Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of Fair Value Warrants Assumption

The Company calculated the estimated fair value of warrants on the date of issuance and at each subsequent reporting date using the following assumptions:

 

    Year Ended  
    December 31, 2018  
Risk-free interest rate   2.54% – 2.71%  
Contractual term   0.95 - 1.0 year  
Expected volatility   35% - 40%  

Schedule of Warrants Liabilities Measured at Fair Value Using Significant Unobservable Inputs

The table below provides a reconciliation of the beginning and ending balances for the warrant derivative which is measured at fair value using significant unobservable inputs (Level 3): 

 

Balance, December 31, 2017   $ —  
Fair value of warrant derivative at Issuance date (Note 6, 7 and 10)     (9,170,822 )
Total realized and unrealized gains (losses):        
Change in the fair value of warrant derivative     (14,336,425 )
Balance, December 31, 2018   $ (23,507,247 )

Schedule of Potential Dilutive Securities

Potentially dilutive securities that are not included in the calculation of diluted net loss per share because their effect is anti-dilutive are as follows (in common equivalent shares):

 

    December 31, 2018     December 31, 2017  
             
Common stock warrants     13,070,417       206,309  
Stock options exercisable to common stock     1,125,000       125,000  
Shares issuable upon conversion of debt     -       579,247  
Shares issuable upon conversion of preferred stock     -       198,875  
Total potentially dilutive securities     14,195,417       1,109,431