Note 11: Warrants

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. During the three months ended March 31, 2014, the Company recognized an expense of $0, 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 4.83 years as of March 31, 2015. These warrants became exercisable on January 30, 2015.

On, January 28, 2015, the Company cancelled 30,000 warrants issued on August 1, 2013 in connection with a consulting agreement in exchange for the Company issuing 5,000 shares of restricted Company common stock.

The following table summarizes information about the Company's warrants at March 31, 2015:

	Number of Units			Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (in years)		Intrinsic Value

Outstanding at December 31, 2014	200,973		$	6.07

Granted	—			—
Cancelled	(30,000	)		5.00
Outstanding at March 31, 2015	170,973		$	6.26	3.6	$	-

Exercisable at March 31, 2015	170,973		$	6.26	3.6	$	-

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

	Three Months Ended March 31,
	2015	2014
Volatility	—	72%
Risk-free interest rate	—	0.54%
Expected term	—	2.5 years