| Schedule of assumptions for valuatin of derivatives |
| |
|
Modification Incremental
Fair Value
October 30,
2012 |
|
|
Pre-modification
October 30,
2012 |
|
|
April 22,
2012 |
|
| Expected life |
|
|
4.00 years |
|
|
|
2.00 years |
|
|
|
2.50 years |
|
| Risk-free interest rate |
|
|
0.74% |
|
|
|
0.30% |
|
|
|
0.40% |
|
| Dividend yield |
|
|
0.00% |
|
|
|
0.00% |
|
|
|
0.00% |
|
| Volatility |
|
|
89% |
|
|
|
100% |
|
|
|
100% |
|
| Warrants outstanding |
|
|
495,874 |
|
|
|
495,874 |
|
|
|
495,874 |
|
| Fair value of warrants |
|
$ |
1,636,000 |
|
|
$ |
1,254,000 |
|
|
$ |
2,347,000 |
|
|
| Schedule of warrants and valuations |
| Fair Value – Issue
Date |
Measurement
Date |
Warrants |
Remaining
Contract
Term in Years |
Exercise
Price |
Volatility |
Risk-free
Interest
Rate |
Fair Value |
| Placement Agent Warrants |
December
9, 2013 |
16,500 |
2.40 |
$ |
5.00 |
223% |
0.44% |
$ |
64,000 |
| Investor - Series A Warrants |
February 26, 2014 |
450,620 |
1.50 |
$ |
3.00 |
100% |
0.44% |
|
814,000 |
| Investor - Series B Warrants |
February 26, 2014 |
1,400,000 |
1.50 |
$ |
3.63 |
100% |
0.44% |
|
2,271,000 |
| Placement Agent Warrants |
February 26, 2014 |
69,037 |
2.18 |
$ |
3.00 |
100% |
0.44% |
|
143,000 |
| |
|
|
|
|
|
|
|
$ |
3,292,000 |
| Fair Value - Exercise Date |
|
|
|
|
|
|
|
|
|
| Investor - Series A Warrants |
March 18, 2014 |
315,434 |
1.44 |
$ |
3.00 |
104% |
0.44% |
$ |
1,180,000 |
| Investor - Series A Warrants |
March 19, 2014 |
134,186 |
1.44 |
$ |
3.00 |
104% |
0.44% |
|
503,000 |
| |
|
|
|
|
|
|
|
$ |
1,683,000 |
| Fair Value – Reporting Date |
|
|
|
|
|
|
|
|
|
| Placement Agent Warrants |
March 31, 2014 |
16,500 |
2.09 |
$ |
5.00 |
128% |
0.44% |
$ |
37,000 |
| Investor - Series A Warrants |
March 31, 2014 |
1,000 |
1.41 |
$ |
3.00 |
128% |
0.44% |
|
1,000 |
| Investor - Series B Warrants |
March 31, 2014 |
1,400,000 |
1.41 |
$ |
3.63 |
128% |
0.44% |
|
2,958,000 |
| Placement Agent Warrants |
March 31, 2014 |
69,037 |
2.09 |
$ |
3.00 |
128% |
0.44% |
|
179,000 |
| |
|
|
|
|
|
|
|
$ |
3,175,000 |
|
| Changes in Level 3 on a recurring basis |
| |
|
Year Ended
March 31, |
|
| |
|
2014 |
|
|
2013 |
|
| Beginning balance |
|
$ |
– |
|
|
$ |
55,000 |
|
| Fair value of warrants issued |
|
|
3,292,000 |
|
|
|
2,347,000 |
|
| Mark to market net unrealized loss (gain) |
|
|
1,566,000 |
|
|
|
(1,148,000 |
) |
| Incremental fair value adjustment due to modification |
|
|
– |
|
|
|
382,000 |
|
| Reclassification to additional paid in capital |
|
|
(1,683,000 |
) |
|
|
(1,636,000 |
) |
| Ending balance |
|
$ |
3,175,000 |
|
|
$ |
– |
|
|