Quarterly report pursuant to sections 13 or 15(d)

STOCK PURCHASE WARRANTS AND OPTIONS

v2.4.0.8
STOCK PURCHASE WARRANTS AND OPTIONS
 9 Months Ended
Sep. 30, 2013
STOCK PURCHASE WARRANTS AND OPTIONS [Abstract]  
STOCK PURCHASE WARRANTS AND OPTIONS

NOTE 15 - STOCK PURCHASE WARRANTS AND OPTIONS


Warrants


Following is a summary of warrants for class A common shares outstanding:


                           

 

 

September 30, 2013

 

December 31, 2012

 

 

 

Shares

 

Weighted Avg

Exercise Price

 

Shares

 

Weighted Avg

Exercise Price

 

Outstanding at beginning of period

 

 

19,860,000

 

$

0.031

 

 

14,700,000

 

$

0.033

 

Granted

 

 

-

 

 

-

 

 

13,410,000

 

$

0.020

 

Exercised

 

 

-

 

 

-

 

 

-

 

 

-

 

Forfeited

 

 

-

 

 

-

 

 

8,250,000

 

$

0.031

 

Expired

 

 

-

 

 

-

 

 

-

 

 

-

 

Outstanding at end of period

 

 

19,860,000

 

 

0.031

 

 

19,860,000

 

$

0.031

 

Exercisable at end of period

 

 

19,860,000

 

 

0.031

 

 

19,860,000

 

$

0.031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average grant date fair value

 

 

 

 

$

0.016

 

 

 

 

$

0.016

 

Weighted average remaining contractual term

 

 

 

 

 

3.02

 

 

 

 

 

3.77

 


Options


Following is a summary of options outstanding:


                           

 

 

September 30, 2013

 

December 31, 2012

 

 

 

Shares

 

Weighted Avg

Exercise Price

 

Shares

 

Weighted Avg

Exercise Price

 

Outstanding at beginning of period

 

 

350,000

 

$

0.035

 

 

-

 

 

-

 

Granted

 

 

650,000

 

$

0.020

 

 

350,000

 

$

0.035

 

Exercised

 

 

-

 

 

-

 

 

-

 

 

-

 

Forfeited

 

 

-

 

 

-

 

 

-

 

 

-

 

Expired

 

 

-

 

 

-

 

 

-

 

 

-

 

Outstanding at end of period

 

 

1,000,000

 

$

0.030

 

 

350,000

 

$

0.035

 

Exercisable at end of period

 

 

100,000

 

$

0.035

 

 

100,000

 

$

0.035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average grant date fair value

 

 

 

 

$

0.03

 

 

 

 

$

0.04

 

Weighted average remaining contractual term

 

 

 

 

 

4.11

 

 

 

 

 

4.59

 


On January 1, 2013 the Company granted options to purchase 650,000 shares of common stock to its independent directors. The options have an exercise price of $0.02 per share, a five-year term, vest on January 1, 2014¸ and are subject to continuing service as a director. The options were valued using the Black-Scholes model using a volatility of 508.21%, an expected term of 5 years and an interest rate of 0.76%. The options are valued at $14,500 and are being recognized as expense over the requisite service period.