Annual report pursuant to Section 13 and 15(d)

WARRANTS

v3.8.0.1
WARRANTS
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Note 15. WARRANTS

The Company has the following shares of common stock reserved for exercise of the warrants outstanding as of December 31, 2016:

 

    Shares     Weighted-Average Exercise Price  
             
Warrants Outstanding as of January 1, 2016     32,426,008     $ 0.18  
                 
Warrants Exercised     (28,098,084 )   $ 0.17  
Warrants Granted     12,031,830     $ 0.23  
Warrants Expired     (523,333 )   $ 0.45  
Warrants Outstanding as of December 31, 2016     15,836,421     $ 0.19  

 

  

The weighted-average exercise price and weighted-average fair value of the warrants granted by us during the year ended December 31, 2016 are as follows:

 

    Year Ended December 31, 2016  
    Weighted-Average Exercise Price     Weighted-Average Fair Value  
             
Warrants Granted Whose Exercise Price Exceeded Fair Value at the Date of Grant   $ 0.30     $ 0.25  
Warrants Granted Whose Exercise Price Was Equal or Lower Than Fair Value at the Date of Grant   $ 0.29     $ 0.32  

 

The following table summarizes information about fixed-price warrants outstanding as of December 31, 2016:

 

Range of

Exercise Prices

   

Number Outstanding

at December 31,

2016

   

Average Remaining

Contractual Life

 

Weighted-Average

Exercise Price

 
                   
$ 0.33       439,637     1 Month   $ 0.33  
$ 0.16       750,000     3 Months   $ 0.16  
$ 0.14 to $0.21       1,979,611     18 Months   $ 0.15  
$ 0.06       3,317,001     21 Months   $ 0.06  
$ 0.06       1,250,001     22 Months   $ 0.06  
$ 0.16       1,118,068     26 Months   $ 0.16  
$ 0.13       863,392     27 Months   $ 0.13  
$ 0.12       928,984     29 Months   $ 0.12  
$ 0.35       1,625,000     41 Months   $ 0.35  
$ 0.35       535,714     43 Months   $ 0.35  
$ 0.44       1,214,286     44 Months   $ 0.44  
$ 0.37       178,571     45 months   $ 0.37  
$ 0.07       249,433     48 Months   $ 0.07  
$ 0.35       45,000     52 Months   $ 0.35  
$ 0.35       30,000     53 Months   $ 0.35  
$ 0.35       120,000     54 Months   $ 0.35  
$ 0.35       150,000     56 Months   $ 0.35  
$ 0.35       21,429     57 Months   $ 0.35  
$ 0.35       25,714     58 Months   $ 0.35  
$ 0.41       439,024     59 Months   $ 0.41  
$ 0.27       555,556     60 Months   $ 0.27  
          15,836,421              

 

For the warrants issued in 2016, the Company valued the warrants utilizing the Black-Scholes option-pricing model with the following weighted-average inputs:

 

Stock Price on Date of Grant   $ 0.32  
Exercise Price   $ 0.30  
Volatility     138.0 %
Term   5 Years  
Risk-Free Interest Rate     4.25 %
Expected Dividend Rate     0 %

 

Based on the Black-Scholes calculations, warrant expense of $467,066 was recorded during the year ended December 31, 2016.