Warrant Activity

3 Months Ended

Mar. 31, 2019

Warrants

Warrant Activity

5.     WARRANT ACTIVITY

The following table summarizes the Company’s warrant activity for the three months ended March 31, 2019:

Schedule of Warrant Activity
	Warrants	Weighted average exercise price	Weighted average remaining contractual life (yrs)	Aggregate Intrinsic value
Warrants outstanding December 31, 2018	250,000	$0.003	5.32
Warrants exercisable December 31, 2018	250,000	$0.003	4.32	$ 8,250
Warrants issued during the period	440,000	$0.005
Warrants exercised during the period	400,000	$0.005
Warrants outstanding March 31, 2019	290,000	$0.004	4.17
Warrants exercisable March 31, 2019	290,000	$0.004	4.17	$ 26,980

During the three months ended March 31, 2019, 300,000 and 140,000 common stock purchase warrants were granted with exercise prices of $0.003 and $0.01, respectively, per option.  The warrants were valued using Black-Scholes warrant pricing model on the respective date of issuance and the fair value of the shares was determined to be $15,358, which was recognized as expense for the three months ended March 31, 2019.  These warrants vested immediately upon grant (January 2, 2019) and will expire five years from the date of the grant.  

On March 4, 2019, 300,000 warrants with an exercise price of $.003 per share, and 100,000 warrants with an exercise price of $.01 per share, were exercised for 400,000 restricted shares of common stock, par value $.0001 per share.  Proceeds from the exercise of the warrants were $1,900.

The Black-Scholes pricing model was used with the following weighted-average assumptions for warrants granted during the three   months ended March 31, 2019:

	2019
Risk free interest rate	2.51 %
Expected lives (in years)	5
Expected volatility	146 %
Dividend yield	0 %