|9 Months Ended|
Sep. 30, 2015
|Notes to Financial Statements|
NOTE 10 STOCK WARRANTS
Pursuant to a binding Letter of Intent with Ross Sklar (Sklar), a related party, dated August 13, 2015, the Company granted warrants to purchase 35 million shares of common stock to Sklar on September 15, 2015. The warrants were granted in consideration for licensing rights to a series of products. The warrants have an exercise price of $0.23 and a term of ten years. The aggregate fair value of the warrants totaled $6,501,715 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.23, 2.28% risk free rate, 65.24% volatility and expected life of the options of 10 years. Mr. Sklar was also appointed to the Board of Directors designating him a related party.
A summary of the status of the Companys outstanding stock warrants and changes during the periods is presented below: