LOAN ORIGINATION FEES

12 Months Ended

Dec. 31, 2014

Loan Origination Fees

LOAN ORIGINATION FEES

On December 1, 2014, the Company entered into an unsecured line of credit financing agreement with a member of its board of directors. The Company paid an origination fee consisting of (i) 600,000 shares of its common stock valued at $30,000 and (ii) options to purchase 600,000 shares of its common stock at an exercise price of $.05 valued at $23,400 using the Black-Scholes option-pricing model all of which were immediately vested. At December 31, 2014, the Company has deferred origination fees of $53,400 less accumulated amortization expenses of $1,443 incurred in 2014. The Company will amortize the remaining balance at the rate of $17,319 annually in 2015, 2016 and 2017.