Common Stock and Warrant Issuances

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Common Stock and Warrant Issuances

Note 6. Common Stock and Warrant Issuances

Sale of common stock

On March 15, 2018, the Company issued 200,000 shares of common stock to an investor for $80 in gross proceeds.

On January 17, 2018, the Company received $281 from the exercise of warrants to purchase 375,000 shares of common stock.

During the three months ended March 31, 2018, the Company issued an aggregate of 1,849,250 shares of common stock in exchange for the cashless exercise of warrants to purchase 3,311,100 shares of common stock.

During the three months ended March 31, 2018, the Company issued 448,551 shares of its common stock to consultants in exchange for services. These services were valued using the value of the shares issued of $839. During the three months ended March, 31, 2017, the Company did not issue any shares to consultants in exchange for services.

On December 7, 2017, a holder of one of the Company’s convertible notes payable converted their note, but requested that the Company not issue the shares due to ownership limitation provisions. During the three months ended March 31, 2018, the ownership limitations were satisfied and the Company issued 3,381,816 shares of its common stock to this former noteholder.

Warrants

The following table summarizes information about shares issuable under warrants outstanding at March 31, 2018:

	Warrant shares outstanding			Weighted average exercise price		Weighted average remaining life		Intrinsic value
Outstanding at January 1, 2018		13,720,742		$	1.49
Issued		-
Additional warrants issued for trigger of anti-dilution protection		1,000,000		$	0.40
Exercised		(3,686,100	)	$	1.09
Expired or cancelled		-
Outstanding at March 31, 2018		11,034,642		$	0.79		3.04	$	6,476
Exercisable at March 31, 2018		11,034,642		$	0.79		3.04	$	6,476

During the three months ended March 31, 2018, the Company changed the exercise terms of certain of its warrants to allow for and induce a cashless exercise. During the three months ended March 31, 2018, the Company recorded $139 in warrant modification expense due to the modifications.

Deemed Dividend

During the three months ended March 31, 2018, an anti-dilution protection feature in certain of the Company’s warrants was triggered, causing a decrease in the exercise price of those warrants from $4.50 to $0.40. In accordance with ASC 260-10-25, the Company has recorded a deemed dividend equal to the change in fair value of the warrants due to the decrease in exercise price in the amount of $2,514.