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WARRANTS (Tables)

12 Months Ended

Dec. 31, 2013

Warrants Tables

Warrants assumptions utilized by the Company

The following assumptions were utilized by the Company:

		2013				2012
Risk-free interest rate			0.65% - 1.85	%			0.70% - 2.23	%
Expected dividend yield			—				—
Expected term (contractual term)		0.33 - 5 years				0.06 - 5 years
Forfeiture rate			—				—
Expected volatility			122% - 123	%			123% - 144	%

Outstanding Warrants

At December 31, 2013, the Company had the following outstanding warrants:

		Number of Shares Exercisable				Exercise Price			Date of Expiration
Outstanding warrants accounted for as derivative warrant liability:
Granted to debt holder			400,000			$	20.00		8/31/2017
Granted to debt holder			100,000				21.30		9/20/2017
Granted to debt holder			50,000				22.70		10/17/2017
Granted to debt holder			150,000				21.10		11/6/2017
Total outstanding warrants accounted for as derivative warrant liability			700,000
Weighted average exercise price						$	20.61
Weighted average time to expiration in years									3.72 years

Outstanding warrants accounted for as equity:
Granted to investors in private placement of preferred stock			39,000			$	7.50		2/28/2014
Granted to vendor			6,000				6.00		3/15/2014
Granted to investors in private placement			40,000				15.90		6/30/2014
Granted to investors in private placement			76,800				20.00		11/13/2014
Granted to placement agent in private placement			25,695				15.00		11/13/2014
Granted to investors in private placement			6,300				20.00		12/3/2014
Granted to investors in private placement			34,146				22.50		2/9/2015
Granted to placement agents in private placement			2,853				22.50		2/9/2015
Granted to investor in private placement			638				22.50		3/18/2015
Granted to investors in private placement			95,960				30.00		12/7/2014
Granted to investors in private placement of common and preferred stock			181,818				2.75		12/10/18
Total outstanding warrants accounted for as equity			509,211
Weighted average exercise price						$	14.21
Weighted average time to expiration in years									2.26 years

Totals for all warrants outstanding:
Total			1,209,211
Weighted average exercise price						$	17.92
Weighted average time to expiration in years									3.11 years

Warrant Activity

A summary of warrant activity in the year ended December 31, 2013 is as follows:

Warrants		Shares				Weighted- Average Exercise Price
Outstanding at January 1, 2013			1,254,004			$	20.08
Granted			190,993			$	3.22
Exercised			—			$	—
Forfeited or expired			(235,786	)		$	17.36
Outstanding at December 31, 2013			1,209,211			$	17.92

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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