SKYSTAR BIO-PHARMACEUTICAL CO | 2013 | FY |

Outstanding purchase options do not trade in an active securities market, and as such, the Company estimates the fair value of these purchase options using the Black-Scholes Option Pricing Model (“Black-Scholes Model”) using the following assumptions: 

		Purchase Options
		December 31, 2013				December 31, 2012
Stock price		$	3.51			$	1.60
Exercise price		$	8.11			$	8.11
Annual dividend yield			-				-
Expected term (years)			0.50				1.50
Risk-free interest rate			0.10	%			0.16	%
Expected volatility			125	%			73	%
Option value		$	0.45			$	0.04