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Warrants (Tables)

6 Months Ended

Jun. 30, 2019

A summary of warrant activity during the six months ended June 30, 2019 is as follows:



Warrants outstanding, beginning of period	7,344,297
Issuances	3,052,959
Exercises and conversions	(11,000	)
Warrants outstanding, end of period	10,386,256

Summary of Periodic Changes in Fair Value of Warrant Liability

For warrants classified as a liability, the following is a summary of the periodic changes in their fair value during the six months ended June 30, 2019:

Balance, January 1, 2019	$	65,000
Changes in fair value (Monte Carlo simulation valuation)		46,000
Balance, June 30, 2019	$	111,000

Monte Carlo Simulation Model [Member]

Assumptions Used to Estimate Fair Value of Embedded Redemption Derivative Financial Instrument

The fair value of common warrants classified as a liability was estimated using the Monte Carlo simulation valuation model with Level 3 inputs. The following assumptions were used to estimate the fair value of warrants that were classified as a liability at June 30, 2019.


Expected volatility	96.3	%
Expected term (years)	3.10
Risk-free interest rate	1.7	%
Expected dividend yield	0.0	%

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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