Derivative Financial Instruments and Fair Value (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table sets forth the financial assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2019 and 2018:

	Level 1		Level 2		Level 3		Total
As of December 31, 2019:
Embedded conversion options	$	-	$	-	$	455,336	$	455,336
Total	$	-	$	-	$	455,336	$	455,336
As of December 31, 2018:
Embedded conversion options	$	-	$	-	$	350,260	$	350,260
Total	$	-	$	-	$	350,260	$	350,260

Schedule of Changes in Liabilities with Level 3 of Fair Value

The following table reconciles the changes in the liabilities categorized within Level 3 of the fair value hierarchy for the years ended December 31, 2018 and 2019:

Balance at December 31, 2017	$	12,435,250
Gain on change in fair value of debentures and warrants (1)		(15,167,335	)
Fair value of warrants exercised		(4,619,150	)
Fair value of debentures converted		(1,408,901	)
Fair value of debentures exchanged for Series I-2 Preferred Stock		(1,420	)
Modification of warrants		8,603,069
Convertible debt		508,747
Balance at December 31, 2018	$	350,260
Change in fair value of debentures		105,076
Balance at December 31, 2019	$	455,336

(1) In addition to the gain on change in fair value of debentures and warrants of $15.2 million during the year ended December 31, 2018, the Company recorded a loss on the exchange of convertible debentures for shares of its Series I-2 Preferred Stock of approximately $1.5 million, as more fully discussed in Note 13. Therefore, the total change in the fair value of derivative instruments for the year ended December 31, 2018 was a net gain of $13.7 million.