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Warrants

3 Months Ended

Mar. 31, 2019

12.

WARRANTS

For the three months ended March 31, 2019

On March 20, 2019, the Company issued a warrant to purchase 50,000 shares of the Company’s common stock outside its 2015 Equity Plan to a contractor for services. This warrant has an exercise price of $1.06 per share and an expiration date of March 20, 2023, and vests after one year.

The following table summarizes the assumptions used to estimate the fair value of the warrants granted during the three months ended March 31, 2019 on the date of grant.

	March 31, 2019

Expected dividend yield		0	%
Expected volatility		90	%
Risk-free interest rate		2.40	%
Expected life of options		4.00 years

Under the Black-Scholes option pricing model, the fair value of the warrant to purchase 50,000 shares of the Company’s common stock granted during the three months ended March 31, 2019 is estimated at $33,913 on the date of grant. During the three months ended March 31, 2019, $1,022 in compensation expense was recognized on this warrant with a total of $32,891 to be recognized over the vesting period as of March 31, 2019.

The following table represents warrant activity as of and for the three months ended March 31, 2019:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2018		2,280,000	$	0.72		3.44
Exercisable – December 31, 2018		2,280,000	$	0.72		3.44	$	0.00
Granted		50,000	$	1.06
Forfeited or Expired		0	$	0
Outstanding – March 31, 2018		2,330,000	$	0.73		3.21	$	0
Exercisable – March 31, 2018		2,280,000	$	0.72		3.19	$	1,132,500

The following table represents warrant activity as of and for the period ended March 31, 2018:

	Number of Warrants		Weighted Average Exercise Price per Share		Weighted Average Contractual Life in Years		Aggregate Intrinsic Value
Outstanding – December 31, 2017		2,232,500	$	1.36		4.34
Exercisable – December 31, 2017		2,232,500	$	1.36		4.34	$	0
Granted		0	$	0
Forfeited or Expired		0	$	0
Outstanding – March 31, 2018		2,232,500	$	1.36		4.09	$	0
Exercisable – March 31, 2018		2,232,500	$	1.36		4.09	$	0