Quarterly report pursuant to Section 13 or 15(d)

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS

3 Months Ended

Mar. 31, 2016

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 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		3.63	$	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, 2015		10,000,000	$	0.100
Granted		-
Exercised		-
Canceled		-
Outstanding at March 31, 2016		10,000,000	$	0.100

The intrinsic value of the vested employee stock options as of March 31, 2016 was $-0- based on the Company's stock price of $0.0226 per share at March 31, 2016. The intrinsic value of the vested employee stock options as of December 31, 2015 was $-0- based on the Company's stock price of $0.0265 per share at December 31, 2015.

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		4.31	$	0.045		3,500,000	$	0.045
$	0.10		200,000		2.77	$	0.10		200,000	$	0.10
$	0.15		1,000,000		4.28	$	0.15		1,000,000	$	0.15
$	0.20		150,000		2.94	$	0.20		150,000	$	0.20
			4,850,000		4.20	$	0.07		4,850,000

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, 2015		4,850,000		0.07
Granted		-		-
Exercised		-		-
Expired		-		-
Outstanding at March 31, 2016		4,850,000	$	0.07

The intrinsic value of the vested non-employee stock options as of March 31, 2016 was $-0- based on the Company's stock price of $0.0226 per share at March 31, 2016. The intrinsic value of the vested non-employee stock options as of December 31, 2015 was $-0- based on the Company's stock price of $0.0265 per share at December 31, 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		2.69	$	0.25		1,475,000		3.19
	1.00		1,155,000		2.26		1.00		1,155,000		3.76
$	0.58		2,630,000		2.50	$	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, 2015		2,630,000	$	0.58
Issued		-		-
Exercised		-		-
Canceled		-		-
Outstanding at March 31, 2016		2,630,000	$	0.58