Quarterly report pursuant to Section 13 or 15(d)

Derivatives (Tables)

v3.8.0.1
Derivatives (Tables)
 9 Months Ended
Sep. 30, 2017
Derivatives [Abstract]  
Schedule of derivative warrant instruments activity
    Shares
subject to
warrants		     Fair Value  
             
Balance, December 31, 2016     1,615,260     $ 300,683  
                 
Modification of warrants     -       19,356  
                 
Change in fair value     -       (265,714 )
                 
Balance, September 30, 2017     1,615,260     $ 54,325  
Summary of fair values of derivative warrants

    September 30,     December 31,  
    2017     2016  
             
Market value of common stock on measurement date (1)   $ 0.58     $ 0.88  
Adjusted exercise price   $ 1.67     $ 2.34  
Risk free interest rate (2)     1.13-1.77 %     0.85 %
Warrant lives in years     2.0-4.6 years       2.0 years  
Expected volatility (3)     82 – 96 %     61 – 69 %
Expected dividend yield (4)     -       -  
Probability of stock offering in any period over 5 years (5)     100 %     100 %
Offering price (6)   $ 0.75     $ 1.25  

 

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

 

(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 American.

 

(4) Management does not expect to 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.