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14. STOCK HOLDERS' EQUITY (Tables)

7 Months Ended

9 Months Ended

Dec. 31, 2013

Sep. 30, 2014

Stock Holders Equity Tables

Assumptions used to derive the value of the warrants

At the times the Series B Warrants were issued, the following assumptions were used to derive the value of the warrants using the Black-Scholes pricing model:


Stock price	13.75
Risk-free interest rate	1.81	%
Expected dividend yield	0.00	%
Expected term (in years)	4.8
Expected volatility	171	%

Warrants outstanding

The following table summarizes information about warrants outstanding December 31, 2013:


Exercise Price		Warrants Outstanding		Weighted Average Life of Outstanding Warrants In Months		Date of Expiration
$5.00		10,600		58		10/31/2018
$1.00		973,000		31		7/31/2016
$1.04		983,600		31.3

The following table summarizes information about warrants outstanding as of September 30, 2014:


		Exercise Price			Warrants Outstanding		Weighted Average Life of Outstanding Warrants in Months		Date of Expiration
Series A Warrants		$	10.00		973,000		22		7/31/2016
Series B Warrants			5.00		42,700		49		10/31/2018
Series C Warrants			4.00		1,400,000		28		1/21/2017
		$	6.43		2,415,700		26

Common stock issued and outstanding

At December 31, 2013, the Company had 15,137,200 shares of its common stock issued and outstanding.


		Common Stock		Warrants
June 5, 2013 (Inception)		-		-
Issued for cash proceeds of $985,400		13,373,000		973,000
Issued as part of exchange agreement		9,724,200
Terminated as part of exchange agreement		(8,000,000)
Issued as compensation under a consulting agreement		40,000		-
Warrants issued to placement agent		-		10,600
December 31, 2013		15,137,200		983,600

The following table summarizes the changes in shares of common stock and warrants issued and outstanding for the nine months ended September 30, 2014:


		Common Stock		Warrants
Balance at December 31, 2013		15,137,200		983,600
Re-acquired shares of common stock		(1,750,000)		-
Warrants issued to Full Circle for $500,000 consideration – Series C Warrants		-		1,400,000
Warrants issued to placement agent – Series B Warrants		-		32,100
Shares issued for services		200,000		-
Issued in settlement of $485,000 convertible notes payable and accrued interest of $3,669		97,773		-
Balance at September 30, 2014		13,684,933		2,415,700

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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