Annual report pursuant to Section 13 and 15(d)

Derivatives (Tables)

v3.8.0.1
Derivatives (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [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     -       (2,530,764 )
Balance, December 31, 2016     1,615,260       300,683  
Modification of warrants     -       19,356  
Expiration of derivative warrants     (1,558,048 )     -  
Change in fair value     -       (304,123 )
Balance, December 31, 2017     57,212     $ 15,916  
Summary of fair values of derivative warrants
  December 31,     December 31,  
    2017     2016  
             
Market value of common stock on measurement date (1)   $ 0.66     $ 0.88  
Adjusted exercise price   $ 1.67     $ 2.34  
Risk free interest rate (2)     2.09 %     0.85 %
Warrant lives in years     4.1 years       2.0 years  
Expected volatility (3)     80 %     61 – 69 %
Expected dividend yield (4)     -       -  
Probability of stock offering in any period over 5 years (5)     100 %     100 %
Offering price (6)   $ 0.50     $ 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 the Company’s 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.