Annual report pursuant to Section 13 and 15(d)

OPTIONS AND WARRANTS

v2.4.0.8
OPTIONS AND WARRANTS
12 Months Ended
Mar. 31, 2014
OPTIONS AND WARRANTS [Text Block]

NOTE 9 – OPTIONS AND WARRANTS

Stock Option Awards

On 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 $2,225,736 on the stock options granted that vested during the current period for the nine months ended March 31, 2014. The fair value of the unvested shares is $1,112,868 as of March 31, 2014 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 March 31, 2014.

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

                  Weighted-  
            Weighted-     Average  
            Average     Remaining  
      Number of     Exercise     Contractual  
      Shares     Price     Term (years)  
  Outstanding at March 31, 2013   -   $   -     -  
  Granted   6,000,000   $ 0.61     9.8  
  Exercised   -   $   -     -  
  Expired/Forfeited   -   $   -     -  
  Outstanding at March 31, 2014   6,000,000   $ 0.61     9.8  
  Exercisable at March 31, 2014   2,000,000   $ 0.61     9.8  

Warrants

The following is a summary of the status of all of our warrants as of March 31, 2014 and changes during the twelve months ended on that date:

          Weighted-  
    Number     Average  
    of Warrants     Exercise Price  
Outstanding at April 1, 2013   -   $ 0.00  
   Granted   8,310,415     0.52  
   Exercised   -     0.00  
   Cancelled   -     0.00  
Outstanding at March 31, 2014   8,310,415     0.52  
Warrants exercisable at March 31, 2014   7,147,624   $ 0.52  

The following table summarizes information about stock warrants outstanding and exercisable at March 31, 2014:

    STOCK WARRANTS OUTSTANDING AND EXERCISABLE
        Weighted-    
        Average    
    Number of   Remaining   Weighted-
    Warrants   Contractual   Average
Exercise Price   Outstanding   Life in Years   Exercise Price
$0.50   3,137,175   1.35   $0.50
$0.60   1,568,588   1.35   $0.60
$0.55   2,441,861   3.46   $0.55
$0.43   1,162,791   .65   $0.43