Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.7.0.1
Warrants
6 Months Ended
Jun. 30, 2017
Warrants [Abstract]  
WARRANTS

NOTE 9 – WARRANTS

   

On March 3, 2016, the Company completed the first tranche of the Financing, pursuant to which the Purchaser acquired a warrant to purchase 375,000 shares of common stock. The warrant was immediately exercisable upon issuance, will expire five years after issuance and has an exercise price of $7.00 per share.

 

The First Closing Warrant was determined to have an estimated aggregate fair value of $480 at issuance.

 

The following table summarizes information about outstanding and exercisable warrants at June 30, 2017:

 

              Shares                    
        Number of     Underlying     Shares              
        Shares     Warrants     Underlying              
        Underlying     Exchanged,     Warrants              
        Warrants     Exercised     Outstanding           Expiration  
        Originally     or     and     Exercise     Term  
Description   Grant Date   Granted     Expired     Exercisable     Price     in years  
Series A(1)   January 27, 2014     315,676       (315,676 )     -       N/A       N/A  
Series B(1)   January 27, 2014     157,846       -       157,846     $ 45.00       1.58  
Series C(2)   November 19, 2014     145,399       (142,957 )     2,442     $ 12.00       2.88  
                  142,957       142,957     $ 9.00       2.88  
Series D(2)   November 19, 2014     193,865       (193,865 )     -       N/A       N/A  
Series E(2)   November 19, 2014     145,399       (145,399 )     -       N/A       N/A  
                  142,957       142,957     $ 9.00       4.88  
Rens(3)   March 3, 2016     375,000       -       375,000     $ 7.00       3.67  
          1,333,185       (511,983 )     821,202                  

  

(1) Issued in connection with the January 27, 2014 private placement transaction.
(2) Issued in connection with the November 19, 2014 registered-direct public offering, and subsequently revised pursuant to Warrant Exercise Agreements entered into on May 18, 2015.
(3) Shares issued pursuant to the closing of the first tranche of the Financing with RENS Technology Inc.

 

The following table summarizes the activities in warrants for the six months ended June 30, 2017:

 

    Shares Underlying Warrants     Average
Exercise
Price
 
Balance at December 31, 2016     1,136,878     $ 15.01  
Warrants expired     (315,676 )   $ 15.00  
Balance at June 30, 2017     821,202     $ 15.02  

 

The following table summarizes the assumptions used to value the warrants at the issuance date using the Black-Scholes option pricing model:

 

        Number of                                      
        Shares     Stock                                
    Grant /   Underlying     Price on                                
    Modification   Warrants     Measurement     Exercise     Expected     Expected     Dividend     Risk Free  
Description   Date   Granted     Date     Price     Term     Volatility     Yield     Rate  
Series B   1/27/2014     157,846     $ 7.00     $ 45.00       5.00       150.00 %     0.00 %     1.61 %
Series C   11/19/2014     145,399     $ 9.37     $ 12.00       5.50       94.60 %     0.00 %     1.64 %
Repricing Series C   5/18/2015     142,957     $ 5.95     $ 9.00       5.00       96.34 %     0.00 %     1.46 %
Series D   11/19/2014     193,865     $ 9.37     $ 9.37       0.50       93.44 %     0.00 %     0.07 %
Repricing Series D   5/18/2015     190,609     $ 5.95     $ 5.25       0.00       226.56 %     0.00 %     0.02 %
Series E   11/19/2014     145,399     $ 9.37     $ 15.00       7.50       94.60 %     0.00 %     1.64 %
Repricing Series E   5/18/2015     142,957     $ 5.95     $ 9.00       7.00       96.34 %     0.00 %     1.87 %
Rens Technology   3/3/2016     375,000     $ 7.00     $ 7.00       4.00       96.34 %     0.00 %     1.87 %