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7. Outstanding Warrants

3 Months Ended

Mar. 31, 2015

During the three months ended March 31, 2015, the Company issued 116 thousand common stock warrants, which have the potential to enhance returns for accredited investors who entered into amendments to Notes and Warrant Purchase Agreements.

The warrants, dated January 1, 2015, have a two year term and are exercisable at $0.01 per share. The fair value of the warrants granted was $668 thousand as determined in accordance with the Black-Scholes option pricing model based on the below assumptions:

Expected dividend yield		0	%
Risk-free interest rate		0.66	%
Expected volatility		76.71	%
Expected Life (years)		2
Exercise price	$	0.01
Company Stock Price	$	5.79

For the three months ended March 31, 2015, note investors exercised 116 thousand warrant shares at the weighted average exercise price of $0.01 per share.

A summary of warrant activity for the three months ended March 31, 2015 follows:

	Warrants Outstanding & Exercisable	Weighted - Average Exercise Price		Average Remaining Term in Years
Outstanding December 31, 2014	351	$	3.05	2.69
Granted	116		0.01
Exercised	(116)		0.01
Outstanding March 31, 2015	351	$	3.05	2.45