Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement and Derivatives (Tables)

v3.7.0.1
Fair Value Measurement and Derivatives (Tables)
 3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Schedule of Liabilities Measured at Fair Value

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

    Fair value at                    
    March 31, 2017     Level 1     Level 2     Level 3  
Preferred stock embedded conversion feature   $ 42,925     $ -     $ -     $ 42,925  
Anti-dilution provision in common stock warrants included with preferred stock     69,957       -       -       69,957  
Debenture embedded conversion feature     8,213       -       -       8,213  
Anti-dilution provision in common stock warrants included with debentures     25,470       -       -       25,470  
Bridge Notes     1,218,152       -       -       1,218,152  
Total   $ 1,364,717     $ -     $ -     $ 1,364,717  

 

    Fair value at                    
    December 31, 2016     Level 1     Level 2     Level 3  
Preferred stock embedded conversion feature   $ 123,266     $ -     $ -     $ 123,266  
Anti-dilution provision in common stock warrants included with preferred stock     52,904       -       -       52,904  
Debenture embedded conversion feature     25,884       -       -       25,884  
Anti-dilution provision in common stock warrants included with debentures     10,988       -       -       10,988  
Total   $ 213,042     $ -     $ -     $ 213,042  

Schedule of Reconciliation of Level 3 Conversion Option Liability

The following table presents a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis that use significant unobservable inputs (Level 3) and the related realized and unrealized gains (losses) recorded in the condensed consolidated statement of operations during the period:

 

    Preferred stock embedded conversion feature     Anti-dilution provision in common stock warrants included with preferred stock     Debenture embedded conversion feature     Anti-dilution provision in common stock warrants included with debentures     Bridge Debentures     Total  
Fair value, December 31, 2016   $ 123,266     $ 52,904     $ 25,884     $ 10,988     $ -     $ 213,042  
Net unrealized (gain)/loss on derivatives     (80,341 )     17,053       (17,671 )     14,482       -       (66,477 )
Issuances of debt     -       -       -       -       1,218,152       1,218,152  
Fair value, March 31, 2017   $ 42,925     $ 69,957     $ 8,213     $ 25,470     $ 1,218,152     $ 1,364,717