Debt (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| Schedule of Fair Value Assumption Used |
Fair Value Assumptions
Senior Secured Convertible Note
|
|
Issue Date
December 27, 2018
|
|
|
December 31, 2018 |
|
| Fair value |
|
$ |
7,750,000 |
|
|
$ |
7,903,000 |
|
| Face value principal payable |
|
$ |
7,750,000 |
|
|
$ |
7,750,000 |
|
| Required rate of return |
|
|
13.2 |
% |
|
|
13.1 |
% |
| Conversion price |
|
$ |
1.60 |
|
|
$ |
1.60 |
|
| Value of common stock |
|
$ |
0.92 |
|
|
$ |
0.96 |
|
| Expected term (years) |
|
|
2.0 |
|
|
|
2.0 |
|
| Volatility |
|
|
46 |
% |
|
|
50 |
% |
| Risk free rate |
|
|
2.5 |
% |
|
|
2.5 |
% |
| Dividend yield |
|
|
0 |
% |
|
|
0 |
% |
|
| Series S Warrants [Member] |
|
| Schedule of Senior Convertible Note Estimated Fair Value |
The Senior Convertible
Note estimated fair value as of the December 27, 2018 issue date is as follows:
| Senior Secured Convertible Note - Issue Date - December 27, 2018 |
|
Fair Value |
|
| Face value principal payable - issue date December 27, 2018 |
|
$ |
7,750,000 |
|
| Lender fees paid - issue date December 27, 2018 |
|
|
(750,000 |
) |
| Proceeds, net - issue date December 27, 2018 |
|
$ |
7,000,000 |
|
| Fair value adjustment - December 27, 2018 |
|
|
750,000 |
|
| Fair value - issue date December 27, 2018 |
|
$ |
7,750,000 |
|
|
| Schedule of Senior Convertible Note Estimated Fair Value and Changes in Face Value Principal Payable |
The Senior Convertible
Note estimated fair value, changes in fair value, face value principal payable, and changes in face value principal payable, as
of December 31, 2018 is as follows:
| |
|
|
|
|
Face Value |
|
| |
|
|
|
|
Principal |
|
| Senior Secured Convertible Note - December 31, 2018 |
|
Fair Value |
|
|
Payable |
|
| Fair Value /Face Value Principal Payable - issue date December 27, 2018 |
|
$ |
7,750,000 |
|
|
$ |
7,750,000 |
|
| Less: bi-monthly Installment Repayments - as of December 31, 2018 |
|
|
— |
|
|
|
— |
|
| Less: bi-monthly Non-Installment Payments - as of December 31, 2018 |
|
|
— |
|
|
|
— |
|
| Fair Value /Face Value Principal Payable - before fair value adjustment |
|
|
7,750,000 |
|
|
|
7,750,000 |
|
| Fair value adjustment - December 31, 2018 |
|
|
153,000 |
|
|
|
— |
|
| Fair Value /Face Value Principal Payable - December 31, 2018 |
|
$ |
7,903,000 |
|
|
$ |
7,750,000 |
|
|
| Schedule of extinguishment of debt |
| Senior Secured Note - Debt Extinguishment |
|
December 27, 2018 |
|
| Cash payment |
|
$ |
5,000,000 |
|
| Fair value - 600,000 shares of common stock issued |
|
|
550,440 |
|
| Debt reacquisition price Senior Secured Note |
|
$ |
5,550,440 |
|
| |
|
|
|
|
| Senior Secured Note - original principal |
|
$ |
5,000,000 |
|
| Senior Secured Note - additional principal - unpaid interest expense |
|
|
780,116 |
|
| Senior Secured Note - total principal |
|
$ |
5,780,116 |
|
| Less: Senior Secured Note - remaining unamortized debt discount |
|
|
(1,637,972 |
) |
| Senior Secured Note - debt carrying value, net |
|
$ |
4,142,144 |
|
| |
|
|
|
|
| Debt extinguishment loss |
|
$ |
(1,408,296 |
) |
|
| Schedule of Fair Value Assumption Used |
The Series S Warrants issue-date
fair value of $10.0 million was estimated using a Black-Scholes valuation model using the following assumptions:
| Series S Warrants |
|
Issue Date |
|
| Exercise price per share |
|
$ |
0.01 |
|
| Value of common stock |
|
$ |
4.50 |
|
| Expected term (years) |
|
|
15.0 |
|
| Volatility |
|
|
48 |
% |
| Risk free rate |
|
|
2.4 |
% |
| Dividend yield |
|
|
0 |
% |
|