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The number of shares underlying the preferred stock as of December 31, 2015 is 1,898,010. The effect of the shares that would be issued upon exercise of such options, warrants and preferred stock has been excluded from the calculationof diluted loss per share because those shares are anti-dilutive. 4856232 16384 38283 57549 231740 367367 271579 190015 5397834 631315 139598 196479 94987 73183 5632419 900977 650413 2194518 864295 3066379 937424 5000 5000 1519708 6203321 213883 1519708 6417204 206 18950 52063 30927 44534135 30093745 -40492437 -35641105 4112711 -5516227 5632419 900977 0 194097 0.01 0.01 100 100 10000000 10000000 0 20550 0.01 0.01 10000000 10000000 1895010 0 0.01 0.01 100000000 100000000 5206428 3092766 654354 951559 303982 385323 350372 566236 3399339 4882549 846687 972830 503989 1178305 390887 377719 11599 5140902 7399804 -4790530 -6833568 -1.23 -2.29 3880828 2990471 2932501 29325 25449636 -28697415 -3218454 1728 17 1279 1296 4336 43 5387 5430 2000 20 41230 41250 3323 33 2460 2493 267 3 1397 1400 2174 22 1608 1630 2667 27 35973 36000 1333 13 24987 25000 -4444 44 3289 3333 4807 48 3557 3605 3112 31 2302 2333 299 3 221 224 972 10 18909 -18919 705434 705434 694500 694500 7778 78 52422 52500 206 2054795 2055001 2133 21 23979 24000 1333 13 24987 25000 3725 37 2757 2794 1561 16 30384 -30400 313175 313175 1410 14 1044 1058 11111 111 62389 62500 333 3 1747 1750 3018 30 19970 20000 3019 30 19970 20000 3435 34 19966 20000 3894 38 19962 20000 1561 16 30385 -30401 3894 39 19961 20000 3997 40 19960 20000 3804 38 19962 20000 5706 57 29943 30000 5044 50 29950 30000 13700 137 137 55568 556 280060 280616 1561 16 30385 -30402 -1 106 1 1 2 -6833568 206 3092766 30927 30093745 -35641105 3122 31 -31 -8889 89 6578 6667 3447 34 9966 10000 6762 68 19932 20000 10313 103 29897 30000 12098 120 33358 33478 15552 156 34844 35000 3121 31 30369 -30401 -1 20000 200 39800 40000 87997 880 199120 200000 14867 149 29851 30000 15000 150 29850 30000 12993 130 24870 25000 16148 162 29838 30000 3121 31 30371 -30401 1 871877 871877 16667 1666667 16667 13027546 13060880 2077 228343 2283 -4360 0 3000 30 9870 9900 -4790530 18950 5206428 52063 44534135 -40492437 15.00 1.25 20.63 12.75 5.25 0.75 13.50 18.75 7.50 5.63 12.75 19.50 16 11.25 11.25 18.75 13.50 19.50 16 9.75 5.63 5.25 6.68 6.68 5.85 5.03 19.50 16 5.14 5.00 5.26 5.26 5.95 5.05 19.50 16 9.75 16 2.90 2.96 2.91 2.77 2.25 9.75 16 2.00 2.27283 2.0179 2.00 1.92417 1.8578 9.75 16 78566 63040 871877 723367 -6667 112054 219097 247338 10031 -17076 -19266 -39696 -135627 245192 81564 129427 -1544105 1132410 -2415967 1594468 -64000 -7487293 -3371413 32470 101409 28095 19828 -60565 -121237 250000 1500000 933074 305000 18950 2055000 13051830 157081 12387706 3407081 4839848 -85569 16384 101953 4856232 694500 483478 480616 Skyline Medical Inc. 10-K skln --12-31 49894145 5873239 false 0001446159 Yes No Smaller Reporting Company No 2015 FY 2015-12-31 <p style="font-size: 10pt; margin: 0"><b>NOTE 1 &#x2014; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p><br/><p style="font-size: 10pt; margin: 0"><b>Nature of Operations and Continuance of Operations</b></p><br/><p style="font-size: 10pt; margin: 0">Skyline Medical Inc. (the "Company") was incorporated under the laws of the State of Minnesota in 2002. Effective August 6, 2013, the Company changed its name to Skyline Medical Inc. As of December 31, 2015, the registrant had 5,206,428 shares of common stock, par value $.01 per share, outstanding, adjusted for a 1-for-75 reverse stock split effective October 24, 2014. In&nbsp; this Report, all numbers of shares and per share amounts, as appropriate, have been stated to reflect the reverse stock split. Pursuant to an Agreement and Plan of Merger dated effective December 16, 2013, the Company merged with and into a Delaware corporation with the same name that was its wholly-owned subsidiary, with such Delaware Corporation as the surviving corporation of the merger. The Company has developed an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care. The Company also makes ongoing sales of our proprietary cleaning fluid and filters to users of our systems. In April 2009, the Company received 510(k) clearance from the FDA to authorize the Company to market and sell its STREAMWAY FMS products.</p><br/><p style="font-size: 10pt; margin: 0">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and had a stockholders&#x2019; deficit until August 31, 2015 whereupon the Company closed its public offering of units of common stock, Series B Convertible Preferred Stock and Series A Warrants (the &#x201c;Units&#x201d;). There remains though, substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p><br/><p style="font-size: 10pt; margin: 0">Since inception to December 31, 2015, the Company raised approximately $22,732,961 in equity, inclusive of $2,055,000 from a private placement of Series A Convertible Preferred Stock, $13,555,003 from the public offering of Units and $5,685,000 in debt financing. See &#x201c;Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.&#x201d;</p><br/><p style="font-size: 10pt; text-align: justify; margin: 0"><b>Recent Accounting Developments</b></p><br/><p style="font-size: 10pt; margin: 0">In May 2014, the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued ASU 2014-09, <i>Revenue from Contracts with Customers </i>and created a new topic in the FASB Accounting Standards Codification ("ASC"), Topic 606. The new standard provides a single comprehensive revenue recognition framework for all entities and supersedes nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and also requires enhanced disclosures. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.</p><br/><p style="font-size: 10pt; margin: 0">In June 2014, the FASB issued ASU 2014-12, <i>"Compensation - Stock Compensation" </i>providing explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact this guidance may have on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0pt 0">In August 2014, the FASB issued ASU 2014-15, <i>Disclosure of Uncertainties about an Entity&#x2019;s Ability to Continue as a Going Concern</i>. The new standard requires management to assess an entity&#x2019;s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0; color: #252525">In April 2015, the FASB issued ASU 2015-03, <i>Simplifying the Presentation of Debt Issuance Costs</i>. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this ASU is not expected to have an impact on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0; color: #252525">In July 2015, the FASB issued ASU No.&nbsp;2015-11<i>,&nbsp;Inventory (Topic 330): Simplifying the Measurement of Inventory</i>, requiring that inventory be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective within annual periods beginning on or after December&nbsp;15, 2016, including interim periods within that reporting period. We are currently evaluating the impact this guidance may have on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0pt 0; color: #252525">In November 2015, the FASB issued ASU 2015-17, <i>&#x201c;Income Taxes (Topic 740)&#x201d; </i>providing guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Balance Sheet. The guidance is effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0pt 0; color: #252525">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</p><br/><p style="font-size: 10pt; margin: 0"><b>Valuation of Intangible Assets</b></p><br/><p style="font-size: 10pt; margin: 0">We review identifiable intangible assets for impairment in accordance with ASC 350 &#x2014; Intangibles &#x2014;Goodwill and Other, whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management&#x2019;s best estimate of the related risks and return at the time the impairment assessment is made.</p><br/><p style="font-size: 10pt; margin: 0"><b>Accounting Policies and Estimates</b></p><br/><p style="font-size: 10pt; margin: 0">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p><br/><p style="font-size: 10pt; margin: 0"><b>Presentation of Taxes Collected from Customers</b></p><br/><p style="font-size: 10pt; margin: 0">Sales taxes are imposed on the Company&#x2019;s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company&#x2019;s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</p><br/><p style="font-size: 10pt; margin: 0"><b>Shipping and Handling</b></p><br/><p style="font-size: 10pt; margin: 0">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</p><br/><p style="font-size: 10pt; text-align: justify; margin: 0"><b>Advertising</b></p><br/><p style="font-size: 10pt; margin: 0">Advertising costs are expensed as incurred. Advertising expenses were $8,220 in 2015, and $19,394 in 2014.</p><br/><p style="font-size: 10pt; text-align: justify; margin: 0"><b>Research and Development</b></p><br/><p style="font-size: 10pt; text-align: justify; margin: 0">Research and development costs are charged to operations as incurred.&nbsp;&nbsp;Research and development costs were approximately $261,000 and $394,000 for 2015 and 2014, respectively.</p><br/><p style="font-size: 10pt; margin: 0"><b>Revenue Recognition</b></p><br/><p style="font-size: 10pt; margin: 0">The Company recognizes revenue in accordance with the SEC&#x2019;s Staff Accounting Bulletin Topic 13 Revenue Recognition and ASC 605- Revenue Recognition.</p><br/><p style="font-size: 10pt; margin: 0">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company&#x2019;s standard terms specify that shipment is FOB Skyline and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY FMS units as well as shipments of cleaning solution kits. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company&#x2019;s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer&#x2019;s right of return is limited only to the Company&#x2019;s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY FMS unit or significant quantities of cleaning solution kits may be returned. Additionally, since the Company buys both the STREAMWAY FMS units and cleaning solution kits from &#x201c;turnkey&#x201d; suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</p><br/><p style="font-size: 10pt; margin: 0"><b>Receivables</b></p><br/><p style="font-size: 10pt; margin: 0">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company provides for probable uncollectible amounts through charges to earnings and credits to the valuation based on management&#x2019;s assessment of the current status of individual accounts, changes to the valuation allowance have not been material to the financial statements.</p><br/><p style="font-size: 10pt; margin: 0"><b>Inventories</b></p><br/><p style="font-size: 10pt; margin: 0">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&nbsp;follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">30,237</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">88,362</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">162,623</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">237,556</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">38,880</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">41,449</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">231,740</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">367,367</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0"><b>Property and Equipment</b></p><br/><p style="font-size: 10pt; margin: 0">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="5" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; width: 85%">Computers and office equipment</td> <td style="font-size: 10pt; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">3 </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">- </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">7</font></td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">5</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing Tooling</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">3 </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">- </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">7</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">3</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">The Company&#x2019;s investment in Fixed Assets consists of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">153,553</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">123,708</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold Improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing Tooling</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">30,576</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-indent: 10pt">Total</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">283,677</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">275,446</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less: Accumulated Depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">144,079</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">78,967</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">139,598</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">196,479</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</p><br/><p style="font-size: 10pt; margin: 0"><b>Intangible Assets</b></p><br/><p style="font-size: 10pt; margin: 0">Intangible assets consist of trademarks and patent costs. These assets are not subject to amortization until the property patented is in production. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified.</p><br/><p style="font-size: 10pt; margin: 0"><b>Income Taxes</b></p><br/><p style="font-size: 10pt; margin: 0">The Company accounts for income taxes in accordance with ASC 740- <i>Income Taxes (&#x201c;ASC 740&#x201d;)</i>. Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</p><br/><p style="font-size: 10pt; margin: 0">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</p><br/><p style="font-size: 10pt; margin: 0">Tax years subsequent to 2012 remain open to examination by federal and state tax authorities.</p><br/><p style="font-size: 10pt; margin: 0"><b>Patents and Intellectual Property</b></p><br/><p style="font-size: 10pt; margin: 0">On January 25th, 2014 the Company filed a non-provisional PCT Application No. PCT/US2014/013081 claiming priority from the U.S. Provisional Patent Application, number 61756763 which was filed one year earlier on January 25th, 2013. The Patent Cooperation Treaty (&#x201c;PCT&#x201d;) allows an applicant to file a single patent application to seek patent protection for an invention simultaneously in each of the 148 countries of the PCT, including the United States. By filing this single &#x201c;international&#x201d; patent application through the PCT, it is easier and more cost effective than filing separate applications directly with each national or regional patent office in which patent protection is desired.</p><br/><p style="font-size: 10pt; margin: 0">Our PCT patent application is for the new model of the surgical fluid waste management system. We obtained a favorable International Search Report from the PCT searching authority indicating that the claims in our PCT application are patentable (i.e., novel and non-obvious) over the cited prior art. A feature claimed in the PCT application is the ability to maintain continuous suction to the surgical field while measuring, recording and evacuating fluid to the facilities sewer drainage system. This provides for continuous operation of the STREAMWAY System unit in suctioning waste fluids, which means that suction is not interrupted during a surgical operation, for example, to empty a fluid collection container or otherwise dispose of the collected fluid.</p><br/><p style="font-size: 10pt; margin: 0">The Company holds the following granted patents in the United States and a pending application in the United States on its earlier models: US7469727, US8123731 and U.S. Publication No. US20090216205 (collectively, the &#x201c;Patents&#x201d;). These Patents will begin to expire on August 8, 2023.</p><br/><p style="font-size: 10pt; margin: 0">In July 2015, Skyline Medical filed an international (PCT) patent application for its fluid waste collection system and received a favorable determination by the International Searching Authority finding that all of the claims satisfy the requirements for novelty, inventive step and industrial applicability.&nbsp; Skyline anticipates that the favorable International Search Report will result in allowance of its various national applications.</p><br/><p style="font-size: 10pt; margin: 0pt 0"><b>Credit Risk </b></p><br/><p style="font-size: 10pt; margin: 0pt 0">Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and, by policy, generally limits the amount of credit exposure to any one financial institution. The Company had a credit risk concentration as a result of depositing $4,621,764 of funds in excess of insurance limits in a single bank.</p><br/><p style="font-size: 10pt; margin: 0pt 0"><b>Product Warranty Costs</b></p><br/><p style="font-size: 10pt; margin: 0pt 0">In 2015, the Company incurred approximately $56,201 in current warranty costs.