8. STOCK WARRANTS

9 Months Ended

Sep. 30, 2015

Summary of Investments, Other than Investments in Related Parties [Abstract]

8. STOCK WARRANTS

NOTE 8 STOCK WARRANTS

During the three months ended March 31, 2015, in connection to the sale of 684,000 shares of common stock, the Company granted to the same investors three−year warrants to purchase an aggregate of 342,000 shares of the Company’s common stock at $1.00 per share. The warrants may be exercised any time after the issuance through and including the third (3rd) anniversary of its original issuance. The warrants have a fair market value of $125,708. The fair market value was calculated using the Black-Scholes options pricing model, assuming approximately 1% risk-free interest, 0% dividend yield, 150% volatility, and expected life of 3 years. See Note 4 for further discussion.

On February 27, 2015, the Company sold warrants for a nominal amount to purchase 100,000 shares of common stock at $0.50 per share to certain service providers.

On April 8, 2015, the Company issued warrants to purchase 50,000 shares of common stock at $0.60 per share to certain service providers.

From April 1 to June 30, 2015, 750,000 of warrants previously issued as part of our offering in March 2014 were exercised at an exercise price of $0.40 per share for proceeds of $300,000,the third quarter of 2015.

From April 1 to June 30, 2015, warrants to purchase 936,341 shares of common stock, which were previously issued as part of our offering in March 2014, were exercised at an exercise price of $0.001 per share for proceeds of $936.34.

From July 1 to September 30, 2015, warrants to purchase 150,000 shares of common stock, which previously issued as part of our offering in March 2014, were exercised at an exercise price of $0.001 per share for proceeds of $150.00.

From July 1 to September 30, 2015, warrants to purchase 402,500 shares of common stock, which were previously issued as part of our offering in March 2014, were exercised at an exercise price of $0.40 for proceeds of $161,150.

In July 2015, pursuant to an Exchange and Release Agreement made by and between the Company and a shareholder, the shareholder agreed to cancel and waive all rights to 1,000,000 shares of the Company’s common stock then held by the shareholder in exchange for the Company’s issuance of a warrant to the shareholder, permitting the purchase of 1,000,000 shares of the Company’s common stock at $0.001 per share for a period of three (3) years from the date of issuance.

On July 30, 2015, the Company issued warrants to purchase an aggregate of 175,000 shares of common stock at $0.90 per share to certain service providers.

Stock warrants outstanding and exercisable on September 30, 2015 are as follows:

	Exercise Price per Share		Shares Under Warrants		Remaining Life in Years
Outstanding
	$	0.001		3,963,659	2
	$	0.4		3,597,500	2
	$	0.5		100,000	5
	$	0.6		50,000	5
	$	0.9		175,000	5
	$	1		866,000	3
Exercisable
	$	0.001		3,963,659	2
	$	0.4		3,597,500	2
	$	0.5		100,000	5
	$	0.6		50,000	5
	$	0.9		175,000	5
	$	1		866,000	3

No other stock warrants have been issued or exercised during the three months ended September 30, 2015.