General form of registration statement for all companies including face-amount certificate companies

Warrants and Derivative Liabilities (Tables)

v3.19.1
Warrants and Derivative Liabilities (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 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

 

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

 

 

 

 

 

 

 

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

 

 

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

 

 

 

 

 

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 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

 

 

 

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 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

 

 

92.50 %

Risk-free interest rate

 

 

2.96 %

Expected term (years)

 

 

5.0

 

Underlying common stock price

 

$ 0.36

 

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 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

 

 

 

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

 

Information regarding 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

 

 
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