</p><br/><p style="font-size: 10pt; margin: 0pt 0"><b>Segments</b></p><br/><p style="font-size: 10pt; margin: 0pt 0">The Company operates in one segment for the sale of its medical device and consumable products. Substantially all of the Company&#x2019;s assets, revenues, and expenses for 2015 and 2014 were located at or derived from operations in the United States. There were no revenues from sales outside of the United States.</p><br/><p style="font-size: 10pt; margin: 0pt 0"><b>Risks and Uncertainties</b></p><br/><p style="font-size: 10pt; margin: 0pt 0">The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with regulations of the FDA and other governmental agencies.</p><br/> <p style="font-size: 10pt; margin: 0"><b>Nature of Operations and Continuance of Operations</b></p><br/><p style="font-size: 10pt; margin: 0">Skyline Medical Inc. (the "Company") was incorporated under the laws of the State of Minnesota in 2002. Effective August 6, 2013, the Company changed its name to Skyline Medical Inc. As of December 31, 2015, the registrant had 5,206,428 shares of common stock, par value $.01 per share, outstanding, adjusted for a 1-for-75 reverse stock split effective October 24, 2014. In&nbsp; this Report, all numbers of shares and per share amounts, as appropriate, have been stated to reflect the reverse stock split. Pursuant to an Agreement and Plan of Merger dated effective December 16, 2013, the Company merged with and into a Delaware corporation with the same name that was its wholly-owned subsidiary, with such Delaware Corporation as the surviving corporation of the merger. The Company has developed an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care. The Company also makes ongoing sales of our proprietary cleaning fluid and filters to users of our systems. In April 2009, the Company received 510(k) clearance from the FDA to authorize the Company to market and sell its STREAMWAY FMS products.</p><br/><p style="font-size: 10pt; margin: 0">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and had a stockholders&#x2019; deficit until August 31, 2015 whereupon the Company closed its public offering of units of common stock, Series B Convertible Preferred Stock and Series A Warrants (the &#x201c;Units&#x201d;). There remains though, substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p><br/><p style="font-size: 10pt; margin: 0">Since inception to December 31, 2015, the Company raised approximately $22,732,961 in equity, inclusive of $2,055,000 from a private placement of Series A Convertible Preferred Stock, $13,555,003 from the public offering of Units and $5,685,000 in debt financing. See &#x201c;Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.&#x201d;</p> 22732961 2055000 13555003 5685000 <p style="font-size: 10pt; text-align: justify; margin: 0"><b>Recent Accounting Developments</b></p><br/><p style="font-size: 10pt; margin: 0">In May 2014, the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued ASU 2014-09, <i>Revenue from Contracts with Customers </i>and created a new topic in the FASB Accounting Standards Codification ("ASC"), Topic 606. The new standard provides a single comprehensive revenue recognition framework for all entities and supersedes nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and also requires enhanced disclosures. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.</p><br/><p style="font-size: 10pt; margin: 0">In June 2014, the FASB issued ASU 2014-12, <i>"Compensation - Stock Compensation" </i>providing explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact this guidance may have on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0pt 0">In August 2014, the FASB issued ASU 2014-15, <i>Disclosure of Uncertainties about an Entity&#x2019;s Ability to Continue as a Going Concern</i>. The new standard requires management to assess an entity&#x2019;s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0; color: #252525">In April 2015, the FASB issued ASU 2015-03, <i>Simplifying the Presentation of Debt Issuance Costs</i>. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this ASU is not expected to have an impact on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0; color: #252525">In July 2015, the FASB issued ASU No.&nbsp;2015-11<i>,&nbsp;Inventory (Topic 330): Simplifying the Measurement of Inventory</i>, requiring that inventory be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective within annual periods beginning on or after December&nbsp;15, 2016, including interim periods within that reporting period. We are currently evaluating the impact this guidance may have on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0pt 0; color: #252525">In November 2015, the FASB issued ASU 2015-17, <i>&#x201c;Income Taxes (Topic 740)&#x201d; </i>providing guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Balance Sheet. The guidance is effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements.</p><br/><p style="font-size: 10pt; margin: 0pt 0; color: #252525">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</p><br/><p style="font-size: 10pt; margin: 0"><b>Valuation of Intangible Assets</b></p><br/><p style="font-size: 10pt; margin: 0">We review identifiable intangible assets for impairment in accordance with ASC 350 &#x2014; Intangibles &#x2014;Goodwill and Other, whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management&#x2019;s best estimate of the related risks and return at the time the impairment assessment is made.</p><br/><p style="font-size: 10pt; margin: 0"><b>Accounting Policies and Estimates</b></p><br/><p style="font-size: 10pt; margin: 0">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p><br/><p style="font-size: 10pt; margin: 0"><b>Presentation of Taxes Collected from Customers</b></p><br/><p style="font-size: 10pt; margin: 0">Sales taxes are imposed on the Company&#x2019;s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company&#x2019;s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</p><br/><p style="font-size: 10pt; margin: 0"><b>Shipping and Handling</b></p><br/><p style="font-size: 10pt; margin: 0">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</p><br/><p style="font-size: 10pt; text-align: justify; margin: 0"><b>Advertising</b></p><br/><p style="font-size: 10pt; margin: 0">Advertising costs are expensed as incurred. Advertising expenses were $8,220 in 2015, and $19,394 in 2014.</p><br/><p style="font-size: 10pt; text-align: justify; margin: 0"><b>Research and Development</b></p><br/><p style="font-size: 10pt; text-align: justify; margin: 0">Research and development costs are charged to operations as incurred.&nbsp;&nbsp;Research and development costs were approximately $261,000 and $394,000 for 2015 and 2014, respectively.</p><br/><p style="font-size: 10pt; margin: 0"><b>Revenue Recognition</b></p><br/><p style="font-size: 10pt; margin: 0">The Company recognizes revenue in accordance with the SEC&#x2019;s Staff Accounting Bulletin Topic 13 Revenue Recognition and ASC 605- Revenue Recognition.</p><br/><p style="font-size: 10pt; margin: 0">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company&#x2019;s standard terms specify that shipment is FOB Skyline and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY FMS units as well as shipments of cleaning solution kits. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company&#x2019;s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer&#x2019;s right of return is limited only to the Company&#x2019;s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY FMS unit or significant quantities of cleaning solution kits may be returned. Additionally, since the Company buys both the STREAMWAY FMS units and cleaning solution kits from &#x201c;turnkey&#x201d; suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</p><br/><p style="font-size: 10pt; margin: 0"><b>Receivables</b></p><br/><p style="font-size: 10pt; margin: 0">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company provides for probable uncollectible amounts through charges to earnings and credits to the valuation based on management&#x2019;s assessment of the current status of individual accounts, changes to the valuation allowance have not been material to the financial statements.</p><br/><p style="font-size: 10pt; margin: 0"><b>Inventories</b></p><br/><p style="font-size: 10pt; margin: 0">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&nbsp;follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">30,237</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">88,362</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">162,623</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">237,556</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">38,880</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">41,449</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">231,740</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">367,367</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0"><b>Property and Equipment</b></p><br/><p style="font-size: 10pt; margin: 0">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="5" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; width: 85%">Computers and office equipment</td> <td style="font-size: 10pt; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">3 </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">- </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">7</font></td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">5</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing Tooling</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">3 </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">- </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">7</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">3</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">The Company&#x2019;s investment in Fixed Assets consists of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">153,553</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">123,708</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold Improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing Tooling</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">30,576</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-indent: 10pt">Total</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">283,677</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">275,446</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less: Accumulated Depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">144,079</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">78,967</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">139,598</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">196,479</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</p><br/><p style="font-size: 10pt; margin: 0"><b>Intangible Assets</b></p><br/><p style="font-size: 10pt; margin: 0">Intangible assets consist of trademarks and patent costs. These assets are not subject to amortization until the property patented is in production. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified.</p><br/><p style="font-size: 10pt; margin: 0"><b>Income Taxes</b></p><br/><p style="font-size: 10pt; margin: 0">The Company accounts for income taxes in accordance with ASC 740- <i>Income Taxes (&#x201c;ASC 740&#x201d;)</i>. Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</p><br/><p style="font-size: 10pt; margin: 0">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</p><br/><p style="font-size: 10pt; margin: 0">Tax years subsequent to 2012 remain open to examination by federal and state tax authorities.</p><br/><p style="font-size: 10pt; margin: 0"><b>Patents and Intellectual Property</b></p><br/><p style="font-size: 10pt; margin: 0">On January 25th, 2014 the Company filed a non-provisional PCT Application No. PCT/US2014/013081 claiming priority from the U.S. Provisional Patent Application, number 61756763 which was filed one year earlier on January 25th, 2013. The Patent Cooperation Treaty (&#x201c;PCT&#x201d;) allows an applicant to file a single patent application to seek patent protection for an invention simultaneously in each of the 148 countries of the PCT, including the United States. By filing this single &#x201c;international&#x201d; patent application through the PCT, it is easier and more cost effective than filing separate applications directly with each national or regional patent office in which patent protection is desired.</p><br/><p style="font-size: 10pt; margin: 0">Our PCT patent application is for the new model of the surgical fluid waste management system. We obtained a favorable International Search Report from the PCT searching authority indicating that the claims in our PCT application are patentable (i.e., novel and non-obvious) over the cited prior art. A feature claimed in the PCT application is the ability to maintain continuous suction to the surgical field while measuring, recording and evacuating fluid to the facilities sewer drainage system. This provides for continuous operation of the STREAMWAY System unit in suctioning waste fluids, which means that suction is not interrupted during a surgical operation, for example, to empty a fluid collection container or otherwise dispose of the collected fluid.</p><br/><p style="font-size: 10pt; margin: 0">The Company holds the following granted patents in the United States and a pending application in the United States on its earlier models: US7469727, US8123731 and U.S. Publication No. US20090216205 (collectively, the &#x201c;Patents&#x201d;). These Patents will begin to expire on August 8, 2023.</p><br/><p style="font-size: 10pt; margin: 0">In July 2015, Skyline Medical filed an international (PCT) patent application for its fluid waste collection system and received a favorable determination by the International Searching Authority finding that all of the claims satisfy the requirements for novelty, inventive step and industrial applicability.&nbsp; Skyline anticipates that the favorable International Search Report will result in allowance of its various national applications.</p><br/><p style="font-size: 10pt; margin: 0pt 0"><b>Credit Risk </b></p><br/><p style="font-size: 10pt; margin: 0pt 0">Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and, by policy, generally limits the amount of credit exposure to any one financial institution. The Company had a credit risk concentration as a result of depositing $4,621,764 of funds in excess of insurance limits in a single bank.</p> <p style="font-size: 10pt; margin: 0"><b>Valuation of Intangible Assets</b></p><br/><p style="font-size: 10pt; margin: 0">We review identifiable intangible assets for impairment in accordance with ASC 350 &#x2014; Intangibles &#x2014;Goodwill and Other, whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management&#x2019;s best estimate of the related risks and return at the time the impairment assessment is made.</p> <p style="font-size: 10pt; margin: 0"><b>Accounting Policies and Estimates</b></p><br/><p style="font-size: 10pt; margin: 0">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="font-size: 10pt; margin: 0"><b>Presentation of Taxes Collected from Customers</b></p><br/><p style="font-size: 10pt; margin: 0">Sales taxes are imposed on the Company&#x2019;s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company&#x2019;s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</p> <p style="font-size: 10pt; margin: 0"><b>Shipping and Handling</b></p><br/><p style="font-size: 10pt; margin: 0">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</p> <p style="font-size: 10pt; text-align: justify; margin: 0"><b>Advertising</b></p><br/><p style="font-size: 10pt; margin: 0">Advertising costs are expensed as incurred. Advertising expenses were $8,220 in 2015, and $19,394 in 2014.</p> 8220 19394 <p style="font-size: 10pt; text-align: justify; margin: 0"><b>Research and Development</b></p><br/><p style="font-size: 10pt; text-align: justify; margin: 0">Research and development costs are charged to operations as incurred.&nbsp;&nbsp;Research and development costs were approximately $261,000 and $394,000 for 2015 and 2014, respectively.</p> 261000 394000 <p style="font-size: 10pt; margin: 0"><b>Revenue Recognition</b></p><br/><p style="font-size: 10pt; margin: 0">The Company recognizes revenue in accordance with the SEC&#x2019;s Staff Accounting Bulletin Topic 13 Revenue Recognition and ASC 605- Revenue Recognition.</p><br/><p style="font-size: 10pt; margin: 0">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company&#x2019;s standard terms specify that shipment is FOB Skyline and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY FMS units as well as shipments of cleaning solution kits. