Note 15 - STOCK OPTIONS AND WARRANTS |
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 non-employees of
the Company under the 2014 Stock Option Plan:
Options Outstanding |
|
|
Options Exercisable |
|
Exercise
Prices
|
|
Number
Outstanding
|
|
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|
|
Weighted
Average
Exercise
Price
|
|
|
Number
Exercisable
|
|
|
Weighted
Average
Exercise
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.10 |
|
|
10,000,000 |
|
|
|
4.13 |
|
|
$ |
0.10 |
|
|
|
10,000,000 |
|
|
$ |
0.10 |
|
Transactions involving stock options issued
to employees are summarized as follows:
|
|
Number
of Shares
|
|
|
Weighted
Average
Exercise
Price Per
Share
|
|
Outstanding at December 31, 2013 |
|
|
9,000,000 |
|
|
$ |
0.015 |
|
Granted |
|
|
15,000,000 |
|
|
|
0.100 |
|
Exercised |
|
|
(9,000,000 |
) |
|
|
0.015 |
|
Expired |
|
|
- |
|
|
|
- |
|
Outstanding at December 31, 2014 |
|
|
15,000,000 |
|
|
$ |
0.100 |
|
Granted |
|
|
- |
|
|
|
|
|
Exercised |
|
|
- |
|
|
|
|
|
Canceled |
|
|
(5,000,000 |
) |
|
|
0.10 |
|
Outstanding at September 30, 2015 |
|
|
10,000,000 |
|
|
$ |
0.100 |
|
The intrinsic value of the vested employee
stock options as of September 30, 2015 was $-0- based on the Company's stock price of $0.0449 per share at September 30, 2015.
During the nine months ended September 30,
2015, 5,000,000 previously issued options issued to a former officer were returned and canceled.
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 and 2014 Stock Option Plans:
Options Outstanding |
|
|
Options Exercisable |
|
Exercise
Prices
|
|
Number
Outstanding
|
|
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|
|
Weighted
Average
Exercise
Price
|
|
|
Number
Exercisable
|
|
|
Weighted
Average
Exercise
Price
|
|
$ |
0.045 |
|
|
3,500,000 |
|
|
|
4.81 |
|
|
$ |
0.045 |
|
|
|
3,500,000 |
|
|
$ |
0.045 |
|
$ |
0.10 |
|
|
200,000 |
|
|
|
3.02 |
|
|
$ |
0.10 |
|
|
|
200,000 |
|
|
$ |
0.10 |
|
$ |
0.20 |
|
|
150,000 |
|
|
|
3.44 |
|
|
$ |
0.20 |
|
|
|
150,000 |
|
|
$ |
0.20 |
|
|
|
|
|
3,850,000 |
|
|
|
4.66 |
|
|
$ |
0.10 |
|
|
|
3,850,000 |
|
|
|
|
|
Transactions involving stock options issued
to non-employees are summarized as follows:
|
|
Number
of Shares
|
|
|
Weighted
Average
Exercise
Price Per
Share
|
|
Outstanding at December 31, 2013 |
|
|
2,750,000 |
|
|
$ |
0.015 |
|
Granted |
|
|
150,000 |
|
|
|
0.200 |
|
Exercised |
|
|
(2,550,000 |
) |
|
|
0.017 |
|
Expired |
|
|
- |
|
|
|
- |
|
Outstanding at December 31, 2014 |
|
|
350,000 |
|
|
|
0.140 |
|
Granted |
|
|
3,500,000 |
|
|
|
0.045 |
|
Exercised |
|
|
- |
|
|
|
- |
|
Expired |
|
|
- |
|
|
|
- |
|
Outstanding at September 30, 2015 |
|
|
3,850,000 |
|
|
$ |
0.14 |
|
The assumptions used in the valuation of stock
options vesting during the nine months ended September 30, 2015 and 2014 were as follows:
|
|
2015 |
|
|
2014 |
|
Risk-free interest rate |
|
0.89% to 1.72 |
% |
|
1.07% to 1.73 |
% |
Expected term of option |
|
3.95 to 5.00 years |
|
|
4.27 to 4.70 years |
|
Expected stock price volatility |
|
151.39% to 164.63 |
% |
|
205.83% to 226.04 |
% |
Expected dividend yield |
|
|
0.0 |
% |
|
|
0.0 |
% |
The risk-free interest rate is based on the
yield of Daily U.S. Treasury Yield Curve Rates with terms equal to the expected term of the options as of the grant date.
The intrinsic value of the vested non- employee
stock options as of September 30, 2015 was $-0- based on the Company's stock price of $0.0449 per share at September 30, 2015.
Warrants:
The following table summarizes the changes
in warrants outstanding and the related prices for the shares of the Company's common stock:
Warrants Outstanding |
|
|
Warrants Exercisable |
|
Exercise
Prices
|
|
Number
Outstanding
|
|
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|
|
Weighted
Average
Exercise
Price
|
|
|
Number
Exercisable
|
|
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|
$ |
0.25 |
|
|
1,475,000 |
|
|
|
3.19 |
|
|
$ |
0.25 |
|
|
|
1,475,000 |
|
|
|
3.19 |
|
|
1.00 |
|
|
1,155,000 |
|
|
|
2.76 |
|
|
|
1.00 |
|
|
|
1,155,000 |
|
|
|
3.76 |
|
$ |
0.58 |
|
|
2,630,000 |
|
|
|
3.00 |
|
|
$ |
0.58 |
|
|
|
2,630,000 |
|
|
|
3.00 |
|
Transactions involving warrants are summarized
as follows:
|
|
Number
of Shares
|
|
|
Weighted
Average
Exercise
Price Per
Share
|
|
Outstanding at December 31, 2013 |
|
|
2,430,000 |
|
|
$ |
1.00 |
|
Issued |
|
|
1,475,000 |
|
|
|
0.25 |
|
Exercised |
|
|
- |
|
|
|
- |
|
Expired |
|
|
(1,275,000 |
) |
|
|
(1.00 |
) |
Outstanding at December 31, 2014 |
|
|
2,630,000 |
|
|
$ |
0.58 |
|
Issued |
|
|
- |
|
|
|
- |
|
Exercised |
|
|
- |
|
|
|
- |
|
Canceled |
|
|
- |
|
|
|
- |
|
Outstanding at September 30, 2015 |
|
|
2,630,000 |
|
|
$ |
0.58 |
|
|