Annual report pursuant to Section 13 and 15(d)

EQUITY TRANSACTIONS

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EQUITY TRANSACTIONS
 12 Months Ended
Dec. 31, 2015
Equity [Abstract]  
EQUITY TRANSACTIONS

NOTE 13 – EQUITY TRANSACTIONS

 

Common Stock – Authorized common stock of the Company consists of 70,000,000 shares of $.001 par value, of which 51,726,316 shares were issued and outstanding at December 31, 2014.

 

Preferred Stock – Authorized preferred stock consists of 5,000,000 shares of preferred stock, $.001 par value, no shares of preferred stock are issued and outstanding.

 

2015 Common Stock Transactions

 

In 2015, we issued 13,100 shares of common stock upon the cashless exercise of 55,500 common stock options.

 

In 2015, we issued 120,900 shares of common stock upon the cashless exercise of 200,000 common stock warrants.

 

In January 2015, we issued 514,800 shares of common stock upon the conversion of a note payable and accrued interest totaling $257,400.

 

2014 Common Stock Transactions

 

In October 2013, we initiated a private placement (“October 2013 PP”) for the sale of a unit comprised of 70,000 shares of common stock and warrants to acquire 35,000 shares of common stock for $50,000. Each warrant is exercisable for a period of five years at an exercise price of $1.00 per share. A total of 16.5 units (1,155,000 shares) were sold in 2014 for gross proceeds of $825,000 and proceeds net of $49,000 in commission were $776,000. The shares sold in this private placement have piggy-back registration rights. 

 

For the year ended December 31, 2014, the Company issued 1,486,500 shares of common stock upon exercise of common stock warrants, receiving proceeds of $743,800.

 

In 2014, we issued 700,000 shares of common stock for consulting services valued at $734,000.

 

In 2014, we issued 472,800 shares of common stock upon the cashless exercise of 796,700 common stock option.

 

Warrants

 

In connection with the issuance of convertible debt in 2015 noted above, the Company issued warrants to acquire 250,000 shares of common stock as an inducement to enter into the transaction. The warrants exercisable for three years at $1.25 per share were valued at $18,300 using the Black Scholes valuation method.

 

In 2015, 200,000 warrants were issued in connection with a consulting agreement, warrants to acquire 100,000 shares of common stock vested immediately in 2015 and the additional warrants to acquire an additional 100,000 shares of common stock will vest in 2016 upon extension of the consulting agreement. The warrants are exercisable at $.77 per share and are exercisable for a period of five years.

In 2014, the Company issued warrants to acquire 475,000 shares of commons stock for services at exercise prices ranging from $1.00 to $1.25, which vest in 2014 and 2015. The warrants expire between October 2019 and June 2020. The warrants were valued at approximately $163,000. 

A summary of warrant activity for the years ended December 31, 2015 and December 31, 2014 is presented as follows:

 

    Number of Warrants   Exercise Price
Warrants Outstanding at January 1, 2014     10,506,430       $.40 to $1.00  
Issued     1,052,500       $1.00 to $1.25  
Exercised     (1,386,500 )   $.50  
Forfeited/expired/canceled     (558,000 )     $.50 to $1.00  
Warrants Outstanding at January 1, 2015     9,614,430       $.40 to $1.25  
Issued     450,000       $.77 to $1.25  
Exercised     (200,000 )   $.40  
Forfeited/expired/canceled     (25,000 )   $.50  
Warrants Outstanding at December 31, 2015     9,839,430       $.50 to $1.25