| NOTE 17. WARRANTS |
The Company has the following shares of common
stock reserved for exercise of the warrants outstanding as of December 31, 2017:
| |
|
Shares |
|
|
Weighted-Average
Exercise Price
|
|
| |
|
|
|
|
|
|
| Warrants Outstanding as of January 1, 2016 |
|
|
2,161,734 |
|
|
$ |
2.70 |
|
| Warrants Exercised |
|
|
(1,873,206 |
) |
|
$ |
2.55 |
|
| Warrants Granted |
|
|
802,122 |
|
|
$ |
3.45 |
|
| Warrants Expired |
|
|
(34,889 |
) |
|
$ |
6.75 |
|
| Warrants Outstanding as of December 31, 2016 |
|
|
1,055,761 |
|
|
$ |
2.85 |
|
| Warrants Exercised |
|
|
- |
|
|
$ |
- |
|
| Warrants Granted |
|
|
214,915 |
|
|
$ |
2.79 |
|
| Warrants Expired |
|
|
(79,309 |
) |
|
$ |
3.34 |
|
| Warrants Outstanding as of December 31, 2017 |
|
|
1,191,367 |
|
|
$ |
0.19 |
|
The weighted-average exercise price and weighted-average
fair value of the warrants granted by the Company are as follows:
| |
|
For the Year Ended |
|
| |
|
December 31, 2017 |
|
|
December 31, 2016 |
|
| |
|
Weighted-Average Exercise Price |
|
|
Weighted-Average Fair Value |
|
|
Weighted-Average Exercise Price |
|
|
Weighted-Average Fair Value |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Warrants Granted Whose Exercise Price Exceeded Fair Value at the Date of Grant |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
4.50 |
|
|
$ |
3.75 |
|
| Warrants Granted Whose Exercise Price Was Equal or Lower Than Fair Value at the Date of Grant |
|
$ |
2.79 |
|
|
$ |
3.20 |
|
|
$ |
4.35 |
|
|
$ |
4.80 |
|
The following table summarizes information
about fixed-price warrants outstanding as of December 31, 2017:
| Range of |
|
|
Number Outstanding |
|
|
Average Remaining |
|
Weighted-Average |
|
| Exercise Prices |
|
|
at December 31, 2017 |
|
|
Contractual Life |
|
Exercise Price |
|
| |
|
|
|
|
|
|
|
|
|
| $ |
0.90 |
|
|
|
304,467 |
|
|
9 Months |
|
$ |
0.90 |
|
| $ |
0.99 |
|
|
|
16,629 |
|
|
36 Months |
|
$ |
0.99 |
|
| $ |
1.82 |
|
|
|
61,932 |
|
|
16 Months |
|
$ |
1.82 |
|
| $ |
1.95 |
|
|
|
57,559 |
|
|
15 Months |
|
$ |
1.95 |
|
| $ |
2.04 |
|
|
|
44,053 |
|
|
55 Months |
|
$ |
2.04 |
|
| $ |
2.06 |
|
|
|
105,263 |
|
|
6 Months |
|
$ |
2.06 |
|
| $ |
2.40 |
|
|
|
111,759 |
|
|
37 Months |
|
$ |
2.40 |
|
| $ |
2.91 |
|
|
|
56,760 |
|
|
60 Months |
|
$ |
2.91 |
|
| $ |
3.09 |
|
|
|
26,711 |
|
|
6 Months |
|
$ |
3.09 |
|
| $ |
3.12 |
|
|
|
52,834 |
|
|
56 Months |
|
$ |
3.12 |
|
| $ |
3.74 |
|
|
|
24,048 |
|
|
50 Months |
|
$ |
3.74 |
|
| $ |
4.05 |
|
|
|
37,037 |
|
|
48 Months |
|
$ |
4.05 |
|
| $ |
5.25 |
|
|
|
170,190 |
|
|
40 Months |
|
$ |
5.25 |
|
| $ |
5.55 |
|
|
|
11,905 |
|
|
33 Months |
|
$ |
5.55 |
|
| $ |
6.15 |
|
|
|
29,268 |
|
|
47 Months |
|
$ |
6.15 |
|
| $ |
6.60 |
|
|
|
80,952 |
|
|
32 Months |
|
$ |
6.60 |
|
| |
|
|
|
|
1,191,367 |
|
|
|
|
|
|
|
For the warrants issued in 2017 and 2016
the Company valued the warrants utilizing the Black-Scholes option-pricing model with the following weighted-average inputs:
| |
|
Year Ended
December 31,
|
|
| |
|
2017 |
|
|
2016 |
|
| Stock Price on Date of Grant |
|
$ |
4.15 |
|
|
$ |
4.80 |
|
| Exercise Price |
|
$ |
2.79 |
|
|
$ |
4.50 |
|
| Volatility |
|
|
126.14 |
% |
|
|
138.00 |
% |
| Term |
|
5-Years |
|
|
5-Years |
|
| Risk-Free Interest Rate |
|
|
1.87 |
% |
|
|
1.24 |
% |
| Expected Dividend Rate |
|
|
0 |
% |
|
|
0 |
% |
Based on the Black-Scholes calculations, warrant
expense of $211,534, $467,066, and $1,148,069 was recorded during the years ended December 31, 2017, 2016, and 2015, respectively.
For the year ended December 31, 2017, $478,008 of warrants were issued in connection with debt and recorded as a debt discount.
|