Quarterly report pursuant to Section 13 or 15(d)

12. Warrants

v3.7.0.1
12. Warrants
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Note 12. Warrants

Unless sold and issued warrants are subject to the provisions of FASB ASC 815-10, the Company utilized a Black-Scholes options pricing model to value the warrants sold and issued. This model requires the input of highly subjective assumptions such as the expected stock price volatility and the expected period until the warrants are exercised. When calculating the value of warrants issued, the Company uses a volatility factor of 96.6%, a risk free interest rate and the life of the warrant for the exercise period. When sold and issued warrants were valued in accordance with FASB ASC 815-10, the fair value was determined using a Monte Carlo Simulation Model.

   

The following table summarizes information about common stock warrants outstanding at June 30, 2017:

  

Outstanding     Exercisable  
Exercise Price     Number
Outstanding
    Weighted Average Remaining Contractual Life (years)     Weighted Average Exercise Price     Number
Exercisable
    Weighted Average Exercise Price  
$ 1.25       13,950       1.25       1.25       13,950       1.25  
  1.00       366,870       0.01       1.00       366,870       1.00  
  0.90       75,000       2.07       0.90       75,000       0.90  
  0.87       1,303,300       1.86       0.87       1,303,300       0.87  
  0.75       683,415       1.31       0.75       683,415       0.75  
  0.65       590,000       1.39       0.65       590,000       0.65  
  0.35       4,572,098 *     1.94       0.35       4,572,098       0.35  
          7,604,633       1.74               7,604,633          

 

Note * 916,720 warrants exercisable at $0.35 contain dilution protections that increase the number of shares purchasable at exercise upon the issuance of securities at a price below the current exercise price.