Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 3 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Stockholders' Equity

11. Stockholders’ Equity

 

The Company had 45,000,000 shares of its $0.0001 par value common stock authorized at both March 31, 2016 and December 31, 2015. The Company had 21,337,447 shares issued and outstanding at both March 31, 2016 and December 31, 2015, respectively.

 

The Company has 5,000,000 shares of its no par value preferred stock authorized at both March 31, 2016 and December 31, 2015. No preferred shares have been issued or are outstanding to date.

 

There were no issuances or other transactions involving the Company’s common or preferred shares during the three months ended March 31, 2016.

 

Options and Warrants

 

The Company’s shareholders have approved the Chanticleer Holdings, Inc. 2014 Stock Incentive Plan (the “2014 Plan”), authorizing the issuance of options, stock appreciation rights, restricted stock awards and units, performance shares and units, phantom stock and other stock-based and dividend equivalent awards. Pursuant to the approved 2014 Plan, 4,000,000 shares have been approved for grant.

 

As of March 31, 2016, the Company had issued 118,340 restricted and unrestricted shares on a cumulative basis under the plan pursuant to compensatory arrangements with employees, board members and outside consultants. No employee stock options have been issued or are outstanding as of March 31, 2016 and December 31, 2015.

 

The Company also has issued warrants to investors in connection with financing transactions in prior periods. A summary of the warrants outstanding and related activity is presented below:

 

    Number of
Warrants 		    Weighted
Average
Exercise Price 		    Weighted
Average
Remaining Life 		 
Outstanding January 1, 2016     9,506,304     $ 4.93       1.8  
Granted     -       -          
Exercised     -       -          
Forfeited     -       -          
Outstanding March 31, 2016     9,506,304     $ 4.93       -  
                         
Exercisable March 31, 2016     9,506,304     $ 4.93       1.8  

 

Exercise Price     Outstanding Number of Warrants     Weighted Average Remaining Life in Years     Exercisable Number of Warrants  
                     
>$5.00       7,439,631       1.6       7,439,631  
$4.00-$4.99       -       -       -  
$3.00-$3.99       799,901       2.3       799,901  
$2.00-$2.99       954,272       3.3       954,272  
$1.00-$1.99       312,500       3.7       312,500  
        9,506,304               9,506,304  

 

 Fair value of any warrant issuances are valued utilizing the Black-Scholes model. The model includes subjective input assumptions that can materially affect the fair value estimates. The Company determined the fair value based on the Binomial Lattice Model and the Black-Scholes Valuation Model to be materially the same. The expected stock price volatility for the Company’s warrants was determined by the historical volatilities for industry peers and used an average of those volatilities. See Note 15 for fair values of warrants requiring liability accounting.