Annual report pursuant to Section 13 and 15(d)

Warrants

v3.6.0.2
Warrants
12 Months Ended
Dec. 31, 2016
Warrants [Abstract]  
WARRANTS
10. WARRANTS

 

For the year ended December 31, 2016

 

For the year 2016, 60,000 common stock purchase warrants were granted to four consultants for services provided. Each warrant was granted with the exercise price of $2.91, which immediately vested, and the expiration date is April 27, 2019.

 

During 2016, 10,472 MacroSolve warrants expired that were issued in 2011 with exercise prices ranging between $141.00 and $404.50 on a post-reverse split basis.

 

For the year ended December 31, 2015

 

On October 29, 2015, a 1:40 reverse split of the Company stock occurred and the effect has been applied retroactively for disclosure purposes.

 

For the year 2015, 52,500 common stock purchase warrants were granted to two consultants and a vendor for service provided. One consultant was granted 25,000 warrants with an exercise price of $10.00, vesting over two years and the expiration date is June 16, 2018. The other consultant was granted 12,500 warrants with an exercise price of $10.00, vesting over one year and the expiration date is June 25, 2018. These same two consultants and the vendor each received 5,000 warrants with an exercise price of $5.00, which immediately vested, and the expiration date is December 10, 2018.

  

On November 20, 2015, the Company issued 70,000 warrants with an exercise price of $5.00 to the placement agent in the common stock private placement, which immediately vested, and the expiration date is November 20, 2020.

 

The Company uses the Black-Scholes warrant pricing model to estimate the fair value of warrants.

 

The following table summarizes the assumptions used to estimate the fair value of warrants granted during 2016 and 2015:

 

      2016     2015  
               
  Expected dividend yield     0 %   0 %
  Expected volatility     105 – 108 %   116-121 %
  Risk-free interest rate     .73 – .99 %   .87-1.70 %
  Expected life of warrants    

1.4 – 3 years

    2.4 – 5 years  

 

Under the Black-Scholes warrant price model, the fair value of the warrants granted during 2016 is estimated at $114,779. During 2016 and 2015, $118,681 and $324,263 compensation expense, respectively, was recognized.

 

The following table represents warrant activity as of and for the period ended December 31, 2016 and 2015:

 

      Number of Warrants     Weighted 
Average 
Exercise Price
    Weighted Average Remaining Contractual Life in Years     Aggregate Intrinsic 
Value
 
  Outstanding – December 31, 2014     12,129     $ 206.86       2.04          
  Exercisable – December 31, 2014     12,129     $ 206.86       2.04     $ 0.00  
  Granted     122,500     $ 6.53                  
  Forfeited or Expired     (420 )   $ 250.35                  
  Outstanding – December 31, 2015     134,209     $ 23.87       3.66          
  Exercisable – December 31, 2015     104,209     $ 27.87       4.01     $ 0.00  
  Granted     60,000     $ 2.91                  
  Forfeited or Expired     (10,472 )   $ 193.72                  
  Outstanding – December 31, 2016     183,737     $ 7.35       2.70          
  Exercisable – December 31, 2016     171,237     $ 7.15       2.79     $ 0.00