Quarterly report pursuant to Section 13 or 15(d)

13. Warrants

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13. Warrants
 6 Months Ended
Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
13. Warrants

The Company has warrants outstanding to purchase up to 300,000 and 0 shares of our common stock at June 30, 2014 and December 31, 2013, respectively.

 

In connection with the sale of the Company’s newly designated Series A Convertible Preferred Stock in May 2014, Chardan Capital Markets LLC acted as sole placement agent in consideration for which Chardan received a cash fee of $535,000 and a warrant to purchase up to 300,000 shares of the Company’s common stock. These warrants vested immediately, have an exercise price of $2.00 per share, and have a five year term.

 

The following schedule summarizes the changes in the Company’s outstanding warrants during the six months ended June 30, 2014:

 

    Warrants Outstanding     Exercise     Weighted Average Remaining     Aggregate     Weighted Average Exercise  
    Number of     Price     Contractual     Intrinsic     Price  
    Shares     per Share     Life     Value     per Share  
                                         
Balance at December 31, 2013     –       –       –       –       –  
Warrants Granted     300,000     $ 2.00       5.00 years       –     $ 2.00  
Warrants Exercised     –       –       –       –       –  
Warrants Expired     –       –       –       –       –  
Balance at June 30, 2014     300,000     $ 2.00       4.88 years     $ 285,000     $ 2.00  
                                         
Exercisable June 30, 2014     300,000     $ 2.00       4.88 years     $ 285.000     $ 2.00  
Exercisable December 31, 2013     –       –       –       –