STOCK PURCHASE WARRANTS (Tables)

9 Months Ended

Sep. 30, 2015

Warrants and Rights Note Disclosure [Abstract]

The following warrants were outstanding at September 30, 2015, and include provisions that could require cash settlement of the warrants or have anti-dilution price protection provisions requiring each to be recorded as liabilities of the Company at the estimated fair value at the date of issuance, with changes in estimated fair value recorded as other income or expense (non-cash) in the Company’s statement of operations in each subsequent period:



	December 2010 Warrants		August 2013 Warrants
Exercise price	$	2.55	$	4.80
Expiration date	December 15, 2015		August 16, 2018
Total shares issuable on exercise	15,405		724,950

Schedule of assumptions used in calculating estimated fair value of warrants

The assumptions used by the Company are summarized in the following tables:



December 2010 Warrants	September 30, 2015			December 31, 2014
Closing stock price	$	2.71		$	3.04
Expected dividend yield	—			—
Expected stock price volatility	32.8		%	99.7		%
Risk-free interest rate	—		%	0.2		%
Expected life (years)	0.21			0.96



August 2013 Warrants	September 30, 2015			December 31, 2014
Closing stock price	$	2.71		$	3.04
Expected dividend yield	—			—
Expected stock price volatility	87.9		%	83.2		%
Risk-free interest rate	0.9		%	1.2		%
Expected life (years)	2.88			3.63

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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