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company&#x2019;s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer&#x2019;s right of return is limited only to the Company&#x2019;s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY FMS unit or significant quantities of cleaning solution kits may be returned. Additionally, since the Company buys both the STREAMWAY FMS units and cleaning solution kits from &#x201c;turnkey&#x201d; suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</p> <p style="font-size: 10pt; margin: 0"><b>Receivables</b></p><br/><p style="font-size: 10pt; margin: 0">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company provides for probable uncollectible amounts through charges to earnings and credits to the valuation based on management&#x2019;s assessment of the current status of individual accounts, changes to the valuation allowance have not been material to the financial statements.</p> <p style="font-size: 10pt; margin: 0"><b>Inventories</b></p><br/><p style="font-size: 10pt; margin: 0">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&nbsp;follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">30,237</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">88,362</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">162,623</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">237,556</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">38,880</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">41,449</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">231,740</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">367,367</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> <p style="font-size: 10pt; margin: 0"><b>Property and Equipment</b></p><br/><p style="font-size: 10pt; margin: 0">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="5" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; width: 85%">Computers and office equipment</td> <td style="font-size: 10pt; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">3 </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">- </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">7</font></td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">5</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing Tooling</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">3 </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">- </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">7</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">3</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">The Company&#x2019;s investment in Fixed Assets consists of the following:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">153,553</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">123,708</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold Improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing Tooling</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">30,576</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-indent: 10pt">Total</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">283,677</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">275,446</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less: Accumulated Depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">144,079</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">78,967</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">139,598</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">196,479</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</p> <p style="font-size: 10pt; margin: 0"><b>Intangible Assets</b></p><br/><p style="font-size: 10pt; margin: 0">Intangible assets consist of trademarks and patent costs. These assets are not subject to amortization until the property patented is in production. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified.</p> <p style="font-size: 10pt; margin: 0"><b>Income Taxes</b></p><br/><p style="font-size: 10pt; margin: 0">The Company accounts for income taxes in accordance with ASC 740- <i>Income Taxes (&#x201c;ASC 740&#x201d;)</i>. Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</p><br/><p style="font-size: 10pt; margin: 0">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</p><br/><p style="font-size: 10pt; margin: 0">Tax years subsequent to 2012 remain open to examination by federal and state tax authorities.</p> 2012 <p style="font-size: 10pt; margin: 0"><b>Patents and Intellectual Property</b></p><br/><p style="font-size: 10pt; margin: 0">On January 25th, 2014 the Company filed a non-provisional PCT Application No. PCT/US2014/013081 claiming priority from the U.S. Provisional Patent Application, number 61756763 which was filed one year earlier on January 25th, 2013. The Patent Cooperation Treaty (&#x201c;PCT&#x201d;) allows an applicant to file a single patent application to seek patent protection for an invention simultaneously in each of the 148 countries of the PCT, including the United States. By filing this single &#x201c;international&#x201d; patent application through the PCT, it is easier and more cost effective than filing separate applications directly with each national or regional patent office in which patent protection is desired.</p><br/><p style="font-size: 10pt; margin: 0">Our PCT patent application is for the new model of the surgical fluid waste management system. We obtained a favorable International Search Report from the PCT searching authority indicating that the claims in our PCT application are patentable (i.e., novel and non-obvious) over the cited prior art. A feature claimed in the PCT application is the ability to maintain continuous suction to the surgical field while measuring, recording and evacuating fluid to the facilities sewer drainage system. This provides for continuous operation of the STREAMWAY System unit in suctioning waste fluids, which means that suction is not interrupted during a surgical operation, for example, to empty a fluid collection container or otherwise dispose of the collected fluid.</p><br/><p style="font-size: 10pt; margin: 0">The Company holds the following granted patents in the United States and a pending application in the United States on its earlier models: US7469727, US8123731 and U.S. Publication No. US20090216205 (collectively, the &#x201c;Patents&#x201d;). These Patents will begin to expire on August 8, 2023.</p><br/><p style="font-size: 10pt; margin: 0">In July 2015, Skyline Medical filed an international (PCT) patent application for its fluid waste collection system and received a favorable determination by the International Searching Authority finding that all of the claims satisfy the requirements for novelty, inventive step and industrial applicability.&nbsp; Skyline anticipates that the favorable International Search Report will result in allowance of its various national applications.</p> <p style="font-size: 10pt; margin: 0pt 0"><b>Credit Risk </b></p><br/><p style="font-size: 10pt; margin: 0pt 0">Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and, by policy, generally limits the amount of credit exposure to any one financial institution. The Company had a credit risk concentration as a result of depositing $4,621,764 of funds in excess of insurance limits in a single bank.</p> 4621764 <p style="font-size: 10pt; margin: 0pt 0"><b>Product Warranty Costs</b></p><br/><p style="font-size: 10pt; margin: 0pt 0">In 2015, the Company incurred approximately $56,201 in current warranty costs.</p> 56201 <p style="font-size: 10pt; margin: 0pt 0"><b>Segments</b></p><br/><p style="font-size: 10pt; margin: 0pt 0">The Company operates in one segment for the sale of its medical device and consumable products. Substantially all of the Company&#x2019;s assets, revenues, and expenses for 2015 and 2014 were located at or derived from operations in the United States. There were no revenues from sales outside of the United States.</p> 1 0 0 <p style="font-size: 10pt; margin: 0pt 0"><b>Risks and Uncertainties</b></p><br/><p style="font-size: 10pt; margin: 0pt 0">The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with regulations of the FDA and other governmental agencies.</p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">30,237</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">88,362</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">162,623</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">237,556</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">38,880</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">41,449</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">231,740</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">367,367</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> 30237 88362 162623 237556 38880 41449 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="5" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; width: 85%">Computers and office equipment</td> <td style="font-size: 10pt; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">3 </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">- </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">7</font></td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">5</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing Tooling</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">3 </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">- </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">7</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: center">3</td> <td style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> P3Y P7Y P5Y P3Y P7Y P3Y <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December&nbsp;31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">153,553</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">123,708</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold Improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing Tooling</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">30,576</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-indent: 10pt">Total</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">283,677</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">275,446</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less: Accumulated Depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">144,079</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">78,967</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">139,598</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">196,479</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> 153553 123708 23874 23874 97288 97288 8962 30576 283677 275446 144079 78967 <p style="font-size: 10pt; margin: 0"><b>NOTE 2 &#x2013; DEVELOPMENT STAGE OPERATIONS</b></p><br/><p style="font-size: 10pt; margin: 0">The Company was formed April 23, 2002. Since inception through December 31, 2015, 5,206,428 shares of common stock have been issued between par value and $125.25. Operations since incorporation have primarily&nbsp;been devoted to raising capital, obtaining financing, development of the Company&#x2019;s product, administrative services, customer acceptance and sales and marketing strategies.</p><br/> 5206428 125.25 <p style="font-size: 10pt; margin: 0"><b>NOTE 3 &#x2013; STOCKHOLDERS&#x2019; EQUITY (DEFICIT), STOCK OPTIONS AND WARRANTS</b></p><br/><p style="font-size: 10pt; margin: 0">Public Offering of Units</p><br/><p style="font-size: 10pt; margin: 0 0 8pt">On August 31, 2015 (the &#x201c;Issuance Date&#x201d;), the Company completed a public offering (the &#x201c;Offering&#x201d;) of 1,666,667 Units (the &#x201c;Units&#x201d;) as described below. The public offering price in the Offering was $9.00 per Unit, and the purchase price for the underwriter of the Offering (the &#x201c;Underwriter&#x201d;) was $8.28 per Unit, resulting in an underwriting discount and commission of $0.72 (or 8.00%) per Unit and total net proceeds to the Company before expenses of $13.8 million. The Company had granted the Underwriter an option for a period of 45 days to purchase up to an additional 250,000 Units solely to cover over-allotments. The Underwriter chose not to purchase any additional Units under the over-allotment option. The Company paid to the Underwriter a non-accountable expense allowance equal to 1% of the gross proceeds of the Offering and agreed to reimburse expenses incurred by the Underwriter up to $70,000.</p><br/><p style="font-size: 10pt; margin: 0 0 8pt">On August 31, 2015, as a result of the communication of the Offering and the issuance of the 228,343 Exchange Units in the Unit Exchange described below, the Company issued a total of 1,895,010 Units, comprised of a total of aggregate of 1,895,010 shares of Common Stock, 1,895,010 shares of Series B Preferred Stock and 7,580,040 Series A Warrants.</p><br/><p style="font-size: 10pt; margin: 0 0 8pt">Each Unit consisted of one share of common stock, par value $0.01 per share (the &#x201c;Common Stock&#x201d;), one share of Series B Convertible Preferred Stock (&#x201c;Series B Preferred Stock&#x201d;) and four Series A Warrants. The shares of Common Stock, the shares of Series B Preferred Stock and the Series A Warrants that comprise the Units automatically separated on February 29, 2016.</p><br/><p style="font-size: 10pt; margin: 0">For a description of the terms of the Series B Convertible Preferred Stock included within the Units, see &#x201c;Certificate of Designation for Series B Preferred Stock&#x201d; below. For a description of the terms of the Series A Warrants included within the Units, see &#x201c;Series A Warrants&#x201d; below.</p><br/><p style="font-size: 10pt; margin: 0"><i>Series A Warrants</i>. The Series A Warrants separated from the Series B Convertible Preferred Stock and the Common Stock included within the Units as described above and are currently exercisable. The Series A Warrants will terminate on August 31, 2020. Each Series A Warrant is exercisable into one share of Common Stock at an initial cash exercise price of $4.95 per share. The exercise price and number of shares of common stock issuable upon exercise is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting the Common Stock and the exercise price.</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt">Holders may exercise Series A Warrants by paying the exercise price in cash or, in lieu of payment of the exercise price in cash, by electing to receive a number of shares of Common Stock equal to the Black Scholes Value (as defined below) based upon the number of shares the holder elects to exercise. The number of shares of Common Stock to be delivered will be determined according to the following formula, referred to as the &#x201c;Cashless Exercise.&#x201d;</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt">Total Shares = (A x B) / C</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt">Where:</p><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font-size: 10pt"> <tr style="vertical-align: top"> <td style="width: 25px">&nbsp;</td> <td style="width: 24px"><font style="font-family: Symbol; font-size: 10pt">&middot;</font></td> <td><font style="font-size: 10pt">Total Shares is the number of shares of Common Stock to be issued upon a Cashless Exercise.</font></td> </tr> <tr style="vertical-align: top"> <td>&nbsp;</td> <td><font style="font-family: Symbol; font-size: 10pt">&middot;</font></td> <td><font style="font-size: 10pt">A is the total number of shares with respect to which the Series A Warrant is then being exercised.</font></td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font-size: 10pt"> <tr style="vertical-align: top"> <td style="width: 25px">&nbsp;</td> <td style="width: 24px"><font style="font-family: Symbol; font-size: 10pt">&middot;</font></td> <td><font style="font-size: 10pt">B is the Black Scholes Value (as defined below).</font></td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font-size: 10pt"> <tr style="vertical-align: top"> <td style="width: 25px">&nbsp;</td> <td style="width: 24px"><font style="font-family: Symbol; font-size: 10pt">&middot;</font></td> <td><font style="font-size: 10pt">C is the closing bid price of the Common Stock as of two trading days prior to the time of such exercise, provided that in no event may &#x201c;C&#x201d; be less than $0.43 per share (subject to appropriate adjustment in the event of stock dividends, stock splits or similar events affecting the Common Stock).</font></td> </tr> </table><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt">The Black Scholes Value (as defined above) as of March 11, 2016 was $4.3246, and the closing bid price of Common Stock as of March 11, 2016, was $0.18. Therefore, an exercise on that date would have resulted in the issuance of 10.06 shares of Common Stock for each Series A Warrant. Approximately 3,390,935 Series A Warrants have been exercised in cashless exercises as of March 11, 2016, resulting in the issuance of 34,053,653 shares of Common Stock. If all of the remaining 4,189,105 Series A Warrants that were issued as part of the Units sold in the Offering and part of the Units issued on August 31, 2015 were exercised pursuant to a cashless exercise and the closing bid price of our common stock as of the two trading days prior to the time of such exercise was $0.43 per share or less and the Black Scholes Value were $4.3246 (the Black Scholes Value as of March 11, 2016), then a total of approximately 76,184,359 shares of our common stock would be issued to the holders of such Series A Warrants. The potential for such dilutive exercise of the Series A Warrants may depress the price of our common stock regardless of the Company&#x2019;s business performance, and could encourage short selling by market participants, especially if the trading price of our common stock begins to decrease.