Quarterly report pursuant to Section 13 or 15(d)

Convertible Note Issuance Costs

Convertible Note Issuance Costs

9 Months Ended

Sep. 30, 2015

7. Convertible Note Issuance Costs

The costs associated with the issuance of the Convertible Notes were recorded as a reduction to the carrying amount of the Convertible Notes and were being amortized to interest expense over the 14-month life of the notes. The Notes were converted into common shares of the Company on August 5, 2015 and the balance of the issuance costs was expensed at that time:

Issuance costs as of December 31, 2014 were as follows:

	December 31,
	2014
Placement fee	$	553,490
Fair value of Financing Warrants at time of issuance		212,155
Attorney fees		79,679
Escrow fees		3,500
Beneficial conversion feature		212,155
Accumulated amortization		(151,568	)
Net issuance costs	$	909,411
Convertible Notes	$	6,000,000
Convertible Notes discount net of amortization		(909,411	)
Convertible Notes, net of discount	$	5,090,589