vacation pay and $101,936 representing a tax gross up related to the forgiveness of a loan made prior to the date the Company became public. Additionally, pursuant to his employment agreement, Mr. Singh is eligible to receive an annual cash incentive bonus of up to fifty percent (50%) of his base cash salary. To conserve cash for our operations during our fiscal years ended March 31, 2016 and 2015, Mr. Singh voluntarily refrained from receiving any cash bonus.
|
(2)
|
Through August 20, 2009, Dr. Snodgrass served as VistaGen California’s President and Chief Executive Officer, at which time he became its President and Chief Scientific Officer. He became our President and Chief Scientific Officer in May 2011, in connection with the Merger. In our fiscal years ended March 31, 2016 and 2015, Dr. Snodgrass’ annual base cash salary, pursuant to his January 2010 employment agreement, was contractually set at $305,000. To conserve cash for our operations during fiscal 2015 and 2014, Dr. Snodgrass voluntarily agreed to receive cash payments of less than his contractual base cash salary. The figures reported above reflect the amount of Dr. Snodgrass’ salary that we expensed for accounting purposes in our financial statements for the respective fiscal years. As discussed in note (5) below, only $157,292 was actually paid in cash to Dr. Snodgrass in our fiscal year ended March 31, 2015. The difference between the amounts expensed in fiscal 2015 and 2014 for accounting purposes and the amounts actually paid to Dr. Snodgrass was accrued in fiscal 2015 and 2014 for payment in the future, $178,088 of which was paid during fiscal 2016. Dr. Snodgrass also received cash payments during fiscal 2016 of $18,088 in payment of amounts previously accrued for vacation pay. Additionally, pursuant to his employment agreement, Dr. Snodgrass is eligible to receive an annual cash incentive bonus of up to fifty percent (50%) of his base cash salary. To conserve cash for our operations during our fiscal years ended March 31, 2016 and 2015, Dr. Snodgrass voluntarily refrained from receiving any cash bonus.
|
(3)
|
Mr. Dotson served as Chief Financial Officer on a part-time contract basis from September 19, 2011 through August 2012, at which time he became our full-time employee. In our fiscal years ended March 31, 2016 and 2015, Mr. Dotson’s annual base cash salary was $250,000. To conserve cash for our operations during fiscal 2015 and 2014, Mr. Dotson voluntarily agreed to receive cash payments of less than his base cash salary. The figures reported above reflect the amount of Mr. Dotson’s salary that we expensed for accounting purposes in our financial statements for the respective fiscal years. As discussed in note (6) below, only $153,917 was actually paid in cash to Mr. Dotson in our fiscal year ended March 31, 2015. The difference between the amounts expensed in fiscal 2015 and 2014 for accounting purposes and the amounts actually paid to Mr. Dotson was accrued in fiscal 2015 and 2014 for payment in the future, $144,417 of which was paid during fiscal 2016. To conserve cash for our operations, Mr. Dotson did not receive a cash bonus in either of our fiscal years ended March 31, 2016 or 2015.
|
(4)
|
Mr. Singh received only $82,813 in cash compensation in our fiscal year ended March 31, 2015. The remaining balance of $264,687 was accrued at March 31, 2015 for future payment and has been paid to Mr. Singh at the date of this Annual Report on Form 10-K.
|
(5)
|
Dr. Snodgrass received only $157,292 in cash compensation in our fiscal year ended March 31, 2015. The remaining balance of $147,708 was accrued at March 31, 2015 for future payment and has been repaid to Dr. Snodgrass at the date of this Annual Report on Form 10-K.
|
|
(6)
|
Mr. Dotson received only $153,917 in cash compensation in our fiscal year ended March 31, 2015. The remaining balance of $96,083 was accrued at March 31, 2015 and was paid during fiscal 2016.
