Emmaus Life Sciences, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' DEFICIT (Tables)

STOCKHOLDERS' DEFICIT (Tables)

3 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

Stock-based compensation expense is recognized over the employees’ or service provider’s requisite service period, generally the vesting period of the award. Stock-based compensation expense included in the accompanying statements of operations for the three months and three months ended December 31, 2014 and 2013 is as follows:

	For the three months ended
	December 31,
	2014		2013
Cost of Neurometric Services revenues	$	-	$	2,900
Research		10,400		25,700
Product Development		18,500		71,200
Sales and marketing		9,900		26,300
General and administrative		23,700		237,900
Total	$	62,500	$	364,000

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of stock option activity is as follows:

	Number of		Weighted Average
	Shares		Exercise Price
Outstanding at September 30, 2014		12,417,499	$	0.84
Granted		-		-
Exercised		-		-
Forfeited		-		-
Outstanding at December 31, 2014		12,417,499	$	0.84

Schedule of Share-based Compensation, Activity [Table Text Block]

Following is a summary of the status of options outstanding at December 31, 2014:

				Weighted		Weighted
				Average		Average
Exercise		Number		Contractual		Exercise
Price		of Shares		Life		Price

$	0.04718		8,920,300		10 years	$	0.04718
$	0.25		2,527,605		10 years		0.25
$	0.26		425,000		10 years		0.26
$	3.00		42,670		10 years		3.00
$	3.60		28,648		10 years		3.60
$	3.96		32,928		10 years		3.96
$	9.00		4,525		10 years		9.00
$	12.00		28,535		10 years		12.00
$	14.10		10,000		10 years		14.10
$	15.30		1,373		10 years		15.30
$	16.50		262,441		10 years		16.50
$	17.70		953		10 years		17.70
$	24.00		4,667		10 years		24.00
$	26.70		32,297		10 years		26.70
$	28.80		11,767		10 years		28.80
$	32.70		83,790		10 years		32.70
	Total		12,417,499			$	0.84

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

The warrant activity for the period starting October 1, 2013, through December 31, 2014, is described as follows:

Warrants		Exercise Price		Issued, Surrendered or Expired in Connection With:
	1,497,556	$		Warrants outstanding at October 1, 2013
	120,000		0.275	Warrants issued to Monarch Capital who acted as placement agents in raising $300,000 from 11 accredited investors who purchased restricted common stock, par value $0.001 per share, in a private placement agreements dated October 2, 2013 and January 8, 2014.
	32,200		0.25	Warrants issued to D&D Securities Inc. who acted as placement agents in raising $115,000 from three accredited investors who purchased restricted common stock, par value $0.001 per share, in a private placement agreement dated January 8, 2014.
	(519,288)		0.04718	Warrants exercised as of January 29, 2013.
	(89,021)		0.04718	Warrants exercised as of June 20, 2014.
	(226,703)		$9.00 to $9.90	Warrants expired
	814,744	$	3.07	Warrants outstanding at September 30, 2014
	200,000		0.25	Warrants issued to RedChip Companies Inc. which is providing investor relations services
	(226,020)		$9.00 to $9.90	Warrants expired
	788,724		0.61	Warrants outstanding at December 31, 2014

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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