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12. Warrants
3 Months Ended
Mar. 31, 2019
Warrants and Rights Note Disclosure [Abstract]  
Warrants

Note 12 – Warrants

 

Warrants Granted

No warrants were granted during the three months ended March 31, 2019 and 2018.

 

Warrants Exercised

No warrants were exercised during the three months ended March 31, 2019 and 2018.

 

Outstanding Warrants

The Company issued 435,000 warrants (of which 390,000 are outstanding as of March 31, 2019) to purchase shares at $0.01 per share to participants of the Backstop Agreement on September 22, 2017. The Company accounted for the warrants as an expense of the Rights Offering which resulted in a charge directly to stockholders’ equity. The Company estimated the fair value of these warrants to be approximately $10,135 (or $.0233 per warrant) using the Black-Scholes option-pricing model. The fair value of the warrants was estimated as of the date of grant using the following assumptions: (1) expected volatility of 388%, (2) risk-free interest rate of 1.89% and (3) expected life of five years.