Note 10 - Stock Options and Warrants

12 Months Ended

Dec. 31, 2014

Notes

Note 10 - Stock Options and Warrants

Note 10 – Stock Options and Warrants

During the year ended December 31, 2014 in connection with the issuance of a convertible debenture, we issued warrants to purchase 1,977,267 shares of our common stock to a lender.  The warrants are exercisable for a period of five years at an exercise price of $0.06 per share, with certain adjustments to the exercise price for lower conversion prices or option or warrant exercise prices granted after the effective date of the warrants.  We estimated the value of the warrants using the Black-Scholes pricing model at $394,860 and included this amount in our derivative calculations discussed in Note 5.

During the year ended December 31, 2014, we issued options to purchase 3,000,000 shares of our common stock to a consultant.  The options are exercisable for a period of five years at an exercise price of $0.01 per share.  We estimated the value of the options using the Black-Scholes pricing model at $240,000 and included this amount in selling, general and administrative expenses.

The following table summarizes the stock option and warrant activity during the year ended December 31, 2014:

	Options	Weighted Average Exercise Price	Weighted Average Remaining Contract Term
Outstanding at December 31, 2013	-
Granted	4,977,267	$0.03
Exercised	-	-
Expired or cancelled	-	-
Outstanding, vested and exercisable    at December 31, 2014	4,977,267	$0.03	4.50

In estimating the fair value of the stock options and warrants issued during 2014, we used the Black-Scholes pricing model with the following range of assumptions:

Risk-free interest rate	1.58 - 1.75%
Expected life in years	5.0
Dividend yield	0%
Expected volatility	552.0%

On May 12, 2014, the Board of Directors of the Company adopted and approved the One World Holdings Inc. 2014 Stock Option and Stock Award Plan (the “Plan”).  Also, the holders of a majority of the Company’s outstanding common stock voted to approve and authorize adoption of the Plan.  A total of 2,000,000 shares of our common stock are available for issuance under the Plan.  Under the Plan, we may issue options, including incentive stock options and non-statutory stock options, restricted stock grants, or stock appreciation rights.  Awards under the Plan may be granted to employees, consultants, directors and individuals who meet the requirements defined in the Plan.  No options have been granted under the Plan.