NOTE 6: OPTIONS

As of June 30, 2015 and December 31, 2014, the Company has granted options to purchase 13,363,400 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	3,018,550	0.38		6.05		—
Forfeited	1,089,500	0.48		4.22		—


Outstanding at June 30, 2015	13,363,400	$	0.45	3.51	7,369,780	$	—

The option grants during the six months ended June 30, 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 six months ended June 30, 2015 was determined to be $3,329.

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 six months ended June 30, 2015 was determined to be $8,067.

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 six months ended June 30, 2015 was determined to be $1,671.

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 six months ended June 30, 2015 was determined to be $2,609.

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 six months ended June 30, 2015 was determined to be $24,207.

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 six months ended June 30, 2015 was determined to be $122,501.

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 six months ended June 30, 2015 was determined to be $2,975.

On June 2, 2015, the Company issued 150,000 options, which vest 33.33% immediately and 16.66% every 90 days thereafter, have an exercise price of $0.16, and expire on June 2, 2018. The value on the grant date of the options was $14,359 and the option expense for the six months ended June 30, 2015 was determined to be $5,521.

On June 15, 2015, the Company issued 500,000 options, which vest 50% immediately and 25% after one year and 1.04% every month thereafter, have an exercise price of $0.15, and expire on June 15, 2020. The value on the grant date of the options was $45,245 and the option expense for the six months ended June 30, 2015 was determined to be $23,087.

For the six months ended June 30, 2015, expense amortized for options issued prior to January 1, 2015 was $580,732.

For the three and six months ended June 30, 2015 and 2014, total stock compensation expense related to the options totaled $397,134 and $290,158 and $774,700 and $624,353, respectively. For the three and six months ended June 30, 2015 and 2014, stock compensation expense related to the options, warrants and performance share units totaled $940,477 and $378,260 and $1,500,270 and $1,227,408, respectively. The total stock compensation expense related to the options, warrants and performance share units to be amortized through June 30, 2019 is $2,481,863 as of June 30, 2015.