| 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 |
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2017 |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
| Convertible bridge notes |
|
$ |
3,270,000 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
3,270,000 |
|
| Total |
|
$ |
3,270,000 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
3,270,000 |
|
| |
|
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 tables present
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 consolidated statement of
operations during the period. The tables also show the cumulative change effect of the derivative liabilities that were recorded
as an adjustment of the opening balance of accumulated deficit for the year:
| |
|
Year Ended December 31, 2017 |
|
| |
|
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
|
|
|
Convertible Bridge
Notes
|
|
|
Total |
|
| Fair value, December 31, 2016 |
|
$ |
123,266 |
|
|
$ |
52,904 |
|
|
$ |
25,884 |
|
|
$ |
10,988 |
|
|
$ |
- |
|
|
$ |
213,042 |
|
| Reclassification of derivatives to equity upon adoption of ASU 2017-11 |
|
|
(123,266 |
) |
|
|
(52,904 |
) |
|
|
(25,884 |
) |
|
|
(10,988 |
) |
|
|
- |
|
|
|
(213,042 |
) |
| Issuances of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,841,908 |
|
|
|
1,841,908 |
|
| Accrued interest |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
184,963 |
|
|
|
184,963 |
|
| Unamortized debt issuance costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(11,250 |
) |
|
|
(11,250 |
) |
| Net unrealized loss on convertible bridge notes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,254,379 |
|
|
|
1,254,379 |
|
| Fair value, December 31, 2017 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,270,000 |
|
|
$ |
3,270,000 |
|
| |
|
Year Ended December 31, 2016 |
|
| |
|
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 |
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value, December 31, 2015 |
|
$ |
376,065 |
|
|
$ |
51,203 |
|
|
$ |
560,778 |
|
|
$ |
79,943 |
|
|
$ |
1,067,989 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net unrealized gain on derivatives |
|
|
(277,337 |
) |
|
|
(52,800 |
) |
|
|
(408,919 |
) |
|
|
(68,955 |
) |
|
|
(808,011 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Purchases and issuances (sales and settlements) |
|
|
24,538 |
|
|
|
54,501 |
|
|
|
(125,975 |
) |
|
|
— |
|
|
|
(46,936 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value, December 31, 2016 |
|
$ |
123,266 |
|
|
$ |
52,904 |
|
|
$ |
25,884 |
|
|
$ |
10,988 |
|
|
$ |
213,042 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Changes in unrealized gains, included in income on instruments held at end of year |
|
$ |
(277,337 |
) |
|
$ |
(52,800 |
) |
|
$ |
(408,919 |
) |
|
$ |
(68,955 |
) |
|
$ |
(808,011 |
) |
|