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Warrants (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Key Terms of Placement Warrants

The key terms of the 2017 and 2016 Placement Warrants are as follows:


	Issuance Date	Term	Exercise Price Per Share		Warrants Exercised during the Nine Months Ended September 30, 2018		Warrants Outstanding at September 30, 2018

2017 Placement Warrants	January 2017	7 years	$	3.17		—		1,711,123
2016 Placement Warrants	August and September 2016	7 years	$	2.95		44,183		1,311,458
Total						44,183		3,022,581

Summary of Assumptions using Black- Scholes Option Pricing Model to estimate fair value

The fair value of the 2016 and 2017 Placement Warrants at September 30, 2018 and December 31, 2017, respectively, was estimated using the Black-Scholes option-pricing model and the following weighted-average assumptions:

	2017 Placement Warrants				2016 Placement Warrants
	September 30, 2018		December 31, 2017		September 30, 2018	December 31, 2017

Expected term (in years)		5.3		6.1	4.9		5.7
Expected volatility	59.6%		62.3%		59.7%	62.1%
Risk-free interest rate	3.0%		2.3%		2.9%	2.2%
Expected dividend yield	0%		0%		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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