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Subsequent to the nine months ended September 30, 2015, the Company borrowed $150,000 in exchange for unsecured notes from a third party. The note has an interest rate of 12%, and is due 11 months from the date of issuance. The debt holder may convert the principal and any interest into shares of common stock at a price of $1.75 per share. Under the terms of the note, the debt holder was granted a warrant to purchase approximately 82,000 shares of common stock. The exercise price of the warrants is $1.75 per share; the warrants were exercisable upon issuance and expire in October 2020.


General and administrative. General and administrative expenses decreased by approximately $6,000, or 3%, to approximately $156,000 for the three months ended September 30, 2015, as compared to approximately $162,000 for the three months ended September 30, 2014.