Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' DEFICIT

v2.4.0.6
STOCKHOLDERS' DEFICIT
 3 Months Ended
Mar. 31, 2012
STOCKHOLDERS' DEFICIT  
STOCKHOLDERS' DEFICIT

NOTE 8 - STOCKHOLDERS’ DEFICIT

 

Board of Directors fees

 

As compensation for serving as a member of the board of directors, the Company granted warrants to purchase 200,000 shares of common stock to Philip M. Rice (CFO and a Director) in January, 2012, at an exercise price of $.12 per share.  The warrants have a term of three years and vest as follows: 50,000 were vested on the grant date and the remaining 150,000 vest in three equal quarterly installments commencing April 1, 2012.  The warrants vested during the quarter ended March 31, 2012 were valued at $10,721 using the Black Scholes pricing model with the following assumptions: volatility 125.11%; annual rate of dividends 0%; discount rate 0.33%.

 

A summary of the status of the Company’s warrants is presented below.

 

 

March 31, 2012

December 31, 2011

 

 Number of

 Weighted Average

 Number of

 Weighted Average

 

 Warrants

 Exercise Price

 Warrants

 Exercise Price

 

 

 

 

 

Outstanding, beginning of year

20,413,430

$                   0.19

15,856,999

$                 0.17

 

 

 

 

 

Issued

200,000

0.12

11,055,097

0.16

 

 

 

 

 

Exercised

-

 

(2,740,000)

0.09

 

 

 

 

 

Expired

-

 

(3,758,666)

0.11

 

 

 

 

 

 

 

 

 

 

Outstanding, end of period

20,613,430

$                   0.19

20,413,430

$                 0.19

 

Warrants outstanding and exercisable by price range as of March 31, 2012 were as follows:

 

 

 Outstanding Warrants

 Exercisable Warrants

 

 

Average

 

 

 

 

 

Weighted

 

 

 

 

 

Remaining

 

 

Weighted

 

 

Contractual

Exercise

 

Average

Range of

Number

Life in Years

Price

Number

Exercise Price

 

 

 

 

 

 

$      .10

  1,170,000

                   0.29

     $0.10

 1,170,000

                   $.10

0.12

 200,000

                   2.83

       0.12

  50,000

                    0.12

0.125

  6,880,097

                   2.27

     0.125

  6,880,097

                  0.125

0.15

  3,923,333

                   1.44

       0.15

  3,923,333

                    0.15

0.225

    600,000

                   2.02

     0.225

     600,000

                  0.225

0.25

 6,825,000

                   1.31

       0.25

  6,825,000

                    0.25

0.50

  1,015,000

                   0.69

       0.50

  1,015,000

                    0.50

 

 

 

 

 

 

   

20,613,430

                   1.59

 

20,463,430

 $                 0.19