For the December 2013 private placement, the Company issued units consisting of one common share and one half warrant. Each full warrant is priced at US$1.35 which created a derivative financial instrument. The liability created is adjusted to a calculated fair value quarterly using the Black-Scholes technique described below. We are using “Level 3” value as there is no active market for the warrants or more accurate external method of measurement. Any income or loss is reflected in net income for the year. The revaluation as of June 30, 2014 resulted in a gain of $576 thousand for the six months ended June 30, 2014 which is reflected on the statement of operations.