|
The Company has the following shares of common stock reserved for
the warrants outstanding as of March 31, 2012:
| |
|
March 31, 2012 |
|
| |
|
Shares |
|
|
Weighted
Average
Exercise
Price
|
|
| |
|
|
|
|
|
|
| Warrants outstanding beginning of year |
|
|
6,188,400 |
|
|
$ |
0.35 |
|
| Warrants exercised |
|
|
- |
|
|
|
- |
|
| Warrants granted |
|
|
150,000 |
|
|
|
0.46 |
|
| Warrants expired |
|
|
- |
|
|
|
- |
|
| Warrants outstanding end of period |
|
|
6,338,400 |
|
|
$ |
0.35 |
|
The weighted exercise price and weighted fair value of the warrants granted by the Company as of March 31, 2012, are as follows:
| |
|
March 31, 2012 |
|
| |
|
Weighted
Average
Exercise
Price
|
|
|
Weighted
Average
Fair Value
|
|
| |
|
|
|
|
|
|
| Weighted average of warrants granted during the quarter whose exercise price exceeded fair market value at the date of grant |
|
$ |
0.33 |
|
|
$ |
0.46 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average of warrants granted during the quarter whose exercise price was equal or lower thanfair market value at the date of grant |
|
$ |
- |
|
|
$ |
- |
|
The following table summarizes information about fixed-price warrants outstanding:
| Range of |
|
Number
Outstanding at
|
|
|
Average
Remaining
|
|
Weighted |
|
| Exercise |
|
March 31, |
|
|
Contractual |
|
Average |
|
| Prices |
|
2012 |
|
|
Life |
|
Exercise Price |
|
| $ |
0.33 |
|
|
5,588,400 |
|
|
30 Months |
|
$ |
0.33 |
|
| $ |
0.46 |
|
|
600,000 |
|
|
41 Months |
|
$ |
0.46 |
|
| $ |
0.46 |
|
|
150,000 |
|
|
46 Months |
|
$ |
0.46 |
|
| |
|
|
|
6,338,400 |
|
|
|
|
|
|
|
For the warrants issued in January 2012,
the Company valued the warrants utilizing the black schools method with the following inputs: stock price of $2.00, exercise price
of $2.75, volatility of 35.53%, years 4, treasury bond rate 3.5% and dividend rate of 0%.
The warrant expense of $15,000 was based on
the Black Scholes calculation which was expensed during the three months ended March 31, 2012.
|