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Convertible Preferred Stock, Stockholders' Deficit, and Warrants (Tables)

3 Months Ended

Mar. 31, 2017

Convertible Preferred Stock, Stockholders' Deficit, And Warrants [Line Items]

Schedule of preferred stock units private placement

	Preferred
	Stock Units
	Issue Dates
	(Aggregate)
Preferred Stock Units issuance gross proceeds	$	2,537,012
Less: Series A Warrants initial fair value		(4,050,706	)
Less: Conversion option embedded derivative liability initial fair value		(1,221,963	)
Excess of fair value over gross proceeds		(2,735,657	)
Offering costs		(388,628	)
Loss on issuance of Preferred Stock Units	$	(3,124,285	)

Schedule of outstanding warrants to purchase common stock

	Warrants Exercisable at
			Weighted				Weighted
			Average				Average
	March 31,		Exercise		December 31,		Exercise		Expiration
	2017		Price		2016		Price		Date
Equity classified warrants IPO Warrants		10,579,695	$	5.00		10,580,095	$	5.00	January 2022

Liability classified warrants Series A Warrants		422,838	$	8.00		—	$	—	April 2024

Total		11,002,533	$	5.12		10,580,095	$	5.00

Series A Convertible Preferred Stock

Convertible Preferred Stock, Stockholders' Deficit, And Warrants [Line Items]

Schedule of summary of the estimated fair values

				Issue
				Dates
				Aggregated
	March 31,			Weighted
	2017			Average
Fair value per conversion option	$	2.36		$	2.89
Series A Convertible Preferred Stock outstanding		422,838			422,838
Calculated aggregate fair value	$	997,898		$	1,221,963
Value of common stock	$	5.00		$	5.73
Expected term (years)		7.1			7.2
Volatility		48	%		47	%
Risk-free interest rate		2.2	%		2.3	%
Dividend yield		0	%		0	%

Warrants

Convertible Preferred Stock, Stockholders' Deficit, And Warrants [Line Items]

Schedule of summary of the estimated fair values

				Issue
				Dates
				Aggregated
	March 31,			Weighted
	2017			Average
Series A Warrants outstanding		422,838			422,838
Fair value per warrant	$	7.72		$	9.58
Calculated aggregate fair value	$	3,264,309		$	4,050,706
Value of common stock	$	5.00		$	5.73
Exercise price	$	8.00		$	8.00
Expected term (years)		7.1			7.2
Risk free rate		2.2	%		2.3	%
Volatility		48	%		47	%
Dividend yield		0	%		0	%

- 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