Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Information about Company's Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016:


	Fair Value Measurement as of March 31, 2017
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents	$	4,006,150	$	—	$	—
Marketable securities		24,172,736		—		—
Warrant liabilities		—		—		12,778,781

Total	$	28,178,886	$	—	$	12,778,781


	Fair Value Measurement as of December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents	$	3,411,058	$	—	$	—
Marketable securities		31,354,170		—		—
Warrant liabilities		—		—		12,698,980

Total	$	34,765,228	$	—	$	12,698,980

Reconciliation of Company's Financial Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following tables present a reconciliation of the Company’s financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 and 2016:

Warrant liabilities


	Three Months Ended March 31,
	2017		2016
Balance at beginning of period	$	12,698,980	$	444,324
Increase (decrease) in fair value (1)		79,801		(188,270	)

Balance at end of period	$	12,778,781	$	256,054

(1)	The change in fair values of the warrant liabilities is recorded in other expenses in the consolidated statement of operations.

Representative's Warrant [Member]

Assumption Used to Determine Fair Value of Warrant Liability

The following assumptions were used in a Black- Scholes option-pricing model to determine the fair value of the warrant liability:


	As of			As of
	March 31, 2017			December 31, 2016
Expected volatility		79.2	%		73.9	%
Remaining contractual term (in years)		2.42			2.67
Risk-free interest rate		1.37	%		1.47	%
Expected dividend yield		—	%		—	%

CMPO Warrants [Member]

Assumption Used to Determine Fair Value of Warrant Liability

The following assumptions were used in a Black-Scholes option-pricing model to determine the fair value of the warrant liability:


	As of			As of
	March 31, 2017			December 31, 2016
Expected volatility		80.0	%		79.9	%
Remaining contractual term (in years)		4.33			4.58
Risk-free interest rate		1.79	%		1.93	%
Expected dividend yield		—	%		—	%