7.	Warrants

The following table summarizes warrant activity for the years ended December 31, 2017 and 2016:

	Year Ended				Year Ended
	December 31, 2017				December 31, 2016
			Wtd. Avg.				Wtd. Avg.
			Exercise				Exercise
	Shares		Price		Shares		Price
Outstanding at beginning of year		7,603,141	$	4.46		7,195,997	$	4.60
Granted		––		––		550,000		1.75
Exercised		(914,292)		4.18		(142,856)		0.84
Forfeited/Expired		––		––		––		––
Outstanding and exercisable at end of year		6,688,849	$	4.50		7,603,141	$	4.46

On May 12, 2016, we issued 550,000 warrants with an exercise price of $1.75 and an expiration date of May 12, 2021 in connection with the credit facility agreement with WAVI Holdings, AG (“WAVI”). The Company recorded a debt discount related to the value of the warrants in the amount of $374,390. The debt discount amount recorded related to the warrants was determined based on the relative fair value of the note payable and the warrants. The outstanding warrants have expiration dates between March 2021 and May 2021.