Telkonet, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

10. STOCK OPTIONS AND WARRANTS (Tables)

10. STOCK OPTIONS AND WARRANTS (Tables)

9 Months Ended

Sep. 30, 2012

Options Outstanding								Options Exercisable
Exercise Prices		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.01-0.20		790,642		8.52	$	0.18		786,781	$	.18
$	1.00-3.00		95,000		2.90		2.22		95,000		2.22
$	3.01-5.99		95,000		3.15		4.05		95,000		4.05
			980,642		7.46	$	0.75		976,781	$	0.75

Transactions involving stock options issued to employees are summarized as follows:

	Number of Shares			Weighted Average Price Per Share
Outstanding at January 1, 2011		2,548,800		$	1.57
Granted		-			-
Exercised		-			-
Cancelled or expired		(1,863,800	)		1.10
Outstanding at December 31, 2011		685,000		$	1.45
Granted		615,642			0.19
Exercised		-			-
Cancelled or expired		(320,000	)		1.16
Outstanding at September 30, 2012		980,642		$	0.75

Non Employee Stock Option

	Number of Shares			Weighted Average Price Per Share
Outstanding at January 1, 2011		425,000		$	1.00
Granted		-			-
Exercised		-			-
Canceled or expired		-			-
Outstanding at December 31, 2011		425,000		$	1.00
Granted		-			-
Exercised		-			-
Canceled or expired		(425,000	)		1.00
Outstanding at September 30, 2012		-		$	-

Warrants

		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		3.37	$	0.13		7,230,778	$	0.13
	0.33		1,628,800		2.13		0.33		1,628,800		0.33
	0.60		800,000		.59		0.60		800,000		0.60
	3.01		960,782		1.75		3.01		960,782		3.01
			10,620,360		2.82	$	.46		10,620,360	$	.46

Transactions involving warrants are summarized as follows:

	Number of Shares		Weighted Average Price Per Share
Outstanding at January 1, 2011		22,104,742	$	0.51
Issued		5,336,816		0.20
Canceled or expired		(12,729,694)		0.34
Outstanding at December 31, 2011		14,711,864		0.50
Issued		-		-
Exercised		(3,115,390)		0.13
Canceled or expired		(976,114)		1.04
Outstanding at September 30, 2012		10,620,360	$	.46

- 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.

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