Post-effective amendment to a registration statement that is not immediately effective upon filing

Warrants and Derivative Liabilities (Tables)

v3.19.3.a.u2
Warrants and Derivative Liabilities (Tables)
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Derivative Liabilities Line Items    
Schedule of warrants vested and outstanding

 

 

 

 

 

 

 

 

Amount

 

 

 

Exercise

 

 

Term

 

 

Vested and

 

Source

 

Price

 

 

(Years)

 

 

Outstanding

 

Pre 2015 Common Stock Warrants

 

$ 1.00

 

 

6-10

 

 

 

4,000,000

 

2015 Common Stock Warrants

 

$

1.15-5.00

 

 

5-10

 

 

 

442,000

 

Common Stock Warrants to Series B Stockholders

 

$ 0.00

 

 

 

5

 

 

 

1,031,250

 

2016 Common Stock Warrants to Service Providers

 

$ 1.15

 

 

 

10

 

 

 

40,000

 

2016 Series C Common Stock Warrants to Placement Agent

 

$ 0.40

 

 

 

5

 

 

 

125,000

 

2017 Series D Common Stock Warrants to Placement Agent

 

$ 0.25

 

 

 

5

 

 

 

480,000

 

2017 Common Stock Warrants to Service Provider

 

$ 0.41

 

 

 

5

 

 

 

125,000

 

2018 Emerald Financing Warrants

 

$ 0.10

 

 

 

5

 

 

 

44,200,000

 

Emerald Multi Draw Credit Agreement Warrants

 

$ 0.50

 

 

 

5

 

 

 

7,500,000

 

Total warrants vested and outstanding as of September 30, 2019

 

 

 

 

 

 

 

 

 

 

57,943,250

 

 

 

 

 

 

 

 

 

Amount

 

 

 

Exercise

 

 

Term

 

 

Vested and

 

Source

 

Price

 

 

(Years)

 

 

Outstanding

 

Pre 2015 Common Stock Warrants

 

$ 1.00

 

 

6-10

 

 

 

4,000,000

 

2015 Common Stock Warrants

 

$

1.15-$5.00

 

 

5-10

 

 

 

442,000

 

2015 Series B Financing

 

 

 

 

 

 

 

 

 

 

 

Common Stock Warrants to Series B Stockholders

 

$ 0.00

 

 

 

5

 

 

 

1,031,250

 

Placement Agent Warrants

 

$ 0.00

 

 

 

5

 

 

 

187,500

 

2016 Common Stock Warrants to Service Providers

 

$ 1.15

 

 

 

10

 

 

 

40,000

 

2016 Series C Common Stock Warrants to Placement Agent

 

$ 0.40

 

 

 

5

 

 

 

125,000

 

2017 Series D Common Stock Warrants to Placement Agent

 

$ 0.25

 

 

 

5

 

 

 

480,000

 

2017 Common Stock Warrants to Service Provider

 

$ 0.41

 

 

 

5

 

 

 

125,000

 

2018 Emerald Financing Warrants

 

$ 0.10

 

 

 

5

 

 

 

44,200,000

 

2018 Emerald Multi-Draw Credit Agreement Warrants

 

$ 0.50

 

 

 

5

 

 

 

2,500,000

 

Total warrants vested and outstanding as of December 31, 2018

 

 

 

 

 

 

 

 

 

 

53,130,750

 

Schedule summary of the activity of derivative liabilities

 

 

Nine Months Ended September 30, 2019

 

 

 

December 31, 2018, Fair Value of Derivative Liabilities

 

 

Fair Value of Derivative Liabilities Issued

 

 

Change in Fair value of Derivative Liabilities

 

 

Reclassification of Derivatives to Equity

 

 

September 30, 2019, Fair Value of Derivative Liabilities

 

Emerald Multi Draw Credit Agreement - compound derivative liability (1)

 

$ 219,453

 

 

$ 516,058

 

 

$ (167,905 )

 

$ -

 

 

$ 567,606

 

Emerald Financing - warrant liability (2)

 

 

15,251,413

 

 

 

-

 

 

 

(1,895,193 )

 

 

-

 

 

 

13,356,220

 

Series B - warrant liability (3)

 

 

487,500

 

 

 

-

 

 

 

38,438

 

 

 

(144,375 )

 

 

381,563

 

Total derivative liabilities

 

$ 15,958,366

 

 

$ 516,058

 

 

$ (2,024,660 )

 

$ (144,375 )

 

$ 14,305,389

 

Less, noncurrent portion of derivative liabilities

 

 

(219,453 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(567,606 )

Current balance of derivative liabilities

 

$ 15,738,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 13,737,783

 

 

 

 

Nine Months Ended September 30, 2018

 

