Warrants

9 Months Ended

Sep. 30, 2015

Warrants

Warrants

Note 11: Warrants

On January 30, 2014, in connection with an $11.5 million financing transaction, the Company issued 80,000 warrants to purchase common stock at an exercise price of $7.81 per share with a term of 5 years. The fair value of the warrants was determined using the Black-Scholes option valuation model. The warrants expire on January 30, 2020 and have a remaining contractual life of 4.3 years as of September 30, 2015. These warrants became exercisable on January 30, 2015.

On, January 28, 2015, the Company cancelled 30,000 warrants issued on August 1, 2013 in connection with a consulting agreement in exchange for the Company issuing 5,000 shares of restricted Company common stock.

The following table summarizes information about the Company’s warrants at September 30, 2015:

				Weighted		Weighted
	Number of			Average		Average Remaining		Intrinsic
	Units			Exercise Price		Contractual Term		Value
Outstanding at December 31, 2014		200,973		$	6.07
Granted		-			-
Cancelled		(30,000	)		5.00
Outstanding at September 30, 2015		170,973		$	6.26		3.1	$	-
Exercisable at September 30, 2015		170,973		$	6.26		3.1	$	-

The warrants were valued using the Black-Scholes pricing model with the following assumptions:

	Nine Months Ended September 30,
	2015		2014
Volatility		-		72	%
Risk-free interest rate		-		0.54	%
Expected term		-		2.5 years