</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt">The Series A Warrants will not be exercisable or exchangeable by the holder of such warrants to the extent (and only to the extent) that the holder or any of its affiliates would beneficially own in excess of 4.99% of the common stock of the Company, determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder.</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt">In addition to (but not duplicative of) the adjustments to the exercise price and the number of shares of Common Stock issuable upon exercise of the Series A Warrants in the event of stock dividends, stock splits, reorganizations or similar events, the Series A Warrants provide for certain adjustments if the Company, at any time prior to the three year anniversary of the Issuance Date, (1) declares or makes any dividend or other distribution of its assets (or rights to acquire its assets) to all or substantially all of the holders of shares of Common Stock at any time after the Issuance Date, or (2) grants, issues or sells any options, convertible securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders of any class of shares of Common Stock.&nbsp; Further, if at any time a Series A Warrant is outstanding, the Company consummates any fundamental transaction, as described in the Series A Warrants and generally including any consolidation or merger into another corporation, or the sale of all or substantially all of our assets, or other transaction in which the Common Stock is converted into or exchanged for other securities or other consideration, the holder of any Series A Warrants will thereafter receive, the securities or other consideration to which a holder or the number of shares of Common Stock then deliverable upon the exercise or exchange of such Series A Warrants would have been entitled upon such consolidation or merger or other transaction.</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt"><i>Unit Purchase Option.</i> The Company, in connection with the Offering, entered into a Unit Purchase Option Agreement, dated as of August 31, 2015 (the &#x201c;Unit Purchase Option&#x201d;), pursuant to which the Company granted the Underwriter the right to purchase from the Company up to a number of Units equal to 5% of the Units sold in the Offering (or up to 83,333 Units) at an exercise price equal to 125% of the public offering price of the Units in the Offering, or $11.25 per Unit. The Unit Purchase Option expires on August 25, 2018.</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt"><i>Series B Preferred Stock.</i> Each share of Series B Preferred Stock is convertible into one share of Common Stock (subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events) on the six month anniversary of the Issuance Date or on the date of an Early Separation. In addition, the Series B Preferred Stock will automatically convert into shares of common stock upon the occurrence of a fundamental transaction, as described in the certificate of designations for the Series B Preferred Stock but including mergers, sales of the company&#x2019;s assets, changes in control and similar transactions. The Series B Preferred Stock is not convertible by the holder of such preferred stock to the extent (and only to the extent that the holder or any of its affiliates would beneficially own in excess of 4.99% of the common stock of the Company. The Series B Preferred Stock has no voting rights, except for the right to approve certain amendments to the certificate of designations or similar actions. With respect to payment of dividends and distribution of assets upon liquidation or dissolution or winding up of the Company, the Series B Preferred Stock shall rank equal to the common stock of the Company. No sinking fund has been established for the retirement or redemption of the Series B Preferred Stock.</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt"><i>Unit Exchange.</i> On February 4, 2014, the Company raised $2,055,000 in gross proceeds from a private placement of 20,550 shares of Series A Convertible Preferred Stock, par value $0.01, with a stated value of $100 per share (the &#x201c;Series A Preferred Shares&#x201d;) and warrants to purchase shares of the Company&#x2019;s common stock. The Series A Preferred Shares and warrants were sold to investors pursuant to a Securities Purchase Agreement, dated as of February 4, 2014. On August 31, 2015, the Company issued a total of 228,343 Units (the &#x201c;Exchange Units&#x201d;) in exchange for the outstanding Series A Preferred Stock which were then cancelled pursuant to an agreement with the holders of the Series A Preferred Shares. The warrants that were issued in connection with the issuance of the Series A Preferred Shares remained outstanding; however, the warrant amounts were reduced so that the warrants are exercisable into an aggregate of 84,770 shares of the Company&#x2019;s common stock. The Exchange Units were exempt from registration under Section 3(a)(9) of the Securities Act. On August 31, 2015, the Company filed a termination certificate with the Delaware Secretary of State. Following that date there were no shares of Series A Preferred Stock outstanding, and the previously authorized shares of Series A Preferred Stock resumed the status of authorized but unissued and undesignated shares of preferred stock of the Company.</p><br/><p style="font-size: 10pt; margin: 6pt 0.75pt 8pt"><i>Redemption of Convertible Notes. </i>In connection with the closing of the Offering, $933,074 aggregate principal amount of Convertible Notes plus interest and a 40% redeemable premium were redeemed for total payments of $1,548,792. See Note 4. Of this amount, approximately $167,031 was paid to its affiliates in redemption of their Convertible Notes.</p><br/><p style="font-size: 10pt; margin: 0">Equity Incentive Plan</p><br/><p style="font-size: 10pt; margin: 0">The Company has an equity incentive plan, which allows issuance of incentive and non-qualified stock options to employees, directors and consultants of the Company, where permitted under the plan. The exercise price for each stock option is determined by the Board of Directors. Vesting requirements are determined by the Board of Directors when granted and currently range from immediate to three years. Options under this plan have terms ranging from three to ten years.</p><br/><p style="font-size: 10pt; margin: 0"><i>Accounting for share-based payment</i></p><br/><p style="font-size: 10pt; margin: 0">The Company has adopted ASC 718- <i>Compensation-Stock Compensation </i>("ASC 718"). Under ASC 718 stock-based employee compensation cost is recognized using the fair value based method for all new awards granted after January 1, 2006 and unvested awards outstanding at January 1, 2006. Compensation costs for unvested stock options and non-vested awards that were outstanding at January 1, 2006, are being recognized over the requisite service period based on the grant-date fair value of those options and awards, using a straight-line method. We elected the modified-prospective method under which prior periods are not retroactively restated.</p><br/><p style="font-size: 10pt; margin: 0">ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model or other acceptable means. The Company uses the Black-Scholes option valuation model which requires the input of significant assumptions including an estimate of the average period of time employees will retain vested stock options before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based compensation and, consequently, the related expense recognized. The assumptions the Company uses in calculating the fair value of stock-based payment awards represent the Company's best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based compensation expense could be materially different in the future.</p><br/><p style="font-size: 10pt; margin: 0">Since the Company's common stock has no significant public trading history, and the Company has experienced no significant option exercises in its history, the Company is required to take an alternative approach to estimating future volatility and estimated life and the future results could vary significantly from the Company's estimates. The Company compiled historical volatilities over a period of 2 to 7 years of 15 small-cap medical companies traded on major exchanges and 10 mid-range medical companies on the OTC Bulletin Board and combined the results using a weighted average approach. In the case of ordinary options to employees the Company determined the expected life to be the midpoint between the vesting term and the legal term. In the case of options or warrants granted to non-employees, the Company estimated the life to be the legal term unless there was a compelling reason to make it shorter.</p><br/><p style="font-size: 10pt; margin: 0">When an option or warrant is granted in place of cash compensation for services, the Company deems the value of the service rendered to be the value of the option or warrant. In most cases, however, an option or warrant is granted in addition to other forms of compensation and its separate value is difficult to determine without utilizing an option pricing model. For that reason the Company also uses the Black-Scholes option-pricing model to value options and warrants granted to non-employees, which requires the input of significant assumptions including an estimate of the average period the investors or consultants will retain vested stock options and warrants before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options and warrants that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based consulting and/or compensation and, consequently, the related expense recognized.</p><br/><p style="font-size: 10pt; margin: 0">Since the Company has limited trading history in its stock and no first-hand experience with how its investors and consultants have acted in similar circumstances, the assumptions the Company uses in calculating the fair value of stock-based payment awards represent its best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based consulting and interest expense could be materially different in the future.</p><br/><p style="font-size: 10pt; margin: 0"><i>Valuation and accounting for options and warrants</i></p><br/><p style="font-size: 10pt; margin: 0">The Company determines the grant date fair value of options and warrants using a Black-Scholes option valuation model based upon assumptions regarding risk-free interest rate, expected dividend rate, volatility and estimated term.</p><br/><p style="font-size: 10pt; margin: 0">In January 2014 the Company issued 4,336 shares of common stock to the former CEO at $1.25 per share upon his exercising options.</p><br/><p style="font-size: 10pt; margin: 0">In January through March 2014, 9 warrant holders exercised warrants through a cashless exercise for a total of 15,442 shares of common stock.</p><br/><p style="font-size: 10pt; margin: 0">In January and February 2014 the Company issued warrants to purchase 21,538 shares pursuant to a February 4, 2014 private placement whereby the Company issued 20,550 shares of Series A Convertible Preferred Stock raising gross proceeds of $2,055,000. The warrants are at an exercise price of $24.38.</p><br/><p style="font-size: 10pt; margin: 0">In February 2014 the Company issued a warrant to purchase 1,482 shares of common stock at an exercise price of $20.25 to a major shareholder Dr. Samuel Herschkowitz. The warrant is in consideration for a bridge loan extended in December 2013 that has been paid in February 2014.</p><br/><p style="font-size: 10pt; margin: 0">On March 31, 2014, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $19.50 per share. As a result 970 shares of common stock were issued to 16 holders of Preferred Shares.</p><br/><p style="font-size: 10pt; margin: 0">In March 2014, the Company issued 4,444 shares of common stock to a warrant holder for a partial cash exercise at $11.25 per share; issued 3,333 shares to the holder via the cashless exercise of the remainder of the warrant.</p><br/><p style="font-size: 10pt; margin: 0">In June 2014, the Company issued 3,725 shares of common stock to a warrant holder exercising cashless warrants.</p><br/><p style="font-size: 10pt; margin: 0">On June 30, 2014, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $19.50 per share. As a result 1,561 shares of common stock were issued to 16 holders of Preferred Shares.</p><br/><p style="font-size: 10pt; margin: 0">On June 30, 2014, the Company issued a warrant to purchase 5,431 shares of common stock at an exercise price of $12.38 to SOK Partners, LLC, in consideration for a bridge loan in the form of convertible notes. On September 9, 2014 the Resale Registration Statement went into effect. The convertible note agreement provided an immediate approximately 11% reduction to the warrant agreement. Therefore, the warrant has been adjusted to purchase 4,831 shares of common stock at an exercise price of $12.38 to SOK Partners, LLC in consideration for a bridge loan.</p><br/><p style="font-size: 10pt; margin: 0">In July 2014, the Company issued warrants to purchase 28,986 shares of common stock at an exercise price of $12.38 to two lenders in consideration for a bridge loan in the form of convertible notes. The shares above reflect approximately an 11% reduction resulting from the Resale Registration Statement that went effective September 9, 2014.</p><br/><p style="font-size: 10pt; margin: 0">In August 2014, the Company issued warrants to purchase 61,539 of common stock at an exercise price of $24.38 to the Purchasers of the Preferred Shares. The Securities Purchase Agreement with the Preferred Shareholders stipulated that if the Company was not listed on either the NASDAQ Stock Market, the New York Stock Exchange or the NYSE MKT within 180 days of closing the agreement then warrants to purchase the above additional shares would be issued in aggregate to the Preferred Shareholders.</p><br/><p style="font-size: 10pt; margin: 0">In August and September 2014, the Company issued warrants to purchase 37,440 shares of common stock at an exercise price of $12.38 to four lenders in consideration for a bridge loan in the form of convertible notes. The shares above reflect the approximate 11% reduction resulting from the Resale Registration Statement that went effective September 9, 2014.</p><br/><p style="font-size: 10pt; margin: 0">On September 30, 2014, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $19.50 per share. As a result 1,561 shares of common stock were issued to 16 holders of Preferred Shares.</p><br/><p style="font-size: 10pt; margin: 0">In November 2014, the Company issued 13,700 shares of common stock, par value $0.01, in escrow for debt settlement.</p><br/><p style="font-size: 10pt; margin: 0">On December 31, 2014, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $19.50 per share. As a result 1,559 shares of common stock were issued to 16 holders of Preferred Shares.</p><br/><p style="font-size: 10pt; margin: 0">For grants of stock options and warrants in 2014 the Company used a 1.44% to 2.75% risk-free interest rate, 0% dividend rate, 59% or 66% volatility and estimated terms of 5 or 10 years. Value computed using these assumptions ranged from $3.2006 to $13.9195&nbsp;per share.</p><br/><p style="font-size: 10pt; margin: 0">In January 2015, the Company issued a dividend adjustment to the Purchasers of the Preferred Shares as described above. Certain previous dividends paid were calculated with an exercise price of $19.50 per share, but should have been calculated at $9.75 per share. As a result 3,122 shares of common stock were issued to 16 holders of Preferred Shares.</p><br/><p style="font-size: 10pt; margin: 0">On March 31, 2015, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $9.75 per share. As a result 3,121 shares of common stock were issued to 16 holders of Preferred Shares.</p><br/><p style="font-size: 10pt; margin: 0">On June 30, 2015, the Company issued dividends to Purchases of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $9.75 per share. As a result 3,121 shares of common stock were issued to 16 holders of Preferred Shares.</p><br/><p style="font-size: 10pt; margin: 0">For grants of stock options and warrants in 2015 the Company used a 1.63% to 2.35% risk-free interest rate, 0% dividend rate, 59% to 66% volatility and estimated terms of 5 to 10 years. Value computed using these assumptions ranged from $0.2750 to $5.5695 per share.