10.

WARRANTS

The Company did not issue any warrants during the six months ended June 30, 2017.

For the year 2016, 60,000 common stock purchase warrants were granted to four consultants for services provided. Each warrant was granted with the exercise price of $2.91, which immediately vested, and the expiration date is April 27, 2019. The Company recognized $114,779 in compensation cost during the six months ended June 30, 2016.

During 2016, 10,472 warrants expired that were issued in 2011 with exercise prices ranging between $141.00 and $404.50 on a post-reverse split basis.

The Company used the Black-Scholes warrant pricing model to estimate the fair value on the re-measurement dates of the 12,500 warrants that continue to vest during the six months ended June 30, 2017.

The following table summarizes the assumptions used to estimate the fair value of the 12,500 warrants granted during 2015 as of re-measurement dates:

	2017

Expected dividend yield		0	%
Expected volatility		107	%
Risk-free interest rate		1.53	%
Expected life of warrants		1.0 years

Under the Black-Scholes warrant pricing model, fair value of the 12,500 warrants granted during 2015 is estimated at $0 as of re-measurement dates. During the six months ended June 30, 2017, $(4,899) compensation expense was recognized on these 12,500 warrants. During the six months ended June 30, 2016, $4,995 compensation expense was recognized on these warrants.

The following table represents warrant activity as of and for the period ended June 30, 2017:

	Number of Warrants		Weighted Average Exercise Price per Share		Weighted Average Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2016		183,737	$	7.35		2.70
Exercisable – December 31, 2016		171,237	$	7.15		2.79	$	0
Granted		0	$	0
Forfeited or Expired		0	$	0
Outstanding – June 30, 2017		183,737	$	7.35		2.21	$	0
Exercisable – June 30, 2017		183,737	$	7.35		2.21	$	0