 

 

December 31, 2017, Fair Value of Derivative Liabilities

 

 

Fair Value of Derivative Liabilities Issued

 

 

Change in Fair value of Derivative Liabilities

 

 

Reclassification of Derivatives to Equity

 

 

September 30, 2018, Fair Value of Derivative Liabilities

 

Emerald Financing - warrant liability (2)

 

$ -

 

 

$ 10,424,634

 

 

$ 192,808

 

 

$ -

 

 

$ 10,617,442

 

Series B - warrant liability (3)

 

 

551,322

 

 

 

-

 

 

 

1,275,669

 

 

 

(1,333,866 )

 

 

493,125

 

Emerald Convertible Promissory Note - conversion liability (4)

 

 

265,000

 

 

 

360,000

 

 

 

185,000

 

 

 

(810,000 )

 

 

-

 

Series B Preferred Stock - conversion liability (5)

 

 

6,715

 

 

 

-

 

 

 

-

 

 

 

(6,715 )

 

 

-

 

Total derivative liabilities

 

$ 823,037

 

 

$ 10,784,634

 

 

$ 1,653,477

 

 

$ (2,150,581 )

 

$ 11,110,567

 

Less, noncurrent portion of derivative liabilities

 

 

(551,322 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Current balance of derivative liabilities

 

$ 271,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 11,110,567

 

 

 

Year Ended December 31, 2018

 

 

 

December 31,

2017, Fair

Value of

Derivative Liabilities

 

 

Fair Value of Derivative Liabilities Issued

 

 

Change in

Fair value of Derivative Liabilities*

 

 

Reclassification

of Derivatives

to Equity

 

 

December 31,

2018, Fair

Value of

Derivative Liabilities

 

Emerald Multi-Draw Credit Agreement - compound derivative liability (1)

 

$ -

 

 

$ 204,102

 

 

$ 15,351

 

 

$ -

 

 

$ 219,453

 

Emerald Financing - warrant liability (2)

 

 

-

 

 

 

10,424,634

 

 

 

4,826,779

 

 

 

-

 

 

 

15,251,413

 

Series B - warrant liability (3)

 

 

551,322

 

 

 

-

 

 

 

1,476,044

 

 

 

(1,539,866 )

 

 

487,500

 

Emerald Convertible Promissory Note - conversion liability (4)

 

 

265,000

 

 

 

360,000

 

 

 

185,000

 

 

 

(810,000 )

 

 

-

 

Series B Preferred Stock - conversion liability (5)

 

 

6,715

 

 

 

-

 

 

 

-

 

 

 

(6,715 )

 

 

-

 

Total current derivative liabilities

 

$ 823,037

 

 

$ 10,988,736

 

 

$ 6,503,174

 

 

$ (2,356,581 )

 

$ 15,958,366

 

Less, noncurrent portion of derivative liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(219,453 )

Current balance of derivative liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 15,738,913

 

  

 

 

Year Ended December 31, 2017

 

 

 

December 31,

2016, Fair

Value of

Derivative Liabilities

 

 

Fair Value of Derivative Liabilities Issued

 

 

Change in

Fair value of Derivative Liabilities

 

 

Reclassification

of Derivatives

to Equity

 

 

December 31,

2017, Fair

Value of

Derivative Liabilities

 

Series B - warrant liability (3)

 

$ 1,112,308

 

 

$ -

 

 

$ (560,986 )

 

$ -

 

 

$ 551,322

 

Emerald Convertible Promissory Note - conversion liability (4)

 

 

-

 

 

 

265,000

 

 

 

-

 

 

 

-

 

 

 

265,000

 

Series B Preferred Stock - conversion liability (5)

 

 

118,821

 

 

 

-

 

 

 

(102,848 )

 

 

(9,258 )

 

 

6,715

 

Series F Preferred Stock - put option liability (6)

 

 

-

 

 

 

103,364

 

 

 

(103,364 )

 

 

-

 

 

 

-

 

Total derivative liabilities

 

$ 1,231,129

 

 

$ 368,364

 

 

$ (767,198 )

 

$ (9,258 )

 

$ 823,037

 

Less, noncurrent portion of derivative liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(551,322 )

Current balance of derivative liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 271,715

 

Schedule of the adjustment for the difference between the fair value of the warrant liabilities and the total proceeds received

 

 

Closing

 

 

 

 

 

January

2018

 

 

February

2018

 

 

Total

 

Initial Fair Value of Emerald Financing Warrant Liability

 

$ 4,717,211

 

 

$ 5,707,423

 

 

$ 10,424,634

 

Less: Proceeds from Emerald Financing

 

 

1,500,000

 

 

 

1,750,000

 

 

 

3,250,000

 

