PREFERRED STOCK AND DETACHABLE WARRANTS (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Summary of Temporary Equity

The BCF was determined by calculating the intrinsic value of the conversion feature as follows:

Face amount of Series B Preferred Stock	$	25,000,000
Less: allocated value of Warrants	7,028,067
Allocated value of Series B Preferred Stock	$	17,971,933
Shares of Common stock to be converted	8,064,534
Effective conversion price	$	2.23
Market price	$	2.94
Intrinsic value per share	$	0.7115
Intrinsic value of beneficial conversion feature	$	5,737,810

The following table represents the carrying amount of the Series B Preferred Stock at inception and as of June 30, 2015:

At Inception	Amount
Face amount of Series B Preferred	$	25,000,000
Less: warrant value	7,028,067
Less: beneficial conversion feature	5,737,810
Less: issuance costs and fees	1,442,448
Carrying amount at inception	$	10,791,675
At June 30, 2015	Amount
Face amount of Series B Preferred	$	25,000,000
Less: un-accreted discount	14,208,325
Carrying amount at June 30, 2015	$	10,791,675

Schedule of Liabilities with Unobservable Inputs

The changes in liabilities measured using significant unobservable inputs for the year ended June 30, 2015 were as follows:

Level Three Roll-forward:

Level Three Roll-Forward
Item	Level 3
Balance at December 31, 2014	$	—
Warrants issued June 24, 2015	7,028,067
Change in valuation of warrants	(1,816,982		)
Balance at June 30, 2015	$	5,211,085