Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS AND WARRANTS

v3.3.0.814
STOCK OPTIONS AND WARRANTS
9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
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