Note 10: Warrants

On October 29, 2012, in connection with a consulting agreement, the Company issued 90,973 warrants to purchase common stock at an exercise price of $4.90 per share with a term of 5 years. The warrants vest according to the following schedule: 15,163 shares vest immediately and 15,163 shares vest at the end of every thirty day period thereafter until the warrant is 100% vested. For the years ended December 31, 2014 and 2013, the Company recognized an expense of $0 and $130,298, respectively. The fair value of the warrants was determined using the Black-Scholes option valuation model. The warrants expire on October 29, 2017 and have a remaining contractual life of 2.83 years as of December 31, 2014. As of December 31, 2014, all warrants were exercisable.

On August 1, 2013, in connection with a consulting agreement, the Company issued 30,000 warrants to purchase common stock at an exercise price of $5.00 per share with a term of 3 years. For the years ended December 31, 2014 and 2013, the Company recognized an expense of $0 and $57,779, respectively, associated with these awards. The fair value of the warrants was determined using the Black-Scholes option valuation model. The warrants expire on August 1, 2016 and have a remaining contractual life of 1.59 years as of December 31, 2014. As of December 31, 2014, all warrants were exercisable.

On January 30, 2014, in connection with an $11.5 million financing transaction, the Company issued 80,000 warrants to purchase common stock at an exercise price of $7.81 per share with a term of 5 years. For the year ended December 31, 2014, a net expense of $184,415 was recorded against proceeds under additional paid in capital, associated with these awards. The fair value of the warrants was determined using the Black-Scholes option valuation model. The warrants expire on January 30, 2020 and have a remaining contractual life of 4.08 years as of December 31, 2014. These warrants are not exercisable prior to January 30, 2015.

The following table summarizes information about the Company's warrants at December 31, 2014:

	Number of Units		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term		Intrinsic Value

Outstanding at December 31, 2013	120,973	$	4.92

Granted	80,000		7.81

Outstanding at December 31, 2014	200,973	$	6.07	4.1	$	1,151

Exercisable at December 31, 2014	120,973	$	6.07	2.5	$	139,751

The warrants were valued using the Black-Scholes pricing model with the following assumptions:

	Year Ended December 31,
	2014	2013
Volatility	72%	66% - 67%
Risk-free interest rate	0.54%	0.31% - 0.37%
Expected term	2.5 years	2.5 years