Quarterly report pursuant to sections 13 or 15(d)

5. Stock Options and warrants (Tables)

5. Stock Options and warrants (Tables)

9 Months Ended

Sep. 30, 2013

Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]

The following table summarizes certain information about the Company’s stock purchase options from January 1, 2013 to September 30, 2013:

Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2013		27,278,098		$	0.27
Granted		207,819		$	1.17
Exercised		(115,000	)	$	0.60
Forfeited or expired		–			–
Outstanding at September 30, 2013		27,370,917		$	0.27		7.3	$	27,285,752
Vested and exercisable at September 30, 2013		5,606,280		$	0.34		6.6	$	5,233,233

Weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest under the Plan

The weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest under previously granted options as of September 30, 2013 were as follows:

		Outstanding Options						Exercisable Options
Option Exercise Price Per Share		Shares		Life (Years)		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
	$ 0.21 - $ 0.99		27,081,679		7.3	$	0.26		5,481,679	$	0.32
	$ 1.00 - $ 1.99		289,238		6.6		1.22		124,601		1.27
			27,370,917		7.3	$	0.27		5,606,280	$	0.34

Stock purchase warrants

The following table summarizes certain information about the Company’s stock purchase warrants from January 1, 2013 to September 30, 2013:

Warrants	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2013		42,205,507		$	0.31
Granted		150,000			0.30
Exercised		(22,753,662	)		0.30
Forfeited or expired		(1,407,523	)		0.34
Outstanding at September 30, 2013		18,194,322		$	0.33		2.0	$	17,185,387
Vested and exercisable at September 30, 2013		17,310,988		$	0.33		1.7	$	16,328,553

		Outstanding Warrants						Exercisable Warrants
Warrant Exercise Price Per Share		Shares		Life (Years)		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
	$ 0.25 - $ 0.99		17,694,322		2.0	$	0.31		16,810,988	$	0.31
	$ 1.00 - $ 1.99		500,000		1.0		1.00		500,000		1.00
			18,194,322		2.0	$	0.33		17,310,988	$	0.33

- 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.

+ References + Details