Derivative Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Liabilities

In determining the fair value of the derivative liabilities, the Company used the Black-Scholes option pricing model at June 30, 2019 and 2018:

	June 30, 2019
Common stock issuable upon exercise of warrants		1,189,949
Market value of common stock on measurement date	$	3.07
Exercise price	$	1.20 to 2.78
Risk free interest rate (1)		1.71 – 2.09	%
Expected life in years		0.5-2.5 years
Expected volatility (2)		74-76	%
Expected dividend yields (3)		0	%

	June 30, 2018
Common stock issuable upon exercise of warrants		1,112,476
Market value of common stock on measurement date	$	5.11
Exercise price	$	3.94 to 5.79
Risk free interest rate (1)		2.43 - 2.63	%
Expected life in years		1.5 – 3.5 years
Expected volatility (2)		68 – 72	%
Expected dividend yields (3)		0	%

(1)	The risk-free interest rate was determined by management using the applicable Treasury Bill as of the measurement date.
(2)	The expected volatility was determined by calculating the volatility of the Company’s peers common stock.
(3)	The Company does not expect to pay a dividend in the foreseeable future.

Schedule of Change in Derivative Liabilities

The following table shows the change in the Company’s derivative liabilities rollforward for the six months ended June 30, 2019 and 2018:

	Amount
Balance, December 31, 2018	$	326,452
Initial valuation of derivative liabilities upon issuance of warrants		42,585
Change in fair value of derivative liabilities		1,899,235
Balance, June 30, 2019	$	2,268,272

	Amount
Balance, December 31, 2017	$	1,857,252
Initial valuation of derivative liabilities upon issuance of warrants		131,074
Cancellation of warrants		(1,253,140	)
Change in fair value of derivative liabilities		1,156,518
Balance, June 30, 2018	$	1,891,704