Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments Fair Value Measurements (Tables)

v3.8.0.1
Financial Instruments Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis

The following fair value hierarchy table presents information about each major category of the Company’s financial instruments measured at fair value on a recurring basis as of September 30, 2017. There were no such financial instruments as of December 31, 2016.

 

    Fair Value Measurement on a Recurring Basis at Reporting Date Using:  
    Quoted                    
    Prices in                    
    Active                    
    Markets     Significant              
    for     Other     Significant        
    Identical     Observable     Unobservable        
    Items     Inputs     Inputs        
    Level-1     Level-2     Level-3     Total  
September 30, 2017                                
Liabilities                                
Series A Warrants   $     $     $ 4,731,557     $ 4,731,557  
Series A Convertible Preferred Stock conversion                                
option embedded derivative liability                 1,298,113       1,298,113  
Total liabilities   $     $     $ 6,029,670     $ 6,029,670  

Schedule of Series A Convertible Preferred Stock Conversion Option Embedded Derivative and Warrants Liability

A reconciliation of the Series A Warrants liability and the Series A Convertible Preferred Stock conversion option embedded derivative liability for the nine months ended September 30, 2017 is a follows:

 

          Series A  
          Convertible  
          Preferred Stock  
          Conversion Option  
    Series A     Embedded  
    Warrants     Derivative  
    Liability     Liability  
Balance at December 31, 2016   $     $  
Initial fair value on dates of issuance     4,050,706       1,221,963  
Change in fair value     680,851       76,150  
Balance at September 30, 2017   $ 4,731,557     $ 1,298,113  

Schedule of Series A Warrant and Convertible Preferred Stock Conversion Option

The Series A Warrants liability and the Series A Convertible Preferred Stock conversion option embedded derivative liability estimated fair value and the underlying assumptions as of the dates indicated, are as follows:

 

          Issue  
          Dates’  
          Aggregated  
    September 30,     Weighted  
Series A Warrants Liability   2017     Average  
Fair value per Series A Warrant   $ 11.19     $ 9.58  
Series A Warrants outstanding     422,838       422,838  
Calculated aggregate fair value   $ 4,731,557     $ 4,050,706  
Value of common stock   $ 5.43     $ 5.73  
Exercise price per share   $ 6.65     $ 8.00  
Expected term (years)     6.59       7.21  
Volatility     53 %     47 %
Risk free rate     2.1 %     2.3 %
Dividend yield     0 %     0 %

 

          Issue  
          Dates’  
          Aggregated  
Series A Convertible Preferred Stock   September 30,     Weighted  
Conversion Option Embedded Derivative Liability   2017     Average  
Fair value per conversion option   $ 3.07     $ 2.89  
Series A Convertible Preferred Stock shares outstanding     422,838       422,838  
Calculated aggregate fair value   $ 1,298,113     $ 1,221,963  
Value of common stock   $ 5.43     $ 5.73  
Conversion price per share   $ 4.99     $ 6.00  
Expected term (years)     6.59       7.21  
Volatility     53 %     47 %
Risk-free interest rate     2.1 %     2.3 %
Dividend yield     0 %     0 %