Quarterly report pursuant to Section 13 or 15(d)

OPTIONS AND WARRANTS

v2.4.0.8
OPTIONS AND WARRANTS
9 Months Ended
Dec. 31, 2013
OPTIONS AND WARRANTS [Text Block]

NOTE 9 – OPTIONS AND WARRANTS

Stock Option Awards

Effective October 9, 2013, the Company granted a total of 6,000,000 stock options to Steven A. Nickolas and Richard A. Wright ( 3,000,000 stock options to each). The stock options are exercisable at the exercise price of $0.605 per share for a period of ten years from the date of grant. The stock options vest as follows: (i) 1,000,000 upon the date of grant; and (ii) 500,000 per quarter until fully vested.

The Company has recognized compensation expense of $1,669,302 on the stock options granted that vested during the current period for the nine months ended December 31, 2013. The fair value of the unvested shares is $3,338,604 as of December 31, 2013 with the total unrecognized compensation cost related to non-vested stock options which is expected to be recognized over a weighted-average period of approximately 1 year. The aggregate intrinsic value of these options was $0 at December 31, 2013. Stock based compensation totaled $1,669,302 for the nine months ended December 31, 2013.

Stock option activity summary covering options is presented in the table below:

                Weighted-  
                average  
          Weighted-     Remaining  
          average     Contractual  
    Number of     Exercise     Term  
    Shares     Price     (years)  
Outstanding at March 31, 2013   -   $   -     -  
Granted   6,000,000   $ 0.61     9.8  
Exercised   -   $   -     -  
Expired/Forfeited   -   $   -     -  
Outstanding at December 31, 2013   6,000,000   $ 0.61     9.8  
Exercisable at December 31, 2013   2,000,000   $ 0.61     9.8  

Warrants

The following is a summary of the status of all of our warrants as of December 31, 2013 and changes during the nine months ended on that date:

    Number     Weighted-Average  
    of     Exercise Price  
    Warrants        
Outstanding at April 1, 2013   -   $ 0.00  
   Granted   8,310,415   $ 0.52  
   Exercised   -   $ 0.00  
   Cancelled   -   $ 0.00  
Outstanding at Decemberl 31, 2013   8,310,415     0.52  
Warrants exercisable at Decemberl 31, 2013   7,147,624     0.52  

The following table summarizes information about stock warrants outstanding and exercisable at December 31, 2013:

    STOCK WARRANTS OUTSTANDING AND EXERCISABLE  
          Weighted-Average        
    Number of     Remaining     Weighted-  
    Warrants     Contractual     Average  
Exercise Price   Outstanding     Life in Years     Exercise Price  
$0.50   1,887,175     1.92     $0.50  
$0.60   943,588     1.92     $0.60  
$0.50   3,604,652     3.86     $0.50