Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Warrants

v2.4.1.9
Fair Value of Warrants
 3 Months Ended
Mar. 31, 2015
Fair Value Disclosures [Abstract]  
Fair Value of Warrants
Fair Value of Warrants

The following table summarizes the derivative warrant activity subject to fair value accounting for the three months ended March 31, 2015:
Issued with/for
Fair value of
warrants
outstanding as of
December 31, 2014
 
Change in
fair value
of warrants
 
Fair value of
warrants
outstanding as of
March 31, 2015
Series B Preferred Stock
$
8,000

 
$
3,000

 
$
11,000

Financing
44,000

 
12,000

 
56,000

 
$
52,000

 
$
15,000

 
$
67,000


The following tables summarize the assumptions used in computing the fair value of derivative warrants subject to fair value accounting at the date of issue or exercise during the three months ended March 31, 2015 and 2014, and at March 31, 2015 and December 31, 2014.

Issued with Debt Guarantee
Exercised During the Three Months Ended March 31, 2014
Exercise Price
$
10.00

Expected life (years)
0.60

Expected volatility
49.01
%
Risk-free interest rate
0.08
%
Expected dividend yield
—
%
 
Issued with Series B Preferred Shares
As of March 31, 2015
 
As of December 31, 2014
 
Exercised During the Three Months Ended March 31, 2014
Exercise Price
$
10.00

 
$
10.00

 
$
10.00

Expected life (years)
0.63

 
0.88

 
1.72

Expected volatility
49.12
%
 
49.95
%
 
46.60
%
Risk-free interest rate
0.14
%
 
0.25
%
 
0.33
%
Expected dividend yield
—
%
 
—
%
 
—
%
Issued for Consulting
As of March 31, 2015
 
As of December 31, 2014
Exercise Price
$
10.00

 
$
10.00

Expected life (years)
0.90

 
1.14

Expected volatility
46.92
%
 
49.25
%
Risk-free interest rate
0.26
%
 
0.25
%
Expected dividend yield
—
%
 
—
%
 
Issued with Financing
As of March 31, 2015
 
As of December 31, 2014
Exercise Price
$
10.00

 
$
10.00

Expected life (years)
0.98

 
1.23

Expected volatility
46.69
%
 
50.23
%
Risk-free interest rate
0.26
%
 
0.25
%
Expected dividend yield
—
%
 
—
%


The assumed Company stock price used in computing the fair value of warrants exercised during the three months ended March 31, 2014 was $15.20 – $19.86. In determining the fair value of warrants issued at each reporting date, the Company stock price was $7.81 at March 31, 2015 and $6.68 at December 31, 2014 based on the closing price on the NASDAQ Capital Market.