Embedded Derivatives (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Input to Lattice Model that was Used to Value Embedded Derivative

The following table sets forth the inputs to the lattice model that were used to value the embedded derivative.

	December 31,
	2014
Stock price	$	4.80
Conversion Rate		11.7113
Conversion Price	$	85.39
Maturity date	July 1, 2022
Risk-free interest rate		2.00	%
Estimated stock volatility		87	%
Estimated credit spread		20	%

Schedule of Derivative Warrant Liability

In December 2013, the Company sold 1,420,250 shares of the Company’s common stock and warrants to purchase an additional1,420,250 shares of the Company’s common stock (the “2013 Warrants”). In August 2014, the Company sold 2,000,000 shares of common stock and warrants to purchase an additional 1,000,000 shares of common stock (the “2014 Warrants”). In February 2015, the Company sold 2,216,667 shares of the Company’s common stock, Series A warrants to purchase an additional 2,216,667 shares of the Company’s common stock (the “2015 Series A Warrants”), and Series B warrants to purchase an additional 2,216,667 shares of the Company’s common stock (the “2015 Series B Warrants”). In May 2015, the Company sold 4,300,000 shares of the Company’s common stock and Series C warrants to purchase an additional 430,000 shares of the Company’s common stock (the “2015 Series C Warrants” and together with the 2015 Series A Warrants and the 2015 Series B Warrants, the “2015 Warrants”).

	Issuance Date	Expiration Date	Exercise Price		Shares Underlying Warrants on Issuance Date		Shares Issued upon Warrant Exercises as of September 30, 2015		Shares Underlying Warrants Outstanding as of September 30, 2015
2013 Warrants	12/16/2013	12/16/2018	$	12.65		1,420,250		304,771		1,115,479
2014 Warrants	8/5/2014	8/5/2019	$	8.30		1,000,000		610,765		389,235
2015 Series A Warrants	2/3/2015	2/3/2020	$	3.75		2,216,667		321,665		1,895,000
2015 Series B Warrants	2/3/2015	8/3/2015	$	3.00		2,216,667		1,907,773		-
2015 Series C Warrants	5/19/2015	5/19/2020	$	5.50		430,000		-		430,000
						7,283,584		3,144,974		3,829,714

Schedule of Common Stock on Warrants Exercised

During the nine months ended September 30, 2015, Common Stock was issued as a result of exercise of Warrants as described below:

	Nine Months Ended September 30, 2015
	Common Stock Issued		Proceeds
2013 Warrants		304,756	$	1,057,010
2014 Warrants		610,765		2,204,540
2015 Series A Warrants		321,665		1,302,750
2015 Series B Warrants		1,907,773		5,586,564
2015 Series C Warrants		-		-
		3,144,960	$	10,150,863

- 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.

+ References + Details