Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments and Fair Value (Tables)

Derivative Financial Instruments and Fair Value (Tables)

9 Months Ended

Sep. 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 September 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 September 30, 2018:
Embedded conversion options	$	-	$	-	$	357,797	$	357,797
Common stock warrants		-		-		-		0
Total	$	-	$	-	$	357,797	$	357,797

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 nine months ended September 30, 2018:

Balance at December 31, 2017	$	12,435,250
Loss on change in fair value of debentures and warrants		(15,159,799	)
Fair value of warrants exercised		(4,619,150	)
Fair value of debentures converted		(1,408,899	)
Fair value of debentures exchanged for Series I-2 Preferred Stock		(1,420	)
Modification of warrants		8,603,067
Issuance of convertible debt		508,748
Balance at September 30, 2018	$	357,797