13. Subsequent Events

 

On July 6, 2016, the Company entered into a three-year lease agreement for office and laboratory space of approximately 2,300 square feet located in Salt Lake City, Utah.

 

During the year ended December 31, 2015 and the six months ended June 30, 2016, the Company estimated the volatility of its Common Stock based on the average of published volatilities contained in the most recent audited financial statements of other SEC reporting companies in industries similar to that of the Company. Effective July 1, 2016, the Company determined that the prior methodology for measuring the volatility of its Common Stock was no longer the best estimate of volatility and the Company will measure volatility using its Common Stock volatility. The Company believes that the public market for its Common Stock is the best measure to use as an input in the option pricing model. All future grants of stock options will use the Company’s historic volatility.

 

On August 1, 2016, 819 shares of the Company’s Series A Preferred Stock issued in the June 2016 registered direct offering were converted into 364,000 shares of its Common Stock. See Note 6.