Warrants and Options

6 Months Ended

Jun. 30, 2015

Temporary Equity Disclosure [Abstract]

Warrants and Options

9. Warrants and options

Warrants:

During the fiscal year ended December 31, 2014, the Company granted 4,200,000 warrants to purchase shares of Common Stock which all have a 1 year exercise term, of which 3,100,000 remain outstanding at March 31, 2015. During the quarter ended June 30, 2015, 1,300,000 warrants were issued. The Company valued all warrants utilizing a Black-Scholes option pricing model and the fair value was recorded in additional paid-in capital.

The following is a summary of the Company’s warrant activity:

	Warrants	Weighted Average Exercise Price
Exercisable – December 31, 2013	4,358,000	$           1.50
Granted-2014	4,200,000	1.50
Exercised-2014	-	-
Forfeited-2014	(4,358,000)	-
Outstanding – December 31, 2014	4,200,000	$           1.50
Exercisable – December 31, 2014	4,200,000	$           1.50
	Warrants	Weighted Average Exercise Price
Granted-2015 (at June 30, 2015)	1,950,000	$           1.50
Exercised-2015 (at June 30,2015)	-	-
Forfeited-2015 (at June 30, 2015)	(2,200,000)	$           1.50
Outstanding – June 30, 2015	3,950,000	$           1.50
Exercisable – June 30, 2015	3,950,000	$           1.50

Warrants outstanding and exercisable at June 30, 2015 are as follows:

Warrants Outstanding				Warrants Exercisable
	Range of Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life (in Years)	Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	1.50	500,000	0.06 years	$	1.50		500,000	$	1.50
$	1.50	250,000	0.15 years	$	1.50		250,000	$	1.50
$	1.50	150,000	0.21 years	$	1.50		150,000	$	1.50
$	1.50	100,000	0.25 years	$	1.50		100,000	$	1.50
$	1.50	100,000	0.29 years	$	1.50		100,000	$	1.50
$	1.50	80,000	0.36 years	$	1.50		80,000	$	1.50
$	1.50	70,000	0.41 years	$	1.50		70,000	$	1.50
$	1.50	250,000	0.42 years	$	1.50		250,000	$	1.50
$	1.50	250,000	0.46 years	$	1.50		250,000	$	1.50
$	1.50	250,000	0.50 years	$	1.50		250,000	$	1.50
$	1.50	250,000	0.53 years	$	1.50		250,000	$	1.50
$	1.50	150,000	0.66 years	$	1.50		150,000	$	1.50
$	1.50	100,000	0.70 years	$	1.50		100,000	$	1.50
$	1.50	150,000	0.75 years	$	1.50		150,000	$	1.50
$	1.50	50,000	0.79 years	$	1.50		50,000	$	1.50
$	1.50	150,000	0.81 years	$	1.50		150,000	$	1.50
$	1.50	100,000	0.84 years	$	1.50		100,000	$	1.50
$	1.50	500,000	0.91 years	$	1.50		500,000	$	1.50
$	1.50	500,000	0.92 years	$	1.50		500,000	$	1.50

Warrant activity is as follows:

Effective July 23 2014, 500,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective August 29 2014, 250,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective September 29, 20144, 150,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective September 30, 2013, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective October 15 2014, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective November 7, 2014, 80,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective November 28, 2014, 70,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective December 4, 2014, 250,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective December 15, 2014, 250,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective January 3, 2015, 250,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective January 23, 2015, 250,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective January 30, 2015, 150,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective March 15, 2015, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective March 31, 2015, 150,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective April 16, 2015, 50,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective April 23, 2015, 150,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective May 4, 2015, 100,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective May 28, 2015, 500,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Effective June 1, 2015, 500,000 warrants were issued. The warrants allow the purchase of common shares at an exercise price of $1.50. There is no vesting period, and the warrants expire in 1 year

Stock Options:

During the period that the options were issued, the Company had no public trading activity for the Company’s common stock. However, the Company sold in private transactions shares at $1.00 per share. In order to value the Company’s options, the Company chose to use the minimum value method, even though the Company is a public company since there was no measurable trading activity. The fair value of the options was recorded in additional paid-in capital.

Options outstanding and exercisable at June 30, 2015 are as follows:

	Options	Weighted Average Exercise Price
Outstanding – December 31, 2013	305,000	$ 0.836
Exercisable – December 31, 2013	105,000	$ 0.524
Granted-2014	-	$ -
Exercised-2014	-	-
Forfeited-2014	-	-
Outstanding – December 31, 2014	305,000	$ 0.836
Exercisable – December 31, 2014	155,000	$ 0.678
	Options	Weighted Average Exercise Price
Granted-2015 (at June 30, 2015)	160,000	$ -
Exercised-2014 (at March 31, 2015)	-	-
Forfeited-2014 (at March 31, 2015)	-	$ -
Outstanding – June 30, 2015	465,000	$ 0.893
Exercisable – June 30, 2015	315,000	$ 0.840

Options outstanding and exercisable at June 30, 2015 are as follows:

Options Outstanding							Options Exercisable
	Range of Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life (in Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$		0.001		50,000		.35 years	$	0.001		50,000		$	0.001
$		1.000		35,000		2.59 years	$	1.000		35,000		$	1.000
$		1.000		10,000		2.67 years	$	1.000		10,000		$	1.000
$		1.000		200,000		8.42 years	$	1.000		50,000		$	1.000
$		1.00		10,000		3.49 years	$	1.000		10,000		$	1.000
$		1.00		50,000		9.51 years	$	1.000		50,000		$	1.000
$		1.00		10,000		9.58 years	$	1.000		10,000		$	1.000
$		1.00		100,000		9.84 years	$	1.000		100,000		$	1.000

Stock option activity is as follows:

Effective November 2, 2010 the Board of Directors of the Company granted 50,000 non-statutory stock options to a former consultant at an exercise price of $.001 per share with the vesting date of November 2, 2013 and an expiration date of November 2, 2016.

Effective February 1, 2013 the Board of Directors of the Company granted 20,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1, 2013 and an expiration date of February 1, 2018.

Effective February 1, 2013 the Board of Directors of the Company granted 5,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1 2013 and an expiration date of February 1, 2018.

Effective February 1, 2013 the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of February 1 2013 and an expiration date of February 1, 2018.

Effective March 1, 2013 the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of March 1, 2013 and an expiration date of March 1, 2018.

Effective December 27, 2013 the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of December 27, 2013 and an expiration date of December 27, 2018.

Effective January 1, 2015 the Board of Directors of the Company granted 50,000 non-statutory incentive stock options to a current employee at an exercise price of $1.00 per share with 25% of the shares vested on January 1, 2016 and an additional 25% of shares exercisable on each of the next succeeding three anniversaries of January 1, with the full portion exercisable on and after January 1, 2019. These shares have an expiration date of January 1, 2025.

Effective January 23, 2015 the Board of Directors of the Company granted 10,000 non-statutory stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of January 23, 2015 and an expiration date of January 23, 2025.

Effective April 30, 2015 the Board of Directors of the Company granted 100,000 non-qualified stock options to a current consultant at an exercise price of $1.00 per share with the vesting date of April 30, 2015 and an expiration date of April 30, 2025