WARRANT LIABILITY (Tables)

12 Months Ended

Dec. 31, 2015

The assumptions used in connection with the valuation of warrants issued utilizing the binomial lattice valuation model were as follows:

	2015			2014
Number of shares underlying the warrants		736,000			816,000
Exercise price	$	7.8125		$	7.8125
Volatility		66.5	%		28.3	%
Risk-free interest rate		1.35	%		1.43	%
Expected dividend yield		0			0
Expected warrant life (years)		3.19			4.19
Stock price	$	5.85		$	10.22

- 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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