PREFERRED STOCK AND DETACHABLE WARRANTS (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Summary of Temporary Equity

The BCF was determined by calculating the intrinsic value of the conversion feature as follows:

Face amount of Series B Preferred Stock	$	25,000,000
Less: allocated value of Warrants	7,028,067
Allocated value of Series B Preferred Stock	$	17,971,933
Shares of Common stock to be converted	8,064,534
Effective conversion price	$	2.23
Market price	$	2.94
Intrinsic value per share	$	0.7115
Intrinsic value of beneficial conversion feature	$	5,737,796

The following table represents the carrying amount of the Series B Preferred Stock at inception and as of September 30, 2015:

At Inception	Amount
Face amount of Series B Preferred	$	25,000,000
Less: warrant value	7,028,067
Less: beneficial conversion feature	5,737,796
Less: issuance costs and fees	1,442,462
Carrying amount at inception	$	10,791,675
At September 30, 2015	Amount
Face amount of Series B Preferred	$	25,000,000
Less: un-accreted discount	13,808,377
Carrying amount at September 30, 2015	$	11,191,623

Schedule of Liabilities with Unobservable Inputs

The changes in liabilities measured using significant unobservable inputs for the period ended September 30, 2015 were as follows:

Level Three Roll-Forward
Item	Level 3
Balance at December 31, 2014	$	—
Warrants issued June 24, 2015	7,028,067
Change in valuation of warrants	(2,635,033		)
Balance at September 30, 2015	$	4,393,034