Warrants |
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Warrants |
NOTE 9 WARRANTS
The following is a summary of the Companys warrant activity:
Under ASC No. 718, the Company estimates the fair value of warrants granted on each grant date using the Black-Scholes option valuation model. The fair value of warrants issued with debt is recorded as a debt discount and amortized over the life of the debt. The range of fair value assumptions related to warrants outstanding as of June 30, 2015 and December 31, 2014, were as follows:
The expected volatility was calculated based on the historical volatilities of publicly traded peer companies, determined by the Company. The risk free interest rate used was based on the U.S. Treasury constant maturity rate in effect at the time of grant for the expected term of the warrants to be valued. The expected dividend yield was zero, as the Company does not anticipate paying a dividend within the relevant time frame. The expected warrant term is the life of the warrant.
The Company recognized $4,000 in stock based compensation expense related to warrants for the three and six-months ended June 30, 2015. The Company recognized $11,610 and $5,229,589, in stock based compensation expense related to warrants during the three and six-months ended June 30, 2014, respectively. |