Summary of Changes in Fair Value of Derivative Liabilities |
The following table provides a summary
of changes in fair value of the Company’s Level 3 financial liabilities for the two years ended December 31, 2018:
|
|
Warrant
Liability
|
|
Debt
Derivative
|
Balance, January 1, 2017 |
|
$ |
— |
|
|
$ |
— |
|
Initial fair value of debt derivative at note issuance |
|
|
— |
|
|
|
3,383,913 |
|
Initial fair value of warrant liability at issuance |
|
|
3,407,900 |
|
|
|
|
|
Mark-to-market at December 31, 2017 |
|
|
2,731,734 |
|
|
|
1,073,729 |
|
Transfers out of Level 3 upon conversion or payoff of notes payable |
|
|
(279,999) |
|
|
|
(1,826,267) |
|
Balance, December 31, 2017 |
|
$ |
5,859,635 |
|
|
$ |
2,631,375 |
|
Total (gains) losses |
|
|
|
|
|
|
|
|
Initial fair value of debt derivative at note issuance |
|
|
— |
|
|
|
4,403,740 |
|
Mark-to-market at December 31, 2018: |
|
|
— |
|
|
|
(1,333,636 |
) |
Transfers out of Level 3 upon conversion or payoff of notes payable or cancellation of warrant |
|
|
(5,859,635 |
) |
|
|
(3,368,855 |
) |
Balance, December 31, 2018 |
|
$ |
— |
|
|
$ |
2,332,624 |
|
Net gain for the period included in earnings relating to the liabilities held during the period ended December 31, 2018 |
|
$ |
— |
|
|
$ |
1,333,636 |
|
|