|
|
(7)
|
The amounts in the Option and Warrant Awards column represent the aggregate grant date fair value of warrants to purchase restricted shares of our common stock awarded to Mr. Singh, Dr. Snodgrass and Mr. Dotson, and the effect of modifications to prior grants of warrants occurring during the fiscal year presented, computed in accordance with the Financial Accounting Standards Board’s Accounting Standards Codification Topic 718, Compensation – Stock Compensation (“
ASC 718
”). The amounts in this column do not represent any cash payments actually received by Mr. Singh, Dr. Snodgrass or Mr. Dotson with respect to any of such options or warrants to purchase restricted shares of our common stock awarded to them or modified during the periods presented. To date, Mr. Singh, Dr. Snodgrass and Mr. Dotson have not exercised any of such options or warrants to purchase common stock, and there can be no assurance that any of them will ever realize any of the ASC 718 grant date fair value amounts presented in the Option and Warrant Awards column.
|
|
(8)
|
The table below provides information regarding the warrant awards and modifications we granted to Mr. Singh, Dr. Snodgrass and Mr. Dotson during fiscal 2016 and the assumptions used in the Black Scholes Option Pricing Model to determine the grant date fair values of the respective awards and modifications:
|
Warrant Grant
|
Warrant Modification
|
|||||||||||
9/2/2015
|
11/11/2015
|
Total
|
||||||||||
Singh
|
$
|
1,420,332
|
$
|
209,242
|
$
|
1,629,574
|
||||||
Snodgrass
|
852,199
|
132,826
|
985,025
|
|||||||||
Dotson
|
568,133
|
67,164
|
635,297
|
|||||||||
$
|
2,840,664
|
$
|
409,232
|
$
|
3,249,896
|
Weighted Average (except shares)
|
||||||||||
Before
|
After
|
|||||||||
Market price per share
|
$
|
9.11
|
$
|
6.5
|
$
|
6.5
|
||||
Exercise price per share
|
$
|
9.25
|
$
|
9.99
|
$
|
7
|
||||
Risk-free interest rate
|
1.15
|
%
|
1.75
|
%
|
1.76
|
|||||
Volatility
|
77.19
|
%
|
78.8
|
%
|
78.75
|
%
|
||||
Expected term (years)
|
5
|
5.17
|
5.19
|
|||||||
Dividend rate
|
0
|
%
|
0
|
%
|
0
|
%
|
||||
Fair value per share
|
$
|
5.68
|
$
|
3.67
|
$
|
4.09
|
||||
Aggregate shares
|
500,000
|
952,803
|
952,803
|
Mr. Singh, Dr. Snodgrass and Mr. Dotson were granted warrants to purchase 250,000, 150,000 and 100,000 restricted shares of our common stock, respectively. We modified warrants to purchase an aggregate of 477,803 shares, 310,000 shares and 165,000 shares held by Mr. Singh, Dr. Snodgrass and Mr. Dotson, respectively.
|
(9)
|
We used the Black Scholes Option Pricing Model and the following assumptions for determining the grant date fair value of the warrants to purchase shares of our common stock granted in January 2015.
|
Market price per share
|
$
|
8.00
|
||
Exercise price per share
|
$
|
10.00
|
||
Risk-free interest rate
|
1.45
|
%
|
||
Expected Term (years)
|
5.0
|
|||
Volatility
|
75.86
|
%
|
||
Dividend rate
|
0.0
|
%
|
||
Grant date fair value per share
|
$
|
4.59
|
Mr. Singh, Dr. Snodgrass and Mr. Dotson were granted warrants to purchase 150,000, 100,000 and 50,000 restricted shares of our common stock, respectively.
|
None of the NEOs are entitled to perquisites or other personal benefits that, in the aggregate, are worth over $50,000 or over 10% of their base salary.
