PREFERRED STOCK AND DETACHABLE WARRANTS (Tables)

3 Months Ended

Mar. 31, 2016

The following table represents the carrying amount of the Series B Preferred Stock, classified as Temporary Equity on the Balance Sheet, at inception and as of March 31, 2016 and December 31, 2015 :



Temporary Equity:
At Inception	June 24, 2015
Face amount of Series B Preferred	$	25,000,000
Less: warrant value	7,028,067
Less: beneficial conversion feature	5,737,796
Less: issuance costs and fees	1,442,462
Carrying amount at inception	$	10,791,675

	March 31, 2016			December 31, 2015
Face amount of Series B Preferred	$	25,000,000		$	25,000,000
Less: unaccreted discount	(12,281,565		)	(13,044,793		)
Carrying amount at March 31, 2016	$	12,718,435		$	11,955,207

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	$	5,682,741

Schedule of Liabilities with Unobservable Inputs

The changes in liabilities measured using significant unobservable inputs for the three months ended March 31, 2016 were as follows:



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	(5,479,463		)
Balance at December 31, 2015	$	1,548,604
Change in valuation of warrants	1,986,320
Balance at March 31, 2016	$	3,534,924