• Filing Date: 2014-08-14
  • Form Type: 10-Q
  • Description: Quarterly report
v2.4.0.8
6. STOCK OPTION PLAN (Tables)
6 Months Ended
Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of weighted average assumptions made in calculating the fair value of options

The weighted average assumptions made in calculating the fair values of options granted during the three and six months ended June 30, 2014 and 2013 are as follows:

 

    Three Months Ended
June 30
    Six Months Ended
June 30
 
    2014     2013     2014     2013  
                         
Expected volatility     0.00%       136.44%       21.30%       119.24%  
Expected dividend yield                            
Risk-free interest rate     0.00%       .97%       2.81%       1.10%  
Expected term (in years)     0.0       5       10       5.67  

Option activity
    Share     Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Term
    Aggregate
Intrinsic
Value
 
                         
Outstanding, January 1, 2014     7,045,000       .63       2.57     $ 314,750  
Granted     3,785,000       .41       9.57       390,000  
Exercised                              
Cancelled & Expired     (100,000 )     .90                  
                                 
Outstanding, June 30, 2014     10,730,000       .53       6.02     $ 614,150  
                                 
Options exercisable, June 30, 2014     10,500,832       .54       6.06     $ 614,150  

 

Assumptions for Warrants

The weighted average assumptions made in calculating the fair value of warrants granted during the three and six months ended June 30, 2014 and 2013 are as follows:

 

    Three Months Ended
June 30
    Six Months Ended
June 30
 
    2014     2013     2014     2013  
                         
Expected volatility     156.68%       129.12%       156.68%       57.81%  
Expected dividend yield                            
Risk-free interest rate     1.69%       .71%       1.69%       .74%  
Expected term (in years)     5       5       5       4.29  

 

Warrant activity
      Share     Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Term
    Aggregate
Intrinsic
Value
 
                                     
Outstanding, January 1, 2014       19,640,375     $     .55       1.56     $  
Granted       4,433,839     $ .51       3.77        
Exercised       (125,000 )                        
Expired       (1,375,000 )                        
Outstanding, June 30, 2014       22,574,214     $ .55       2.80       143,500  
                                     
Warrants exercisable, June 30, 2014       22,074,214     $ .55       2.76     $ 143,500