WARRANTS (Tables)

12 Months Ended

Dec. 31, 2014

		No. of
		underlying		Price per		Fair value		Exercisable	Total
	Issue date	shares		share		per warrant		period	fair value

Tranch 1	May 11, 2012		120,000,000	$	0.1485	$	0.0372	One year from May 11, 2012	$	4,470,000
Tranch 2	May 11, 2012		40,000,000		0.1485		0.0681	Three years from commercial launch		2,723,000
Tranch 3	May 11, 2012		40,000,000		0.1485		0.0837	Three years from commercial launch		3,346,000
Tranch 4	August 2, 2012		40,000,000		0.1985		0.0537	One year from commercial launch		2,148,000
Tranch 5	August 28, 2012		40,000,000	$	0.1750	$	0.0550	One year from commercial launch		2,202,000
Total			280,000,000						$	14,889,000

Fair Value of Warrants, Assumptions Used

	Tranch 1			Tranch 2			Tranch 3			Tranch 4			Tranch 5

Risk-fee rate of return		0.952	%		1.674	%		1.916	%		1.185	%		1.186	%
Expected remaining contractual lives of the warrants		1 year			4 years			5 years			1.8 years			2.1 years
Volatility		63.2	%		58.5	%		66.6	%		56.6	%		54.5	%
Expected dividend yield		-			-			-			-			-

Schedule of Warrant Activities

	Number of
	underlying
	shares

Underlying shares outstanding at January 1, 2012		80,000,000
Issued		280,000,000

Underlying shares outstanding at December 31, 2012		360,000,000
Exercised		(200,000,000	)

Underlying shares outstanding at December 31, 2013		160,000,000
Exercised		(40,000,000	)
Forfeited		(40,000,000	)

Underlying shares outstanding at December 31, 2014		80,000,000

- Definition

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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