PREFERRED STOCK AND DETACHABLE WARRANTS (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of Liabilities with Unobservable Inputs

The changes in liabilities measured using significant unobservable inputs for the three months ended March 31, 2017 were as follows:



Level Three Roll-Forward
Item	Level 3
Balance at December 31, 2015	$	1,548,604
May 2016 Series B1 Preferred Warrants (described below)	2,867,264
Change in valuation of warrants	(49,876		)
Balance at December 31, 2016	4,365,992
Change in valuation of warrants	(920,672		)
Balance at March 31, 2017	3,445,320

Series B Preferred Stock

Class of Stock [Line Items]

Summary of Temporary Equity

The following table represents the carrying amount of the Series B Preferred Stock, classified as Temporary Equity on the accompanying Consolidated Balance Sheet, at inception and as of March 31, 2017 and December 31, 2016:



Temporary Equity:
At Inception	June 24, 2015
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

	March 31, 2017		December 31, 2016
Face amount of Series B Preferred	$	25,000,000	$	25,000,000
Less: repurchase of 3,575,070 shares	11,189,838		11,189,838
Less: conversions of shares to common stock	5,386,341		5,386,341
Plus: dividends in kind	1,764,148		1,164,701
Less: unaccreted discount	4,090,359		3,912,055
Carrying amount	$	6,097,610	$	5,676,467

The initial BCF of the Series B Preferred Stock 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

Series B1 Preferred Stock

Class of Stock [Line Items]

Summary of Temporary Equity

The May 2016 BCF was determined by calculating the intrinsic value of the conversion feature as follows:



	May 13, 2016
Face amount of Series B1 Preferred Stock	$	19,349,756
Less: allocated value of May 2016 Warrants	2,867,264
Allocated value of Series B1 Preferred Stock	$	16,482,492
Shares of Common stock to be converted	12,403,683
Effective conversion price	$	1.33
Market price	$	1.52
Intrinsic value per share	$	0.19
Intrinsic value of May 2016 beneficial conversion feature	$	2,371,106

The following table represents the carrying amount of the Series B1 Preferred Stock, classified as Temporary Equity on the accompanying Consolidated Balance Sheet, at inception (May 13, 2016), as of March 31, 2017, and December 31, 2016:



Temporary Equity:
At Inception	May 13, 2016
Face amount of Series B1 Preferred	$	19,349,745
Less: May 2016 Warrant value	2,867,264
Less: May 2016 Beneficial Conversion Feature	2,371,106
Less: May 2016 issuance costs and fees	607,880
Carrying amount at inception	$	13,503,495

	March 31, 2017		December 31, 2016
Face amount of Series B1 Preferred	$	19,349,745	$	19,349,745
Less: conversions of shares to common	748,306		628,866
Plus: dividends-in-kind	732,753		435,369
Less: unaccreted discount	5,007,006		5,228,460
Carrying amount	$	14,327,186	$	13,927,788