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Warrants

6 Months Ended

Jun. 30, 2018

NOTE 9- WARRANTS

In January 2018, the Company issued warrants to purchase 250,000 shares of common stock at $0.20 per share to a service provider of the Company. The estimated fair value of $86,483 was charged to current period operations. The fair market value was calculated using the Black Scholes Option Pricing Model, assuming approximately 2.49% risk-free interest, 0% dividend yield, 112.14% volatility, and expected life of 5 years.

In January 2018, in conjunction with the sale of the Company’s common stock, the Company granted 13,700,000 warrants to purchase the Company’s common stock at $0.40 per share, exercisable through January 31, 2023.

Warrants outstanding and exercisable at June 30, 2018 are as follows:

Exercise Price	Warrants Outstanding		Weighted Avg. Remaining Life	Warrants Exercisable
$0.01 – 0.25		9,782,660	4.30		9,782,660
0.26 – 0.50		19,140,002	4.52		19,140,002
0.51 – 0.75		50,000	1.78		50,000
0.76 – 1.00		5,100,002	1.25		5,100,002
1.01 – 2.00		146,200	0.48		146,200
2.01 and up		407,475	0.36		407,475
		34,626,339			34,626,339

A summary of the warrant activity for the six months ended June 30, 2018 is as follows:

	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2017		35,187,847		$	0.41		2.3	$	9,314,959
Grants		13,950,000		$	0.40
Exercised		(14,139,508	)	$	0.29
Forfeited/Cancelled		(372,000	)	$	1.00
Vested and expected to vest at June 30, 2018		34,626,339		$	0.45		3.9	$	381,306
Exercisable at June 30, 2018		34,626,339		$	0.45		3.9	$	381,306

The aggregate intrinsic value outstanding stock warrants was $381,306, based on warrants with an exercise price less than the Company’s stock price of $0.24 as of June 30, 2018, which would have been received by the warrant holders had those warrant holders exercised their warrants as of that date.