Quarterly report pursuant to Section 13 or 15(d)

Derivatives (Tables)

v3.4.0.3
Derivatives (Tables)
 3 Months Ended
Mar. 31, 2016
Derivatives [Abstract]  
Schedule of derivative warrant instruments activity

 

  Shares
subject to
warrants		     Fair Value  
             
Balance, December 31, 2015     1,627,369     $ 2,848,902  
                 
Transfer from liability to equity classification     (12,109 )     (17,455 )
                 
Change in fair value     -       (1,601,399 )
                 
Balance, March 31, 2016     1,615,260     $ 1,230,048  
Summary of fair values of derivative warrants

 

    March 31,     December 31,  
    2016     2015  
             
Market value of common stock on measurement date (1)   $ 1.99     $ 3.23  
Adjusted exercise price   $ 2.48     $ 2.48  
Risk free interest rate (2)     0.73 %     1.06 %
Warrant lives in years     1.7 years       2.0 years  
Expected volatility (3)     87 %     87 %
Expected dividend yield (4)     -       -  
Probability of stock offering in any period over 5 years (5)     100 %     100 %
Offering price (6)   $ 2.60     $ 2.60  

 

(1) The market value of common stock at the above measurement dates is based on the Company’s closing price quoted on the NYSE MKT.

  

(2) The risk-free interest rate was determined by management using the Treasury Bill rate as of the respective measurement date.

 

(3) As of March 31, 2016 and December 31, 2015, the volatility was estimated using the historical volatilities of the Company’s common stock traded in NYSE MKT market.

 

(4) Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future.

 

(5) Management determines the probability of future stock offering at each evaluation date.
   
(6) Represents the estimated offering price in future offerings as determined by management.