Annual report pursuant to Section 13 and 15(d)

Convertible Notes Payable (Tables)

v2.4.1.9
Convertible Notes Payable (Tables)
 12 Months Ended
Dec. 31, 2014
Convertible Notes Payable [Abstract]  
Schedule of Convertible Notes Payable

    December 31,  
    2014     2013  
6% Convertible notes payable issued in August 2013   $ 3,000,000     $ 3,000,000  
Discounts on above convertible note     (1,583,333 )     (2,583,333 )
15% Convertible notes payable issued in March 2014     500,000       -  
Discounts on above convertible note     (63,730 )     -  
8% Convertible notes payable issued in Nov/Dec 2014     350,000       -  
Discounts on above convertible note     (289,254 )     -  
      1,913,683       416,667  
Current portion of convertible notes payable     (436,270 )     -  
Convertible notes payable, less current portion   $ 1,477,413     $ 416.667  

Fair Value Measurements, Valuation Assumptions of Embedded Conversion Feature and Warrants

The contractual terms of the agreement does not provide for and the Company does not expect to declare dividends in the near future. Key assumptions used to apply this pricing model as of the date of issuance and December 31, 2014 are presented in the table below:

 

    August 2, 2013     March 19, 2014     November 19, 2014     December 16, 2014  
Common stock closing price   $ 4.15     $ 3.87     $ 1.70     $ 1.53  
Conversion per share price   $ 3.73     $ 3.29     $ 1.45     $ 1.30  
Conversion shares     804,764       151,999       172,672       77,061  
Expected life (in years)     3.0       1.0       3.0       3.0  
Expected volatility     109.55 %     62.03 %     74.28 %     74.28 %
Call option value   $ 2.82     $ 1.19     $ 0.90     $ 0.81  
Risk-free interest rate     0.59 %     0.15 %     1.10 %     1.10 %
Dividends     0.00 %     0.00 %     0.00 %     0.00 %

 

    December 31, 2014     December 31, 2014     December 31, 2014     December 31, 2014  
Common stock closing price   $ 1.73     $ 1.73     $ 1.73     $ 1.73  
Conversion per share price   $ 1.49     $ 1.47     $ 1.26     $ 1.26  
Conversion shares     2,008,032       340,020       199,177       77,061  
Expected life (in years)     1.6       0.2       2.9       3.0  
Expected volatility     63.72 %     65.63 %     74.28 %     74.28 %
Call option value   $ 0.64     $ 0.35     $ 0.77     $ 0.78  
Risk-free interest rate     0.67 %     0.40 %     1.10 %     1.10 %
Dividends     0.00 %     0.00 %     0.00 %     0.00 %