| Note 15. WARRANTS |
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.
|