DERIVATIVE WARRANT LIABILITY (Tables)

9 Months Ended

Sep. 30, 2016

Disclosure Text Block [Abstract]

Schedule of Assumptions Used [Table Text Block]

The underlying assumptions used in the binomial model to determine the fair value of the derivative warrant liability were:

		September 21, 2016		September 30, 2016
Current stock price	$	1.20	$	1.91
Risk-free interest rate		0.92 %		0.77%
Expected dividend yield		--		--
Expected term (in years)		3.0		3.0
Expected volatility		146 %		146 %
Number of iterations		5		5

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

The initial fair value of the derivative warrant liability was recorded as follows:

Extinguishment of debt	$	1,715,000
Interest expense		5,189,000
Debt discount		2,450,000
Initial fair value of warrants issued	$	9,354,000

Derivative Instruments, Gain (Loss) [Table Text Block]

Changes in the derivative warrant liability were as follows:

January 1, 2016	$	--
Initial fair value of warrants issued		9,354,000
Increase in fair value		6,032,000
September 30, 2016	$	15,386,000