Annual report pursuant to Section 13 and 15(d)

Stock Options and Warrants (Tables)

v3.7.0.1
Stock Options and Warrants (Tables)
12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Stock Options Activity

The stock option activity for the year ended December 31, 2016 and 2015 is as follows:

 

    Number of Options     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term  
Balance outstanding, January 1, 2015     360,000     $ 0.38       9.64  
Granted     970,000       0.17       5.99  
Exercised     -       -       -  
Forfeited/expired     (360,000 )     0.28       8.88  
Balance outstanding, December 31, 2015     970,000       0.17       6.71  
Granted     -       -       -  
Exercised     -       -       -  
Forfeited/expired     (70,000 )     0.25       -  
Balance outstanding, December 31, 2016     900,000     $ 0.17       4.67  
Exercisable, December 31, 2016     106,664     $ 0.25       8.13  

Schedule of Warrants Assumptions

For the years ending December 31, 2016 and 2015, the fair value of warrant awards was estimated using the Black-Scholes-Merton option-pricing model with the following assumptions:

 

    December 31, 2016     December 31, 2015  
Expected volatility     121 %     134% to 144 %
Risk-free interest rate     1.08 %     1.2% to 1.5 %
Expected dividend yield     0 %     0 %
Expected life     3 years       3 to 5 years  

Schedule of Warrant Activity

A summary of the Company’s warrant activity during the year ended December 31, 2016 and 2015 is presented below:

 

    Number of Warrants     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term  
Balance outstanding, January 1, 2015     22,450,140     $ 0.26       4.03  
Granted     15,170,000       0.17       3.07  
Exercised     (600,000 )     0.01       -  
Forfeited/expired     (1,710,000 )     0.75       -  
Balance outstanding, December 31, 2015     35,310,140       0.09       3.21  
Granted     19,000,000       0.12       2.12  
Exercised     (6,956,218 )     0.01       2,65  
Forfeited/expired     (395,850 )     0.09       -  
Balance outstanding, December 31, 2016     46,958,072     $ 0.11       2.13  
Exercisable, December 31, 2016     46,458,072     $ 0.11       4,25