14.Other Liabilities - Warrants

For the December 2013 private placement, we issued units consisting of one common share of the Company’s stock and one half warrant. Each full warrant is priced at US$1.35 which created a derivative financial instrument as it is exerciseable in a currency other than the parent company’s functional currency. The liability created is adjusted to a calculated fair value quarterly using the Black-Scholes technique described below as there is no active market for the warrants. Any income or loss is reflected in net income for the year. The revaluation as of June 30, 2015 resulted in gains of $248 and $171 thousand for the three and six months ended June 30, 2015, respectively, which is reflected on the statement of operations.