Telkonet, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

K. STOCK OPTIONS AND WARRANTS (Tables)

K. STOCK OPTIONS AND WARRANTS (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Options Outstanding								Options Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.01 - $0.15		175,000		2.82	$	0.14		175,000	$	0.14
$	0.16 - $0.99		1,620,225		7.98		0.18		1,284,791		0.18
$	1.00 - $5.60		135,000		1.53		3.29		135,000		3.29
			1,930,225		7.06	$	0.40		1,594,791	$	0.44

Option activity

	Number of Shares			Weighted Average Price Per Share
Outstanding at January 1, 2013		1,280,642		$	0.62
Granted		504,583			0.18
Exercised		–			–
Cancelled or expired		(50,000	)		2.69
Outstanding at December 31, 2013		1,735,225		$	0.43
Granted		200,000			0.19
Exercised		–			–
Cancelled or expired		(5,000	)		3.50
Outstanding at December 31, 2014		1,930,225		$	0.40

Valuation assumptions

	2014		2013
Expected life of option (years)		10		10
Risk-free interest rate		2.77%		1.72%
Assumed volatility		110%		124%
Expected dividend rate		0		0
Expected forfeiture rate		0%		6%

Warrants outstanding and exercisable

		Warrants Outstanding						Warrants Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.13		7,230,778		1.11	$	0.13		7,230,778	$	0.13
	0.18		50,000		2.91		0.18		50,000		0.18
	0.20		250,000		6.77		0.20		250,000		0.20
	3.00		384,755		0.83		3.00		384,755		3.00
			7,915,533		1.29	$	0.27		7,915,533	$	0.27

Warrant activity

	Number of Shares			Weighted Average Exercise Price
Outstanding at January 1, 2013		10,830,416		$	0.45
Issued		–			–
Exercised		(86,472	)		0.13
Canceled or expired		(1,384,030	)		1.36
Outstanding at December 31, 2013		9,359,914		$	0.32
Issued		300,000			0.20
Exercised		–			–
Canceled or expired		(1,744,381	)		0.51
Outstanding at December 31, 2014		7,915,533		$	0.27

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details