Quarterly report pursuant to Section 13 or 15(d)

5. Stockholders' Deficit (Tables)

v2.4.0.8
5. Stockholders' Deficit (Tables)
3 Months Ended
Mar. 31, 2014
Notes to Financial Statements  
Series C exchange fair value assumptions for warrrants received

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:

 

          Series A                 Aug/Sep 2011     Feb 2012  
Assumptions   Series A     (Affiliates)     Series B     Series C     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

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  

 

Fair value of the warrants received

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

 

Assumptions  

Series K Warrants December 12,

2013

   

Series K Warrants

January 29,

2014

   

Series K Warrants

February, 28

2014

 
Contractual life (in months)     36       36       36  
Expected volatility     136.1       152.4       152.7  
Risk-free interest rate     0.39 %     0.39 %     0.39 %
Exercise price   $ 0.3125     $ 0.3125     $ 0.425  
Fair value per warrant   $ 0.20     $ 0.30     $ 0.37  

 

 

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, 2013     1,605,750     $ 0.80       6,687,099     $ 0.81       8,292,849       7,989,331  
      Granted     363,500       .41       8,346,228       .37       8,709,728          
      Exercised     -       -       -       -       -          
      Expired     (10,000 )     1.00       (21,000 )     2.38       (31,000 )        
      Forfeited     (187,542 )     .85       -       -       (187,542 )        
Balance outstanding, December 31, 2013     1,771,708     $ 0.71       15,012,327     $ 0.57       16,784,035       16,611,528  
      Granted     -       -       3,660,500       0.34       3,660,500          
      Exercised     -       -       (450,000 )     0.25       (450,000 )        
      Expired     (10,000 )     1.00       -       -       (10,000 )        
      Forfeited     (30,958 )     0.71       -       -       (30,958 )        
Balance outstanding, March 31, 2014     1,730,750     $ 0.71       18,222,827     $ 0.53       19,953,577       19,832,910  

 

 

      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 - $0.49       311,000       9.1     $ 0.40       284,083       9.1     $ 0.40  
  0.50 - 0.59       251,250       8.4       0.50       251,250       8.4       0.50  
  0.60 - 0.99       467,500       5.7       0.60       415,000       5.5       0.60  
  1.00 - 1.50       701,000       3.0       1.00       659,750       2.7       1.00  
$ 0.40 - $1.50       1,730,750       5.6     $ 0.71       1,610,083       5.4     $ 0.71