|12 Months Ended|
Dec. 31, 2015
|Text Block [Abstract]|
In June 2013, the Company issued warrants to purchase 301,778 shares of common stock at an exercise price of $0.66 per share in exchange for services provided. These warrants were valued at $21,910 in June 2013 and expensed to general and administrative expenses with an offset to derivative liability. On June 30, 2014, the Company issued an additional 48,222 warrants to the warrant holder in exchange for a settlement of a claim and modification of the warrant terms and to eliminate the anti-dilution protection (See Note 14).
In connection with the 2014 Private Placement (See Note 12) the Company issued warrants to investors and former holders of Series A Convertible Preferred Stock to purchase an aggregate of 11,177,612 shares of common stock with an exercise price of $1.00 per share and a five year term. These warrants had a provision that permitted the Company to call and redeem the warrants after a thirty day notice period if the stock traded at $2.50 or greater on a volume weighted average basis for at least twenty consecutive trading days. In addition, the Company issued warrants to the Placement Agent to purchase 2,047,000 shares of common stock with an exercise price of $1.00 per share and a five year term. These warrants contain a cashless exercise feature and the fair value of the warrants was recorded as a stock issuance cost and netted against the gross proceeds received.
In August 2014, the Company issued a warrant to a vendor in connection with a debt settlement (See Note 7) for the purchase of 162,539 shares of common stock exercisable at $1.00 per share with a five year term. The Company estimated the fair value of the warrant to be $55,000 based on a Black-Sholes valuation and charged additional paid-in capital.
At December 31, 2015, there were warrants outstanding to purchase 1,969,250 shares of common stock with a weighted average exercise price of $0.97 and a weighted average remaining life of 3.33 years. During the year ended December 31, 2015, warrants to purchase 11,615,674 shares of common stock were exercised for net proceeds (see Note 12) of approximately $10,814,125 which included warrants to purchase 371,250 shares of common stock that were exercised in cashless exercises, in accordance with the warrant agreements, resulting in the issuance of 255,724 shares. There were no warrants issued or cancelled during the year ended December 31, 2015.