Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of fair value of stock warrants, notes

The table below presents the allocation of the proceeds based on the relative fair values of the stock, warrants and note.

	Fair value		Allocated value

Allocation of Proceeds
Convertible note	$	4,878,974	$	1,843,669
Warrants		13,585,828		5,133,819
Common stock		7,998,593		3,022,512

	$	26,463,396	$	10,000,000

Schedule of the allocation of stock-based compensation

The stock-based compensation expense recorded was allocated as follows:

	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Operations and development costs	$	55	$	32	$	106	$	32
Business development and management costs		475		49		632		49
Total	$	530	$	81	$	738	$	81

Schedule of assumptions used in the black-scholes-Merton option-pricing model

The following assumptions were used in the Black-Scholes-Merton pricing model to estimate the fair value of the options.

Expected stock volatility	72% -80	%
Risk free interest rate	0.94% - 1.77	%
Expected years until exercise	2.50 - 3.50
Dividend yield	0.00	%

Warrant [Member]

Schedule of assumptions used in the black-scholes-Merton option-pricing model

The following assumptions were used in the Black-Scholes-Merton pricing model to estimate the fair value of the warrant.

Expected stock volatility	80	%
Risk free interest rate	0.97	%
Expected years until exercise	1.25
Dividend yield	0.00	%

The following assumptions were used in the Black-Scholes-Merton pricing model to estimate the fair value of the warrant.

Expected stock volatility	80	%
Risk free interest rate	0.77	%
Expected years until exercise	2.25
Dividend yield	0.00	%

Schedule of warrants

The fair value of the warrants using the Black-Scholes-Merton Option Pricing Model and the assumptions are listed in the table below.

	Warrant #1			Warrant #2
Warrant shares issued		702,247			1,605,131
Market price	$	11.39		$	11.39
Exercise price	$	7.12		$	9.00
Term (years)		2			3
Risk-free interest rate		0.91	%		1.05	%
Volatility		65.70	%		67.80	%
Dividend rate		0	%		0	%
Per share FV of warrant	$	5.89		$	5.89
FV of warrant	$	4,136,074		$	9,449,754

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details