</p><br/><p style="font-size: 10pt; margin: 0">The following summarizes transactions for stock options and warrants for the periods indicated:&nbsp;</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt">Stock&nbsp;Options</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt">Warrants</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">&nbsp;<br /> Number&nbsp;of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Average<br /> Exercise<br /> Price</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">&nbsp;<br /> Number&nbsp;of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Average<br /> Exercise<br /> Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Outstanding at December 31, 2013</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">385,733</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">6.75</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">461,920</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">10.50</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">75,683</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.12</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">161,375</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.81</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">(7,879</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23.58</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">(81,851</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">13.54</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(4,936</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1.76</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(40,722</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8.38</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Outstanding at December 31, 2014</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">448,601</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">7.51</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">500,722</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">7.95</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">354,253</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.76</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7,581,722</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">4.95</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Cancelled</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">(19,136</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">11.73</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">(1,967</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">11.34</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(3,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.95</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Outstanding at December 31, 2015</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">783,718</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">5.33</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">8,077,477</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">5.14</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">At December 31, 2015, 780,718 stock options are fully vested and currently exercisable with a weighted average exercise price of $5.29 and a weighted average remaining term of 8.17 years. There are 8,077,477 warrants that are fully vested and exercisable. Stock-based compensation recognized in 2015 and 2014 was $871,877 and $723,367, respectively. The Company has $32,682 of unrecognized compensation expense related to non-vested stock options that are expected to be recognized over the next 2 months.</p><br/><p style="font-size: 10pt; margin: 0">The following summarizes the status of options and warrants outstanding at December 31, 2015:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid">Range&nbsp;of&nbsp;Exercise&nbsp;Prices</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Weighted <br /> Average <br /> Remaining <br /> Life</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Options:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left">$0.75</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">7,333</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">5.52</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$2.63</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">250,481</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.81</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$2.94</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">30,614</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">10.01</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$3.10</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">59,681</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.50</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$3.21</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6,232</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.76</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$3.45</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7,245</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.25</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$4.875</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">134</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.20</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$5.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2,031</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6.69</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$5.625</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">192,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.21</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$5.925</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,206</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.22</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$6.00</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">123,998</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6.63</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$6.50</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,845</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.01</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$8.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,636</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.76</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$9.9375</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,019</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.54</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$10.50</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,238</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.54</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$11.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">13,666</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.09</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$12.75</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">67</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.36</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$13.875</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2,160</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.25</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$71.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">40,261</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.19</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$18.75</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,334</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.15</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$20.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">4,940</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.01</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$21.75</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">1,336</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.77</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">$23.85</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,260</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right">7.75</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">783,718</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Warrants:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$4.95</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7,577,040</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">4.67</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$6.00</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">102,857</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.20</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$9.00</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2,666</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.07</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$9.75</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">63,227</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.59</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$11.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">203,801</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.02</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$12.375</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">71,257</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.61</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$12.38</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">5,557</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.85</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$13.50</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">4,444</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.47</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$14.85</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,612</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.41</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$20.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">1,481</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.13</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">$24.375</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">21,535</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right">3.10</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">8,077,477</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">Stock options and warrants expire on various dates from June 2017 to December 2025.&nbsp;</p><br/><p style="font-size: 10pt; margin: 0">On July 24, 2015, an amendment to the Certificate of Incorporation became effective, pursuant to which the authorized common stock was increased to 100,000,000 shares of common stock and the authorized preferred stock was increased to 20,000,000 shares.</p><br/><p style="font-size: 10pt; margin: 0"><b>Stock Options and Warrants Granted by the Company</b></p><br/><p style="font-size: 10pt; margin: 0">The following table is the listing of stock options and warrants as of December 31, 2015 by year of grant:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left">Year</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="5" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; font-size: 10pt; text-align: left">2011</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 12%; font-size: 10pt; text-align: right">11,666</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left"></td> <td style="width: 4%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 4%; font-size: 10pt; text-align: center">.75</td> <td style="width: 4%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2012</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">126,029</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">5.25</font></td> <td style="font-size: 10pt; text-align: center">&#x2013;<font style="font-size: 10pt"> </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">6.00</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">232,756</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">4.875</font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">&#x2013; </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">23.85</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">59,013</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6.50</td> <td style="font-size: 10pt; text-align: center">&#x2013;</td> <td style="font-size: 10pt; text-align: left">18.75</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">2015</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">354,253</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">2.63</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&#x2013;<font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 10pt">3.45</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">783,718</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"> <font style="font-size: 10pt">.75</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: center">&#x2013;<font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 10pt">23.85</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/><p style="margin: 0">Warrants:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Year</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="5" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; font-size: 10pt; text-align: left">2012</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 12%; font-size: 10pt; text-align: right">69,801</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 4%; font-size: 10pt; text-align: right">11.25</td> <td style="width: 4%; font-size: 10pt; text-align: center">&#x2013;</td> <td style="width: 4%; font-size: 10pt; text-align: left">15.00</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">267,579</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6.00</td> <td style="font-size: 10pt; text-align: center">&#x2013;</td> <td style="font-size: 10pt; text-align: left">14.85</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">161,375</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">12.375</font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">&#x2013; </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">24.375</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">2015</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">7,578,722 </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">4.95</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">8,077,477 </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 10pt">4.95</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: center">&#x2013;<font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 10pt">24.375</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/> 1666667 9.00 8.28 0.72 0.0800 13800000 P45D 250000 0 0.01 70000 228343 1895010 1895010 1895010 7580040 1 0.01 1 4 1 4.95 2 0.43 4.3246 0.18 10.06 3390935 34053653 4189105 76184359 0.0499 P3Y 0.05 83333 1.25 11.25 1 0.0499 2055000 20550 0.01 100 228343 84770 933074 0.40 1548792 167031 P3Y P3Y P10Y 4336 1.25 15442 21538 24.38 1482 20.25 0.06 19.50 970 16 4444 11.25 3333 3725 0.06 19.50 1561 16 5431 12.38 0.11 4831 12.38 28986 12.38 0.11 61539 24.38 P180D 37440 12.38 0.11 0.06 19.50 1561 16 13700 0.01 0.06 19.50 1559 16 0.0144 0.0275 0.00 0.59 0.66 P5Y P10Y 3.2006 13.9195 19.50 9.75 3122 16 0.06 9.75 3121 16 0.06 9.75 3121 16 0.0163 0.0235 0.00 0.59 0.66 P5Y P10Y 0.2750 5.5695 780718 5.29 P8Y62D 8077477 871877 723367 32682 P2M 100000000 20000000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt">Stock&nbsp;Options</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt">Warrants</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">&nbsp;<br /> Number&nbsp;of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Average<br /> Exercise<br /> Price</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">&nbsp;<br /> Number&nbsp;of<br /> Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;<br /> &nbsp;<br /> &nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Average<br /> Exercise<br /> Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Outstanding at December 31, 2013</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">385,733</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">6.75</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">461,920</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">10.50</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">75,683</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.12</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">161,375</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.81</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">(7,879</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23.58</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">(81,851</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">13.54</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(4,936</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1.76</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(40,722</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8.38</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Outstanding