Warrants

6 Months Ended

Jun. 30, 2015

Warrants [Abstract]

WARRANTS

8. WARRANTS

For the six month period ended June 30, 2015, 1,500,000 warrants were granted to two consultants for service provided. One consultant was granted 1,000,000 warrants with exercise price of $0.25, vesting over two years and the expiration date is June 16, 2018. The other consultant was granted 500,000 warrants with exercise price of $0.25, vesting over one year and the expiration date is June 25, 2018.

The Company uses the Black-Scholes warrant pricing model to estimate the fair value of warrants as of June 30, 2015.

The following table summarizes the assumptions used to estimate the fair value of warrants granted during the six months ended June 30, 2015:

Expected life of warrants

	2015
Expected dividend yield		0	%
Expected volatility		128	%
Risk-free interest rate		0.46 - 0.83	%
	1.6 – 2.45 years

Under the Black-Scholes warrant price model, fair value of the warrants granted is estimated at $261,834. During the six months ended June 30, 2015, $9,971 compensation expense was recognized.

The following table represents warrant activity as of and for the period ended June 30, 2015:

	Number of Warrants			Weighted Average Exercise Price		Contractual Life in Years		Intrinsic Value
Outstanding – December 31, 2014		485,007		$	5.17		2.04
Exercisable – December 31, 2014		485,007		$	5.17		2.04	$	0.00
Granted		1,500,000		$	0.25
Exercised or Vested		-		$	0.00
Forfeited or Expired		(7,914	)	$	2.53
Outstanding – June 30, 2015		1,977,093		$	1.45		2.63
Exercisable – June 30, 2015		477,093		$	5.21		1.58	$	0.00