Share-based payments (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2016

Dec. 31, 2015

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:

	Nine months ended September 30,
	2016			2015
Nonemployee common stock	$	--		$	571,207
Nonemployee preferred stock (Series B)		50,000			--
Nonemployee warrants – fully-vested upon issuance		445,390			--
Nonemployee warrants – service and performance conditions		18,392			55,849
Legal Settlement – replacement warrants		--			1,119,450
Employee stock options – market price-based		327,000			981,000
Total share-based expense charged against income	$	840,782		$	2,727,506
Impact on net loss per common share:
Basic and diluted	$	(0.01	)	$	(0.04	)

	Year ended December 31,
	2015			2014
Nonemployee common stock	$	602,507		$	631,550
Nonemployee warrants – fully vested upon issuance		6,981			7,204,573
Nonemployee warrants – service and performance conditions		52,056			264,919
Employee stock options – fully vested upon grant		-			7,950,000
Employee stock options – market price-based		1,308,000			2,321,000
Legal settlement – replacement warrants		1,764,450			-
Total share-based expense charged against income	$	3,733,994		$	18,372,042
Impact on net loss per common share:
Basic and diluted	$	(0.06	)	$	(0.32	)

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 warrants - Service and performance conditions [Member]

Common stock warrants performance and service conditions

In July, 2014, the Company 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 – September 30, 2016			(420,000	)
Nonvested – September 30, 2016			2,180,000

		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
			2,600,000

Stock option and warrants activity

	Number of Warrants		Weighted-average Exercise Price		Weighted-average Remaining Life (Years)		Aggregate Intrinsic Value
Outstanding, December 31, 2013		-
Granted		3,000,000	$	1.20
Outstanding, December 31, 2014 and 2015		3,000,000	$	1.20		1.9	$	-
Exercisable, December 31, 2015		760,000	$	1.79		2.9	$	-

Nonvested stock options and warrant activity

	Number of			Weighted-average Grant Date
	Warrants			Fair Value
Nonvested, December 31, 2014		2,880,000		$	0.98
Vested		(640,000	)		0.92
Nonvested, December 31, 2015		2,240,000		$	0.99

Fair value of each option award

	Year ended December 31,
	2015	2014
Volatility	102 – 184 %	208 - 322%
Risk-free interest rate	0.9 – 1.4 %	1.1 - 1.7 %
Expected life (years)	3.0 – 5.0	3.0 – 5.0
Dividend yield	-	-

Legal settlement - Replacement warrants

	Previously-issued	Replacement
Volatility	81 – 125%	81 – 125%
Risk-free interest rate	0.3 – 0.6 %	0.1 – 0.5 %
Expected life (years)	1.0 – 2.0	0.6 – 1.8
Dividend yield	-	-

Nonemployee Common stock [Member]

Common stock conditions

In July, 2014, the Company 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

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 [Member]

Stock option and warrants activity

	Number of Warrants			Weighted-average Exercise Price		Weighted-average Remaining Life (Years)		Aggregate Intrinsic Value
Outstanding, December 31, 2013		2,203,374		$	0.69
Granted		7,266,666			0.74
Exercised		(781,805	)		0.31
Forfeited or expired		(200,000	)		0.31
Outstanding, December 31, 2014		8,488,235			0.69
Granted		94,333			0.48
Forfeited or expired		(918,000	)		0.19
Outstanding, December 31, 2015		7,664,568			0.72		2.2	$	-
Exercisable, December 31, 2015		7,664,568			0.72		2.2	$	-

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		--		--

	Year ended December 31,
	2015	2014
Volatility	121 - 173 %	208 – 330 %
Risk-free interest rate	1.4 – 1.6 %	0.6 - 1.7 %
Expected life (years)	3.0 – 4.0	2.5 -- 5.0
Dividend yield	-	-

Employee stock options Fully-vested [Member]

Stock option and warrants activity

	Number of Shares		Weighted-average Exercise Price per Share		Weighted-average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding, December 31, 2013		-
Stock options granted		5,000,000	$	2.00
Outstanding, December 31, 2015 and 2014		5,000,000		2.00		$	-
Exercisable, December 31, 2015		5,000,000	$	2.00		$	-

Fair value of each option award

	Year ended December 31, 2014
Volatility		325	%
Risk-free interest rate		2.7	%
Expected stock option life (years)		10
Dividend yield		-

Employee stock options - Market-based [Member]

Fair value of each option award

	Year ended December 31, 2014
Volatility		300	%
Risk-free interest rate		1.7	%
Expected stock option life (years)		5.0
Dividend yield		-

Employee stock options - Market-based

Market Price	Number of Options
$1.50		1,000,000
1.75		1,000,000
2.00		1,000,000
2.25		1,000,000
2.50		1,000,000
		5,000,000