Fair Value Measurements (Tables)
|
9 Months Ended |
Sep. 30, 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 September 30, 2018 and
December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurement as of
September 30, 2018 |
|
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
Cash equivalents
|
|
$ |
10,237,703 |
|
|
$ |
— |
|
|
$ |
— |
|
Marketable securities
|
|
|
26,645,137 |
|
|
|
— |
|
|
|
— |
|
Warrant liabilities
|
|
|
— |
|
|
|
— |
|
|
|
35,379,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
36,882,840 |
|
|
$ |
— |
|
|
$ |
35,379,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and nine months ended September 30, 2018 and
2017:
Warrant liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Balance at beginning of period
|
|
$ |
38,626,579 |
|
|
$ |
9,581,916 |
|
|
$ |
13,549,437 |
|
|
$ |
12,698,980 |
|
Issuance of warrants
|
|
|
— |
|
|
|
12,383,435 |
|
|
|
— |
|
|
|
12,383,435 |
|
(Decrease) increase in fair value (1)
|
|
|
(3,246,765 |
) |
|
|
(5,941,144 |
) |
|
|
21,830,377 |
|
|
|
(9,058,208 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period
|
|
$ |
35,379,814 |
|
|
$ |
16,024,207 |
|
|
$ |
35,379,814 |
|
|
$ |
16,024,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The change in fair values of the warrant liabilities
is recorded in other income (expense) 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
September 30,
2018 |
|
|
As of
December 31,
2017 |
|
Expected volatility
|
|
|
64.0 |
% |
|
|
88.1 |
% |
Remaining contractual term (in years)
|
|
|
0.92 |
|
|
|
1.67 |
|
Risk-free interest rate
|
|
|
2.59 |
% |
|
|
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
September 30,
2018 |
|
|
As of
December 31,
2017 |
|
Expected volatility
|
|
|
82.6 |
% |
|
|
80.3 |
% |
Remaining contractual term (in years)
|
|
|
2.83 |
|
|
|
3.58 |
|
Risk-free interest rate
|
|
|
2.88 |
% |
|
|
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
September 30,
2018 |
|
|
As of
December 31,
2017 |
|
Expected volatility
|
|
|
87.0 |
% |
|
|
81.5 |
% |
Remaining contractual term (in years)
|
|
|
3.83 |
|
|
|
4.58 |
|
Risk-free interest rate
|
|
|
2.91 |
% |
|
|
2.20 |
% |
Expected dividend yield
|
|
|
— |
% |
|
|
— |
% |
|