Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.7.0.1
Warrants
6 Months Ended
Jun. 30, 2017
Warrants [Abstract]  
WARRANTS
10. WARRANTS

 

The Company did not issue any warrants during the six months ended June 30, 2017.

 

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. The Company recognized $114,779 in compensation cost during the six months ended June 30, 2016.

 

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

 

The Company used the Black-Scholes warrant pricing model to estimate the fair value on the re-measurement dates of the 12,500 warrants that continue to vest during the six months ended June 30, 2017.

 

The following table summarizes the assumptions used to estimate the fair value of the 12,500 warrants granted during 2015 as of re-measurement dates:

 

      2017  
         
  Expected dividend yield     0 %
  Expected volatility     107 %
  Risk-free interest rate     1.53 %
  Expected life of warrants     1.0 years  

 

Under the Black-Scholes warrant pricing model, fair value of the 12,500 warrants granted during 2015 is estimated at $0 as of re-measurement dates. During the six months ended June 30, 2017, $(4,899) compensation expense was recognized on these 12,500 warrants. During the six months ended June 30, 2016, $4,995 compensation expense was recognized on these warrants.

 

The following table represents warrant activity as of and for the period ended June 30, 2017:

 

      Number of Warrants     Weighted
Average
Exercise Price per Share
    Weighted Average Contractual Life in Years     Aggregate Intrinsic Value  
  Outstanding – December 31, 2016     183,737     $ 7.35       2.70          
  Exercisable – December 31, 2016     171,237     $ 7.15       2.79     $        0  
  Granted     0     $ 0                  
  Forfeited or Expired     0     $ 0                  
  Outstanding – June 30, 2017     183,737     $ 7.35       2.21     $ 0  
  Exercisable – June 30, 2017     183,737     $ 7.35       2.21     $ 0