Warrants and Options for Non-Employees

6 Months Ended

Jun. 30, 2015

6.	Warrants and Options for Non-Employees

On December 2, 2010, the Company issued warrants to purchase 350,000 shares of common stock at $0.1905 per share in lieu of the remaining balance of an accrued commission of $125,000 to a consultant. The contract has an anti-dilutive clause, vests immediately and originally was scheduled to expire in 2012 and was later extended to expire in December 2017. Accordingly, the Company uses the guidance in ASC 815-40-15 to scope and measure the warrants for non-employees as a derivative liability.

A gain on change in derivative liability was recorded to reflect a decrease of $0 and $2,969 for the six months ended June 30, 2015 and 2014, respectively.

The fair value of stock warrants and options at the date of grant and derivative liability were estimated using the Black-Scholes option-pricing model, based on the following assumptions:

	Six Months Ended June 30,
	2015			2014
Risk-free interest rate		1.63	%		1.62	%
Expected life		2.5 years			3.5years
Expected Volatility		248.62	%		212.00	%
Dividend yield		0.00	%		0.00	%

POW! ENTERTAINMENT, INC. 10-Q