Warrants

9 Months Ended

Sep. 30, 2013

Warrants

Warrants

Note 8: Warrants

On October 29, 2012, in connection with a consulting agreement, the Company issued 454,863 warrants to purchase common stock at an exercise price of $0.98 per share with a term of 5 years. The warrants vest according to the following schedule: 75,813 shares vest immediately and 75,810 shares vest at the end of every thirty day period thereafter until the warrant is 100% vested. For the three and nine months ending September 30, 2013, the Company recognized an expense of $0 and $130,298, respectively, associated with these awards. The warrants expire on October 29, 2017 and have a remaining contractual life of 4.1 years as of September 30, 2013.

On August 1, 2013, in connection with a consulting agreement, the Company issued 150,000 warrants to purchase common stock at an exercise price of $1.00 per share with a term of 3 years. As of September 30, 2013, all warrants were exercisable. For the three and nine months ending September 30, 2013, the Company recognized an expense of $57,779 associated with these awards. The warrants expire on August 1, 2016 and have a remaining contractual life of 2.84 years as of September 30, 2013.

The following table summarizes information about the Company’s warrants at September 30, 2013:

					Weighted
					Average
			Weighted		Remaining
	Number		Average		Contractual		Intrinsic
	of Units		Exercise Price		Term (in years)		Value
Outstanding at December 31, 2012		454,863	$	0.98		4.8		49,277
Granted		150,000		1.00		2.8		22,500
Outstanding at September 30, 2013		604,863	$	0.98		4.3		99,827
Exercisable at September 30, 2013		604,863	$	0.98		4.3		99,827