Annual report pursuant to Section 13 and 15(d)

8. Stock Options and Warrants (Tables)

8. Stock Options and Warrants (Tables)

12 Months Ended

Dec. 31, 2018

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

	Options			Weighted Avg. Exercise Price
Options outstanding, January 1, 2017		23,474,256		$	0.30
Options granted		12,561,852			0.12
Options exercised		(449,754	)		0.05
Options cancelled		(188,679	)		0.53
Options outstanding, December 31, 2017		35,397,675		$	0.23
Options granted		2,083,335			0.18
Options exercised		(179,710	)		0.07
Options cancelled		(2,000,000	)		0.28
Options outstanding, December 31, 2018		35,301,300			0.22

Options outstanding by Per Share Price

	Outstanding Options					Exercisable Options
Option Exercise Price Per Share		Shares	Life (Years)		Weighted Average Exercise Price	Shares		Weighted Average Exercise Price
$ 0.05 - $ 0.24		13,766,250	8.1	$	0.10	13,466,250	$	0.10
$ 0.25 - $ 0.49		20,913,552	3.3		0.27	18,913,552		0.27
$ 0.50 - $ 0.99		471,052	5.3		0.85	471,052		0.85
$ 1.00 - $ 2.00		150,446	4.6		1.18	150,446		1.18
		35,301,300	5.2	$	0.22	33,001,300	$	0.21

Assumptions used for option valuation

	Years Ended
	2018		2017
Expected life (years)		5.5		5 – 6
Risk free interest rate		1.70%		1.72 – 1.94%
Volatility		118%		114 – 124%
Expected dividend yield		0%		0%

Warrant activity

	Warrants			Weighted Avg. Exercise Price
Warrants outstanding, January 1, 2017		11,446,892			0.15
Warrants granted		16,160,770			0.05
Warrants exercised		(4,414,000	)		0.08
Warrants cancelled		(5,571,225	)		0.10
Warrants outstanding, December 31, 2017		17,622,437		$	0.09
Warrants granted		18,238,688			0.05
Warrants exercised		(12,517,773	)		0.05
Warrants cancelled		(2,287,997	)		0.05
Warrants outstanding, December 31, 2018		21,055,355			0.09

Warrants outstanding by Per Share Price

	Outstanding Warrants				Exercisable Warrants
Warrant Exercise Price Per Share	Shares	Life (Years)		Weighted Average Exercise Price	Shares		Weighted Average Exercise Price
$ 0.05 - $ 0.24	18,343,688	0.9	$	0.06	18,343,688	$	0.06
$ 0.25 - $ 0.49	2,641,667	2.2		0.30	2,641,667		0.30
$ 0.50 - $ 1.00	70,000	5.3		0.80	70,000		0.80
	21,055,355	1.1	$	0.09	21,055,355	$	0.09

- 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