Stockholders' Equity

6 Months Ended

Apr. 30, 2016

8.	Stockholders’ Equity

Issuance of Common Stock as Payment of Principal and Interest on Convertible Debentures

On March 31, 2016, the Company issued 856,934 shares of common stock as full payment of $175,000 of outstanding principal due on the February 2007 Debentures and $34,302 of accrued and unpaid interest for the period commencing February 1, 2014 through March 31, 2016 (January 31, 2016 for the February 2007 Debenture that was not converted into shares of common stock on March 31, 2016) (see Note 5).

On March 31, 2016, the Company issued 128,205 shares of common stock to the May 2011 Debenture holder in satisfaction of $16,000 of interest due for the period commencing May 20, 2013 through May 19, 2015 (see Note 5).

On March 31, 2016, the Company issued 161,538 shares of common stock to the August 2012 Debenture holder in satisfaction of $16,000 of interest due for the period commencing August 15, 2013 through August 14, 2015 (see Note 5).

On March 31, 2016, the Company issued 4,223,392 shares of common stock as full payment of the $225,000 of outstanding principal and $49,521 of accrued and unpaid interest due on the Debentures (see Note 5).

On March 31, 2016, the Company issued 856,270 shares of common stock as full payment of the $50,000 of outstanding principal and $5,658 of accrued and unpaid interest due on the February 2015 Debenture (see Note 5).

On March 31, 2016, the Company issued 405,585 shares of common stock as full payment of the $25,000 of outstanding principal and $1,363 of accrued and unpaid interest due on the September 2015 Debentures (see Note 5).

On March 31, 2016, the Company issued 787,566 shares of common stock as full payment of the $50,000 of outstanding principal and $1,192 of accrued and unpaid interest due on the January 2016 Debenture (see Note 5).

Issuance of Common Stock as Payment of Accounts Payable – Related Party

On April 30, 2016, the Company issued to Century Capital 7,027,140 shares of common stock as payment of $135,000 of rent and $36,899 of expenses due under the Sublease Agreement for the period commencing February 1, 2014 through April 30, 2016 and $284,865 of other expenses due to Century Capital for the period commencing September 1, 2013 through April 30, 2016 (see Note 3).

Stock Option Plans

The Company currently has two stock option plans in place: the 2002 Equity Incentive Plan and the 2007 Equity Incentive Plan (collectively, the “Equity Incentive Plans”). The 2002 Equity Incentive Plan was approved by the stockholders on July 5, 2002. The aggregate number of shares of common stock which could have been awarded under the 2002 Equity Incentive Plan was 200,000. As of April 30, 2016, options to purchase 110,000 shares of the Company’s common stock were outstanding under the 2002 Equity Incentive Plan. As a result of the adoption of the Company’s 2007 Equity Incentive Plan, no further awards are permitted under the 2002 Equity Incentive Plan.

On May 31, 2007, the stockholders approved the Company’s 2007 Equity Incentive Plan. The original aggregate number of shares of common stock which could be awarded under the 2007 Equity Incentive Plan was 300,000 shares, subject to adjustment as provided in the 2007 Equity Incentive Plan. Effective December 27, 2013, as permitted under the 2007 Equity Incentive Plan, the Company’s board of directors increased the number of shares of common stock that could be awarded under the 2007 Equity Incentive Plan to 814,408 shares. As of April 30, 2016, options to purchase 83,332 shares of the Company’s common stock were outstanding under the 2007 Equity Incentive Plan and up to 731,076 shares of the Company’s common stock remain available for awards under the 2007 Equity Incentive Plan.

Stock option awards under the Equity Incentive Plans were granted at prices as determined by the Company’s compensation committee, but such prices were not less than the fair market value of the Company's common stock on the date of grant. Stock options granted and outstanding include only non-qualified stock options that vested over a period of up to five years and have a maximum term of ten years from the date of grant.

A summary of stock option transactions for employees and directors under the Equity Incentive Plans during the six months ended April 30, 2016 is as follows:

	Stock Option Shares			Weighted Average Exercise Price Per Common Share		Aggregate Intrinsic Value
Outstanding at October 31, 2015		203,332		$	1.70	$	—
Granted during the period		—			—
Exercised during the period		—			—
Expired during the period		(10,000	)	$	0.80
Outstanding at April 30, 2016		193,332		$	1.74	$	—
Exercisable at April 30, 2016		193,332		$	1.74	$	—
Exercisable at October 31, 2015		203,332		$	1.70	$	—

Information with respect to stock options outstanding and stock options exercisable as of April 30, 2016 that were granted to employees is as follows:

		Stock Options Outstanding						Stock Options Exercisable
Exercise Price		Number of Shares Available Under Outstanding Stock Options		Weighted Average Exercise Price Per Common Share		Weighted Average Remaining Contractual Life (Years)		Number of Shares Available for Purchase Under Outstanding Stock Options		Weighted Average Exercise Price Per Common Share		Weighted Average Remaining Contractual Life (Years)

$	1.40		83,332	$	1.40		2.4		83,332	$	1.40		2.4
$	2.00		110,000	$	2.00		0.8		110,000	$	2.00		0.8
			193,332	$	1.74		1.4		193,332	$	1.74		1.4

Warrant to Purchase Common Stock

A summary of warrant transactions during the six months ended April 30, 2016 is as follows:

	Warrant Shares		Weighted Average Exercise Price Per Common Share		Aggregate Intrinsic Value

Outstanding at October 31, 2015		750,000	$	0.12	$	—
Issued during the period		153,846	$	0.07
Exercised during the period		—		—
Expired during the period		—		—
Outstanding at April 30, 2016		903,846	$	0.11	$	—
Exercisable at April 30, 2016		673,077	$	0.13	$	—
Exercisable at October 31, 2015		596,154	$	0.13	$	—

As of April 30, 2016, the weighted average remaining contractual life for warrants outstanding was 1.8 years and for warrants exercisable was 1.6 years.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

SCIVANTA MEDICAL CORP 10-Q