WARRANTS FOR COMMON STOCK

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

WARRANTS FOR COMMON STOCK

NOTE 9. - WARRANTS FOR COMMON STOCK

At June 30, 2018, the Company had outstanding warrants to purchase 11,387,932 shares of common stock of the Company, of which warrants to purchase 94,721 shares contain an anti-dilution feature. In July of 2018, the 94,721 warrants containing an anti-dilution feature were exercised on a cashless basis resulting in the issuance of 63,832 shares of the Company’s common stock.

During the three and six months ended June 30, 2018, warrant holders exercised 0 and 700,148 warrants, respectively, on a cashless basis, resulting in the issuance of 0 and 426,180 shares, respectively.

During the year ended December 31, 2017, the Company issued 11,293,211 warrants in conjunction with the June 2017 warrant exchange agreements. These warrants have an exercise price equal to $2.15 per share and are exercisable for a period of six months from the date of issuance for a period of five (5) years. See Note 3 for additional details.

During the year ended December 31, 2017, warrant holders exercised 12,763,238 warrants, with 1,286,277 of such warrants being exercised on a cashless basis, resulting in the issuance of an aggregate of 12,249,327 shares. Additionally, 223,814 warrants expired unexercised during the year ended December 31, 2017.

Outstanding warrants at June 30, 2018 consisted of the following:

Warrant Description	Number of   ‎Warrants		Exercise ‎Price		Expiration
August 2012 convertible NP warrants (1) (2)		94,721	$	0.9310	August 8, 2018
June 2017 warrants pursuant to warrant exercise agreements		11,293,211	$	2.1500	December 20, 2022
Total warrants outstanding		11,387,932

(1)	Includes anti-dilution features.
(2)	Exercised on a cashless basis in July of 2018.

The Company estimates the value of warrant liability upon issuance of the warrants and at each balance sheet date using the binomial lattice model to allocate total enterprise value to the warrants and other securities in the Company’s capital structure. Volatility was estimated based on historical observed equity volatilities and implied (forward) or expected volatilities for a sample group of guideline companies and consideration of recent market trends.

The following table is a roll-forward summary of the warrant liability since December 31, 2016:

Fair value at December 31, 2016	$	58,681
Loss as a result of change in fair value		157,809
Fair value at December 31, 2017		216,490
Gain as result of change in fair value		(48,711	)
Fair value at June 30, 2018	$	167,779

The aggregate net gain (loss) as a result of the Company’s warrant liability for the three and six months ended June 30, 2018 amounted to $0 and $48,711, respectively (the aggregate net loss for the three and six months ended June 30, 2017 amounted to $77,583 and $82,927, respectively), which are included in Other income (expense) under Warrant liability gain (loss) - net in the accompanying Consolidated Statements of Operations and Comprehensive Loss.

 The following table summarizes the Company’s warrant activity since December 31, 2016:

	Number of ‎Warrants
Warrants outstanding at December 31, 2016		13,781,921
Warrants exercised during 2017		(1,470,027	)
Warrants expired during 2017		(223,814	)
Warrants issued pursuant to June 2017 warrant exercise agreements		11,293,211
Warrants exercised pursuant to June 2017 warrant exercise agreements		(11,293,211	)
Warrants outstanding at December 31, 2017		12,088,080
Warrants exercised during 2018		(700,148	)
Warrants outstanding at June 30, 2018		11,387,932
Composition of outstanding warrants:
Warrants containing anti-dilution feature		94,721
Warrants without anti-dilution feature		11,293,211
		11,387,932