WARRANTS

3 Months Ended

Mar. 31, 2014

Warrants and Rights Note Disclosure [Abstract]

WARRANTS

10.  WARRANTS

On January 2, 2013, GAHI granted to a consultant of GAIM, warrants to purchase 1,000,000 shares of common stock. The warrants are exercisable at $0.25 per common share and expire on January 1, 2021.  400,000 warrants vested immediately upon signing the independent contractor agreement, with a fair value of approximately $91,000 at the grant date recognized in the three months ended March 31, 2013. 50,000 warrants vest for every $25,000,000 assets under management (“AUM”) (up to 600,000 warrants for $300,000,000 AUM) brought into the Company.  Each of the 50,000 warrants is measured at its then-current lowest aggregate fair value at each of interim reporting dates.

Changes in the lowest aggregate fair values result in a change in the measure of compensation cost. Weighted average assumptions used to estimate the fair value of warrants on the date of grant are as follows:

	January 2, 2013
Expected dividend yield	$ -
Expected stock price volatility	120%
Risk free interest rate	1.25%
Expected life (years)	8 years

On April 30, 2013, the Company, Daniel D. Rubino, Robert M. Pickus, and George C. Dolatly (collectively, the “GCA Principals”) and GCA Ventures, LLC (“GCA”) entered into a management and investor rights agreement.  Pursuant to the agreement, the Company will receive financial and management consulting services from GCA and the GCA Principals in return for warrants to purchase a total of 2,500,000 common shares, at an exercise price of $0.25 per share, which will be issued in three separate tranches. The first tranche of one million warrants have been issued concurrently with the signing.  The second and third tranche of 750,000 warrants each will be issued six months and one year after the date of the agreement, respectively.  Each tranche of warrants is to expire seven years after issuance. The fair value of approximately $891,500 at the grant date is being recognized over the vesting period. Weighted average assumptions used to estimate the fair value of warrants on the date of grant are as follows:  

	April 30, 2013
Expected dividend yield	$ -
Expected stock price volatility	190%
Risk free interest rate	1.11%
Expected life (years)	7 years

The stock-based compensation related to the warrants, included in stock compensation expense in the consolidated statements of operations, was $66,863 and $0 for the three months ended March 31, 2014 and 2013, respectively.

On March 13, 2014, the Company issued a three-year warrant to purchase 500,000 shares of common stock at $0.25 per share to a consultant pursuant to a consulting agreement. The warrant was fully vested when issued.  The fair value of approximately $252,800 at the grant date was recognized in the three months ended March 31, 2014. Weighted average assumptions used to estimate the fair value of warrants on the date of grant are as follows:  

	March 13, 2014
Expected dividend yield	$ -
Expected stock price volatility	288%
Risk free interest rate	0.74%
Expected life (years)	3 years

The following tables summarize the warrants activities:

	Shares		Weighted Average Exercise Price	Weighted- Average Exercisable	Aggregate Intrinsic Value
Outstanding at December 31, 2013		21,271,487	$  0.43	21,271,487	$                  -
Granted		367,387	0.25	367,387	25,562
Exercised		-	-	-	-
Cancelled and surrendered		-	-	-	-
Outstanding at March 31, 2014		21,638,874	$  0.42	21,638,874	$                  -

Exercise Price	Average Number Outstanding	Average Contractual Life	Average Exercise price	Warrants Exercisable
0.001 $0.25 to $0.75	3,793,865 16,211,509	0.75 3.53	$   0.001    0.37	3,793,865 16,211,509
$0.67	1,633,500	0.13	$     0.67	1,633,500
	21,638,874	-	-	21,638,874