Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.10.0.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2018 and December 31, 2017 by level within the fair value hierarchy, are as follows:
 
 
 
June 30, 2018
 
 
 
Quoted prices
in active
markets
 
 
Significant
other
observable
inputs
 
 
Significant
unobservable
inputs
 
 
 
(Level 1)
 
 
(Level 2)
 
 
(Level 3)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Warrant liability
 
$
-
 
 
$
-
 
 
$
5,349,786
 
Derivative liability
 
$
-
 
 
$
-
 
 
$
25,776,000
 
 
 
 
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
 
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 derivative liability measured at fair value using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2018:
 
 
 
For The Three Months Ended
 
 
For The Six Months Ended
 
 
 
June 30, 2018
 
 
June 30, 2018
 
Beginning balance
 
$
22,959,000
 
 
$
20,832,000
 
Additions
 
 
245,000
 
 
 
1,558,000
 
Change in fair value
 
 
2,572,000
 
 
 
3,386,000
 
 
 
 
 
 
 
 
 
 
Ending balance
 
$
25,776,000
 
 
$
25,776,000
 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
The Company’s derivative liabilities are measured at fair value using the Probability Weighted Expected Return valuation methodology. 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 June 30, 2018 is as follows:
 
 
 
June 30, 2018
 
Common Stock Price
 
$
4.03
 
Term (Years)
 
 
1.00
 
Volatility
 
 
60
%
Risk-free rate of interest
 
 
2.33
%
Dividend Yield
 
 
0.0
%
Warrant [Member]  
Fair Value, Liabilities 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 three and six months ended June 30, 2018 and 2017:
 
 
 
For The Three Months Ended
 
 
For The Six Months Ended
 
 
 
June 30, 2018
 
 
June 30, 2017
 
 
June 30, 2018
 
 
June 30, 2017
 
Beginning balance
 
$
926,786
 
 
$
2,509,305
 
 
$
1,227,786
 
 
$
1,619,287
 
Additions
 
 
65,000
 
 
 
1,530,972
 
 
 
65,000
 
 
 
2,356,938
 
Change in fair value
 
 
4,358,000
 
 
 
(47,368
)
 
 
4,249,000
 
 
 
16,684
 
Reclass to additional paid-in capital
 
 
-
 
 
 
-
 
 
 
(192,000
)
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance
 
$
5,349,786
 
 
$
3,992,909
 
 
$
5,349,786
 
 
$
3,992,909
 
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 June 30, 2018 is as follows:
 
 
 
As of
June 30, 2018
 
Common Stock Price
 
$
4.03
 
Term (Years)
 
 
4.57
 
Volatility
 
 
57
%
Risk-free rate of interest
 
 
2.76
%
Dividend Yield
 
 
0.0
%