Derivative Liability - Warrants (Tables)

6 Months Ended

Jun. 30, 2016

Text Block [Abstract]

Valuation Methodology

A summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s common stock purchase warrants that are categorized within Level 3 of the fair value hierarchy for the six months ended 2016 and 2015 is as follows:

Share Purchase Warrants	Weighted Average Inputs for the Period
Date of valuation	For the Six Months Ending June 30, 2016			For the Six Months Ending June 30, 2015
Fair market value of stock	$	0.51		$	0.96
Strike price	$	0.70		$	0.50
Contractual term (years)		3.7			3.2
Volatility (annual)		150.00	%		148.00	%
Risk-free rate		0.9	%		1.1	%
Dividend yield (per share)		0	%		0	%

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet under Derivative liability – warrants:

	As of June 30, 2016
	Fair Value Measurements
	Fair Value		Level 1		Level 2		Level 3		Total
Derivative liability - warrants	$	21,252,000		—		—	$	21,252,000	$	21,252,000
Total	$	21,252,000		—		—	$	21,252,000	$	21,252,000
	As of December 31, 2015
	Fair Value Measurements
	Fair Value		Level 1		Level 2		Level 3		Total
Derivative liability - warrants	$	26,493,000		—		—	$	26,493,000	$	26,493,000
Total	$	26,493,000		—		—	$	26,493,000	$	26,493,000

Schedule of Changes in Level 3 Liabilities Measured at Fair Value

The following table presents changes in Level 3 liabilities measured at fair value for the six months ended June 30, 2016:

	Derivative liability – warrants
Balance – January 1, 2016	$	26,493,000
Change in fair value of warrant liability		(5,241,000	)
Balance – June 30, 2016	$	21,252,000