NOTE I – STOCKHOLDERS’ EQUITY

[1] Stock option plans: The Company currently has three non-statutory stock option plans, the Fiscal 2000 Non-statutory Stock Option Plan (the “2000 Plan”), the Fiscal 2001 Non-statutory Stock Option Plan (the “2001 Plan”) and the 2013 Equity Compensation Plan (the “2013 Plan”). All three plans have been adopted by our Board of Directors and approved by our shareholders. The 2000 Plan for the granting of options to purchase up to 1,000,000 common shares, and the 2001 Plan and the 2013 Plan each provide for the granting of options to purchase up to 4,000,000 common shares. Both the 2000 Plan and the 2001 Plan have options issued. Only the 2001 Plan and the 2013 Plan have options available for future issuance. As of December 31, 2013, there were 9,000 options issued and outstanding under the 2000 Plan and 3,307,000 options issued and outstanding under the 2001 Plan, for a total of 3,316,000 options issued and outstanding as of December 31, 2013 (there are no options issued under the 2013 Plan). Of the total options issued and outstanding, 2,747,000 are fully vested as of December 31, 2013. As of December 31, 2013, there were 409,000 options available for issuance under the 2001 Plan and 4,000,000 options available for issuance under the 2013 Plan. Any common shares issued as a result of the exercise of stock options would be new common shares issued from our authorized issued shares.

[2] Stock options: During Fiscal 2013 and Fiscal 2012, the Company issued options to purchase 902,000 and 750,000 shares respectively, of common stock under the 2001 Plan:

June 2013 Stock Options

On June 20, 2013, the Company issued options to purchase 25,000 shares of the Company’s common stock under our Fiscal 2001 Stock Option Plan (“2001 Option Plan”) to a member of our Science Advisory Board (“SAB”). The SAB was recently put back into place after being inactive for a number of years. New members were added to the SAB in 2013 in our efforts to diversify our business and explore new technologies. The stock option has an exercise price of $0.14, the closing price of the Company’s common shares on June 20, 2013, and it vests over 24 months as follows: 12,500 common shares on June 20, 2014, and 12,500 common shares on June 20, 2015. The fair value of these options is $4,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 2.41; expected life of 10 years; and stock price volatility of 74%. The Company will amortize this share based payment expense over the vesting period (24 months). The Company recognized $1,000 in share based payment expense in Fiscal 2013, and $0 in expense in Fiscal 2012 (as these options were not issued until June 2013). As of December 31, 2013, there was $3,000 in unrecognized share based payment expense with 17 months remaining.

On June 25, 2013, the Company issued options to purchase 200,000 shares of the Company’s common stock under our 2001 Option Plan to our (then) executive vice president and chief compliance officer, Melissa Waterhouse (“Waterhouse”); Waterhouse was subsequently appointed as interim CEO/CFO in October 2013. The Waterhouse stock option has an exercise price of $0.14, the closing price of the Company’s common shares on June 25, 2013 and it vests over 36 months as follows: 66,000 common shares on June 25, 2014; 66,000 common shares on June 25, 2015 and 68,000 common shares on June 20, 2016. The fair value of these options is $28,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 2.60; expected life of 10 years; and stock price volatility of 74%. The Company will amortize this share based payment expense over the vesting period (36 months). The Company amortized $5,000 of this share based payment expense in Fiscal 2013 and $0 in share based payment expense in Fiscal 2012 (as these options were not issued until June 2013). As of December 31, 2013, there was $23,000 in unrecognized share based payment expense with 29 months remaining.

April 2013 Stock Options

On April 15, 2013, the Company issued options to purchase 25,000 shares of the Company’s common stock under its 2001 Option Plan to another member of our SAB. The stock option has an exercise price of $0.16, the closing price of the Company’s common shares on April 15, 2013, and it vests over 24 months as follows: 12,500 common shares on April 15, 2014 and 12,500 common shares on April 15, 2015. The fair value of these options is $4,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 1.72; expected life of 10 years; and stock price volatility of 76%. The Company will amortize this share based payment expense over the vesting period (24 months). The Company recognized $2,000 in share based payment expense in Fiscal 2013, and $0 in share based payment expense in Fiscal 2012 (as these options were not issued until April 2013). As of December 31, 2013, there was $2,000 in unrecognized share based payment expense with 15 months remaining.

