STOCKHOLDERS' EQUITY (DEFICIT) (Tables)

6 Months Ended

Jun. 30, 2016

Stockholders' Equity Note [Abstract]

The following table illustrates the initial fair value of these warrants on April and May 2016 as well as the fair value of the warrants as of June 30, 2016 as determined using a Binomial Monte-Carlo Cliquet (aka Ratchet) Option Pricing Model:

	April 2016		May 2016		June 30, 2016		Charge Against Earnings
April 2016 Warrant	$	251,971	$	—	$	260,400	$	8,429
May 2016 Warrant	—		64,639		65,100		461
Total	$	251,971	$	64,639	$	325,500	$	8,890

A summary of outstanding warrants as of June 30, 2016 and December 31, 2015 is presented below.

	Six months ended June 30, 2016	Year ended December 31, 2015
Warrants outstanding, beginning of period	3,530,918	5,101,450
Granted	175,000	110,417
Exercised	—	(148,256
Cancelled, forfeited or expired	—	(1,532,693
Warrants outstanding, end of period	3,705,918	3,530,918

Schedule of outstanding warrants by year issued and exercise price

A summary of outstanding warrants by year issued and exercise price as of June 30, 2016 is presented below.

			Outstanding				Exercisable
Exercise Price			Number of Warrants Issued	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Total	Weighted Average Exercise Price
At December 31, 2013
	$	3.30	50,000	1.84	$	3.30	50,000	$	3.30
	$	3.50	2,225,036	2.20	$	3.50	2,225,036	$	3.50
	2013 total		2,275,036				2,275,036

At December 31, 2014
	$	3.50	1,145,465	2.23	$	3.50	1,145,465	$	3.50
	2014 total		1,145,465				1,145,465

At December 31, 2015
	$	4.90	110,417	3.68	$	4.90	110,417	$	4.90
	2015 total		110,417				110,417
During 2016
	$	4.50	100,000	5.00	$	4.50	100,000	$	4.50
	$	4.70	75,000	4.84	$	4.70	75,000	$	4.70
	Total		3,705,918				3,705,918

Schedule of outstanding options

A summary of outstanding options as of June 30, 2016 is presented below.

	June 30, 2016				December 31, 2015
	Number of Options		Weighted- Average Exercise Price		Number of Options		Weighted- Average Exercise Price
Options outstanding, beginning of period	4,753,335		$	3.60	5,669,000		$	3.68
Granted or deemed issued	2,596,200		$	4.94	—		$	—
Exercised	(1,866	)	—		(2,000	)	$	3.60
Cancelled, forfeited and expired	(85,468	)	$	4.88	(913,665	)	$	4.05
Options outstanding, end of period	7,262,201		$	4.07	4,753,335		$	3.60
Options exercisable, end of period	4,640,668		$	3.59	4,379,335		$	3.60
Options available for future grant, end of period	1,737,799				4,246,665

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details