Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Assets and Liabilities (Tables)

Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

The Company had valued certain warrants as a derivative liability at June 30, 2014 and used the Black-Scholes option pricing model to estimate fair value at September 30, 2014 and used the contractual life according to the remaining terms of the warrants and the following assumptions:

	As of June 30,
	2014
Risk free interest rate		1.25	%
Expected dividend yield		0	%
Contractual term		3.97
Expected volatility		66	%

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	June 30, 2014
	Level 1		Level 2		Level 3			Total
Liabilities:
Derivative warrant liability at December 31, 2013	$	—	$	—	$	19,932		$	19,932
Change in fair value of the derivative warrant liability		—		—		28,448			28,448
Reclassification of derivative warrant liability		—		—		(48,380	)		(48,380	)
Derivative warrant liability at September 30, 2014	$	—	$	—	$	—		$	—