On April 26, 2013, the Company issued options to purchase 50,000 shares of the Company’s common stock under its 2001 Option Plan to a consultant. The stock option has an exercise price of $0.18, the closing price of the Company’s common shares on April 26, 2013, and it vests over 24 months as follows: 25,000 common shares on April 26, 2014 and 25,000 common shares on April 26, 2015. The fair value of these options is $9,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 1.70; expected life of 10 years; and stock price volatility of 76%. The Company will amortize this share based payment expense over the vesting period (24 months). The Company recognized $3,000 of this share based payment expense in Fiscal 2013 and $0 in share based payment expense in Fiscal 2012 (as these options were not issued until April 2013). As of December 31, 2013, there was $6,000 in unrecognized share based payment expense with 15 months remaining.

February 2013 Employee/Consultant Stock Options

On February 21, 2013, the Company issued options to purchase 102,000 shares of common stock under its 2001 Option Plan to 1 executive officer (Waterhouse), 13 non-executive employees of the Company, and 1 consultant at an exercise price of $0.26, the closing price of the Company’s common shares on February 21, 2013 (the “February 2013 Stock Options”). The February 2013 Stock Options vest 100% on the 12 month anniversary of the date of the grant, or on February 21, 2014. The fair value of the February 2013 Stock Options is $27,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 1.99; expected life of 10 years; and stock price volatility of 82%. The Company will amortize this share based payment expense over the vesting period of 12 months. The Company recognized $24,000 of this share based payment expense in Fiscal 2013, and $0 in share based payment expense in Fiscal 2012 (as these stock options were not issued until February 2013). As of December 31, 2013, there was $3,000 in unrecognized share based payment expense with 1 month remaining.

Imperium Financing Stock Options

On January 16, 2013, as compensation for his execution of a Personal Guarantee required under the Imperium LSA, the Company’s (then) Chief Executive Officer, Stan Cipkowski (“Cipkowski”) was awarded an option grant representing 500,000 common shares of the Company under our 2001 Option Plan, at an exercise price of $0.15, the closing price of our common shares on January 16, 2013 (the “Cipkowski Imperium Stock Option”). The Cipkowski Imperium Stock Option vests over 36 months in equal installments as follows: 165,000 common shares on January 16, 2014, 165,000 common shares on January 16, 2015 and 170,000 common shares on January 16, 2016. The fair value of the Cipkowski Imperium Stock Option is $73,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 1.84; expected life of 10 years; and stock price volatility of 82%. This share based payment expense was originally being amortized over the vesting period of 36 months. Given this, through the nine months ended September 30, 2013, the Company recognized $18,000 in share based payment expense, and $0 in share based payment expense in Fiscal 2012 (as the Cipkowski Imperium Stock Option was not granted until January 2013). On November 1, 2013, we were notified of Mr. Cipkowski’s death. Under the terms of this Cipkowski stock option grant, any unvested portion of the stock option became immediately exercisable upon Mr. Cipkowski’s death. As a result, we are no longer amortizing the Cipkowski Imperium Stock Option; rather we recognized the remaining $54,000 in expense in the three months ended December 31, 2013, for a total of $73,000 in share based payment expense in Fiscal 2013 and $0 in share based payment expense in Fiscal 2012 (since the Cipkowski Imperium Stock Option was not granted until January 2013). As of December 31, 2013, there was $0 in unrecognized share based payment expense related to the Cipkowski Imperium Stock Option with 0 months remaining.

September 2012 Employee Stock Options

On September 20, 2012, the Company issued 2 stock option grants to purchase 50,000 shares each (for a total of 100,000) of the Company’s common stock to 2 non-executive employees at an exercise price of $0.18 (the closing price of the Company’s common shares on the date of the grant) (“September 2012 Stock Options”). The September 2012 Stock Options vest over 36 months in installments as follows: 33,000 common shares on September 20, 2013, 33,000 common shares on September 20, 2014 and 34,000 common shares on September 20, 2015. The fair value of the September 2012 Stock Options is $18,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 1.80; expected life of 10 years; and stock price volatility of 85%. The Company will amortize this share based payment expense over the vesting period of 36 months. The Company recognized $6,000 of this share based payment expense in Fiscal 2013, and $2,000 in share based payment expense in Fiscal 2012. As of December 31, 2013, there was $10,000 in unrecognized share based payment expense with 20 months remaining.

