Series A Redeemable Convertible Preferred Stock (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Embedded Derivative Instruments Rollforward

The fair value of these derivative instruments and the loss recorded on the change in the fair value of these derivative instruments, which was included in “Interest and other income, net” within the condensed consolidated statement of operations, for the three and nine months ended September 30, 2020 and 2019, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning Balance	$	478,312	$	489,489	$	483,804	$	498,086
Total income recognized in earnings	(2,751)		(2,866)		(8,243)		(11,463)
Ending Balance	$	475,561	$	486,623	$	475,561	$	486,623

Derivative Probability and Volatility Assumptions

The probability and volatility assumptions are as follows:

Probability of redemption as part of a fundamental sale transaction	0.5%
Probability of redemption absent a fundamental sale transaction	4.75%
Annual volatility	65%

Reconciliation of net (loss) income attributable to common stockholders

The following represents a reconciliation of net loss attributable to common stockholders for the three and nine months ended September 30, 2020 and 2019, respectively:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net income (loss)	$	1,546,209	$	(556,914)	$	1,232,927	$	(1,853,544)
Effects of Series A redeemable convertible preferred stock:
Less: Accrual of Series A redeemable convertible preferred stock dividends	266,007		266,447		812,362		770,027
Less: Accretion to redemption value of Series A redeemable convertible preferred stock	175,335		139,399		366,566		402,861
Net income (loss) attributable to common stockholders	$	1,104,867	$	(962,760)	$	53,999	$	(3,026,432)

Schedule of Components of Series A Preferred Stock

The Series A Preferred Stock consists of the following:

Series A redeemable convertible preferred stock principal balance	$	9,000,000
Accrued dividends	1,312,112
Discount	(1,602,428)
Total Series A redeemable convertible preferred stock, net at inception on February 23, 2018	8,709,684
Accrued dividends	683,742
Accretion of preferred stock	363,280
Total Series A redeemable convertible preferred stock, net at December 31, 2018	$	9,756,706
Accrued dividends	1,157,762
Accretion of preferred stock	389,811
Total Series A redeemable convertible preferred stock, net at December 31, 2019	$	11,304,279
Accrued dividends	812,362
Accretion of preferred stock	366,565
Total Series A redeemable convertible preferred stock, net at September 30, 2020	$	12,483,206