Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.10.0.1
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

     —       —