Annual report pursuant to Section 13 and 15(d)

Convertible Note Issuance Costs

Convertible Note Issuance Costs

12 Months Ended

Dec. 31, 2015

9. 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 amortized as interest expense within the statements of operations over the 14-month life of the notes:

Issuance costs are as follows:

	December 31,
	2014
Placement fee	$	553,490
Fair value of Financing Warrants at time of issue		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

The amount of issuance cost amortized as interest expense on the statements of operations was $909,411 and $151,568 for the year ended December 31, 2015 and the period from inception (June 20, 2014) through December 31, 2014, respectively. Upon completion of the IPO, all remaining unamortized debt discount and BCF were immediately expensed.