XML 27 R15.htm IDEA: XBRL DOCUMENT

Warrants

9 Months Ended

Sep. 30, 2018

NOTE 9- WARRANTS

In January 2018, the Company issued warrants to purchase up to 250,000 shares of the Company’s common stock at an exercise price of $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 five years.

In January 2018, in conjunction with the sale of the Company’s common stock, the Company granted warrants to purchase up to 13,700,000 shares of the Company’s common stock at an exercise price of $0.40 per share, exercisable through January 31, 2023. Due to price protection provisions, the exercise price of the warrants was adjusted to $0.20 on July 26, 2018.

The Company issued warrants to purchase up to an aggregate of 6,600,000 shares of the Company’s common stock as part of the sale of convertible debentures.

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

Exercise Price	Warrants Outstanding		Weighted Avg. Remaining Life		Warrants Exercisable
$0.01 – 0.25		30,082,660		4.34		30,082,660
0.26 – 0.50		5,440,002		4.08		5,440,002
0.51 – 0.75		50,000		1.52		50,000
0.76 – 1.00		5,100,002		1.00		5,100,002
1.01 – 2.00		146,200		0.23		146,200
2.01 and up		407,475		0.11		407,475
		41,226,339				41,226,339

A summary of the warrant activity for the nine months ended September 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		2.0	$	-
Grants		20,550,000		$	0.30
Exercised		(14,139,508	)	$	0.29
Forfeited/Cancelled		(372,000	)	$	1.00
Vested and expected to vest at September 30, 2018		41,226,339		$	0.35		3.3	$	-
Exercisable at September 30, 2018		41,226,339		$	0.35		3.6	$	-

The aggregate intrinsic value outstanding stock warrants was $0, based on warrants with an exercise price less than the Company’s stock price of $0.12 as of September 30, 2018, which would have been received by the warrant holders had those warrant holders exercised their warrants as of that date.