Medallion Line of Credit Stock Options

As a condition to the Medallion Line of Credit, Cipkowski and the Company’s (then) controller J. Duncan Urquhart (“Urquhart”) were each required to execute Validity Guarantees (the “Validity Guarantees”). Under the Validity Guarantees, Cipkowski and Urquhart provided representations and warranties with respect to the validity of the Company’s receivables as well as guaranteeing the accuracy of the Company’s reporting to Medallion related to the Company’s receivables. As compensation for their execution of the Validity Guarantees, on April 20, 2012, Cipkowski and Urquhart were each awarded an option grant representing 250,000 common shares of the Company under our 2001 Option Plan, at an exercise price of $0.18, the closing price of our common shares on the date of the grant. The option grants originally vested over 36 months as follows: 82,500 common shares on April 20, 2013, 82,500 common shares on April 20, 2014 and 85,000 common shares on April 20, 2015. The fair value of the Cipkowski and Urquhart stock option grants was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 1.99; expected life of 10 years; and stock price volatility of 88%. The value of each of these 2 stock option grants was $45,000 (for a total of $90,000).

This share based payment expense was to be recognized over the vesting period of 36 months. However, on August 6, 2013, Urquhart was terminated from employment and 167,500 stock options (the unvested portion of his stock option grant) was cancelled and returned to the Fiscal 2001 Stock Option Plan. The share based payment expense of $13,000 recorded through August 2013 for these unvested options was reversed and no further expense incurred. 82,500 stock options (the vested portion) remained exercisable until November 6, 2013 under the terms of Urquhart’s stock option agreement, however the options were never exercised and on November 7, 2013, the 82,500 remaining Urquhart options were cancelled. The Company amortized $10,000 in share based payment expense in Fiscal 2013, however this was offset by the reversal of $13,000 indicated above, and $11,000 in share based payment expense in Fiscal 2012. As of December 31, 2013, there was $0 in unrecognized share based payment expense with 0 months remaining related to the Urquhart grant.

Also, on November 1, 2013, the Company was notified of Mr. Cipkowski’s death. Under the terms of this Cipkowski stock option grant, any unvested portion of the stock option became immediately exercisable upon Mr. Cipkowski’s death. As a result, the Company is no longer amortizing the Cipkowski Medallion Stock Option; rather the Company recognized the remaining $23,000 in expense in the three months ended December 31, 2013, for a total of $34,000 in share based payment expense in Fiscal 2013 and $11,000 in share based payment expense in Fiscal 2012. As of December 31, 2013, there was $0 in unrecognized share based payment expense related to the Cipkowski Medallion Stock Option with 0 months remaining.

As another condition to the financing, Edmund Jaskiewicz, the Company’s President and Chairman of the Board (“Jaskiewicz”) was required to execute another Subordination Agreement (“Subordination Agreement”) related to the Jaskiewicz Debt (the $124,000 currently owed to Jaskiewicz by the Company). Under the Subordination Agreement, the Jaskiewicz Debt was not payable, was junior in right to the Medallion Line of Credit and no payment could be accepted or retained by Jaskiewicz for the Jaskiewicz Debt unless and until the Company paid and satisfied in full any obligations to Medallion. As compensation for his execution of the Subordination Agreement, on April 20, 2012, Jaskiewicz was awarded an option grant representing 150,000 common shares of the Company under the Company’s Fiscal 2001 stock option plan, at an exercise price of $0.18, the closing price of the Company’s common shares on the date of the grant. The option grant vests over 36 months as follows: 49,500 common shares on April 20, 2013, 49,500 common shares on April 20, 2014 and 51,000 common shares on April 20, 2015. The fair value of the Jaskiewicz stock option grant was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 1.99; expected life of 10 years; and stock price volatility of 88%. The value of the stock option grant totaled $27,000 and the Company will recognize this share-based payment expense over the vesting period of 36 months. The Company recognized $9,000 in share based payment expense in Fiscal 2013 and $7,000 in share based payment expense in Fiscal 2012. As of December 31 2013, there was $11,000 in unrecognized share based payment expense with 15 months remaining.

