Annual report pursuant to Section 13 and 15(d)

Warrants (Tables)

Warrants (Tables)

12 Months Ended

Dec. 31, 2014

The following is a summary of the Company’s warrant activity:

	Warrants			Weighted average exercise price		Weighted average remaining contractual term in years		Aggregate intrinsic value
Outstanding January 1, 2013		3,693,971		$	0.450		4.81	$	-
Exercisable January 1, 2013		3,693,971		$	0.450		4.81	$	-
Granted		-
Exercised		-
Forfeited		(298,138	)
Outstanding December 31, 2013		3,395,833		$	0.450		5.28	$	-
Exercisable December 31, 2013		3,395,833		$	0.450		5.28	$	-
Canceled		(3,395,833	)
Granted		28,435,782
Exercised		-
Forfeited		-
Outstanding December 31, 2014		28,435,782		$	0.643		4.07	$	-
Exercisable December 31, 2014		28,435,782		$	0.643		4.07	$	-

Schedule of Fair Value Assumptions Related to Warrants Outstanding

The range of fair value assumptions related to warrants outstanding as of December 31, 2014 and 2013, were as follows:

	December 31, 2014			December 31, 2013
Dividend yield		0.0	%		0.0	%
Risk-free rate		0.12% - 0.66	%		0.62% - 4.59	%
Expected volatility		112% - 159	%		108% - 167	%
Expected term		1.0 - 2.5 years			2.5 - 10.0 years

- 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.

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