Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Basis of Presentation and Significant Accounting Policies

Schedule of fair value inputs

	January 21, 2020
Current stock price	$	0.33
Estimated volatility of future stock price		124	%
Risk free interest rate		1.53	%
Expected term		3.7	years

The following table presents quantitative information about the inputs and valuation methodologies used for the Company’s fair value measurements of contingent consideration classified as Level 3 as of June 30, 2020:

	As of June 30, 2020
	Valuation	Significant	Weighted Average
	Methodology	Unobservable Input	(range, if applicable)
Contingent Consideration	Probability weighted   income approach	Milestone dates	2020-2031
		Discount rate	8.87%
		Probability of occurrence	2.6% to 100%

The following table presents quantitative information about the inputs used in the Monte Carlo simulation for the Company’s fair value measurement of the warrant liability classified as Level 3 as of June 30, 2020:

	June 30, 2020
Current stock price	$	0.84
Estimated volatility of future stock price		223.90	%
Risk free interest rate		0.18	%
Contractual term		0.73	years

Schedule of fair value of financial instruments measured on a recurring basis

The fair value of financial instruments measured on a recurring basis is as follows:

	As of June 30, 2020
Description	Total		Level 1		Level 2	Level 3
Assets:
Short-term investments	$	26,312,039	$	26,312,039	—		—
Liabilities:
Contingent consideration	$	4,534,515		—	—	$	4,534,515
Warrant liability	$	47,939		—	—	$	47,939

	As of December 31, 2019
Description	Total			Level 1	Level 2	Level 3
Assets:
Short-term investments	$	5,713,922	$	5,713,922	—		—
Liabilities:
Contingent consideration	$	3,718,515		—	—	$	3,718,515

Schedule of change in fair value, as determined by Level 3 inputs, for all assets and liabilities using unobservable Level 3 inputs

The following table summarizes the change in fair value, as determined by Level 3 inputs, for all assets and liabilities using unobservable Level 3 inputs for the six months ended June 30, 2020:

	Contingent		Warrant
	Consideration		Liability
Balance at December 31, 2019	$	3,718,515	$	—
Fair value at issuance		—		2,494,823
Reclassification of warrants from equity to liability due to modification		—		869,078
Reclassification of warrant liability to equity upon exercise of warrants		—		(2,742,393)
Reclassification of warrant liability to equity upon exchange of warrants		—		(1,575,642)
Change in fair value		816,000		1,002,073
Balance at June 30, 2020	$	4,534,515	$	47,939