Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 9 Months Ended
Sep. 30, 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 September 30, 2016 and December 31, 2015. The Company had 21,957,147 and 21,337,247 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively.

 

The Company has 5,000,000 shares of its no par value preferred stock authorized at both September 30, 2016 and December 31, 2015. No preferred shares have been issued or are outstanding to date.

 

See Note 16 “Subsequent Events.”

 

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 September 30, 2016, the Company had issued 175,340 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 September 30, 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       1.9  
Granted     -       -          
Exercised     -       -          
Forfeited     -       -          
Outstanding September 30, 2016     9,506,304     $ 4.93       1.9  
                         
Exercisable September 30, 2016     9,506,304     $ 4.93       1.9  

 

Exercise Price   Outstanding
Number of
Warrants 		    Weighted
Average
Remaining Life
in Years 		    Exerciseable
Number of
Warrants 		 
                   
>$4.00     7,439,631       1.8       7,439,631  
$3.00-$3.99     799,901       1.8       799,901  
$2.00-$2.99     954,272       2.8       954,272  
$1.00-$1.99     312,500       3.2       312,500  
      9,506,304               9,506,304  

 

Fair value of any warrant issuances is 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 average of historical volatilities for industry peers and Company-specific history. See Note 15 for fair values of warrants requiring liability accounting.