Common Stock Options (Tables)

9 Months Ended

Sep. 30, 2014

Stock Option Activity

The following table summarizes stock option activity for the period ended September 30, 2014.

					Weighted
					Average
			Weighted		Remaining		Aggregate
	Options		Average		Contractual		Intrinsic
	Outstanding		Exercise Price		Life (Years)		Value
Balance January 1, 2014		80,000	$	0.70		9.03	$	40,000
Options granted		105,000		0.93		9.68	$	28,350
Balance September 30, 2014		185,000	$	0.83		9.40	$	68,350
Exercisable at September 30, 2014		65,000	$	0.70		9.26	$	22,500

Assumptions required for the Black-Scholes model

The fair value of each Warrant Share as of September 9, 2014, using the Black-Scholes option pricing model, was $0.91.

Assumptions required for the Black-Scholes model are as follows:

Weighted average risk-free interest rate	1.72		%
Expected life in years	4.75 Years
Weighted Avg Expected Volatility		93.8	%
Expected dividend yield		0	%

Stock Options

Assumptions required for the Black-Scholes model

The assumptions for volatility, expected life, dividend yield and risk-free interest rate are presented in the table below:

Weighted average risk-free interest rate	1.58 – 1.62		%
Expected life in years		5.50
Weighted Avg. Expected Volatility		94.4%-105.3	%
Expected dividend yield		0	%