|
Stock Options and Warrants
|
|||||||||||||
Name
|
Number of Securities Underlying Unexercised Options
(#) Exercisable
|
Number of Securities
Underlying Unexercised Options
(#) Unexercisable
|
Option
Exercise
Price
($)
|
Option
Expiration
Date
|
|||||||||
Shawn K. Singh
|
1,000
|
-
|
16.00
|
12/21/2016
|
|||||||||
2,000
|
-
|
14.40
|
5/17/2017
|
||||||||||
1,000
|
-
|
10.00
|
1/17/2018
|
||||||||||
1,000
|
-
|
10.00
|
1/17/2018
|
||||||||||
3,000
|
-
|
10.00
|
3/24/2019
|
||||||||||
1,125
|
-
|
10.00
|
6/17/2019
|
||||||||||
50,000
|
-
|
10.00
|
11/4/2019
|
||||||||||
21,250
|
-
|
10.00
|
12/30/2019
|
||||||||||
5,000
|
-
|
10.00
|
4/26/2021
|
||||||||||
4,017
|
-
|
7.00
|
3/19/2019
|
||||||||||
1,786
|
-
|
7.00
|
3/19/2019
|
||||||||||
72,000
|
-
|
7.00
|
3/3/2023
|
||||||||||
150,000
|
(2)
|
-
|
7.00
|
1/11/2020
|
|||||||||
250,000
|
(3)
|
-
|
7.00
|
9/2/2020
|
|||||||||
Total:
|
563,178
|
0
|
|||||||||||
H. Ralph Snodgrass, Ph.D.
|
319
|
-
|
17.60
|
12/20/2016
|
|||||||||
2,500
|
-
|
10.00
|
3/24/2019
|
||||||||||
1,250
|
-
|
10.00
|
6/17/2019
|
||||||||||
12,500
|
-
|
10.00
|
12/30/2019
|
||||||||||
5,000
|
-
|
10.00
|
4/26/2016
|
||||||||||
50,000
|
-
|
7.00
|
3/3/2023
|
||||||||||
1,875
|
625
|
(1)
|
7.00
|
3/19/2024
|
|||||||||
5,625
|
1,875
|
(1)
|
7.00
|
3/19/2024
|
|||||||||
100,000
|
(2)
|
-
|
7.00
|
1/11/2020
|
|||||||||
150,000
|
(3)
|
-
|
7.00
|
9/20/2020
|
|||||||||
Total:
|
329,069
|
2,500
|
|||||||||||
Jerrold D. Dotson
|
5,001
|
-
|
10.00
|
10/30/2022
|
|||||||||
1,000
|
-
|
8.00
|
10/27/2023
|
||||||||||
10,000
|
-
|
7.00
|
3/3/2023
|
||||||||||
3,750
|
1,250
|
(1)
|
7.00
|
3/19/2024
|
|||||||||
50,000
|
(2)
|
-
|
7.00
|
1/11/2020
|
|||||||||
100,000
|
(3)
|
-
|
7.00
|
9/2/2020
|
|||||||||
Total:
|
169,751
|
1,250
|
(1)
|
Represents warrant to purchase restricted shares of our common stock granted on March 19, 2014 when the market price of our common stock was $9.20 per share. The warrant became exercisable for 50% of the shares on April 1, 2014, and became exercisable for an additional 25% of the shares on April 1, 2015. The warrant became exercisable for the remaining 25% of the shares on April 1, 2016.
|
(2)
|
Represents a warrant to purchase restricted shares of our common stock granted as fully exercisable on January 11, 2015 when the market price of our common stock was $8.00 per share. Warrant was modified on November 11, 2015 to reduce the exercise price to $7.00 per share.
|
(3)
|
Represents a warrant to purchase restricted shares of our common stock granted as fully exercisable on September 2, 2015 when the market price of our common stock was $9.11 per share. Warrant was modified on November 11, 2015 to reduce the exercise price to $7.00 per share.
|
●
|
twelve months of his then-current base salary payable in the form of salary continuation;
|
●
|
a pro-rated portion of the incentive cash bonus that the Board of Directors determines in good faith that Mr. Singh earned prior to his termination; and
|
●
|
such amounts required to reimburse him for Consolidated Omnibus Budget Reconciliation Act (“
COBRA
”) payments for continuation of his medical health benefits for such twelve-month period.
