NOTE 5: OPTIONS

As of March 31, 2015 and December 31, 2014, the Company has granted options to purchase 13,302,900 and 11,434,350 shares of common stock, respectively.

	Number of Options	Wtd Avg. Exercise Price		Wtd Avg. Remaining Term	Exercisable	Intrinsic Value of Exercisable Options
Outstanding at December 31, 2014	11,434,350	$	0.47	3.79	5,635,250	$	460,941

Granted	2,368,550	0.44		4,81		—
Forfeited	500,000	0.40		3.83		—


Outstanding at March 31, 2015	13,302,900	$	0.47	3.75	7,061,300	$	446,189

The option grants during the three months ended March 31, 2015 were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 2.67 to 3.26 years, expected volatility of 100%, risk free interest rate of 0.76% to 1.83%, and expected dividend yield of 0%.

On January 5, 2015, the Company issued 37,500 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.43, and expire on January 5, 2020. The value on the grant date of the options was $10,357 and the option expense for the three months ended March 31, 2015 was determined to be $1,608.

On January 9, 2015, the Company issued 100,000 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.40, and expire on January 9, 2020. The value on the grant date of the options was $25,679 and the option expense for the three months ended March 31, 2015 was determined to be $3,799.

On February 2, 2015, the Company issued 17,500 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.59, and expire on February 2, 2020. The value on the grant date of the options was $6,183 and the option expense for the three months ended March 31, 2015 was determined to be $644.

On February 23, 2015, the Company issued 35,000 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.50, and expire on February 23, 2020. The value on the grant date of the options was $11,246 and the option expense for the three months ended March 31, 2015 was determined to be $739.

On March 5, 2015, the Company issued 150,000 options, which vest 33.33% immediately and 16.66% every 90 days thereafter, have an exercise price of $0.40, and expire on March 5, 2018. The value on the grant date of the options was $44,252 and the option expense for the three months ended March 31, 2015 was determined to be $16,852.

On March 12, 2015, the Company issued 1,981,550 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.44, and expire on March 12, 2020. The value on the grant date of the options was $609,722 and the option expense for the three months ended March 31, 2015 was determined to be $21,159.

On March 16, 2015, the Company issued 47,000 options, which vest 50% after one year and 2.01% every month thereafter, have an exercise price of $0.47, and expire on March 16, 2020. The value on the grant date of the options was $15,365 and the option expense for the three months ended March 31, 2015 was determined to be $421.

For the three months ended March 31, 2015, expense amortized for options issued prior to January 1, 2015 was $332,343.

For the three months ended March 31, 2015 and 2014, total stock compensation expense related to the options totaled $377,566 and $306,134, respectively. For the three months ended March 31, 2015 and 2014, stock compensation expense related to the options, warrants and performance stock units totaled $559,793 and $807,356, respectively. The total stock compensation expense related to the options, warrants and performance stock units to be amortized through March 2018 is $2,110,036 as of March 31, 2015.