Quarterly report pursuant to Section 13 or 15(d)

15. Warrants

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15. Warrants
 9 Months Ended
Sep. 30, 2014
Warrants and Rights Note Disclosure [Abstract]  
Warrants

The Company has warrants outstanding to purchase up to 300,000 and 0 shares of our common stock at September 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 (“Chardan”) 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 nine months ended September 30, 2014:

 

    Warrants Outstanding     Exercise     Weighted Average Remaining     Weighted Average Exercise  
    Number of     Price     Contractual     Price  
    Shares     per Share     Life     per Share  
                                 
Balance at December 31, 2013     –       –       –       –  
Warrants Granted     300,000     $ 2.00       4.63 years     $ 2.00  
Warrants Exercised     –       –       –       –  
Warrants Expired     –       –       –       –  
Balance at September 30, 2014     300,000     $ 2.00       4.63 years     $ 2.00  
                                 
Exercisable December 31, 2013     –       –       –       –  
Exercisable September 30, 2014     300,000     $ 2.00       4.63 years     $ 2.00