| COMMON STOCK WARRANTS |
NOTE 6 – COMMON STOCK WARRANTS
On October 24, 2012, the Company received notice of exercise for 200,000 warrants at an exercise price of $0.50. Accordingly, the Company issued 200,000 shares of common stock for proceeds of $100,000.
On
October 30, 2012, the Company agreed to extend the term of the 11,985,367 common stock warrants issued to investors
which were scheduled to expire on October 31, 2012, to April 30, 2013. The warrants were amended to remove the cashless
exercise provision and provided for the early termination of the extension period, at the sole discretion of the Company, in
the event that the Company’s common stock trades at or above $1.50 for 5 consecutive days. The warrants
are exercisable at $1.19.
During the three months ended December 31, 2012, the Company recognized $167,966 of expense related
to vested warrants that were granted in the prior year. Unamortized warrant expense as of December 31, 2012 amounted to
approximately $34,000.
Below is a table summarizing the warrants issued and outstanding as of December 31, 2012:
|
Date
|
|
Number
|
|
Exercise
|
|
Contractual
|
|
Expiration
|
|
Value if
|
|
Issued
|
|
Outstanding
|
|
Price
|
|
Life (Years)
|
|
Date
|
|
Exercised
|
|
Balance 10/1/08
|
|
13,509,857
|
|
1.18
|
|
5
|
|
Various
|
|
15,941,631
|
|
03/20/09
|
|
5,000,000
|
|
0.50
|
|
5
|
|
03/31/14
|
|
2,500,000
|
|
06/03/09
|
|
11,166,672
|
|
0.18
|
|
5
|
|
06/03/14
|
|
2,010,001
|
|
09/30/09
|
|
150,000
|
|
0.40
|
|
5
|
|
06/30/14
|
|
60,000
|
|
Expired
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Balance 9/30/09
|
|
29,826,529
|
|
0.69
|
|
-
|
|
-
|
|
20,511,632
|
|
10/09/09
|
|
88,000
|
|
0.50
|
|
5
|
|
10/29/14
|
|
44,000
|
|
11/09/09
|
|
18,000
|
|
0.50
|
|
5
|
|
11/09/14
|
|
9,000
|
|
12/04/09
|
|
130,000
|
|
0.60
|
|
2
|
|
12/04/11
|
|
78,000
|
|
12/15/09
|
|
(5,583,336)
|
|
0.18
|
|
-
|
|
-
|
|
(1,005,000)
|
|
01/15/10
|
|
5,583,336
|
|
0.55
|
|
5
|
|
01/15/15
|
|
3,070,835
|
|
01/15/10
|
|
(5,583,336)
|
|
0.18
|
|
-
|
|
-
|
|
(1,005,000)
|
|
04/09/10
|
|
10,000
|
|
0.55
|
|
5
|
|
4/9/2015
|
|
5,500
|
|
07/23/10
|
|
93,000
|
|
0.50
|
|
3
|
|
07/23/13
|
|
46,500
|
|
Expired
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Balance 9/30/10
|
|
24,582,193
|
|
0.89
|
|
-
|
|
-
|
|
21,755,467
|
|
12/30/10
|
|
2,520,000
|
|
0.55
|
|
5
|
|
12/30/15
|
|
1,386,000
|
|
05/12/11
|
|
55,000
|
|
0.50
|
|
5
|
|
05/12/16
|
|
27,500
|
|
06/13/11
|
|
300,000
|
|
0.50
|
|
2
|
|
06/13/13
|
|
150,000
|
|
07/15/11
|
|
100,000
|
|
0.54
|
|
5
|
|
07/15/16
|
|
54,000
|
|
07/15/11
|
|
120,000
|
|
0.54
|
|
5
|
|
07/15/16
|
|
64,800
|
|
08/23/11
|
|
50,000
|
|
0.67
|
|
3
|
|
08/23/14
|
|
33,500
|
|
Expired
|
|
(1,090,568)
|
|
1.19
|
|
-
|
|
-
|
|
(1,297,776)
|
|
Balance 9/30/11
|
|
26,636,625
|
|
0.83
|
|
-
|
|
-
|
|
22,173,491
|
|
12/16/11
|
|
916,678
|
|
0.65
|
|
5
|
|
12/16/16
|
|
595,841
|
|
12/21/11
|
|
3,125
|
|
0.65
|
|
5
|
|
12/21/17
|
|
2,031
|
|
03/03/12
|
|
350,000
|
|
0.65
|
|
5
|
|
03/03/17
|
|
227,500
|
|
04/10/12
|
|
(43,392)
|
|
0.60
|
|
-
|
|
-
|
|
(26,035)
|
|
04/12/12
|
|
15,000
|
|
0.90
|
|
3
|
|
4/12/2015
|
|
13,500
|
|
05/18/12
|
|
350,000
|
|
0.95
|
|
3
|
|
5/18/2015
|
|
332,500
|
|
06/28/12
|
|
(5,299,002)
|
|
0.55
|
|
-
|
|
-
|
|
(2,914,451)
|
|
06/28/12
|
|
3,179,410
|
|
1.20
|
|
5
|
|
06/28/17
|
|
3,815,292
|
|
07/11/12
|
|
50,000
|
|
0.95
|
|
3
|
|
07/11/15
|
|
47,500
|
|
07/17/12
|
|
(30,000)
|
|
0.50
|
|
-
|
|
-
|
|
(15,000)
|
|
09/07/12
|
|
75,000
|
|
1.00
|
|
5
|
|
09/07/17
|
|
75,000
|
|
Expired
|
|
(620,530)
|
|
0.79
|
|
-
|
|
-
|
|
(490,219)
|
|
Balance 9/30/12
|
|
25,582,914
|
|
0.93
|
|
-
|
|
-
|
|
23,836,950
|
|
10/24/2012
|
|
(200,000)
|
|
0.50
|
|
-
|
|
-
|
|
(100,000)
|
|
Expired
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Balance 12/31/12
|
|
25,382,914
|
|
0.94
|
|
-
|
|
-
|
|
23,736,950
|
The outstanding warrants as of December 31, 2012 have an intrinsic value of approximately $11.3 million.
|