Share-based payments (Tables)

3 Months Ended

Mar. 31, 2016

Financial statements related to equity-based payments

Amounts recognized as expense in the consolidated statements of operations related to share-based payments are as follows:

	Three months ended March 31,
	2016			2015
Nonemployee common stock	$	--		$	31,200
Nonemployee warrants – fully-vested upon issuance		445,390			--
Nonemployee warrants – service and performance conditions		9,856			4,462
Employee stock options – market price-based		327,000			327,000
Total share-based expense charged against income	$	782,246		$	362,662
Impact on net loss per common share:
Basic and diluted	$	(0.01	)	$	(0.01	)

Fair value of each option award

The following summarizes the Black-Scholes assumptions used to estimate the fair value of these common stock warrants:

Volatility	127	%
Risk-free interest rate	0.9	%
Expected life (years)	3.0
Dividend yield	--

Nonemployee Common stock [Member]

Common stock conditions

In July, 2014, we entered into an agreement with the company managing the operations of UPT, whereby we would issue common stock under the following conditions:

Condition	Number of Shares
UPT recognizes $100 million of revenue or a change in control		500,000
UPT recognizes $100 million of revenue		150,000
		650,000

Nonemployee common stock warrants -- Fully-vested upon issuance [Member]

Fair value of each option award

The following summarizes the Black-Scholes assumptions used to estimate the fair value of these common stock warrants:

	Replacement Warrants			Additional Warrants
Volatility	133 – 182		%		204	%
Risk-free interest rate	1.1 – 1.3		%		1.4	%
Expected life (years)	3.0 – 4.3				5.0
Dividend yield		--			--

Nonemployee Common stock warrants - Service and performance conditions [Member]

Common stock warrants performance and service conditions

In July, 2014, we entered into a three year agreement with the company managing the operations of UPT, whereby we would issue common stock warrants under the following conditions:

		Number of
Vesting Condition	Category	Warrants
Fully vest upon UPT generating $1 million of revenue	Performance		350,000
45,945 warrants for every $3 million of revenue generated by UPT up to $100 million	Performance		1,530,000
60,000 warrants for every three months of completed service managing UPT	Service		720,000
Total			2,600,000
Vested – March 31, 2016			(420,000	)
Nonvested – March 31, 2016			2,180,000