5. SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

5. SHAREHOLDERS' EQUITY

Common Shares

	Number of Shares Issued	Common Shares ($000’s)
As of December 31, 2014	47,707,216	$              100,652
April 29, 2015 registered direct offering	5,230,770	2,985
Exercise of stock options - fair value	2,852	1
Issued during the six-months ended June 30, 2015	5,233,622	2,986
As of June 30, 2015	52,940,838	$              103,638

On April 29, 2015, the Company closed its $3,400 offering of common shares and warrants in a registered direct offering in the United States resulting in net proceeds of $3,076 after expenses. The Company sold an aggregate of 5,230,770 common shares and 2,615,385 warrants at a price of $0.65 per unit.

Warrants

Each outstanding warrant is exercisable for one of the Company’s common shares and was issued to investors in connection with registered direct offerings of the Company that closed on September 27, 2013 and April 29, 2015. In addition, the Company issued warrants to a placement agent in connection with each offering, under the same terms as those issued to investors. The exercise price and exercise period are outlined below:

Financing	Investor Warrants	Placement Agent Warrants	Total Warrants	Exercise Price	Expiration Date
September 27, 2013 offering	1,338,688	133,869	1,472,557	$4.15	9/27/16
April 29, 2015 offering	2,615,385	261,539	2,876,924	$0.85	4/29/18
Total Warrants Outstanding as of June 30, 2015			4,349,481

The value of the warrants issued to the placement agent (non-employee) for its services in connection with the April 29, 2015 offering was offset against the proceeds of the financing. The Company used a Black-Scholes model with inputs including a market price of the Company’s stock of $0.72, an exercise price of $0.85, a 3.0-year term, volatility of 81.0%, a risk-free rate of 0.91% and no assumed dividends. The value of the warrants issued to the placement agent for its services in connection with the April 29, 2015 offering was estimated at $91.