Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.19.3
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 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 September 30, 2019 and December 31, 2018:
 
    
Fair Value Measurement as of September 30, 2019
 
    
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
    
Significant
Other
Observable
Inputs
(Level 2)
    
Significant
Unobservable
Inputs
(Level 3)
 
Cash equivalents
   $ 8,688,134      $
 
 
     $
 
 
 
Warrant liabilities
    
 
 
      
 
 
       2,159,192  
    
 
 
    
 
 
    
 
 
 
Total
   $ 8,688,134      $
 
 
     $ 2,159,192  
    
 
 
    
 
 
    
 
 
 
   
    
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 and nine months ended September 30, 2019 and 2018:
Warrant liabilities
 
    
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
 
    
2019
    
2018
    
2019
    
2018
 
Balance at beginning of period
   $ 4,345,902      $ 38,626,579      $ 20,781,663      $ 13,549,437  
(
D
ecrease)
increase 
in fair value (1)
     (2,186,710      (3,246,765      (18,622,471      21,830,377  
    
 
 
    
 
 
    
 
 
    
 
 
 
Balance at end of period
   $ 2,159,192      $ 35,379,814      $ 2,159,192      $ 35,379,814  
    
 
 
    
 
 
    
 
 
    
 
 
 
 
(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
December 31,
2018
 
Expected volatility
     70.9
Remaining contractual term (in years)
     0.67  
Risk-free interest rate
     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
September 30,
2019
   
As of
December 31,
2018
 
Expected volatility
     102.8     72.6
Remaining contractual term (in years)
     1.83       2.58  
Risk-free interest rate
     1.63     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
September 30,
2019
   
As of
December 31,
2018
 
Expected volatility
     97.6     87.3
Remaining contractual term (in years)
     2.83       3.58  
Risk-free interest rate
     1.56     2.49
Expected dividend yield
    
 
 
    —