Stock Purchase Warrants and Options
 3 Months Ended
Mar. 31, 2012
Equity  
Shareholders' Equity and Share-based Payments [Text Block]

NOTE 4 - STOCK PURCHASE WARRANTS AND OPTIONS

 

During March 2012, warrants to purchase 900,000 shares of common stock at $1.16 per share were issued to the management of the Company’s subsidiary, Xnergy, Inc. for their services as an amendment to the performance criteria in their employment agreements. The warrants vest based upon certain performance criteria which have not been met as of March 31, 2012. The warrants were valued using the Black-Scholes model with a dividend rate of 0%, volatility of 171.65%, a risk free rate of 3.64% and a term of 5 years. The Company has recognized $209,637 of expense in connection with the warrants during the three months ended March 31, 2012. A summary of the Company’s warrant activity during the periods ended March 31, 2012 and December 31, 2011 is presented below:

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

No. of

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

 

 

Options

 

 

Price

 

 

Term

 

 

Value

 

Balance Outstanding, December 31, 2010

 

 

298,500

 

 

$

1.00

 

 

 

9.8

 

 

 

 

 

Granted

 

 

97,791

 

 

 

1.68

 

 

 

5

 

 

 

 

 

Granted

 

 

450,000

 

 

 

1.72

 

 

 

10

 

 

 

 

 

Forfeited

 

 

(238,500)

 

 

 

0.94

 

 

 

9.8

 

 

 

 

 

Expired

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

Balance Outstanding, December 31, 2011

 

 

607,791

 

 

 

1.63

 

 

 

9.8

 

 

 

$1,018,089

 

Forfeited

 

 

(8,889

)

 

 

0.90

 

 

 

--

 

 

 

 

 

Exercised

 

 

(11,111

)

 

 

0.90

 

 

 

--

 

 

 

 

 

Balance Outstanding, March 31, 2012

 

 

587,791

 

 

$

1.68

 

 

 

9.5

 

 

$

1,000,089

 

Exercisable, March 31, 2012

 

 

587,791

 

 

$

1.68

 

 

 

9.5

 

 

$

1,000,089

 

 

A summary of the Company’s warrant activity during the periods ended March 31, 2012 and December 31, 2011 is presented below:

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

No. of

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

 

Warrants

 

Price

 

 

Term

 

 

Value

 

Balance Outstanding, December 31, 2010

11,870,116

 

$

2.31

 

 

 

2.78

 

 

$

27,457,223

 

Granted

2,660,000

 

 

2.53

 

 

 

5.00

 

 

 

 

 

Exercised

(18,000)

 

 

1.00

 

 

 

--

 

 

 

 

 

Granted

1,000,000

 

 

3.00

 

 

 

10.00

 

 

 

 

 

Forfeited

(50,000)

 

 

1.25

 

 

 

--

 

 

 

 

 

Balance Outstanding, December 31, 2011

15,531,116

 

 

2.53

 

 

 

2.78

 

 

$

33,801,473

 

Granted

900,000

 

 

1.24

 

 

 

5.00

 

 

 

 

 

Exercised

--

 

 

--

 

 

 

--

 

 

 

 

 

Forfeited

--

 

 

--

 

 

 

--

 

 

 

 

 

Balance Outstanding March 31, 2012

16,431,116

 

$

2.12

 

 

 

2.53

 

 

$

34,916,120

 

Exercisable, March 31, 2012

15,225,116

 

$

2.22

 

 

 

2.53

 

 

$

33,801,473