15. Warrants

12 Months Ended

Dec. 31, 2015

Warrants and Rights Note Disclosure [Abstract]

Warrants

Warrants Granted

No warrants were granted during the year ended December 31, 2015 and 2014.

Warrants Cancelled

No warrants were cancelled during the year ended December 31, 2015. A total of 330,000 warrants with a strike price of $1.50 per share were voluntarily forfeited on December 30, 2014.

Warrants Expired

A total of 585,000 warrants with a strike price of $0.38 per share expired on August 31, 2015. No warrants expired during the year ended December 31, 2014.

Warrants Exercised

No warrants were exercised during the years ended December 31, 2015 and 2014.

The following is a summary of information about the Warrants outstanding at December 31, 2015:

				Shares Underlying
Shares Underlying Warrants Outstanding				Warrants Exercisable
		Weighted
	Shares	Average	Weighted	Shares	Weighted
	Underlying	Remaining	Average	Underlying	Average
Range of	Warrants	Contractual	Exercise	Warrants	Exercise
Exercise Prices	Outstanding	Life	Price	Exercisable	Price
$0.65 - $1.50	8,548,375	1.74 years	$0.95	8,548,375	$0.95

The fair value of each warrant grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants under the fixed option plan:

	December 31,
	2015		2014
Average risk-free interest rates		N/A		N/A
Average expected life (in years)		N/A		N/A
Volatility		N/A		N/A

The Black-Scholes option pricing model was developed for use in estimating the fair value of short-term traded options that have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including expected stock price volatility. Because the Company’s warrants have characteristics significantly different from those of traded warrants and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion the existing models do not necessarily provide a reliable single measure of the fair value of its warrants. During the years ended December 31, 2015 and 2014, there were no warrants granted with an exercise price below the fair value of the underlying stock at the grant date.

The following is a summary of activity of outstanding warrants:

				Weighted
				Average
	Number			Exercise
	of Shares			Prices
Balance, December 31, 2013		9,463,375		$	0.94
Warrants expired		–			–
Warrants cancelled		(330,000	)		(1.50	)
Warrants granted		–			–
Warrants exercised		–			–
Balance, December 31, 2014		9,133,375			0.92
Warrants expired		(585,000	)		(0.38	)
Warrants cancelled		–			–
Warrants granted		–			–
Warrants exercised		–			–
Balance, December 31, 2015		8,548,375			0.95
Exercisable, December 31, 2015		8,548,375		$	0.95