Annual report pursuant to Section 13 and 15(d)

Derivatives (Tables)

v3.6.0.2
Derivatives (Tables)
 12 Months Ended
Dec. 31, 2016
Derivatives [Abstract]  
Schedule of derivative warrant instruments activity
    Shares subject to warrants     Fair Value  
             
Balance, December 31, 2014     1,649,329     $ 6,709,911  
                 
Transfer from liability to equity classification     (21,960 )     (48,691 )
                 
Change in fair value     -       (3,812,318 )
                 
Balance, December 31, 2015     1,627,369       2,848,902  
                 
Transfer from liability to equity classification     (12,109 )     (17,455 )
                 
Change in fair value     -       (2,530,764 )
                 
Balance, December 31, 2016     1,615,260     $ 300,683
Summary of fair values of derivative warrants

    December 31,     December 31,  
    2016     2015  
             
Market value of common stock on measurement date (1)   $ 0.88     $ 3.23  
Adjusted exercise price   $ 2.34     $ 2.48  
Risk free interest rate (2)     0.85 %     1.06 %
Warrant lives in years       2.0 years        2.0 years
Expected volatility (3)       61 - 69  %     87 %
Expected dividend yield (4)     -       -  
Probability of stock offering in any period over 5 years (5)     100 %     100 %
Offering price (6)   $ 1.25     $ 2.60  

 

(1) The market value of common stock at the above measurement dates is based on the Company’s trading 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) 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.