Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018 and December 31, 2017:


	Fair Value Measurement as of March 31, 2018
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents	$	3,094,855	$	—	$	—
Marketable securities		36,379,938		—		—
Warrant liabilities		—		—		25,823,996

Total	$	39,474,793	$	—	$	25,823,996


	Fair Value Measurement as of December 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	$	5,949,477	$	—	$	—
Marketable securities		39,858,864		—		—
Warrant liabilities		—		—		13,549,437

Total	$	45,808,341	$	—	$	13,549,437

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, 2018 and 2017:

Warrant liabilities


	Three Months Ended March 31,
	2018		2017
Balance at beginning of period	$	13,549,437	$	12,698,980
Increase in fair value (1)		12,274,559		79,801

Balance at end of period	$	25,823,996	$	12,778,781

(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, 2018			December 31, 2017
Expected volatility		88.3	%		88.1	%
Remaining contractual term (in years)		1.42			1.67
Risk-free interest rate		2.26	%		1.89	%
Expected dividend yield		—	%		—	%

2016 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, 2018			December 31, 2017
Expected volatility		78.4	%		80.3	%
Remaining contractual term (in years)		3.33			3.58
Risk-free interest rate		2.48	%		2.09	%
Expected dividend yield		—	%		—	%

2017 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, 2018			December 31, 2017
Expected volatility		82.2	%		81.5	%
Remaining contractual term (in years)		4.33			4.58
Risk-free interest rate		2.56	%		2.20	%
Expected dividend yield		—	%		—	%