STOCK PURCHASE WARRANTS

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

STOCK PURCHASE WARRANTS

During the six months ended June 30, 2015, there were no stock purchase warrants issued.

During the six months ended June 30, 2015, 2,609,307 stock purchase warrants expired with a weighted average exercise price of $1.29.

As a result of the issuance of the Convertible Notes payable pursuant to the Note and Warrant Purchase Agreement entered into with certain accredited investors on May 28, 2015, the exercise price of the warrants issued in connection with the sale of the Company's Series B Preferred Stock was reduced to $0.35 per share.

The following represents additional information related to common stock warrants outstanding and exercisable at June 30, 2015:

Exercise Price		Number of Shares Under Warrants		Weighted Average Remaining Contract Life in Years		Weighted Average Exercise Price
$	0.35		8,676,408		3.26	$	0.35
Total warrants accounted for as derivative liability			8,676,408		3.26	$	0.35
$	0.83		2,175,970		3.20	$	0.83
$	0.84		20,000		1.09	$	0.84
$	0.85		281,912		2.07	$	0.85
$	0.95		20,000		1.26	$	0.95
$	1.00		165,417		3.63	$	1.00
$	1.33		905,021		0.30	$	1.33
Total warrants accounted for as equity			3,568,320		2.37	$	0.96
Total for all warrants outstanding			12,244,728		3.00	$	0.53

For warrants granted that are accounted for as a derivative liability, the Company used a Binomial Options Pricing model.  The primary assumptions used to determine the fair values of these warrants were: risk free interest rate of 1.63%, volatility of 49.42%, and actual term and exercise price of the warrants granted.