Quarterly report pursuant to Section 13 or 15(d)

5. Stockholders' Deficit (Tables)

v2.4.0.8
5. Stockholders' Deficit (Tables)
 6 Months Ended
Jun. 30, 2013
Notes to Financial Statements  
Series C exchange fair value assumptions for warrrants received

In connection with the Series C exchange, we calculated the fair value of the 686,124 warrants received, as described above, using a binomial model with the below assumptions.:

 

Assumptions   Series C Exchange Warrants  
Contractual life (in months)     64  
Expected volatility     106.7 %
Risk-free interest rate     0.75 %
Exercise price   $ 0.74  
Fair value per warrant   $ 0.46  
Fair value of the warrants

In connection with the warrant modification, we calculated the fair value of the warrants, as described above, using a Black-Scholes model with the below assumptions:

 

Assumptions   Series A   Series A   Series B   Series C   Aug/Sep2011   Feb 2012
        (Affiliates)           Notes   PIPE
Contractual life, in years     4.1       3.1       3.1       5.1       2.1       4.6  
Expected volatility     132.0 %     114.1 %     114.1 %     121.9 %     126.6 %     126.6 %
Risk-free interest rate     0.4 %     0.4 %     0.4 %     0.4 %     0.4 %     0.4 %
Exercise price   $ 0.60     $ 0.60     $ 0.60     $ 0.60     $ 0.60     $ 0.60  
Fair value per warrant   $ 0.03     $ 0.03     $ 0.03     $ 0.03     $ 0.03     $ 0.03  
Fair value of the warrants received

In connection with the Series J warrants, we calculated the fair value of the warrants received as described above using the Black- Scholes formula with the below assumptions:

 

Assumptions   Series J warrants February 6, 2013     Series J warrants March 28, 2013     Series J warrants May 20, 2013  
Contractual life (in months)     36       36       36  
Expected volatility     141.8       144.3       147.0  
Risk-free interest rate     0.39 %     0.36 %     0.36 %
Exercise price   $ 0.40     $ 0.40     $ 0.40  
Fair value per warrant   $ 0.36     $ 0.26     $ 0.30  
Warrants and Options Outstanding

The following tables summarize information concerning options and warrants outstanding and exercisable:

 

    Stock Options     Warrants              
          Weighted           Weighted              
          Average price           Average price     Total        
    Shares     per share     Shares     per share     Shares     Exercisable  
Balance outstanding, January 1, 2012     1,508,500     $ 2.33       4,775,501     $ 1.35       6,284,001       6,112,335  
   Granted     1,896,250       .81       2,909,068       .62       4,805,318          
   Exercised     -       -       -       -       -          
   Expired     (130,000 )     2.28       (116,490 )     2.80       (246,490 )        
   Forfeited     (1,669,000 )     -       (880,980 )     2.13       (2,549,980 )        
Balance outstanding, December 31, 2012     1,605,750     $ 0.80       6,687,099     $ 0.81       8,292,849       7,989,331  
   Granted     318,000       .40       5,087,500       0.40       5,405,500          
   Exercised     -       -       -       -       -          
   Expired     -       -       -       -       -          
   Forfeited     (164,198 )     .86       -       -       (164,198 )        
Balance outstanding, June 30, 2013     1,759,552     $ 0.72       11,774,599     $ 0.68       13,534,151       13,235,563  

 

   

          Options Outstanding   Options Exercisable  
                Weighted Average         Weighted Average  
Range of Exercise Prices     Number of Options     Remaining Contractual Life (Years)   Exercise Price   Number of Options     Remaining Contractual Life (Years)     Exercise Price  
$ 0.40 - $ 0.59       531,750       9.5   $ 0.44     373,188       9.4     $ 0.45  
  0.60 -   0.99       478,177       6.5     0.60     405,649       6.1       0.60  
  1.00 -   1.50       749,625       3.8     1.00     682,127       3.4       1.00  
$ 0.40 - $ 1.50       1,759,552       6.3   $ 0.72     1,460,964       5.7     $ 0.75