Warrant Liabilities

12 Months Ended

Dec. 31, 2015

Warrant Liabilities [Text Block]

10. Warrant Liabilities

In connection with our August 30, 2012 private financing, we issued 977,063 warrants to investors and the broker. In accordance with FASB ASC 815-40-15-5, Determining Whether an Instrument (or Embedded Feature) is Indexed to an Entity’s Own Stock , the warrants have been accounted as derivative liabilities to be re- measured at the end of every reporting period with the change in value reported in the consolidated statement of operations. On August 30, 2012, such warrants were valued at $1,525,000 utilizing a valuation model and were initially recorded as a liability. The warrants are revalued at each reporting period based on the Monte Carlo valuation.

As of December 31, 2015 and 2014, the warrant liability was re-valued as disclosed in Note 7, and was adjusted to its estimated fair value of approximately $395,000 and $585,000 as determined by the Company, resulting in a gain of approximately $190,000 for the year ended December 31, 2015. During the year ended December 31, 2015, no warrant was exercised.