Financial Instruments

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Financial Instruments

Note 3 — Financial Instruments

The following fair value hierarchy table presents information about each major category of the Company's financial liabilities measured at fair value on a recurring basis as of March 31, 2017 (there were no such financial liabilities as of December 31, 2016).

	Fair Value Measurement at Reporting Date Using:
	Quoted
	Prices in
	Active
	Markets		Significant
	for		Other		Significant
	Identical		Observable		Unobservable
	Items		Inputs		Inputs
	Level 1		Level 2		Level 3		Total
March 31, 2017
Liabilities
Series A Warrants	$	—	$	—	$	3,264,309	$	3,264,309
Derivative liability		—		—		997,898		997,898
Total liabilities	$	—	$	—	$	4,262,207	$	4,262,207

The Company has issued Series A Warrants to purchase shares of the Company's common stock at the option of the holder. The Series A Warrants are classified on the unaudited condensed consolidated balance sheet as a current liability. The Series A Warrants are initially measured at fair value at the time of issuance and subsequently remeasured at fair value at each reporting period, with changes in fair value recognized as other income or expense in the condensed consolidated statement of operations. See Note 12, Convertible Preferred Stock, Stockholders' Deficit, and Warrants for further discussion of the Series A Warrants. A reconciliation of the Series A Warrants liability is a follows:

Series A Warrants Liability	March 31, 2017
Balance at December 31, 2016	$	—
Initial fair value on dates of issuance		4,050,706
Change in fair value		(786,397	)
Balance at March 31, 2017	$	3,264,309

The Company has issued Series A Convertible Preferred Stock which is convertible into shares of the Company's common stock at the option of the holder. The Series A Convertible Preferred Stock conversion option is accounted for as an embedded derivative and bifurcated from the Series A Convertible Preferred Stock host instrument. The conversion option embedded derivative is classified on the condensed consolidated balance sheet as a current liability, initially measured at fair value at the time of issuance and subsequently remeasured at fair value at each reporting period, with changes in fair value recognized as other income or expense in the condensed consolidated statement of operations. See Note 12, Convertible Preferred Stock, Stockholders Deficit, and Warrants, for further discussion of the Series A Convertible Preferred Stock conversion option embedded derivative liability. A reconciliation of the Series A Convertible Preferred Stock conversion option embedded derivative liability is a follows:

Series A Preferred Stock
Conversion Option
Embedded Derivative Liability	March 31, 2017
Balance at December 31, 2016	$	—
Initial fair value on dates of issuance		1,221,963
Change in fair value		(224,065	)
Balance at March 31, 2017	$	997,898