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During the years ended December 31, 2014 and 2013, a net amount of ClearPoint system reusable components with costs of $221,021 and $143,372, respectively, and accumulated depreciation of $96,631 and $115,952, respectively, were transferred from loaned systems to inventory at the net carrying cost.

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In March 2014, the Company entered into an asset purchase agreement to sell certain intellectual property. The asset purchase price was satisfied through the cancellation of related party convertible notes payable in the aggregate amount of $4,338,601.

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In recording the March 2014 debt private placement transaction, the Company recorded the fair value of the warrants issued to the placement agent, in the amount of $30,210, as a deferred financing cost, and the Company recorded a corresponding amount to additional paid-in capital. In addition, warrants with a relative fair value of $413,057 were issued to investors in the debt private placement transaction (see Note 6). The relative fair value of these warrants was recorded as additional paid-in capital which resulted in a corresponding debt discount.

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In March 2013, in connection with a loan modification, accrued interest in the amount of $389,444 was rolled into the principal balance of a note payable and the principal balance of the note was increased by an additional $1,900,000.

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In recording the January 2013 equity private placement transaction, deferred financing costs of $24,219 were netted against the proceeds recorded to additional paid-in capital.