at December 31, 2014</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">448,601</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">7.51</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">500,722</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">7.95</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">354,253</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.76</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7,581,722</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">4.95</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Cancelled</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">(19,136</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">11.73</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">(1,967</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">11.34</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(3,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.95</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Outstanding at December 31, 2015</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">783,718</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">5.33</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">8,077,477</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">5.14</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> 385733 6.75 461920 10.50 75683 8.12 161375 3.81 7879 23.58 81851 13.54 4936 1.76 40722 8.38 448601 7.51 500722 7.95 354253 2.76 7581722 4.95 19136 11.73 1967 11.34 3000 4.95 783718 5.33 8077477 5.14 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid">Range&nbsp;of&nbsp;Exercise&nbsp;Prices</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Weighted <br /> Average <br /> Remaining <br /> Life</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Options:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left">$0.75</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">7,333</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right">5.52</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$2.63</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">250,481</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.81</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$2.94</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">30,614</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">10.01</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$3.10</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">59,681</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.50</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$3.21</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6,232</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.76</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$3.45</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7,245</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.25</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$4.875</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">134</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.20</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$5.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2,031</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6.69</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$5.625</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">192,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.21</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$5.925</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,206</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.22</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$6.00</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">123,998</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6.63</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$6.50</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,845</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9.01</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$8.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,636</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.76</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$9.9375</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,019</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.54</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$10.50</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,238</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.54</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$11.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">13,666</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.09</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$12.75</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">67</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.36</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$13.875</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2,160</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.25</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$71.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">40,261</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.19</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$18.75</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,334</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.15</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$20.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">4,940</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">8.01</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$21.75</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">1,336</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7.77</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">$23.85</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,260</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right">7.75</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">783,718</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Warrants:</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td>&nbsp;</td> <td style="text-align: left">&nbsp;</td> <td style="text-align: right">&nbsp;</td> <td style="text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$4.95</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">7,577,040</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">4.67</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$6.00</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">102,857</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.20</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$9.00</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2,666</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.07</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$9.75</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">63,227</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.59</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$11.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">203,801</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.02</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$12.375</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">71,257</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.61</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$12.38</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">5,557</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.85</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$13.50</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">4,444</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.47</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">$14.85</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">23,612</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2.41</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">$20.25</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">1,481</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3.13</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">$24.375</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">21,535</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right">3.10</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">8,077,477</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: right">&nbsp;</td> <td style="padding-bottom: 2.25pt; text-align: left">&nbsp;</td> </tr> </table> 0.75 7333 P5Y189D 2.63 250481 P9Y295D 2.94 30614 P10Y3D 3.10 59681 P9Y6M 3.21 6232 P9Y277D 3.45 7245 P9Y3M 4.875 134 P7Y73D 5.25 2031 P6Y251D 5.625 192000 P7Y76D 5.925 23206 P7Y80D 6.00 123998 P6Y229D 6.50 3845 P9Y3D 8.25 3636 P8Y277D 9.9375 3019 P7Y197D 10.50 3238 P7Y197D 11.25 13666 P7Y32D 12.75 67 P7Y131D 13.875 2160 P8Y3M 71.25 40261 P8Y69D 18.75 3334 P8Y54D 20.25 4940 P8Y3D 21.75 1336 P7Y281D 23.85 1260 P7Y9M 783718 4.95 7577040 P4Y244D 6.00 102857 P2Y73D 9.00 2666 P2Y25D 9.75 63227 P3Y215D 11.25 203801 P2Y7D 12.375 71257 P3Y222D 12.38 5557 P3Y310D 13.50 4444 P2Y171D 14.85 23612 P2Y149D 20.25 1481 P3Y47D 24.375 21535 P3Y36D 8077477 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left">Year</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="5" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; font-size: 10pt; text-align: left">2011</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 12%; font-size: 10pt; text-align: right">11,666</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left"></td> <td style="width: 4%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 4%; font-size: 10pt; text-align: center">.75</td> <td style="width: 4%; font-size: 10pt; text-align: center">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2012</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">126,029</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">5.25</font></td> <td style="font-size: 10pt; text-align: center">&#x2013;<font style="font-size: 10pt"> </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">6.00</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">232,756</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">4.875</font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">&#x2013; </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">23.85</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">59,013</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6.50</td> <td style="font-size: 10pt; text-align: center">&#x2013;</td> <td style="font-size: 10pt; text-align: left">18.75</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">2015</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">354,253</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 10pt">2.63</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">&#x2013;<font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 10pt">3.45</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">783,718</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"> <font style="font-size: 10pt">.75</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: center">&#x2013;<font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 10pt">23.85</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Year</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="5" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 70%; font-size: 10pt; text-align: left">2012</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 12%; font-size: 10pt; text-align: right">69,801</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 4%; font-size: 10pt; text-align: right">11.25</td> <td style="width: 4%; font-size: 10pt; text-align: center">&#x2013;</td> <td style="width: 4%; font-size: 10pt; text-align: left">15.00</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">267,579</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">6.00</td> <td style="font-size: 10pt; text-align: center">&#x2013;</td> <td style="font-size: 10pt; text-align: left">14.85</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">161,375</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">12.375</font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">&#x2013; </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">24.375</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">2015</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">7,578,722 </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">4.95</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">8,077,477 </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 10pt">4.95</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: center">&#x2013;<font style="font-size: 10pt"> </font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 10pt">24.375</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> 11666 0.75 126029 5.25 6.00 232756 4.875 23.85 59013 6.50 18.75 354253 2.63 3.45 0.75 23.85 69801 11.25 15.00 267579 6.00 14.85 161375 12.375 24.375 7578722 4.95 4.95 24.375 <p style="font-size: 10pt; margin: 0"><b>NOTE 4 &#x2013; SHORT-TERM NOTES PAYABLE</b>&nbsp;</p><br/><p style="font-size: 10pt; margin: 0">From July through September 2014, we entered into a series of securities purchase agreements pursuant to which we issued approximately $1.8 million original principal amount (subsequently reduced to approximately $1.6 million aggregate principal amount in accordance with their terms) of convertible promissory notes (the &#x201c;2014 Convertible Notes&#x201d;) and warrants exercisable for shares of our common stock for an aggregate purchase price of $1,475,000. Of this amount, we issued to SOK Partners, LLC, an affiliate of the Company, $122,196 original principal amount of the 2014 Convertible Notes and warrants exercisable for 5,431 shares of our common stock for an aggregate purchase price of $100,000. In April and May 2015, we issued and sold to a private investor additional Convertible Notes in an aggregate original principal amount of $275,000 for an aggregate purchase price of $250,000, containing terms substantially similar to the 2014 Convertible Notes (the &#x201c;2015 Convertible Notes&#x201d; and, together with the 2014 Convertible Notes, the &#x201c;Convertible Notes&#x201d;). No warrants were issued with the 2015 Convertible Notes.</p><br/><p style="font-size: 10pt; margin: 0">Under a provision in the existing agreements, upon effectiveness of a resale registration statement covering certain shares, on September 9, 2014, the principal amount of the notes was reduced by 11%, to $1,603,260 and the number of Warrants was reduced by 11%, to 71,257 shares.</p><br/><p style="font-size: 10pt; margin: 0">As of June 30, 2015, $927,663 aggregate principal amount of Convertible Notes, plus accrued and unpaid interest thereto, have been converted into shares of our common stock and $933,073 aggregate principal amount of Convertible Notes remained outstanding.</p><br/><p style="font-size: 10pt; margin: 0 0 8pt; ">In connection with the Offering, the holders of the Convertible Notes agreed to not exercise their right to convert the Convertible Notes into shares of the Company&#x2019;s common stock, in exchange for the Company&#x2019;s agreement to redeem all of the outstanding Convertible Notes promptly following the consummation of the Offering at a redemption price equal to 140% of the principal amount, plus accrued and unpaid interest to the redemption date. On August 31, 2015, the closing date of the offering, the Company redeemed the remaining $933,074 aggregate principal amount of Convertible Notes plus interest and a 40% redeemable premium, for a total payment of $1,548,792. Of this amount, approximately $167,031 was paid to its affiliates in redemption of their Convertible Notes. Each holder of the Convertible Notes agreed to the foregoing terms and entered into an Amendment to Senior Convertible Notes and Agreement with the Company. As of December 31, 2015 none of the Convertible Notes were outstanding.</p><br/> 1800000 1600000 1475000 122196 5431 100000 275000 250000 0 0.11 1603260 0.11 71257 927663 933073 1.40 0 <p style="font-size: 10pt; margin: 0"><b>NOTE 5 - LOSS PER SHARE</b></p><br/><p style="font-size: 10pt; margin: 0">The following table presents the shares used in the basic and diluted loss per common share computations:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Year Ended<br /> December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Numerator:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left">Net loss available in basic and diluted calculation</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(4,790,530</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(6,833,568</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Denominator:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,880,828</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2,990,471</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Effect of dilutive stock options, warrants and preferred stock (1)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Weighted average common shares outstanding-diluted</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,880,828</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,990,471</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Loss per common share-basic and diluted</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(1.23</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(2.29</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">(1) The number of shares underlying options and warrants outstanding as of December 31, 2015 and December 31, 2014 are 8,861,195 and 949,323, respectively. The number of shares underlying the preferred stock as of December 31, 2015 is 1,898,010. The effect of the shares that would be issued upon exercise of such options, warrants and preferred stock has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive.