Annual report pursuant to Section 13 and 15(d)

Derivative Liability and Fair Value Measurements (Tables)

v3.6.0.2
Derivative Liability and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis
We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2016 and 2015:
 
2016:
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Warrant Liability
 
$
173,131
 
$
 
$
 
$
173,131
 
Total liabilities measured at fair value (Long-Term)
 
$
173,131
 
$
 
$
 
$
173,131
 
 
2015:
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Warrant Liability
 
$
240,786
 
$
 
$
 
$
240,786
 
Total liabilities measured at fair value (Long-Term)
 
$
240,786
 
$
 
$
 
$
240,786
 
Schedule of Fair Value Level 3 warrant liabilities
Changes in the fair value of the warrant liability were as follows:
 
Fair value – December 31, 2014
 
$
13,541,138
 
 
 
 
 
 
Reclassification of warrant exercises to Additional Paid-in Capital
 
 
(2,855,463)
 
Change in fair value for the period of warrant derivative liability
 
 
1,098,465
 
Reclassification of embedded debt conversion price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions
 
 
(2,806,942)
 
Reclassification of warrant exercise price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions
 
 
(8,736,412)
 
 
 
 
 
 
Fair value – December 31, 2015
 
$
240,786
 
 
 
 
 
 
Reclassification of warrant exercises to Additional Paid-in Capital
 
 
(32,911)
 
Change in fair value for the period of warrant derivative liability
 
 
(34,744)
 
Fair value – December 31, 2016
 
$
173,131
 
Schedule Of Fair Value Of Warrants
The Monte Carlo Options Lattice pricing model was used to estimate the fair value of warrants outstanding and reflected the following assumptions:
 
 
 
December 31,
 
 
December 31,
 
 
 
2016
 
 
2015
 
Assumptions for Pricing Model:
 
 
 
 
 
 
 
 
Expected term in years
 
 
1.22
 
 
 
2.60
 
Volatility range for years
 
 
100
%
 
 
103
%
Risk-free interest rate
 
 
1.47
%
 
 
1.06
%
Expected annual dividends
 
 
None
 
 
 
None
 
 
 
 
 
 
 
 
 
 
Value of warrants outstanding:
 
 
 
 
 
 
 
 
Fair value of warrants
 
$
173,131
 
 
$
240,786