Excess over proceeds adjustment

 

$ 3,217,211

 

 

$ 3,957,423

 

 

$ 7,174,634

 

 

 

Closing

 

 

 

 

 

 

January

2018

 

 

February

2018

 

 

Total

 

Initial Fair Value of Emerald Financing Warrant Liability

 

$ 4,717,211

 

 

$ 5,707,423

 

 

$ 10,424,634

 

Less: Proceeds from Emerald Financing

 

 

1,500,000

 

 

 

1,750,000

 

 

 

3,250,000

 

Excess over proceeds adjustment

 

$ 3,217,211

 

 

$ 3,957,423

 

 

$ 7,174,634

 

Series B warrant    
Derivative Liabilities Line Items    
Schedule of input and valuation technique used to value warrant liabilities

 

 

As of

September 30,

2019

 

 

As of

December 31,

2018

 

Dividend yield

 

 

0.00 %

 

 

0.00 %

Volatility factor

 

 

79.4 %

 

 

93.0 %

Risk-free interest rate

 

 

1.75 %

 

 

2.79 %

Expected term (years)

 

 

0.89

 

 

1.64-1.65

 

Underlying common stock price

 

$ 0.37

 

 

$ 0.40

 

 

 

As of December 31,

 

 

 

2018

 

 

2017

 

Dividend yield

 

 

0.00 %

 

 

0.00 %

Volatility factor

 

 

93.00 %

 

 

70.00 %

Risk-free interest rate

 

2.786-2.789

 

 

 

1.39 %

Expected term (years)

 

1.64-1.65

 

 

 

0.25

 

Weighted average fair value of warrants

 

$

0.40

 

 

$ 0.15

 

Emerald Financing Warrant Liability    
Derivative Liabilities Line Items    
Schedule of input and valuation technique used to value warrant liabilities

 

 

September 30,

2019

 

 

December 31,

2018

 

 

At

Issuance

 

Dividend yield

 

 

0.00 %

 

 

0.00 %

 

 

0.00 %

Volatility factor

 

81.9-82.1

%

 

92.1-92.4

%

 

 

70.0 %

Risk-free interest rate

 

 

1.56 %

 

 

2.49 %

 

2.45-2.60

Expected term (years)

 

3.31-3.38

 

 

4.05-4.13

 

 

 

5.0

 

Underlying common stock price

 

$ 0.37

 

 

$ 0.40

 

 

$

0.29-0.30

 

 
Emerald Multi-Draw Credit Agreement Warrants    
Derivative Liabilities Line Items    
Schedule of input and valuation technique used to value warrant liabilities

 

 

At Issuance

 

Dividend yield

 

 

0.00 %

Volatility factor

 

91.6-92.1

%

Risk-free interest rate

 

2.23-2.51

%

Expected term (years)

 

 

5.0

 

Underlying common stock price

 

$

0.33-0.69

 

 

 

At

Issuance

 

Dividend yield

 

 

0.00 %

Volatility factor

 

 

92.50 %

Risk-free interest rate

 

 

2.96 %

Expected term (years)

 

 

5.0

 

Underlying common stock price

 

$ 0.36

 

Emerald Convertible Promissory Note Conversion Liability    
Derivative Liabilities Line Items    
Schedule of input and valuation technique used to value warrant liabilities

 

 

January 19,

2018

 

 

December 28,

2017

 

Dividend yield

 

 

0.00 %

 

 

0.00 %

Volatility factor

 

 

70.0 %

 

 

70.0 %

Risk-free interest rate

 

 

1.29 %

 

 

1.39 %

Expected term (years)

 

 

0.003

 

 

 

0.25

 

Underlying common stock price

 

$ 0.19

 

 

$ 0.15

 

 

 

January 19,

2018

 

 

December 28,

2017

 

Dividend yield

 

 

0.00 %

 

 

0.00 %

Volatility factor

 

 

70.00 %

 

 

70.00 %

Risk-free interest rate

 

 

1.29 %

 

 

1.39 %

Expected term (years)

 

 

0.003

 

 

 

0.25

 

Underlying common stock price

 

$ 0.19

 

 

$ 0.15

 

Emerald Financing    
Derivative Liabilities Line Items    
Schedule of input and valuation technique used to value warrant liabilities  

 

 

December 31,

2018

 

 

At

issuance

 

Dividend yield

 

 

0.00 %

 

 

0.00 %

Volatility factor

 

92.1-92.4

 

 

 

70.00 %

Risk-free interest rate

 

 

2.49 %

 

2.45-2.6

 

Expected term (years)

 

4.05-4.13

 

 

 

5.0

 

Underlying common stock price

 

$ 0.40

 

 

$

0.29-0.30