In addition to the Stock Options issued in Fiscal 2013 and Fiscal 2012, the following stock options/warrants were issued prior to Fiscal 2012 but have a portion of their expense recognized in Fiscal 2012:

Rosenthal Line of Credit Validity Guarantee Stock Options

As a condition to the Rosenthal Line of Credit closing, Cipkowski was required to execute a Validity Guarantee (the “Validity Guarantee”). Under the Validity Guarantee, Cipkowski provided representations and warranties with respect to the validity of the Company’s receivables and guarantees the accuracy of the Company’s reporting to Rosenthal related to the Company’s receivables and inventory. The Validity Guarantee placed Cipkowski’s personal assets at risk in the event of a breach of such representations, warranties and guarantees. As part of the compensation for his execution of the Validity Guarantee, on July 1, 2009, Cipkowski was awarded an option grant representing 500,000 common shares of the Company under the Company’s 2001 Plan, at an exercise price of $0.20, the closing price of the Company’s common shares on the date of the grant. The option grant vested over three years in equal installments.

The calculated fair value of the Cipkowski options was $0.156 per share. The fair value of the Cipkowski option grant was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 4.34%, expected life of 10 years; and stock price volatility of 69%. The value of the Cipkowski grant totaled $78,000, which the Company recognized in share-based payment expense amortized over the required service period of 3 years. The Company recognized $0 in share based payment expense for this grant in Fiscal 2013 and $13,000 in share-based payment expense for this grant in Fiscal 2012. As of December 31, 2013, there was $0 in unrecognized expense and 0 months remaining.

Stock option activity for Fiscal 2013 and Fiscal 2012 is summarized as follows: (the figures contained within the tables below have been rounded to the nearest thousand)

	Year Ended December 31, 2013				Year Ended December 31, 2012
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Options outstanding at beginning of year		2,939,000	$	0.69		2,699,000	$	0.76
Granted		902,000	$	0.13		750,000	$	0.18
Exercised		0		NA		0		NA
Cancelled/expired		(525,000)	$	0.64		(510,000)	$	1.06
Options outstanding at end of year		3,316,000	$	0.44		2,939,000	$	0.56
Options exercisable at end of year		2,747,000	$	0.49		2,189,000	$	0.69

The following table presents information relating to stock options outstanding as of December 31, 2013:

	Options Outstanding						Options Exercisable
			Weighted		Weighted				Weighted
			Average		Average				Average
Range of Exercise			Exercise		Remaining				Exercise
Price	Shares		Price		Life in Years		Shares		Price

$0.07 - $0.20		2,220,000	$	0.16		7.73		1,753,000	$	0.16
$0.26 - $0.85		137,000	$	0.41		7.16		35,000	$	0.85
$0.86 - $1.09		874,000	$	1.05		0.67		874,000	$	1.05
$1.14 - $1.74		85,000	$	1.52		0.13		85,000	$	1.52
TOTAL		3,316,000	$	0.44		5.65		2,747,000	$	0.49

As of December 31, 2013 there were 8,000 options issued and outstanding under the 2000 Plan and 3,307,000 options issued and outstanding under the 2001 Plan, for a total of 3,316,000 options issued and outstanding as of December 31, 2013. Of the total options issued and outstanding, 2,747,000 are fully vested as of December 31, 2013. Intrinsic value of vested options as of December 31, 2013 was insignificant. As of December 31, 2013, there were 409,000 options available for issuance under the 2001 Plan and 4,000,000 options available for issuance under the 2013 Plan.

[3] Warrants: As of December 31, 2013 and December 31, 2012 there were 3,303,000 and 375,000 warrants outstanding, respectively. Any common shares issued as a result of the exercise of warrants would be new common shares issued from our authorized issued shares.

