Warrants

v2.4.0.8

Warrants	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]
Warrants	Warrants We have issued certain warrants which contain an exercise price adjustment feature in the event we issue additional equity instruments at a price lower than the exercise price of the warrant. The warrants are described herein as derivative warrants. For all derivative warrants, in the event equity instruments are issued at a price lower than the exercise price of the warrant, the exercise price is adjusted to the price of the new equity instruments issued (price adjustment feature). For certain of these warrants, the number of shares underlying the warrant is also adjusted to an amount computed by dividing the proceeds of the warrant under its original terms by the revised exercise price (share adjustment feature). These warrants are initially recorded as a warrant liability at fair value with a corresponding entry to the loan guarantee fee asset, debt discount, additional paid-in capital or expense dependent upon the service provided in exchange for the warrant grant. As of June 30, 2014 all warrants with a share adjustment feature have either expired or have been exercised. In January 2014, the Company received $950 from a warrant holder who exercised warrants to purchase 95 shares of common stock at $10.00 per share. In February 2014 a warrant holder exercised warrants to purchase 3,320 shares of common stock at an exercise price of $10.00 per share using the net issuance exercise method whereby 1,661 shares were surrendered in payment in full of the exercise price resulting in a net issuance of 1,659 shares. In March 2014 a warrant holder exercised warrants to purchase 12,500 shares of common stock at an exercise price of $10.00 per share using the net issuance exercise method whereby 7,230 shares were surrendered in payment in full of the exercise price resulting in a net issuance of 5,270 shares. In June 2014, the company received $177,154 from Mr. Pappajohn who exercised warrants to purchase 44,288 shares of common stock at an exercise price of $4.00 per share. Subsequent Events In July 2014, warrant holders exercised warrants to purchase 130,000 shares of common stock at an exercise price of $4.00 per share using the net issuance exercise method whereby 45,894 shares were surrendered in payment in full of the exercise price resulting in a net issuance of 84,106 shares. The following table summarizes the warrant activity for the six months ended June 30, 2014:  Issued With / For Exercise Price   Warrants Outstanding January 1, 2014   2014 Warrants Exercised   Warrants Outstanding June 30, 2014 Non-Derivative Warrants:               Financing $ 10.00    243,334   —   243,334 Financing 15.00    436,079   —   436,079 Debt Guarantee 4.00    174,288   (44,288 )   130,000 Debt Guarantee 10.00    237,500   —   237,500 Debt Guarantee 15.00    585,645   —   585,645 Consulting 10.00    29,138   —   29,138   12.38 C  1,705,984   (44,288 )   1,661,696 Derivative Warrants:               Financing 10.00 B  60,000   —   60,000 Debt Guarantee 10.00 A  12,500   (12,500 )   — Series B Pref. Stock 10.00 B  18,430   (3,415 )   15,015 Consulting 10.00 B  200   —   200   10.00 C  91,130   (15,915 )   75,215   $ 12.28 C  1,797,114   (60,203 )   1,736,911 A These warrants are subject to fair value accounting and contain exercise price and number of share adjustment features. See Note 9. B These warrants are subject to fair value accounting and contain an exercise price adjustment feature. See Note 9. C Weighted average exercise prices are as of June 30, 2014.