Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Measurements

Summary of changes in the fair value of Level 3 liabilities

Three months ended September 30, 2015	Beginning of period		Issuances		Change in fair value (3)		Extinguishments		End of period
Warrant liability (1)	$	118,793	$	—	$	32,005	$	—	$	150,798
Embedded derivative liabilities (2)		1,285,600		11,000		(204,000)		(1,092,600)		—
Total	$	1,404,393	$	11,000	$	(171,995)	$	(1,092,600)	$	150,798
Nine months ended September 30, 2015	Beginning of period		Issuances		Change in fair value (3)		Extinguishments		End of period
Warrant liability (1)	$	136,235	$	—	$	14,563	$	—	$	150,798
Embedded derivative liabilities (2)		496,400		871,000		(274,800)		(1,092,600)		—
Total	$	632,635	$	871,000	$	(260,237)	$	(1,092,600)	$	150,798

(1)    Prior to the close of the Company’s IPO on November 24, 2015, the Company considered its convertible note related warrant liability as a Level 3 financial instrument. The Company determined the fair value of the liability immediately prior to the Company’s IPO and then reclassified the balance to additional paid-in capital upon the closing of the IPO.

(2)    Prior to the amendment of the Company’s outstanding convertible notes in September 2015, the Company considered its convertible note related embedded derivative liabilities as Level 3 financial instruments. The amendment was deemed to be a substantive change and resulted in extinguishment accounting, which included the extinguishment of the embedded derivative liabilities.

(3)    The change in the fair values of the warrant and embedded derivative liabilities are recorded in the statements of operations.