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Note 11. Stock Warrants
9 Months Ended
Sep. 30, 2015
Notes  
Note 11. Stock Warrants

Note 11.          Stock Warrants

 

           

The Company records compensation expense for stock warrants based on the estimated fair value of the warrants on the date of grant using the Black-Scholes valuation model.  The Company uses historical data among other factors to estimate the expected price volatility, the expected warrant term and the expected forfeiture rate.  The risk-free rate is based on the U.S. Treasury yield curve in effect at the date of grant for the expected term of the warrant.

 

 

            In June 2015, the Company issued 50,000 warrants in connection with the private placement of stock to a Purchaser.  More details can be found in Note 9, Common Stock.