</p><br/> 8861195 949323 1898010 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Year Ended<br /> December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Numerator:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left">Net loss available in basic and diluted calculation</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(4,790,530</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(6,833,568</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Denominator:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">3,880,828</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">2,990,471</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Effect of dilutive stock options, warrants and preferred stock (1)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Weighted average common shares outstanding-diluted</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,880,828</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2,990,471</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Loss per common share-basic and diluted</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(1.23</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(2.29</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> </tr> </table> 3880828 2990471 3880828 2990471 <p style="font-size: 10pt; margin: 0"><b>NOTE 6&#x2013; INCOME TAXES </b></p><br/><p style="font-size: 10pt; margin: 0">The provision for income taxes consists of an amount for taxes currently payable and a provision for tax consequences deferred to future periods.&nbsp; Deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.&nbsp; Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.</p><br/><p style="font-size: 10pt; margin: 0">There is no income tax provision in the accompanying statements of operations due to the cumulative operating losses that indicate a 100% valuation allowance for the deferred tax assets and state income taxes is appropriate.</p><br/><p style="font-size: 10pt; margin: 0">During September 2013, the Company experienced an "ownership change" as defined in Section 382 of the Internal Revenue Code which could potentially limit the ability to utilize the Company&#x2019;s net operating losses (NOLs). The general limitation rules allow the Company to utilize its NOLs subject to an annual limitation that is determined by multiplying the federal long-term tax-exempt rate by the Company&#x2019;s value immediately before the ownership change.</p><br/><p style="font-size: 10pt; margin: 0">At December 31, 2014, the Company had approximately $18.7 million of gross NOLs to reduce future federal taxable income, the majority of which are expected to be available for use in 2015, subject to the Section 382 limitation described above. The federal NOLs will expire beginning in 2022 if unused. The Company also had approximately $12.4 million of gross NOLs to reduce future state taxable income at December 31, 2014, which will expire in years 2022 through 2034 if unused. The Company's net deferred tax assets, which include the NOLs, are subject to a full valuation allowance. At December 31, 2014, the federal and state valuation allowances were $8.1 million and $1.0 million, respectively.</p><br/><p style="font-size: 10pt; margin: 0">At December 31, 2015, the Company had approximately $ 24.7 million of gross NOLs to reduce future federal taxable income, the majority of which are expected to be available for use in 2016, subject to the Section 382 limitation described above. The federal NOLs will expire beginning in 2022 if unused. The Company also had approximately $ 13.4 million of gross NOLs to reduce future state taxable income at December 31, 2015, which will expire in years 2022 through 2035 if unused. The Company&#x2019;s net deferred tax assets, which include the NOLs are subject to a full valuation allowance. At December 31, 2015, the federal and state valuation allowances were $ 9.6 million and $1.1 million, respectively.</p><br/><p style="font-size: 10pt; margin: 0">The valuation allowance has been recorded due to the uncertainty of realization of the benefits associated with the net operating losses. Future events and changes in circumstances could cause this valuation allowance to change.</p><br/><p style="font-size: 10pt; margin: 0">The components of deferred income taxes at December 31, 2015 and December 31, 2014 are as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred Tax Asset:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left">Net Operating Loss</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">10,338,000</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">7,919,000</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">359,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,150,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Total Deferred Tax Asset</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">10,697,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9,069,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less Valuation Allowance</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">10,697,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9,069,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Net Deferred Income Taxes</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">&#x2014;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">&#x2014;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/> 0 1.00 18700000 12400000 8100000 1000000 24700000 13400000 9600000 1100000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2014</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred Tax Asset:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left">Net Operating Loss</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">10,338,000</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">7,919,000</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">359,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,150,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Total Deferred Tax Asset</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">10,697,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">9,069,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less Valuation Allowance</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">10,697,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9,069,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Net Deferred Income Taxes</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">&#x2014;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">&#x2014;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> 10338000 7919000 359000 1150000 10697000 9069000 10697000 9069000 0 0 <p style="font-size: 10pt; margin: 0"><b>NOTE&nbsp;7 &#x2013; RENT OBLIGATION</b></p><br/><p style="font-size: 10pt; margin: 0">The Company leases its principal office under a lease that can be cancelled after three years with proper notice per the lease and an amortized schedule of adjustments that will be due to the landlord. The lease extends five years and expires January 2018. In addition to rent, the Company pays real estate taxes and repairs and maintenance on the leased property. Rent expense was $66,345 and $64,753 for 2015 and 2014, respectively.</p><br/><p style="font-size: 10pt; margin: 0">The&nbsp;Company&#x2019;s rent obligation for the next three years are as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 87%; font-size: 10pt; text-align: left">2016</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">38,000</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2017</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">39,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2018</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">3,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table><br/> P3Y P5Y 66345 64753 P3Y <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 87%; font-size: 10pt; text-align: left">2016</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">38,000</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2017</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">39,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2018</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">3,000</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> 38000 39000 3000 <p style="font-size: 10pt; margin: 0"><b>NOTE 8 &#x2013; LIABILITY FOR EQUITY-LINKED FINANCIAL INSTRUMENTS</b></p><br/><p style="font-size: 10pt; margin: 0">The Company adopted ASC 815- Derivatives and Hedging (&#x201c;ASC 815&#x201d;) on January 1, 2009. ASC 815 mandates a two-step process for evaluating whether an equity-linked financial instrument or embedded feature is indexed to the entity's own stock. It was effective for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years, which was the Company's first quarter of 2009. Many of the warrants issued by the Company contain a strike price adjustment feature, which upon adoption of ASC 815, changed the classification (from equity to liability) and the related accounting for warrants with a $479,910 estimated fair value of as of January 1, 2009. An adjustment was made to remove $486,564 from paid-in capital (the cumulative values of the warrants on their grant dates), a positive adjustment of $6,654 was made to accumulated deficit, representing the gain on valuation from the grant date to January 1, 2009, and $479,910 was booked as a liability. The warrants issued in 2011 do not contain a strike price adjustment feature and, therefore, are not treated as a liability.</p><br/><p style="font-size: 10pt; margin: 0">The January 1, 2009 valuation was computed using the Black-Scholes valuation model based upon a 2.5-year expected term, an expected volatility of 63%, an exercise price of $34.50 per share, a stock price of $26.25, a zero dividend rate and a 1.37% risk free interest rate. Subsequent to January 1, 2009 these warrants were re-valued at the end of each quarter and a gain or loss was recorded based upon their increase or decrease in value during the quarter. Likewise, new warrants that were issued during 2009 and 2010 were valued, using the Black- Scholes valuation model on their date of grant and an entry was made to reduce paid-in capital and increase the liability for equity-linked financial instruments. These warrants were also re-valued at the end of each quarter based upon their expected life, the stock price, the exercise price, assumed dividend rate, expected volatility and risk free interest rate. A significant reduction in the liability was realized in 2010 primarily due to a reduction from $37.50 to $16.50 per share in the underlying stock price. The Company realized a slight increase in the liability for existing warrants during the first quarter of 2012. In 2013 there was a significant decrease in the liability primarily due to current expirations and the amount of warrants reaching expiration in the near term. In 2014, all warrants expired and the liability was reduced to zero.</p><br/><p style="font-size: 10pt; margin: 0">The inputs to the Black-Scholes model during 2009 through 2014 were as follows:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Stock price</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">$3.75</font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">to </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">$37.50</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Exercise price</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">$ .75</font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">to </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">$24.38</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Expected life (years)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">2.0 </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">to </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">6.5 </font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Expected volatility</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: center">59%</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: left"></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Assumed dividend rate</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">- %</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; width: 85%">Risk-free interest rate</td> <td style="font-size: 10pt; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: right; width: 4%"><font style="font-size: 10pt">.13% </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">to </font></td> <td style="font-size: 10pt; text-align: left; width: 4%"><font style="font-size: 10pt">2.97%</font></td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> </tr> </table><br/><p style="font-size: 10pt; margin: 0">The original valuations, annual gain (loss) and end of year valuations are shown below:</p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Initial&nbsp;Value</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Annual&nbsp;Gain&nbsp;(Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value&nbsp;at&nbsp;12/31/09</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2010&nbsp;Gain&nbsp;(Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value&nbsp;at&nbsp;12/31/10</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2011&nbsp;Gain&nbsp;(Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value&nbsp;at <br /> 12/31/2011</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012&nbsp;Gain<br /> (Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value <br /> at&nbsp;12/31/2012</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013&nbsp;Gain<br /> (Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value <br /> at&nbsp;12/31/2013</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2014&nbsp;Gain<br /> (Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value&nbsp;at<br /> 12/31/2014</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt"><font style="font-size: 9pt">January 1, 2009 adoption</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">479,910</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(390,368</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">870,278</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">868,772</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,506</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(88,290</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">89,796</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(21,856</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">111,652</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">100,053</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">11,599</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">11,599</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">Warrants issued in quarter ended 6/30/2009</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">169,854</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">20,847</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">149,007</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">147,403</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,604</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(4,689</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,293</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,293</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">Warrants issued in quarter ended 9/30/2009</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">39,743</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(738</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">40,481</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">40,419</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">62</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(1,562</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,624</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">910</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">714</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">714</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Warrants is used in quarter ended 