Annual report pursuant to Section 13 and 15(d)

Warrant Liability (Tables)

v2.4.0.8
Warrant Liability (Tables)
12 Months Ended
Dec. 31, 2013
Warrant Liability [Abstract]  
Schedule of Warrant Liability Fair Value Assumptions
The warrant liability was valued using the Black-Scholes option valuation model and the following assumptions on the following dates:
 
   
December 31,
2013
   
March 4,
2013
 
Strike price
  $ 10.00     $ 10.00  
Market price
  $ 4.61     $ 8.00  
Expected life
 
5.17 years
   
6.00 years
 
Risk-free interest rate
    0.86 %     0.86 %
Dividend yield
    0.00 %     0.00 %
Volatility
    39 %     48 %
Warrants outstanding
    131,250       131,250  
Fair value of warrants
  $ 85,221     $ 415,368  

Schedule of Changes in Fair Value of Warrant Liability
The following table sets forth a summary of the changes in the fair value of our Level 3 financial liabilities that are measured at fair value on a recurring basis:

Beginning balance
  $ -  
Initial warrant valuation
    (415,368 )
Decrease in net value of warrant liability
    330,147  
Ending balance
  $ (85,221 )