In connection with their services as placement agent in the Company’s Series A Debenture offering, on July 17, 2008, the Company issued Cantone Research, Inc. (“Cantone”) a four-year warrant to purchase 30,450 shares of the Company’s common stock at an exercise price of $0.37 per share, and on August 4, 2008 issued Cantone a four-year warrant to purchase 44,550 shares of the Company’s common stock at an exercise price of $0.40 per share. All warrants issued to Cantone were immediately exercisable upon issuance. The closing price of the Company’s common shares was $0.37 and $0.40 on July 17, 2008 and August 4, 2008, respectively. The July 17, 2008 warrants were valued using the Black Scholes pricing model and the following assumptions, dividend yield of zero, volatility of 46.0%, risk free interest rate of 4.7%, and expected life of 4 years. The August 4, 2008 warrants were valued using the Black Scholes pricing model and the following assumptions, dividend yield of zero, volatility of 46.1%, risk free interest rate of 4.6% and expected life of 4 years. The total value of the Cantone warrants was $12,000, which was recognized as financing costs and was amortized over the term of the Series A Debentures, with $0 in expense being recognized in Fiscal 2013 and $2,000 in expense being recognized in Fiscal 2012. As of December 31, 2013, there was $0 in unrecognized expense and 0 months remaining.

The Cantone warrants were amended on July 31, 2012 in connection with the extension and amendment of the Series A Debentures; more specifically they were amended to reflect an exercise price of $0.17 per shares and a new term of three years (see Note E – Long-term Debt). The Cantone warrants are exercisable through July 31, 2015 (see Part I, Item I, Note E). The fair value of the Cantone warrants was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 1.51; expected life of 3 years; and stock price volatility of 77%. The value of the Cantone warrant was $12,000 and the Company recognized $12,000 (or the full expense) in share based payment expense in Fiscal 2012.

On August 1, 2012, we entered into a Consulting Agreement (“Consulting Agreement”) with Cantone Asset Management, LLC (“CAM”). The Consulting Agreement commenced August 1, 2012 and ended on August 1, 2013. Under the terms of the Consulting Agreement, CAM provided the Company with financial advisory services and advice related to debt refinancing. On August 1, 2012, the Company issued CAM warrants to purchase 300,000 shares of the Company’s common stock at an exercise price of $0.16 per share (the closing price of the Company’s common shares on August 1, 2012) (the “CAM Warrant”). The CAM Warrant is exercisable through July 31, 2015 and has piggyback registration rights. The fair value of the CAM Warrants was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 1.56; expected life of 3 years; and stock price volatility of 77%. The value of the CAM Warrant was $48,000 and the Company recognized $48,000 (or the full expense) in share based payment expense in Fiscal 2012.

On January 16, 2013, in connection with the Imperium Line of Credit, the Company granted Imperium a 7-year warrant to purchase 2,000,000 common shares of the Company at an exercise price of $0.18, the closing price of our common shares on January 16, 2013 (the “Imperium Warrant”). The Imperium Warrant was 100% (or 2,000,000 common shares) exercisable on the date of issuance. The fair value of the Imperium Warrant is $290,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 1.84; expected life of 7 years; and stock price volatility of 82%. The Company is capitalizing this cost as deferred financing cost amortized over the term of the Imperium LSA (3 years). The Company amortized $97,000 of this debt discount cost in Fiscal 2013 and $0 in deferred financing cost in Fiscal 2012 (as the Imperium Warrant was not issued until January 2013). As of December 31, 2013, there was $193,000 in unrecognized cost related to the Imperium Warrant with 24 months remaining.

On January 16, 2013, as part of their finder’s fee compensation, the Company issued Monarch Capital Group, LLC (“Monarch”) a 5-year warrant representing 3% of the Imperium Warrant, or a 5-year warrant to purchase 60,000 common shares of the Company, also at a strike price of $0.18, the closing price of our common shares on January 16, 2013 (the “Monarch Warrant”). The Monarch Warrant was 100% (or 60,000 common shares) exercisable on the date of issuance. The fair value of the Monarch Warrant is $9,000 and was estimated using the Black-Scholes pricing model using the following weighted average assumptions: dividend yield of 0%; risk-free interest rate of 1.84; expected life of 5 years; and stock price volatility of 82%. The Company is capitalizing this cost as deferred financing cost amortized over the term of the Imperium LSA, or over 36 months. The Company amortized $3,000 of this deferred financing cost in Fiscal 2013 and $0 in deferred financing cost in Fiscal 2012 (as the Monarch Warrant was not issued until January 2013). As of December 31 2013, there was $6,000 in unrecognized deferred financing cost related to the Monarch Warrant with 24 months remaining.

