Stock Purchase Warrants

12 Months Ended

Dec. 31, 2013

Stock Purchase Warrants

Note 13. Stock Purchase Warrants

Common Stock Warrants

The following is a summary of all Common Stock warrant activity during the years ended December 31, 2013 and 2012:

	Number of Shares Under Warrants			Exercise Price Per Share	Weighted Average Exercise Price
Warrants issued and exercisable at December 31, 2011		5,632,971		$0.20 - $1.50	$	0.51
Warrants granted		1,400,000		$0.20	$	0.20
Warrants expired		(4,552,971	)	$0.20 - $1.50	$	0.34
Warrants exercised		-
Warrants issued and exercisable at December 31, 2012		2,480,000		$0.31 - $1.25	$	0.66
Warrants granted		-		-		-
Warrants expired		(924,000	)	$0.55 - $1.25	$	0.75
Warrants exercised		-
Warrants issued and exercisable at December 31, 2013		1,556,000		$0.31 - $1.25	$	0.61

The following represents additional information related to Common Stock warrants outstanding and exercisable at December 31, 2013:

Exercise Price		Number of Shares Under Warrants	Weighted Average Remaining Contract Life in Years	Weighted Average Exercise Price
$	0.31	210,000	0.04	$	0.31
$	0.40	25,000	0.88	$	0.40
$	0.50	350,000	0.52	$	0.50
$	0.55	676,750	0.24	$	0.55
$	1.00	194,250	0.16	$	1.00
$	1.25	100,000	0.75	$	1.25
$				$
		1,556,000	0.30	$	0.61

The Company used the Black-Scholes option price calculation to value the warrants granted in 2013 and 2012 using the following assumptions: an average risk-free rate of 2.6% and 3.08%; volatility of 331% and 260%; actual term and exercise price of warrants granted. See Note 3, Summary of Significant Accounting Policies, “Accounting for Share-Based Payments.”