Warrant Liabilities

3 Months Ended

Mar. 31, 2017

Warrant Liabilities [Abstract]

Warrant Liabilities

13. Warrant Liabilities

In connection with our August 30, 2012 private financing, the Company issued 977,063 warrants to investors and the broker. In accordance with ASC 815-40, Contracts in Entity’s Own Equity, the warrants have been accounted as derivative liabilities to be re-measured at the end of every reporting period with the change in fair value reported in the consolidated statement of operations. On August 30, 2012, such warrants were valued at $1,525,000 utilizing a valuation model and were initially recorded as a liability. The fair value of the warrants are remeasured at each reporting period based on the Monte Carlo valuation.

As of March 31, 2017 and December 31, 2016, the warrant liability was re-valued as disclosed in Note 10, and recorded at its fair value of approximately $340,901 and $70,785, respectively, resulting in a loss of approximately $270,116 for the three months ended March 31, 2017. There were no warrants exercised during three months ended March 31, 2017.