Warrants
In addition to our 2006 Long Term Incentive Plan, we have issued and outstanding compensatory warrants to two consultants entitling the holders to purchase a total of 275,000 shares of our common stock at an average exercise price of $0.94 per share. Warrants to purchase 25,000 shares of common stock vest upon 6 months after the Company engages in an IPO, have an exercise price of $3.00 per share, and expire 2 years after the Company engages in an IPO. Warrants to purchase 250,000 shares of common stock vest 100,000 shares on issuance (June 1, 2009), and 50,000 shares on each of the following three anniversaries of the date of issuance, have exercise prices ranging from $0.50 per share to $1.15 per share, and expire on June 1, 2019. The issuance of the compensatory warrants was not submitted to our shareholders for their approval.
Warrant activity during the years ended December 31, 2013 and 2012follows:
| (1)Weighted | ||||||||||||
| Average | ||||||||||||
| Weighted | Remaining | |||||||||||
| Weighted Average | Average | Contractual | ||||||||||
| Warrants Outstanding | Exercise Price | Grant-DateFair Value | Life (Years) | |||||||||
| Warrants outstanding at December 31, 2011 |
| 275,000 |
| $ | 0.94 |
|
| $ | 0.10 |
| 7.42 | |
| No warrant activity |
| -- |
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| -- |
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| -- |
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| Warrants outstanding at December 31, 2012 |
| 275,000 |
| $ | 0.94 |
|
| $ | 0.10 |
| 6.42 | |
| No warrant activity |
| -- |
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| -- |
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| -- |
|
| |
| Warrants outstanding at December 31, 2013 |
| 275,000 |
| $ | 0.94 |
|
| $ | 0.10 |
| 5.42 | |
(1) Exclusive of 25,000 warrants expiring 2 years after initial IPO.
Warrants outstanding at December 31, 2013 consist of:
| Date | Number | Number | Exercise | Expiration | ||||
| Issued | Outstanding | Exercisable | Price | Date | ||||
| April 1, 2000 | 25,000 | 25,000 | $3.00 | 2 years after IPO | ||||
| June 1, 2009 | 100,000 | 100,000 | $0.50 | June 1, 2019 | ||||
| June 1, 2009 |
| 50,000 |
| 50,000 |
| $0.65 |
| June 1, 2019 |
| June 1, 2009 | 50,000 | 50,000 | $0.85 | June 1, 2019 | ||||
| June 1, 2009 | 50,000 | 50,000 | $1.15 | June 1, 2019 | ||||
| Total | 275,000 | 275,000 |