Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments and Fair Value (Tables)

Derivative Financial Instruments and Fair Value (Tables)

6 Months Ended

Jun. 30, 2018

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, 2017 and June 30, 2018:

	Level 1		Level 2		Level 3		Total
As of December 31, 2017:
Embedded conversion options	$	-	$	-	$	1,577,025	$	1,577,025
Common stock warrants		-		-		10,858,225		10,858,225
Total	$	-	$	-	$	12,435,250	$	12,435,250

As of June 30, 2018:
Embedded conversion options	$	-	$	-	$	564,241	$	564,241
Common stock warrants		-		-		102,376,314		102,376,314
Total	$	-	$	-	$	102,940,555	$	102,940,555

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 six months ended June 30, 2018:

Balance at December 31, 2017	$	12,435,250
Loss on change in fair value of debentures and warrants *		94,965,093
Fair value of warrants exercised		(3,957,766	)
Fair value of debentures converted		(1,265,300	)
Fair value of debentures exchanged for Series I-2 Preferred Stock		(1,331	)
Modification of warrants		256,457
Issuance of convertible debt		508,152
Balance at June 30, 2018	$	102,940,555

*In addition to the loss on change in fair value of debentures and warrants, during the six months ended June 30, 2018, the Company recorded a loss on the exchange of convertible debentures into shares of its Series I-2 Preferred Stock of $651,560.