Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.4.0.3
Warrants
3 Months Ended
Mar. 31, 2016
Warrants [Abstract]  
WARRANTS
9. WARRANTS

 

On October 29, 2015 a 1:40 reverse split of the Company stock occurred and the effect has been applied retroactively for disclosure purposes.

 

For the year 2015, 52,500 common stock purchase warrants were granted to two consultants and a vendor for service provided. One consultant was granted 25,000 warrants with exercise price of $10.00, vesting over two years and the expiration date is June 16, 2018. The other consultant was granted 12,500 warrants with exercise price of $10.00, vesting over one year and the expiration date is June 25, 2018. These same two consultants and the vendor each received 5,000 warrants with exercise price of $5.00, immediately vested and an expiration date of December 10, 2018.

 

The Company used the Black-Scholes warrant pricing model to estimate the fair value on the re-measurement date as of March 31, 2016 of the 30,000 warrants that continue to vest during the three months ended March 31, 2016.

 

The following table summarizes the assumptions used to estimate the fair value of the 30,000 warrants granted during 2015 as of March 31, 2016:

    March 31, 2016  
       
Expected dividend yield     0 %
Expected volatility     116 %
Risk-free interest rate     0.73 %
Expected life of warrants     2.19 – 2.24 years  

  

Under the Black-Scholes warrant price model, fair value of the warrants granted during 2015 is estimated at $32,995 as of March 31, 2016. During the three months ended March 31, 2016, $1,325 compensation expense was recognized. 

The following table represents warrant activity as of and for the period ended March 31, 2016:

 

     

 

 

Number of Warrants

     

 

Weighted

Average

Exercise Price

     

 

 

Contractual Life in Years

     

 

 

Intrinsic

Value

 
 Outstanding – December 31, 2015     134,209     $ 23.87       3.66          
 Exercisable – December 31, 2015     104,209     $ 27.87       4.01     $ 0.00  
 Granted     0     $ .00                  
 Forfeited or Expired     (80 )   $ 404.49                  
 Outstanding – March 31, 2016     134,129     $ 23.65       3.42          
 Exercisable – March 31, 2016     104,129     $ 27.58       3.77     $ 0.00