The following tables summarize the components of derivative liabilities:
| |
|
September 30,
|
|
|
December 31, |
|
| |
|
2014 |
|
|
2013 |
|
| |
|
|
|
|
|
|
| Fair value of derivative liability |
|
$ |
8,298,000 |
|
|
$ |
10,095,000 |
|
| |
|
|
|
|
|
|
|
|
| Significant assumptions (or ranges): |
|
|
|
|
|
|
|
|
| Trading market values (1) |
|
$ |
5.30 |
|
|
$ |
5.75 |
|
| Term (years) (2) |
|
|
1.41 |
|
|
|
2.08 |
|
| Expected volatility (1) |
|
|
33.1 |
% |
|
|
41.4 |
% |
| Risk-free rate (2) |
|
|
.31 |
% |
|
|
0.38 |
% |
| Discount rate (3) |
|
|
1.18 |
% |
|
|
1.24 |
% |
| Effective Exercise price (2) |
|
$ |
5.00 |
|
|
$ |
5.00 |
|
| Trigger price (2) |
|
$ |
6.25 |
|
|
$ |
6.25 |
|
| Expected months until effective registration (3) |
|
|
0 |
|
|
|
2 |
|
Fair value hierarchy:
| |
(1) |
Level 1 inputs are quoted prices in active markets for identical assets and liabilities, or derived therefrom.
|
| |
(2) |
Level 2 inputs are inputs other than quoted prices that are observable.
|
| |
(3) |
Level 3 inputs are unobservable inputs. Inputs for which any parts are level 3 inputs are classified as level 3 in their entirety.
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|