|
●
|
twelve months of his then-current base salary payable in the form of salary continuation;
|
●
|
a pro-rated portion of the incentive bonus that the Board of Directors determines in good faith that Dr. Snodgrass earned prior to his termination; and
|
●
|
such amounts required to reimburse him for COBRA payments for continuation of his medical health benefits for such twelve-month period.
|
●
|
a material reduction in the executive’s responsibility; or
|
●
|
a material reduction in the executive’s base salary except for reductions that are comparable to reductions generally applicable to similarly situated executives.
|
Fiscal Years Ended
March 31,
|
||||||||
2016
|
2015
|
|||||||
Audit fees
|
$
|
197,180
|
$
|
182,500
|
||||
Audit-related fees
|
23,016
|
53,952
|
||||||
Tax fees
|
15,925
|
10,960
|
||||||
All other fees
|
-
|
-
|
||||||
Total fees
|
$
|
236,121
|
$
|
247,412
|
●
|
each stockholder known by us to be the beneficial owner of more than 5% of our common stock; |
●
|
each of our directors; |
●
|
each of our NEOs; and |
●
|
all of our directors and executive officers as a group. |
Name and address of beneficial owner
|
Number of shares beneficially owned
|
Percent
of shares beneficially
owned
(1
)
|
||||||
Executive officers and directors:
|
||||||||
Shawn K. Singh
(2)
|
589,412
|
6.91
|
%
|
|||||
H. Ralph Snodgrass, Ph.D
(3)
|
386,793
|
4.66
|
%
|
|||||
Mark A. Smith, M.D., Ph.D.
(4)
|
-
|
*
|
||||||
Jerrold D. Dotson
(5)
|
171,677
|
2.11
|
%
|
|||||
Jon S. Saxe
(6)
|
97,001
|
1.20
|
%
|
|||||
Brian J. Underdown, Ph.D
(7)
|
91,750
|
1.14
|
%
|
|||||
Jerry B. Gin, Ph.D, MBA
(8)
|
10,416
|
*
|
||||||
5% Stockholders:
|
||||||||
Platinum Long Term Growth Fund VII/Montsant Partners, LLC
(9)
|
4,970,926
|
40.92
|
%
|
|||||
Empery Asset Management, LP
(
10)
|
761,267
|
9.55
|
%
|
|||||
Sabby Management, LLC
(11)
|
761,267
|
9.55
|
%
|
|||||
Cato BioVentures
(12)
|
561,775
|
7.05
|
%
|
|||||
Michael Goldberg
(13)
|
464,970
|
5.75
|
%
|
|||||
Morrison & Foerster LLP
(14)
|
422,928
|
5.23
|
%
|
|||||
All executive officers and directors as a group (7 persons)
(15)
|
1,347,049
|
14.60
|
%
|
(1)
|
Based on 7,970,705 shares of common stock issued and outstanding as of July 28, 2016.
|
(2)
|
Includes options to purchase 85,375 registered shares of common stock exercisable within 60 days of July 28, 2016 and warrants to purchase 477,803 restricted shares of common stock exercisable within 60 days of July 28, 2016. Excludes options to purchase 200,000 shares of registered common stock granted on June 22, 2016 not exercisable within 60 days of July 28, 2016.
|
(3)
|
Includes options to purchase 16,569 registered shares of common stock exercisable within 60 days of July 28, 2016 and warrants to purchase 310,000 restricted shares of common stock exercisable within 60 days of July 28, 2016. Excludes options to purchase 125,000 shares of registered common stock granted on June 22, 2016 not exercisable within 60 days of July 28, 2016.
|
(4)
|
Excludes options to purchase 180,000 shares of registered common stock granted on June 22, 2016 not exercisable within 60 days of July 28, 2016.
|
(5)
|
Includes options to purchase 6,677 registered shares of common stock exercisable within 60 days of July 28, 2016, including options to purchase 676 shares of common stock held by Mr. Dotson’s wife, and warrants to purchase 165,000 restricted shares of common stock exercisable within 60 days of July 28, 2016. Excludes options to purchase 75,000 shares of registered common stock granted on June 22, 2016 not exercisable within 60 days of July 28, 2016.
