EQUITY ISSUANCES - Note 7 | 0.75 326,053 2.39 $ 0.90 326,053 2.39 $ 0.90
7,488,345 7,348,345 Warrants During the three months ended March 31, 2016,
there were no warrants issued A summary of the activity of our warrants
for the three months ended March 31, 2016 is presented below:
Weighted Avg
Shares Exercise Price
Outstanding at December 31, 2015 11,428,610 $ 0.30
Granted - -
Exercised - -
Cancelled (850,000) 0.56
Outstanding at March 31, 2016 (Unaudited) 10,578,610 $ 0.28
Exercisable at March 31, 2016 (Unaudited) 10,511,944 $ 0.28 Total warrant expenses recorded during the
three months ended March 31, 2016 and 2015 were $2,352 and $5,490, respectively. The following summarizes the total warrants
outstanding and exercisable as of March 31, 2016:
Warrants Outstanding Warrants Exercisable
Warrants Weighted Avg Weighted Avg Warrants Weighted Avg Weighted Avg
Ranges Outstanding Remaining Life Exercise Price Exercisable Remaining Life Exercise Price
$0.02 - $0.30 8,182,798 1.42 $ 0.20 8,116,131 1.41 $ 0.20
$0.30 - $0.50 255,000 1.03 0.50 255,000 1.03 0.50
Greater $0.50 2,140,812 0.55 0.75 2,140,812 0.55 0.75
10,578,610 10,511,944 The inputs used for the Black-Scholes option
and warrant valuation model were as follows:
Expected life in years 2 - 5 Years
Stock price volatility 120.51% - 122.72%
Risk free interest rate 0.04 - 1.38%
Expected dividends None
Forfeiture rate 0% Shares Issued for Services or Reduction
to Liabilities During the three months ended March 31, 2016,
we issued 9,742,050 shares of common stock with a value of $146,131 to various third parties and charged the proceeds to the appropriate
accounts for the following reasons:
Three Months Ended March 31, 2016
Purpose Shares Value
Services provided - $ -
Reduction of payables 9,742,050 146,131
Totals 9,742,050 $ 146,131 The 9,742,050 issued shares were not contractually
restricted. However, as these shares have not been registered under the Securities Act of 1933, as amended (the "Act"),
they are restricted from sale until they are registered under the Act, or qualify for resale under the rules promulgated under
the Act. All such shares were calculated at the trading closing price on the date of issuance. Stock Bonus Agreements From time to time, we issue shares of our
common stock as a bonus for services rendered. Stock bonuses may be awarded upon satisfaction of specified performance goals pursuant
to the Performance Stock Bonus Agreement. On each grant date, we valued the stock bonus
based on the share price and the expenses were amortized using the straight line method. Total stock bonus expenses recorded during
the three months ended March 31, 2016 and 2015 were $0 and $0, respectively and are reflected in operating expenses in the accompanying
consolidated statements of operations. " id="sjs-B4" xml:space="preserve">NOTE 7 - EQUITY ISSUANCES Stock Option Activity Our 2001 Equity Incentive Plan (the "2001 Plan") expired on June 5, 2011 and no options were issued under the 2001 Plan since that date. As of March 31, 2016, 2,836,911 shares remain issued under the 2001 Plan. On September 1, 2011, our Board of Directors approved the adoption of a new plan to replace the 2001 Plan under the same general terms as the 2001 Plan. On June 20, 2012, our stockholders voted and approved the 2011 Equity Incentive Plan (the " 2011 Plan") at our 2012 Annual Stockholder Meeting. As of March 31, 2016, 4.67 million shares remain issued under the 2011 Plan, and 7.29 million shares of our common stock are reserved for future issuance under our 2011 Plan, which includes an automatic 1 million share annual increase pursuant to the terms of the 2011 Plan and a 5 million share increase authorized during our 2013 Annual Stockholder's Meeting. A summary of option activity for the three months ended March 31, 2016 is presented below. Options granted by MMR Inc. prior to the date of the Merger have been retroactively restated to reflect the conversion ratio of MMR Inc. to MMR shares. Weighted-Average Weighted- Remaining Average Contractual Aggregate Exercise Life Intrinsic Options Price (Years) Value Outstanding at December 31, 2015 7,488,345 $ 0.50 3.62 $ - Granted - - Exercised - - Cancelled - $ - Outstanding at March 31, 2016 (Unaudited) 7,488,345 $ 0.50 3.38 $ - Vested and expected to vest at March 31, 2016 (Unaudited) 7,488,345 $ 0.50 3.38 $ - Exercisable at March 31, 2016 (Unaudited) 7,348,345 $ 0.50 3.34 $ - The aggregate intrinsic value in the table above is before applicable income taxes and is calculated based on the difference between the exercise price of the options and the quoted price of the common stock as of the reporting date. There were no options issued during the three months ended March 31, 2016. Total stock option expenses recorded during the three months ended March 31, 2016 and 2015 were $5,586 and $5,525, respectively, and is reflected in operating expenses in the accompanying consolidated statements of operations. The following table summarizes information about stock options outstanding and exercisable at March 31, 2016. Options Outstanding Options Exercisable Weighted Weighted Weighted Weighted Average Average Average Average Exercise Number Remaining Exercise Number Remaining Exercise Price of Shares Life (Years) Price of Shares Life (Years) Price $ 0.25 - 0.45 2,560,000 5.56 $ 0.35 2,420,000 5.57 $ 0.30 $ 0.50 - 0.75 4,602,292 2.19 $ 0.55 4,602,292 2.19 $ 0.55 $ > 0.75 326,053 2.39 $ 0.90 326,053 2.39 $ 0.90 7,488,345 7,348,345 Warrants During the three months ended March 31, 2016, there were no warrants issued A summary of the activity of our warrants for the three months ended March 31, 2016 is presented below: Weighted Avg Shares Exercise Price Outstanding at December 31, 2015 11,428,610 $ 0.30 Granted - - Exercised - - Cancelled (850,000) 0.56 Outstanding at March 31, 2016 (Unaudited) 10,578,610 $ 0.28 Exercisable at March 31, 2016 (Unaudited) 10,511,944 $ 0.28 Total warrant expenses recorded during the three months ended March 31, 2016 and 2015 were $2,352 and $5,490, respectively. The following summarizes the total warrants outstanding and exercisable as of March 31, 2016: Warrants Outstanding Warrants Exercisable Warrants Weighted Avg Weighted Avg Warrants Weighted Avg Weighted Avg Ranges Outstanding Remaining Life Exercise Price Exercisable Remaining Life Exercise Price $0.02 - $0.30 8,182,798 1.42 $ 0.20 8,116,131 1.41 $ 0.20 $0.30 - $0.50 255,000 1.03 0.50 255,000 1.03 0.50 Greater $0.50 2,140,812 0.55 0.75 2,140,812 0.55 0.75 10,578,610 10,511,944 The inputs used for the Black-Scholes option and warrant valuation model were as follows: Expected life in years 2 - 5 Years Stock price volatility 120.51% - 122.72% Risk free interest rate 0.04 - 1.38% Expected dividends None Forfeiture rate 0% Shares Issued for Services or Reduction to Liabilities During the three months ended March 31, 2016, we issued 9,742,050 shares of common stock with a value of $146,131 to various third parties and charged the proceeds to the appropriate accounts for the following reasons: Three Months Ended March 31, 2016 Purpose Shares Value Services provided - $ - Reduction of payables 9,742,050 146,131 Totals 9,742,050 $ 146,131 The 9,742,050 issued shares were not contractually restricted. However, as these shares have not been registered under the Securities Act of 1933, as amended (the "Act"), they are restricted from sale until they are registered under the Act, or qualify for resale under the rules promulgated under the Act. All such shares were calculated at the trading closing price on the date of issuance. Stock Bonus Agreements From time to time, we issue shares of our common stock as a bonus for services rendered. Stock bonuses may be awarded upon satisfaction of specified performance goals pursuant to the Performance Stock Bonus Agreement. On each grant date, we valued the stock bonus based on the share price and the expenses were amortized using the straight line method. Total stock bonus expenses recorded during the three months ended March 31, 2016 and 2015 were $0 and $0, respectively and are reflected in operating expenses in the accompanying consolidated statements of operations. |