Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.19.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2019
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, 2019 and December 31, 2018:
 
 
 
Fair Value Measurement as of March 31, 2019
 
 
 
Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)
 
 
Significant

Other

Observable

Inputs

(Level 2)
 
 
Significant

Unobservable

Inputs

(Level 3)
 
Cash equivalents
 
$
4,898,991
 
 
$
 
 
$
 
Marketable securities
 
 
16,267,629
 
 
 
 
 
 
 
Warrant liabilities
 
 
 
 
 
 
 
 
2,982,034
 
Total
 
$
21,166,620
 
 
$
 
 
$
2,982,034
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement as of December 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
 
$
6,850,772
 
 
$
 
 
$
 
Marketable securities
 
 
22,131,936
 
 
 
 
 
 
 
Warrant liabilities
 
 
 
 
 
 
 
 
20,781,663
 
Total
 
$
28,982,708
 
 
$
 
 
$
20,781,663
 
 
 
 
 
 
 
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, 2019 and 2018:
Warrant liabilities
 
 
 
Three Months Ended

March 31,
 
 
 
2019
 
 
2018
 
Balance at beginning of period
 
$
20,781,663
 
 
$
13,549,437
 
(Decrease) increase in fair value (1)
 
 
(17,799,629
)
 
 
12,274,559
 
Balance at end of period
 
$
2,982,034
 
 
$
25,823,996
 
 
(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
March 31,
2019
 
 
As of
December 31,
2018
 
Expected volatility
 
 
181.4 %
 
 
70.9 %
Remaining contractual term (in years)
 
 
0.42
 
 
 
0.67
 
Risk-free interest rate
 
 
2.40 %
 
 
2.63 %
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

March 31,

2019
 
 
As of

December 31,

2018
 
Expected volatility
 
 
96.6
%
 
 
72.6
%
Remaining contractual term (in years)
 
 
2.33
 
 
 
2.58
 
Risk-free interest rate
 
 
2.27
%
 
 
2.46
%
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

March 31,

2019
 
 
As of

December 31,

2018
 
Expected volatility
 
 
93.9
%
 
 
87.3
%
Remaining contractual term (in years)
 
 
3.33
 
 
 
3.58
 
Risk-free interest rate
 
 
2.21
%
 
 
2.49
%
Expected dividend yield
 
 
%
 
 
%