|
(6)
|
Includes options to purchase 11,875 registered shares of common stock exercisable within 60 days of July 28, 2016, and warrants to purchase 83,250 restricted shares of common stock exercisable within 60 days of July 28, 2016. Excludes options to purchase 25,000 shares of registered common stock granted on June 22, 2016 not exercisable within 60 days of July 28, 2016.
|
(7)
|
Includes options to purchase 9,250 registered shares of common stock exercisable within 60 days of July 28, 2016, and warrants to purchase 82,500 restricted shares of common stock exercisable within 60 days of July 28, 2016. Excludes options to purchase 75,000 shares of registered common stock granted on June 22, 2016 not exercisable within 60 days of July 28, 2016.
|
(8)
|
Includes options to purchase 4,166 registered shares of common stock exercisable within 60 days of July 28, 2016. Excludes options to purchase 75,000 shares of registered common stock granted on June 22, 2016 not exercisable within 60 days of July 28, 2016.
|
(9)
|
Based upon information contained in Schedule 13G/A filed on February 18, 2015 by Platinum Long Term Growth Fund VII (“
Platinum
”) and adjusted to give effect to the transactions consummated between Platinum, Montsant Partners, LLC (“
Montsant
”), a Platinum affiliate, and Platinum Partners Value Arbitrage Fund, L.P. (“
PPVA
”), another Platinum affiliate, and us through July 28, 2016.
The number of beneficially owned shares reported includes 637,500 restricted shares of common stock that may currently be acquired by Montsant upon fixed exchange of 425,000 restricted shares of our Series A Preferred Stock (“
Series A Preferred
”). Pursuant to the October 11, 2012 Note Exchange and Purchase Agreement by and between us and Platinum, there is, however, a limitation on exchange such that the number of shares of our common stock that may be acquired by Platinum or its affiliates upon exchange of the Series A Preferred is limited to the extent necessary to ensure that, following such exchange, the total number of shares of our common stock then beneficially owned by Platinum or its affiliates does not exceed 9.99% of the total number of our then issued and outstanding shares of common stock without providing us with 61 days’ prior notice thereof.
Further, the reported number of shares beneficially owned by Montsant also includes 1,263,669 shares of common stock pursuant to its ownership of 1,220,169 shares of our Series B 10% Convertible Preferred Stock (“
Series B Preferred
”), immediately convertible into a like number of shares of our common stock. Pursuant to the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series B 10% Convertible Preferred Stock, there is, however, a limitation on conversion of the Series B Preferred such that the number of shares of common stock that Montsant may beneficially acquire upon such conversion is limited to the extent necessary to ensure that, following such conversion, the total number of shares of common stock then beneficially owned by Platinum or Montsant does not exceed 9.99% of the total number of then issued and outstanding shares of our common stock without providing us with 61 days’ prior notice thereof.
Further, the reported number of shares beneficially owned by Montsant also includes 2,318,012 shares of common stock pursuant to its ownership of 2,318,012 shares of our Series C Convertible Preferred Stock (“
Series C Preferred
”), immediately convertible on a fixed 1:1 conversion basis into a like number of shares of our restricted common stock. Pursuant to the terms of the Certificate of Designation of the Relative Rights and Preferences of the Series C Convertible Preferred Stock, there is, however, a limitation on conversion of the Series C Preferred such that the number of shares of common stock that Montsant may beneficially acquire upon such conversion is limited to the extent necessary to ensure that, following such conversion, the total number of shares of common stock then beneficially owned by Platinum or Montsant does not exceed 9.99% of the total number of then issued and outstanding shares of our common stock without providing us with 61 days’ prior notice thereof.
|
Excluding the shares otherwise subject to the beneficial ownership restrictions noted above, Platinum, Montsant and PPVA beneficially own 794,245 shares or 9.97% of our common stock. The primary business address of Platinum Long Term Growth Fund VII and Montsant Partners, LLC is c/o Platinum Partners, 250 West 55th Street, 14th Floor, New York, New York 10019. Mark Nordlicht has voting and investment control over the shares held by Platinum, Montsant and PPVA.
