Note 8. 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”). Additionally we issued 330,000 A warrants to purchase 330,000 shares of common stock and 330,000 B warrants to purchase 165,000 of common stock to the underwriters in connection with the public offering. Each A Warrant was 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 were exercisable on or before May 16, 2014 for one share of common stock at an exercise price of $2.50 per share. Also, in connection with the public offering we issued 154,000 representative warrants to purchase 154,000 shares of common stock at an exercise price of $3.125 to the underwriters. The representative warrants were exercisable beginning May 16, 2014 and expire on August 16, 2016.

In October, 2014 the Company mailed a notice of redemption to all holders of the Company's A Warrants. Each A Warrant was exercisable for one share of common stock at $2.75 per share until 5:00 p.m. Colorado Time on Friday, November 14, 2014. Holders of the A Warrants are no longer entitled to exercise their warrants for common stock and have no rights, except to receive the redemption price of $0.01 per A Warrant, upon surrender of their Series A Warrants. No other warrants remain outstanding.

As of June 30, 2015 we had received proceeds, net of expenses related to the exercise of the warrants, of $9,783,000, including $3,221,000 during the nine month period ending June 30, 2015.

A summary of warrant activity for the nine months ended June 30, 2015 is presented in the following table:

	Number of Shares			Weighted Average Exercise Price Per Share
Outstanding at October 1, 2014		1,262,500		$2.75
Expired		(79,900	)	$2.75
Exercised		(1,182,600	)	$2.75
Outstanding at June 30, 2015		0