12/31/2009</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">12,698</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">617</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">12,081</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">12,053</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">28</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(724</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">752</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">415</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">337</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">337</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">Subtotal</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">702,205</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,071,847</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">Warrants issued in quarter ended 3/31/2010</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">25,553</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">25,014</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">539</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(5,570</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,109</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">3,701</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">2,408</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">2,408</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">Warrants issued in quarter ended 6/30/2010</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">31,332</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">30,740</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">592</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(6,122</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,714</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,083</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">631</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">631</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Warrants issued in quarter ended 9/30/2010</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">31,506</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">20,891</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">10,615</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(44,160</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">54,775</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,338</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">53,437</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">53,437</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; padding-bottom: 2.25pt"><font style="font-size: 9pt">Total</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">790,596</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(369,642</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,071,847</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,145,292</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">14,946</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(151,117</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">166,063</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(3,116</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">169,179</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">157,580</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">11,599</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">11,599</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> </table><br/> 479910 486564 6654 479910 P2Y6M 0.63 34.50 26.25 0.00 0.0137 37.50 16.50 0 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Stock price</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">$3.75</font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">to </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">$37.50</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Exercise price</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">$ .75</font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">to </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">$24.38</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Expected life (years)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 10pt">2.0 </font></td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">to </font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 10pt">6.5 </font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Expected volatility</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: center">59%</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: left"></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Assumed dividend rate</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: center"><font style="font-size: 10pt">- %</font></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; width: 85%">Risk-free interest rate</td> <td style="font-size: 10pt; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> <td style="font-size: 10pt; text-align: right; width: 4%"><font style="font-size: 10pt">.13% </font></td> <td style="font-size: 10pt; text-align: center; width: 4%"><font style="font-size: 10pt">to </font></td> <td style="font-size: 10pt; text-align: left; width: 4%"><font style="font-size: 10pt">2.97%</font></td> <td style="font-size: 10pt; text-align: left; width: 1%">&nbsp;</td> </tr> </table> 3.75 37.50 0.75 24.38 P2Y P6Y6M 0.59 0.0013 0.0297 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Initial&nbsp;Value</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Annual&nbsp;Gain&nbsp;(Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value&nbsp;at&nbsp;12/31/09</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2010&nbsp;Gain&nbsp;(Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value&nbsp;at&nbsp;12/31/10</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2011&nbsp;Gain&nbsp;(Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value&nbsp;at <br /> 12/31/2011</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2012&nbsp;Gain<br /> (Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value <br /> at&nbsp;12/31/2012</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2013&nbsp;Gain<br /> (Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value <br /> at&nbsp;12/31/2013</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">2014&nbsp;Gain<br /> (Loss)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><font style="font-size: 9pt">Value&nbsp;at<br /> 12/31/2014</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt"><font style="font-size: 9pt">January 1, 2009 adoption</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">479,910</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(390,368</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">870,278</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">868,772</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,506</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(88,290</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">89,796</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(21,856</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">111,652</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">100,053</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">11,599</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">11,599</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="width: 10%; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="width: 1%; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">Warrants issued in quarter ended 6/30/2009</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">169,854</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">20,847</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">149,007</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">147,403</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,604</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(4,689</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,293</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,293</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">Warrants issued in quarter ended 9/30/2009</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">39,743</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(738</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">40,481</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">40,419</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">62</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(1,562</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,624</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">910</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">714</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">714</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Warrants is used in quarter ended 12/31/2009</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">12,698</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">617</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">12,081</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">12,053</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">28</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(724</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">752</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">415</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">337</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">337</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">Subtotal</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">702,205</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,071,847</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">Warrants issued in quarter ended 3/31/2010</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">25,553</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">25,014</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">539</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(5,570</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,109</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">3,701</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">2,408</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">2,408</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">Warrants issued in quarter ended 6/30/2010</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">31,332</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">30,740</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">592</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">(6,122</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,714</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">6,083</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">631</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">631</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt"><font style="font-size: 9pt">Warrants issued in quarter ended 9/30/2010</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">31,506</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">20,891</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">10,615</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(44,160</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">54,775</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,338</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">53,437</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">53,437</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 1pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; padding-bottom: 2.25pt"><font style="font-size: 9pt">Total</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">790,596</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(369,642</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,071,847</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">1,145,292</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">14,946</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(151,117</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">166,063</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">(3,116</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">)</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">169,179</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">157,580</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">11,599</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">11,599</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> <td style="font-size: 10pt; padding-bottom: 2.25pt"><font style="font-size: 9pt">&nbsp;</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">$</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><font style="font-size: 9pt">-</font></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><font style="font-size: 9pt">&nbsp;</font></td> </tr> </table> 479910 -390368 870278 868772 1506 -88290 89796 -21856 111652 100053 11599 11599 169854 20847 149007 147403 1604 -4689 6293 6293 39743 -738 40481 40419 62 -1562 1624 910 714 714 12698 617 12081 12053 28 -724 752 415 337 337 702205 1071847 25553 25014 539 -5570 6109 3701 2408 2408 31332 30740 592 -6122 6714 6083 631 631 31506 20891 10615 -44160 54775 1338 53437 53437 790596 -369642 1071847 1145292 14946 -151117 166063 -3116 169179 157580 11599 11599 <p style="font-size: 10pt; margin: 0"><b>NOTE 9 - RELATED PARTY TRANSACTIONS</b></p><br/><p style="font-size: 10pt; margin: 0">The Audit Committee has the responsibility to review and approve all transactions to which a related party and the Company may be a party prior to their implementation, to assess whether such transactions meet applicable legal requirements. Rick Koenigsberger, a director, is a holder of membership units in SOK Partners.</p><br/><p style="font-size: 10pt; margin: 0">In connection with the sale of the Series A Preferred Shares on February 4, 2014, Joshua Kornberg, our President, Chief Executive Officer and Interim Chairman of the Board, was one of the purchasers. Mr. Kornberg purchased 19,231 Series A Preferred Shares for a purchase price of $25,000 and received warrants to purchase 52 shares of common stock.</p><br/><p style="font-size: 10pt; margin: 0">SOK Partners, LLC (&#x201c;SOK&#x201d;), a 10% stockholder with Mr. Kornberg and Dr. Samuel Herschkowitz as managing partners, invested in the July 2014 offering of convertible notes and warrants. In November 2014, the convertible noteholders agreed to convert certain balances of the convertible notes in connection with the public offering of the Existing Units, in consideration of the agreement to issue certain additional shares. See &#x201c;Management&#x2019;s Discussion and Analysis of Financial Condition and Results of Operations &#x2013; Liquidity and Capital Resources &#x2013; History Financing &#x2013; 2014 Sales of Convertible Notes and Warrants.&#x201d; In connection with the Unit Offering in August 2015, all such convertible notes were redeemed at a redemption price of 140% of the principal amount thereof, plus accrued and unpaid interest. The Company paid approximately $163,000 to SOK in redemption of its convertible note. In addition, Ricardo Koenigsberger, a former director who resigned on June 5, 2015, is a holder of membership units of SOK Partners.</p><br/><p style="font-size: 10pt; margin: 0">In connection with the Unit Exchange that was consummated on August 31, 2015, 250 shares of Series A Convertible Stock held by Mr. Kornberg were exchanged for 2,778 Exchange Units.</p><br/> 19231 25000 52 0.10 1.40 163000 250 2778 <p style="font-size: 10pt; margin: 0"><b>NOTE 10 &#x2013; RETIREMENT SAVINGS PLANS</b></p><br/><p style="font-size: 10pt; margin: 0">We have a pre-tax salary reduction/profit-sharing plan under the provisions of Section 401(k) of the Internal Revenue Code, which covers employees meeting certain eligibility requirements. In fiscal 2014, and again in 2015, we matched 100%, of the employee&#x2019;s contribution up to 4.0% of their earnings. The employer contribution was $39,916 and $37,730 in 2015 and 2014. There were no discretionary contributions to the plan in 2015 and 2014.</p><br/> 1.00 1.00 0.040 0.040 39916 37730 <p style="font-size: 10pt; margin: 0"><b>NOTE 11 &#x2013; SUPPLEMENTAL CASH FLOW DATA</b></p><br/><p style="font-size: 10pt; margin: 0">Cash payments for interest were $246,620 and $47,111 for the fiscal years ended December 31, 2015 and December 31, 2014, respectively.&nbsp;</p><br/> 246620 47111 <p style="font-size: 10pt; margin: 0pt 0"><b>NOTE 12 &#x2013; SUBSEQUENT EVENTS</b></p><br/><p style="font-size: 10pt; margin: 0">In January 2016 we commenced a registered offer (the &#x201c;Exchange Offer&#x201d;) to exchange, on a one-for-one basis, new units (the &#x201c;New Units&#x201d;) in exchange for the 1,895,010 outstanding units (the &#x201c;Existing Units&#x201d;) that were issued in the Offering and the Unit Exchange. Each New Unit, if issued, would have consisted of shares of common stock and certain warrants to purchase common stock. On March 2, 2016, we announced the termination of the Exchange Offer. None of the Existing Units were accepted for exchange in the Exchange Offer.</p><br/> 1895010