Employee Options

The following table summarizes the changes in employee options outstanding and the related prices for the shares of the Company’s common stock issued to employees of the Company under the 2013 Stock Option Plan:

The intrinsic value of the vested employee stock options as of December 31, 2013 was $1,485,000 based on the Company’s stock price of $0.18 per share at March 31, 2014.

Transactions involving stock options issued to employees are summarized as follows:

Non-employee options

The following table summarizes the changes in non-employee options outstanding and the related prices for the shares of the Company’s common stock issued to non-employees of the Company under the 2013 Stock Option Plan:

Transactions involving stock options issued to non-employees are summarized as follows:

The intrinsic value of the vested non- employee stock options as of March 31, 2014 was $29,700 based on the Company’s stock price of $0.18 per share at March 31, 2014.

Warrants:

The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s common stock:

Transactions involving warrants are summarized as follows:

In March 2014, the Company issued 200,000 warrants to purchase the Company’s common stock at an exercise price of $0.25 per share for one year to a Company’s licensee vesting immediately. The fair value of the warrant of $24,557 was determined using the Black Scholes Option Pricing Model with the following assumptions: dividend yield $-0-, volatility of 191.73% and risk free rate of 0.13% and is amortized over the term of the related licensee agreement.