(9) WARRANTS

On April 8, 2013, the Company approved a private placement of its common stock that provided for the payment of introduction fees in the form of cash and warrants and later amended. As a result of investments totaling $7,000,000 in this private offering by persons introduced to the Company, the Company authorized the issuance of 70,000 warrants to purchase 70,000 shares of the Company's common stock. The warrants have an exercise price of $5.00 per share and have a contractual life of two years from the effective date of the funds invested in the offering by the parties introduced to the Company, which was May 31, 2013. The Company recorded $139,251 in stock issuance costs related to the warrants as of September 30, 2013.

The Company valued the 70,000 warrants using the Black-Scholes option pricing model under the following assumptions: $5.00 market price, $5.00 exercise price, 2 years expected life, 73% expected volatility, 0.30% risk free rate.


	Number of Options	Weighted Average Exercise Price		Grant Date Fair Value		Remaining Contractual Term	Intrinsic Value
Outstanding as of March 31, 2013	-	$	-	$	-	-	$	-
Granted	70,000		5.00		1.96	1.92		-
Cancelled/Expired	-		-		-	-		-
Outstanding as of September 30, 2013	70,000	$	5.00	$	1.96	1.67	$	-
Ending Vesting	70,000	$	5.00	$	1.96	1.67	$	-

The Company recognized the full $139,251 as stock issuance costs during the six months ended September 30, 2013.