|
|
(10)
|
Based upon information contained in Form 13G filed on May 19, 2016. The number of shares reported excludes immediately exercisable warrants to purchase 761,267 registered shares of our common stock, which warrants are subject to a limitation on exercise such that the number of shares of common stock that Empery Asset Management, LP and its affiliates, Empery Asset master, Ltd.; Empery Tax Efficient, LP; and Empery Tax Efficient II, LP (together, “
Empery
”) may beneficially acquire upon such exercise is limited to the extent necessary to ensure that, following such exercise, the total number of shares of common stock then beneficially owned by Empery does not exceed 4.99% of the total number of issued and outstanding shares of our common stock without providing us with 61 days’ prior notice thereof. The primary business address of Empery Asset Management, LP and its affiliates is 1 Rockefeller Plaza, Suite 1205, New York, New York 10020. Messrs. Ryan M. Lane and Martin D. Hoe have voting and investment control over the shares held by Empery.
|
(11)
|
Based upon information contained in Form 13G filed on May 13, 2016. The number of shares reported excludes immediately exercisable warrants to purchase 761,267 registered shares of our common stock, which warrants are subject to a limitation on exercise such that the number of shares of common stock that Sabby Management, LLC and its affiliates, Sabby Healthcare Master Fund, Ltd. and Sabby Volatility Warrant Master Fund, Ltd. (together, “
Sabby
”) may beneficially acquire upon such exercise is limited to the extent necessary to ensure that, following such exercise, the total number of shares of common stock then beneficially owned by Sabby does not exceed 4.99% of the total number of issued and outstanding shares of our common stock without providing us with 61 days’ prior notice thereof. The primary business address of Sabby Mangement, LLC and its affiliates is 10 Mountainview Road, Suite 205, Upper Saddle River, New Jersey 07458. Hal Mintz has voting and investment control over the shares held by Sabby.
|
(12)
|
Based upon information contained in Form 4 filed on January 9, 2012, as updated to give effect to transactions through July 28, 2016 as recorded on our books. Lynda Sutton has voting and investment authority over the shares held by Cato Holding Company. The primary business address of Cato BioVentures is 4364 South Alston Avenue, Durham, North Carolina 27713.
|
(13)
|
.Platinum has transferred to Michael Goldberg (“
Goldberg
”) certain of the equity securities initially issued by us to Platinum. The conversion or exercise restrictions in those securities initially applicable to Platinum remain applicable to Goldberg. The number of shares reported as beneficially owned by Goldberg includes 112,500 restricted shares of common stock that may currently be acquired by Goldberg upon fixed exchange of 75,000 restricted shares of our Series A Preferred.
|
(14)
|
Includes currently exercisable warrants to purchase 110,448 restricted shares of common stock. The primary business address of Morrison & Foerster is 555 Market Street, San Francisco, California 94105. Mark Blumenthal has voting and investment control over the shares held by Morrison & Foerster.
|
(15)
|
Includes options to purchase an aggregate of 138,079 registered shares of common stock exercisable within 60 days of July 28, 2016 and warrants to purchase an aggregate of 1,118,553 restricted shares of common stock exercisable within 60 days of July 28, 2016. Excludes options to purchase an aggregate of 655,000 shares of registered common stock granted on June 22, 2016 not exercisable within 60 days of July 28, 2016.
|
Plan category
|
Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
(a)
|
Weighted -average
exercise price of
outstanding
options, warrants
and rights
(b)
|
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column (a))
(c)
|
|||||||||
Equity compensation plans approved by security holders
|
324,758
|
$
|
9.48
|
660,242
|
||||||||
Equity compensation plans not approved by security holders
|
12,229
|
$
|
11.64
|
--
|
||||||||
Total
|
336,987
|
$
|
9.56
|
660,242
|
Adopted by the Board of Directors of VistaGen Therapeutics, Inc. on July 26, 2016
|
|
Approved by the stockholders of VistaGen Therapeutic, Inc. effective September __, 2016
|