Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE NOTES PAYABLE (Tables)

v2.4.0.8
CONVERTIBLE NOTES PAYABLE (Tables)
 9 Months Ended
Sep. 30, 2014
Convertible Debt [Table Text Block]
Convertible notes payable at September 30, 2014 and December 31, 2013 are as follows:
 
 
 
September 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
 
 
6% Convertible notes payable issued in August 2013
 
$
3,000,000
 
$
3,000,000
 
Discounts on above convertible note
 
 
(1,833,333)
 
 
(2,583,333)
 
15% Convertible notes payable issued in March 2014
 
 
500,000
 
 
-
 
Discounts on above convertible note
 
 
(136,908)
 
 
-
 
 
 
 
1,529,759
 
 
416,667
 
Current portion of convertible notes payable
 
 
(363,092)
 
 
-
 
Convertible notes payable, less current portion
 
$
1,166,667
 
$
416,667
 
Conversion Feature And Warrants [Member]
  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
The fair value of the embedded conversion feature and the warrants each was estimated using the Black-Scholes option-pricing model which approximated the Binomial Lattice model. Key assumptions used to apply this pricing model during the three and nine months ended September 30, 2014 were as follows:
 
Risk-free interest rate
 
0.15%-0.79%
Expected life
 
1-5 years
Expected volatility
 
62%-89%
Convertible Notes Payable [Member]
  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
The table below shows the assumptions as of the date of issuance and September 30, 2014.
 
 
 
August 2, 2013
 
 
September 30, 2014
 
Common stock closing price
 
$
4.15
 
 
$
2.07
 
Conversion per share price
 
$
3.73
 
 
$
1.84
 
Conversion shares
 
 
804,764
 
 
 
1,632,387
 
Expected life (in years)
 
 
3.0
 
 
 
1.8
 
Expected volatility
 
 
109.55
%
 
 
64.60
%
Call option value
 
$
2.82
 
 
$
0.79
 
Risk-free interest rate
 
 
0.59
%
 
 
0.58
%
Dividends
 
 
0.00
%
 
 
0.00
%