Quarterly report pursuant to Section 13 or 15(d)

Warrants and Derivative Liabilities (Tables)

v3.19.1
Warrants and Derivative Liabilities (Tables)
3 Months Ended
Mar. 31, 2019
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

 

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

 

 

 

7,500,000

 

Total warrants vested and outstanding as of March 31, 2019

 

 

 

 

 

 

 

 

 

 

58,130,750

 

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

 

Schedule summary of the activity of derivative liabilities

 

 

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

 

 

 

 

Three Months Ended March 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

 

 

March 31,

2018, Fair

Value of

Derivative Liabilities

 

Emerald Financing - warrant liability (2)

 

$ -

 

 

$ 10,424,634

 

 

$ (2,318,600 )

 

$ -

 

 

$ 8,106,034

 

Series B - warrant liability (3)

 

 

551,322

 

 

 

-

 

 

 

1,156,107

 

 

 

(1,223,991 )

 

 

483,438

 

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

 

 

$ (977,493 )

 

$ (2,040,706 )

 

$ 8,589,472

 

Less, noncurrent portion of derivative liabilities

 

 

(551,322 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Current balance of derivative liabilities

 

$ 271,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 8,589,472

 

 

 
Emerald Multi-Draw Credit Agreement Warrants  
Derivative Liabilities Line Items  
Schedule summary of the activity of derivative 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

 

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

 

 

March 31,
2019

 

 

December 31, 
2018

 

 

At 
Issuance

 

Dividend yield

 

 

0.00 %

 

 

0.00 %

 

 

0.00 %

Volatility factor

 

90.9-91.2

 

92.1-92.4

%

 

 

70.00 %

Risk-free interest rate

 

 

2.2 %

 

 

2.49 %

 

2.45-2.6

Expected term (years)

 

3.80-3.88

 

 

4.05-4.13

 

 

 

5.0

 

Underlying common stock price

 

$ 0.69

 

 

$ 0.40

 

 

$

0.29-0.30

 

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

 

 

As of 
March 31, 
2019

 

 

As of 
December 31, 
2018

 

Dividend yield

 

 

0.00 %

 

 

0.00 %

Volatility factor

 

 

92.10 %

 

 

93.00 %

Risk-free interest rate

 

 

2.35
 %

 

2.786-2.789

Expected term (years)

 

1.39-1.41

 

 

1.64-1.65

 

Weighted average fair value of warrants

 

$ 0.69

 

 

$ 0.40

 

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

 

 

70.00 %

 

 

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