The Company has the following shares of common stock reserved for
the warrants outstanding as of June 30, 2012:
|
|
June 30, 2012 |
|
|
|
|
|
|
Weighted |
|
|
|
|
|
|
Average |
|
|
|
|
|
|
Exercise |
|
|
|
Shares |
|
|
Price |
|
Warrants outstanding beginning of year |
|
|
6,188,400 |
|
|
$ |
0.35 |
|
Warrants exercised |
|
|
- |
|
|
|
- |
|
Warrants granted |
|
|
190,000 |
|
|
|
0.54 |
|
Warrants expired |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Warrants outstanding end of period |
|
|
6,378,400 |
|
|
$ |
0.35 |
|
The weighted exercise price and weighted fair value of the warrants
granted by the Company as of June 30, 2012, are as follows:
|
|
June 30, 2012 |
|
|
|
Weighted |
|
|
|
|
|
|
Average |
|
|
Weighted |
|
|
|
Exercise |
|
|
Average |
|
|
|
Price |
|
|
Fair Value |
|
Weighted average of warrants granted during the |
|
|
|
|
|
|
six months whose exercise price exceeded fair market |
|
|
|
|
|
|
value at the date of grant |
|
$ |
0.54 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
Weighted average of warrants granted during the |
|
|
|
|
|
|
|
|
six months whose exercise price was equal or lower than |
|
|
|
|
|
|
|
|
fair market value at the date of grant |
|
$ |
- |
|
|
$ |
- |
|
The following table summarizes information about fixed-price warrants
outstanding:
|
|
|
Number |
|
Average |
|
|
|
Range of |
|
|
Outstanding at |
|
Remaining |
|
Weighted |
|
Exercise |
|
|
June 30, |
|
Contractual |
|
Average |
|
Prices |
|
|
2012 |
|
Life |
|
Exercise Price |
|
$ |
0.33 |
|
|
|
5,588,400 |
|
27 Months |
|
$ |
0.33 |
|
$ |
0.46 |
|
|
|
600,000 |
|
38 Months |
|
$ |
0.46 |
|
$ |
0.46 |
|
|
|
150,000 |
|
43 Months |
|
$ |
0.46 |
|
$ |
0.85 |
|
|
|
40,000 |
|
34 Months |
|
$ |
0.85 |
|
|
|
|
|
|
6,378,400 |
|
|
|
|
|
|
For the warrants issued in January 2012, the Company valued the warrants utilizing the black schools method with the following
inputs: stock price of $0.33, exercise price of $0.46, volatility of 35.53%, years 4, treasury bond rate 3.5% and dividend rate
of 0%.
For the warrants issued in May 2012, the
Company valued the warrants utilizing the black schools method with the following inputs: stock price of $0.33, exercise price
of $0.85, volatility of 32.77%, years 3, treasury bond rate 3.5% and dividend rate of 0%.
The warrant expense of $15,400 was based on
the Black Scholes calculation which was expensed during the six months ended June 30, 2012.
|