| 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.
|