Note 4.

Warrants

In connection with the public offering in August 2013 we issued 2,200,000 warrants to purchase 2,200,000 shares of our common stock ("A Warrants") and an additional 2,200,000 warrants to purchase 1,100,000 shares of our common stock ("B Warrants"). Each A Warrant is exercisable on or before August 16, 2018 for one share of common stock at an exercise price of $2.75 per share and two B Warrants are exercisable on or before May 16, 2014 for one share of common stock at an exercise price of $2.50 per share.

A summary of warrant activity for the three months ended December 31, 2013 is presented in the following table:


	Number of Shares	Weighted Average Exercise Price Per Share
Outstanding-beg of year	3,795,000	$2.67
Issued	-	-
Exercised	-	-
Outstanding and exercisable at Dec 31, 2013	3,795,000	$2.67