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WARRANTS

v3.2.0.727
WARRANTS
 3 Months Ended 12 Months Ended
Mar. 31, 2015
Dec. 31, 2014
Notes to Financial Statements    
Note 13. WARRANTS

We have the following shares of common stock reserved for exercise of the warrants outstanding as of March 31, 2015:

 

    March 31, 2015  
          Weighted  
          Average  
          Exercise  
    Shares     Price  
Warrants outstanding – beginning of year     20,709,845     $ 0.23  
Warrants exercised     -       0.00  
Warrants granted     1,118,068       0.16  
Warrants expired     (3,886,800 )     (0.33 )
                 
Warrants outstanding – end of period     17,941,113     $ 0.20  

 

The weighted exercise price and weighted fair value of the warrants granted by us as of March 31, 2015, are as follows:

 

    March 31, 2015  
    Weighted        
    Average     Weighted  
    Exercise     Average  
    Price     Fair Value  
Weighted average of warrants granted during the three months whose exercise price exceeded fair market value at the date of grant   $ 0.16     $ 0.16  
                 

 

The following table summarizes information about fixed-price warrants outstanding:

 

      Number   Average      
Range of     Outstanding at   Remaining   Weighted  
Exercise     March 31,   Contractual   Average  
Prices     2015   Life   Exercise Price  
$ 0.33       1,284,000   1 Months   $ 0.33  
$ 0.33       120,000   2 Months   $ 0.33  
$ 0.33       249,600   3 Months   $ 0.33  
$ 0.46       600,000   5 Months   $ 0.46  
$ 0.46       150,000   10 Months   $ 0.46  
$ 0.85       40,000   13 Months   $ 0.85  
$ 0.40       333,333   17 Months   $ 0.40  
$ 0.33       439,637   22 Months   $ 0.33  
$ 0.16       750,000   24 Months   $ 0.16  
$ 0.30       964,912   40 Months   $ 0.30  
$ 0.30       4,824,561   41 Months   $ 0.30  
$ 0.06       7,067,002   43 Months   $ 0.06  
$ 0.16       1,118,068   47 Months   $ 0.16  
          17,941,113            

The Company has the following shares of Common Stock reserved for the warrants outstanding as of December 31, 2014:

 

    December 31, 2014  
          Weighted  
          Average  
          Exercise  
    Shares     Price  
Warrants outstanding – beginning of year     19,550,817     $ 0.17  
Warrants exercised     (10,332,199 )     0.19  
Warrants granted     11,491,227       0.30  
Warrants expired     -       -  
                 
Warrants outstanding – end of period     20,709,845     $ 0.23  

 

The weighted exercise price and weighted fair value of the warrants granted by the Company as of December 31, 2014, are as follows:

 

    December 31, 2014  
    Weighted Average  

Weighted

Average

  
    Exercise Price     Fair Value  
Weighted average of warrants granted during the twelve months whose exercise price exceeded fair market value at the date of grant   $ 0.30     $ 0.45  
                 

 

The following table summarizes information about fixed-price warrants outstanding:

 

        Number   Average      
  Range of     Outstanding at   Remaining   Weighted  
  Exercise     December 31,   Contractual   Average  
    Prices     2014   Life   Exercise Price  
                         
  $ 0.33       3,154,800   1 Month   $ 0.33  
  $ 0.33       564,000   2 Months   $ 0.33  
  $ 0.33       264,000   3 Months   $ 0.33  
  $ 0.33       1,188,000   4 Months   $ 0.33  
  $ 0.33       120,000   5 Months   $ 0.33  
  $ 0.33       249,600   6 Months   $ 0.33  
  $ 0.46       600,000   8 Months   $ 0.46  
  $ 0.46       150,000   13 Months   $ 0.46  
  $ 0.85       40,000   16 Months   $ 0.85  
  $ 0.40       333,333   20 Months   $ 0.40  
  $ 0.33       439,637   25 Months   $ 0.33  
  $ 0.16       750,000   27 Months   $ 0.16  
  $ 0.30       964,912   43 Months   $ 0.30  
  $ 0.30       4,824,561   44 Months   $ 0.30  
  $ 0.06       7,067,002   46 Months   $ 0.06  
            20,709,845             

 

For the warrants issued in February 2014, the Company valued the warrants utilizing the black scholes method with the following inputs: stock price of $0.57, exercise price of $0.330, volatility of 122.84%, years 4, treasury bond rate 2.5%, and dividend rate of 0%.

 

For the warrants issued in March 2014, the Company valued the warrants utilizing the black scholes method with the following inputs: stock price of $0.50, exercise price of $0.30, volatility of 122.61%, years 4, treasury bond rate 2.5%, and dividend rate of 0%.

 

For the warrants issued in April 2014, the Company valued the warrants utilizing the black scholes method with the following inputs: stock price of $0.80, exercise price of $0.30, volatility of 125.88%, years 4, treasury bond rate 2.5%, and dividend rate of 0%.

 

For the warrants issued in May 2014, the Company valued the warrants utilizing the black scholes method with the following inputs: stock price of $0.59, exercise price of $0.30, volatility of 127.68%, years 4, treasury bond rate 2.5%, and dividend rate of 0%.

 

For the warrants issued in June 2014, the Company valued the warrants utilizing the black scholes method with the following inputs: stock price of $0.68, exercise price of $0.30, volatility of 130.55%, years 4, treasury bond rate 2.5%, and dividend rate of 0%.

 

For the warrants issued in July 2014, the Company valued the warrants utilizing the black scholes method with the following inputs: stock price of $0.55, exercise price of $0.30, volatility of 130.71%, years 4, treasury bond rate 2.5%, and dividend rate of 0%.

 

For the warrants issued in July 2014, the Company valued the warrants utilizing the black scholes method with the following inputs: stock price of $0.40, exercise price of $0.30, volatility of 131.05%, years 4, treasury bond rate 2.5%, and dividend rate of 0%.

 

The warrant expense of $5,038,986 was based on the Black Scholes calculation, which was expensed during the year ended December 31, 2014.