On October 7, 2013, we entered into a new Placement Agent Agreement (“2013 Agent Agreement”) with CRI related to the further extension of the Series A Debentures, as amended, due August 1, 2013. Under the terms of the 2013 Agent Agreement, CRI acted as our exclusive placement agent in connection with an amendment of the Series A Debentures. Under the amendment, the term of Series A Debentures was extended to reflect a due date of either February 1, 2014 or August 1, 2014, at the election of the Series A Debenture Holder. The interest rate during the extension period remains 15% per annum, due quarterly in arrears. All other terms of the Series A Debentures remain the same.

As compensation for their placement agent services in an October 2013 extension of the Series A Debentures, on October 7, 2013 Cantone received a 3-year warrant to purchase 75,000 common shares at an exercise price of $0.14 (the average closing sale price of our common shares for the 5 days business days ending October 7, 2013). The fair value of the Cantone warrant was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 2.65; expected life of 10 years; and stock price volatility of 73%. The value of the Cantone warrant was $10,000 and the Company recognized 100% of this expense on the date of the grant, or $10,000 in Fiscal 2013.

On October 7, 2013, we entered into a new $200,000 Bridge Loan (the “2013 Bridge Loan”) with CAM to pay off the existing Bridge Loan with CAM and to pay placement agent fees and expenses. The maturity date of the 2013 Bridge Loan is August 1, 2014 and it bears simple interest in advance of 15% to be paid in the form of 300,000 shares of restricted shares of ABMC common stock. In addition to the interest, as inducement to enter into the 2013 Bridge Loan, we issued 153,486 restricted shares of ABMC common stock to CAM, and we issued CAM a 3-year warrant to purchase 250,000 common shares at an exercise price of $0.14 (the average closing sale price of our common shares for the 5 days business days ending October 7, 2013). The warrants are 100% exercisable on the date of the grant. The fair value of the CAM warrant was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 2.65; expected life of 10 years; and stock price volatility of 73%. The value of the warrant was $35,000 and the Company recognized 100% of this expense on the date of the grant, or $35,000 in Fiscal 2013.

On October 7, 2013, we entered into another Agreement to the Series A Debenture (the “2013 Series A Debenture Amendment”) with thirty of the thirty-two holders of Series A Debentures (the “Debenture Holders”) (representing $634,500 of Series A Debentures). One of the Debenture Holders (representing $10,500 in Series A Debentures) did not wish to extend and we used cash on hand and net proceed from another bridge loan with CAM to pay the principal amount due to this Holder. One of the Debenture Holders transferred their investment to another existing Debenture Holder. An extension period of either 6 or 12 months was at the election of the Debenture Holder. 27 of the 30 Debenture Holders (representing $543,500 of Series A Debentures) elected to extend for a period of 12 months. The other 3 (representing $91,000 in Series A Debentures) elected to extend for a period of 6 months. The 27 Holders that elected to extend for a 12-month period were each issued a warrant to purchase 1 share of common stock for each $1.00 that was extended. We issued 2-year warrants to purchase 543,500 shares of ABMC common stock at an exercise price of $0.14 (the average closing sale price of our common shares for the 5 days business days ending October 7, 2013) to these 27 Holders (the “2013 Holder Warrants”). The fair value of the Debenture Holder warrants was estimated utilizing the Black-Scholes option-pricing model. The following weighted average assumptions were used: dividend yield of 0%; risk-free interest rate of 2.65; expected life of 10 years; and stock price volatility of 73%. The value of the warrants was $76,000 and the Company is amortizing this cost over the term of the Series A Debenture extension, or 12 months. The Company recognized $32,000 in expense in Fiscal 2013. As of December 31, 2013, there was $44,000 in unrecognized debt issuance expense with 7 months remaining.