Note 11 — Stock Warrants

A summary of the various changes in warrants during the nine month period ended September 30, 2015 is as follows.

	Number of
	Shares

Warrants Outstanding at December 31, 2014		5,236,660
Exercised During the Period		(4,721,517)
Issued During the Period		60,000
Expired During the Period		(14,814)

Warrants Outstanding, September 30, 2015		560,329

The outstanding warrants as of September 30, 2015 expire from December 31, 2015 to August 5, 2018. The weighted average remaining term of the warrants is 2.5 years. The weighted average exercise price is $2.39 per share. During the nine months ending September 30, 2015 a total 4,168,267 warrants were exercised on a cashless basis resulting in the issuance of 3,554,004 shares. During the nine months ending September 30, 2015 a total of 553,250 warrants were exercised on a cash basis resulting in proceeds of $1,262,626.

The Black-Scholes-Merton pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton pricing model incorporates various highly subjective assumptions, including expected term and expected volatility.

The following summary table shows the assumptions used to compute the fair value of warrants granted during the nine month period ended September 30, 2015 for investor relations services and their estimated value:

⋅	Expected term in years	2.8 to 3.0 years
⋅	Volatility	122.8 to 122.9%
⋅	Risk-free interest rate	0.90 to 0.99%
⋅	Expected annual dividends	None
⋅	Fair value of warrants issued	$260,373

The entire fair value amount of the warrants issued was recognized during the nine month period ended September 30, 2015.