Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2016

The following table summarizes stock option activity for the Company during the six months ended June 30, 2016:



	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding December 31, 2015	10,719,904		$	1.18	—	—
Granted	1,937,750		$	0.29	—	—
Exercised	—		$	—	—	—
Forfeited or expired	(57,968	)	$	1.45	—	—
Outstanding June 30, 2016	12,599,686		$	1.05	3.72	$	51,345
Vested at June 30, 2016	8,820,320		$	1.22	1.63	$	—

Reconciliation of Warrant Liability

The following reconciliation of the beginning and ending balances for all warrant liabilities measured at fair market value on a recurring basis using significant unobservable inputs (level 3) during the period ended June 30, 2016 and 2015:



	June 30, 2016			June 30, 2015
Balance – January 1	$	1,958,775		$	597,719
Issuance of warrants and effect of repricing	31,231			4,286,314
Exercise of warrants	—			—
(Gain) or loss included in earnings	(926,671		)	(1,989,162		)
Transfers in and out/or out of Level 3	—			—
Balance – June 30	$	1,063,335		$	2,894,871

- 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.

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