Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.19.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2018
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2018 and 2017 by level within the fair value hierarchy, are as follows:
 
 
 
December 31, 2018
 
 
 
Quoted prices

in active

markets
 
 
Significant

other

observable

inputs
 
 
Significant

unobservable

inputs
 
 
 
(Level 1)
 
 
(Level 2)
 
 
(Level 3)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Warrant liability
 
$
-
 
 
$
-
 
 
$
209,909
 
Derivative liability
 
$
-
 
 
$
-
 
 
$
-
 
 
 
 
December 31, 2017
 
 
 
Quoted prices

in active

markets
 
 
Significant

other

observable

inputs
 
 
Significant

unobservable

inputs
 
 
 
(Level 1)
 
 
(Level 2)
 
 
(Level 3)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Warrant liability
 
$
-
 
 
$
-
 
 
$
1,227,786
 
Derivative liability
 
$
-
 
 
$
-
 
 
$
20,832,000
 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
A summary of the weighted average significant unobservable inputs (Level 3 inputs) used in measuring the Company’s warrant liability that is categorized within Level 3 of the fair value hierarchy as of December 31, 2018 and 2017 is as follows:
  
 
 
As of December 31,
 
 
 
2018
 
 
2017
 
Common Unit/Stock Price
 
$
3.42
 
 
$
0.10
 
Term (Years)
 
 
4.27
 
 
 
4.46
 
Volatility
 
 
58
%
 
 
58
%
Risk-free rate of interest
 
 
2.58
%
 
 
2.15
%
Dividend Yield
 
 
0.0
%
 
 
0.0
%
Derivative Financial Instruments, Liabilities [Member]  
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table includes a summary of changes in fair value of the Company’s warrant liability measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2018 and 2017:
 
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
Beginning balance
 
$
1,227,786
 
 
$
1,619,287
 
Additions
 
 
241,000
 
 
 
3,917,977
 
Change in fair value
 
 
8,051,196
 
 
 
(4,309,478
)
Reclassification to equity at initial public offering
 
 
(9,310,073
)
 
 
-
 
Ending balance
 
$
209,909
 
 
$
1,227,786
 
Warrant [Member]  
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table includes a summary of changes in fair value of the Company’s derivative liability measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2018 and 2017:
 
 
 
For the year ended December 31,
 
 
 
2018
 
 
2017
 
Beginning balance
 
$
20,832,000
 
 
$
-
 
Additions
 
 
7,886,125
 
 
 
13,058,000
 
Write-off on extinguishment of convertible notes payable
 
 
-
 
 
 
(1,266,000
)
Change in fair value
 
 
14,293,963
 
 
 
9,040,000
 
Reclassification to equity at initial public offering
 
 
(43,012,088
)
 
 
-
 
Ending balance
 
$
-
 
 
$
20,832,000
 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] A summary of the weighted average significant unobservable inputs (Level 3 inputs) used in measuring the Company’s embedded conversion options that is categorized within Level 3 of the fair value hierarchy as of July 25, 2018 and December 31, 2017 are as follows:
 
 
 
July 25, 2018
 
 
December 31, 2017
 
Common Stock Price
 
$
5.00
 
 
$
0.10
 
Term (Years)   
 
 
0.50
 
 
 
1.00
 
Volatility   
 
 
65
%
 
 
52
%
Risk-free rate of interest
 
 
2.20
%
 
 
1.76
%
Dividend Yield   
 
 
0.0
%
 
 
0.0
%