| Schedule of warrants vested and outstanding |
|
|
|
|
|
|
|
|
Number of Warrants |
|
|
|
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 |
|
|
|
718,750 |
|
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 |
|
|
|
3,400,000 |
|
Emerald Multi-Draw Credit Agreement Warrants |
|
$ |
0.50 |
|
|
|
5 |
|
|
|
7,500,000 |
|
2019 Common Stock Warrants |
|
$ |
0.35 |
|
|
|
5 |
|
|
|
8,000,000 |
|
Total warrants vested and outstanding as of March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
24,830,750 |
|
|
|
|
|
|
|
|
|
|
Number of
Warrantsv
|
|
|
|
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 |
|
|
|
3,400,000 |
|
Emerald Multi Draw Credit Agreement Warrants |
|
$ |
0.50 |
|
|
|
5 |
|
|
|
7,500,000 |
|
2019 Common Stock Warrants |
|
$ |
0.35 |
|
|
|
5 |
|
|
|
8,000,000 |
|
Total warrants vested and outstanding as of December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
25,143,250 |
|
|
| Schedule of the activity of derivative liabilities |
|
|
Three Months Ended March 31, 2020 |
|
|
|
December 31, 2019, Fair Value of Derivative Liabilities |
|
|
Fair Value of Derivative Liabilities
Issued |
|
|
Change in
Fair value of
Liabilities
|
|
|
Reclassification of Derivatives to Equity |
|
|
March 31, 2020, Fair Value of Derivative Liabilities |
|
Emerald Multi-Draw Credit Agreement - compound derivative liability (1) |
|
$ |
90,797 |
|
|
$ |
— |
|
|
$ |
100,085 |
|
|
$ |
— |
|
|
$ |
190,882 |
|
Emerald Financing - warrant liability (2) |
|
|
276,024 |
|
|
|
— |
|
|
|
(81,879 |
) |
|
|
— |
|
|
|
194,145 |
|
Series B - warrant liability (3) |
|
|
134,579 |
|
|
|
— |
|
|
|
(54,109 |
) |
|
|
(26,563 |
) |
|
|
53,907 |
|
Total derivative liabilities |
|
$ |
501,400 |
|
|
$ |
— |
|
|
$ |
(35,903 |
) |
|
$ |
(26,563 |
) |
|
$ |
438,934 |
|
Less, noncurrent portion of derivative liabilities |
|
|
(90,797 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(190,882 |
) |
Current balance of derivative liabilities |
|
$ |
410,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
248,052 |
|
|
|
Three Months Ended March 31, 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 |
|
|
March 31, 2019, Fair Value of Derivative Liabilities |
|
Emerald Multi-Draw Credit Agreement - compound derivative liability (1) |
|
$ |
219,453 |
|
|
$ |
516,058 |
|
|
$ |
227,858 |
|
|
$ |
— |
|
|
$ |
963,369 |
|
Emerald Financing - warrant liability (2) |
|
|
15,251,413 |
|
|
|
— |
|
|
|
12,239,322 |
|
|
|
— |
|
|
|
27,490,735 |
|
Series B - warrant liability (3) |
|
|
487,500 |
|
|
|
— |
|
|
|
353,438 |
|
|
|
— |
|
|
|
840,938 |
|
Total derivative liabilities |
|
$ |
15,958,366 |
|
|
$ |
516,058 |
|
|
$ |
12,820,618 |
|
|
$ |
— |
|
|
$ |
29,295,042 |
|
Less, noncurrent portion of derivative liabilities |
|
|
(219,453 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(963,369 |
) |
Current balance of derivative liabilities |
|
$ |
15,738,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
28,331,673 |
|
|
|
|
Year Ended December 31, 2019 |
|
|
|
December 31,
2018, Fair
Value of
Derivative Liabilities
|
|
|
Fair Value of Derivative Liabilities Issued |
|
|
Change in
Fair value of Liabilities
|
|
|
Reclassification
of Derivatives
to Equity or Extinguishment
|
|
|
December 31,
2019, Fair
Value of
Derivative Liabilities
|
|
Emerald Multi Draw Credit Agreement - compound derivative liability (1) |
|
$ |
219,453 |
|
|
$ |
516,058 |
|
|
$ |
(484,147 |
) |
|
$ |
(160,567 |
)* |
|
$ |
90,797 |
|
Emerald Financing - warrant liability (2) |
|
|
15,251,413 |
|
|
|
— |
|
|
|
(9,042,066 |
) |
|
|
(5,933,323 |
) |
|
|
276,024 |
|
Series B - warrant liability (3) |
|
|
487,500 |
|
|
|
— |
|
|
|
(208,546 |
) |
|
|
(144,375 |
) |
|
|
134,579 |
|
Total derivative liabilities |
|
$ |
15,958,366 |
|
|
$ |
516,058 |
|
|
$ |
(9,734,759 |
) |
|
$ |
(6,238,265 |
) |
|
$ |
501,400 |
|
Less, noncurrent portion of derivative liabilities |
|
|
(219,453 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(90,797 |
) |
Current balance of derivative liabilities |
|
$ |
15,738,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
410,603 |
|
*This amount has been included in the calculation of the extinguishment loss recorded in connection with the prepayment of the Emerald Credit Agreement as described in Note 4 below.
|
|
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 derivative liabilities |
|
$ |
823,037 |
|
|
$ |
10,988,736 |
|
|
$ |
6,503,174 |
|
|
$ |
(2,356,581 |
) |
|
$ |
15,958,366 |
|
Less, noncurrent portion of derivative liabilities |
|
|
(551,322 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(219,453 |
) |
Current balance of derivative liabilities |
|
$ |
271,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
15,738,913 |
|
**The change in fair value of derivative liabilities for the year ended December 31, 2018, relate partially to the Company determining it had sufficient trading activity to utilize the actual volatility of the trading of the Company’s common stock as an input to the volatility assumption when computing the fair value of derivative liabilities. The volatility assumption was updated as of October 1, 2018 to incorporate the Company’s own volatility with six similar companies to develop a blended average. The Company had previously estimated the volatility assumption by averaging the volatility of six similar entities which had resulted in a lower volatility. The increase in value of the volatility assumption has led to a higher valuation of the derivative liabilities as disclosed below.
|