Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE WARRANT LIABILITY (Tables)

v2.4.1.9
DERIVATIVE WARRANT LIABILITY (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of assumptions used in connection with the valuation of warrants and units
The assumptions used in connection with the valuation of warrants and units were as follows:
 
 
 
 
September 30,
2014
 
December 31,
2013
 
Number of shares underlying the warrants
 
 
 
9,992,296
 
 
19,873,714
 
Exercise price
 
 
$
1.00 - $1.05
 
$
1.00 - $1.05
 
Volatility
 
 
 
87.38
%
 
90.11
%
Risk free interest rate
 
 
 
1.07
%
 
0.78
%
Expected dividend yield
 
 
 
0.00
%
 
0.00
%
Expected warrant life (years)
 
 
 
4.19 – 4.41
 
 
4.78 – 4.94
 
Stock price
 
 
$
0.60
 
$
1.25
 
Fair value measurements using significant unobservable inputs
The table below provides a reconciliation of the beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3).  The table reflects gains and losses for the nine months ended September 30, 2014 for all financial liabilities categorized as Level 3.  There were no financial liabilities categorized as Level 3 for the nine months ended September 30, 2013.
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
 
December 31,
2013
 
Initial
Measurements
 
Increase
(Decrease)
To
Fair Value
 
Issuance
 
Reclassed
To Equity
 
September 30,
2014
 
Unit Offering
 
$
8,518,330
 
$
—
 
$
(614,241)
 
$
—
 
$
(3,768,916)
 
$
4,135,173
 
Unit Offering- Placement Agent
 
 
993,034
 
 
—
 
 
(71,063)
 
 
—
 
 
(576,439)
 
 
345,532
 
Beam warrants
 
 
1,216,000
 
 
3,347
 
 
(960,636)
 
 
(247,800)
 
 
—
 
 
10,911
 
 
 
$
10,727,364
 
$
3,347
 
$
(1,645,940)
 
$
(247,800)
 
$
(4,345,355)
 
$
4,491,616