Quarterly report pursuant to Section 13 or 15(d)

Series A Convertible Preferred Stock, Stockholders' Deficit, and Warrants (Tables)

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Series A Convertible Preferred Stock, Stockholders' Deficit, and Warrants (Tables)
9 Months Ended
Sep. 30, 2017
Equity [Abstract]  
Schedule of Series A Preferred Stock Units Private Placement

    Series A  
    Preferred  
    Stock Units  
    Issue Dates  
    (Aggregate)  
Series A Preferred Stock Units issuance gross proceeds   $ 2,537,012  
Less: Series A Warrants initial fair value(1)     (4,050,706 )
Less: Series A Convertible Preferred Stock conversion option embedded derivative liability initial fair value(1)     (1,221,963 )
Excess of initial fair value over gross proceeds     (2,735,657 )
Offering costs of the issuance of the Series A Preferred Stock Units     (388,628 )
Loss on issuance of Series A Preferred Stock Units   $ (3,124,285 )

 

  (1) See Note 3, Financial Instruments Fair Value Measurements, for information with respect to the fair value of the Series A Convertible Preferred Stock embedded derivative liability and the Series A Warrants liability.

Schedule of Estimated Fair Values for Series A-1 Convertible Preferred Stock Warrants

    Issue  
Series A-1 Convertible Preferred Stock   Date  
Aggregate fair value   $ 189,550  
Required rate of return     27.0 %
Series A-1 Convertible Preferred Stock shares     125,000  
Conversion ratio     1.0 x
Stated Value per share - conversion ratio numerator   $ 4.00  
Conversion price per share - conversion ratio denominator   $ 4.00  
Value of common stock   $ 2.98  
Expected term (years)     6.74  
Volatility     52 %
Risk free rate     2.0 %
Dividend yield     0 %

 

    Issue  
Series A-1 Convertible Preferred Stock   Date  
Aggregate fair value   $ 310,450  
Series A-1 Warrants     125,000  
Exercise price per share   $ 6.00  
Value of common stock   $ 2.98  
Expected term (years)     6.74  
Volatility     52 %
Risk free rate     2.0 %
Dividend yield     0 %

Schedule of Outstanding Warrants to Purchase Common Stock

The following table summarizes outstanding warrants to purchase common stock at the dates indicated:

 

    Warrants Exercisable at        
          Weighted           Weighted        
          Average           Average        
    September 30, 2017     Exercise
Price /Share
    December 31, 2016     Exercise
Price
    Expiration Date  
Equity classified warrants                                        
Series W Warrants     10,567,845     $ 5.00       10,580,095     $ 5.00       January 2022  
Unit Purchase Options                                        
Series W Warrants     53,000     $ 5.00       53,000     $ 5.00       January 2022  
Series S Warrants     2,660,000     $ 0.01           $       June 2032  
Series A-1 Warrants     125,000     $ 6.67           $       April 2024  
                                         
Liability classified warrants                                        
Series A Warrants     422,838     $ 6.65           $       April 2024  
                                         
Total     13,828,683     $ 4.11       10,580,095     $ 5.00