Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2016
Stock Warrants  



The following table summarizes information with respect to outstanding warrants to purchase common stock of the Company, all of which were vested and exercisable, at December 31, 2016: 


Exercise     Number     Expiration  
Price     Outstanding     Date  
$ 6.30       546,250       October 2021  
$ 6.90       47,361       October 2021  
$ 42.50       91,898       August 2018  
$ 120.00       45,601       December 2017 to February 2018  
$ 250.00       35,423       January 2017 to February 2019  


In connection with the October 2016 Financing, the Company issued to Dawson warrants to purchase up to an aggregate of 47,361 shares of the Company's common stock. The Warrants are exercisable at $6.90 per share, expire five years from the date of issuance and have a fair value of $2.65. The Company measures the fair value of the issued warrants based on a Binomial option pricing model using certain assumptions discussed in the following paragraph, and the closing market price of the Company’s common stock on the date of the fair value determination.


The assumptions used in the valuation of warrants issued to Dawson were as follows:


Risk-free interest rate     1.30 %
Life of warrant      5 years  
Expected stock price volatility     78.04 %
Expected dividend yield   $ 0.0  


The risk-free interest rate is based on the yield of Daily U.S. Treasury Yield Curve Rates with terms equal to the life of the warrants as of the grant date. The expected stock price volatility is based on comparable companies’ historical stock price volatility since the Company does not have sufficient historical volatility data because its equity shares have been publicly traded for only a limited period of time.


In January 2015, 1,454 warrants with an exercise price of $200.00 expired.


During the year ended December 31, 2015, the Company issued an aggregate of 200 shares of its common stock upon the exercise of warrants at $42.50 per share.