Quarterly report pursuant to Section 13 or 15(d)

14. Warrants

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14. Warrants
9 Months Ended
Sep. 30, 2018
Warrants and Rights Note Disclosure [Abstract]  
Warrants

Note 14 – Warrants

 

Warrants Granted

The Company issued 435,000 warrants to purchase shares at $0.01 per share to participants of the Backstop Agreement on September 22, 2017. The Company accounted for the warrants as an expense of the Rights Offering which resulted in a charge directly to stockholders’ equity. The Company estimated the fair value of these warrants to be approximately $10,135 (or $.0233 per warrant) using the Black-Scholes option-pricing model. The fair value of the warrants was estimated as of the date of grant using the following assumptions: (1) expected volatility of 388%, (2) risk-free interest rate of 1.89% and (3) expected life of five years.

 

No warrants were granted during the nine months ended September 30, 2018.

 

Warrants Exercised

Warrants to purchase 45,000 shares were exercised in the nine months ended September 30, 2018 for proceeds of $450.