Stockholders' Equity (Tables)
|
9 Months Ended |
Sep. 30, 2016 |
|---|
| Equity [Abstract] |
|
| Dividends Preferred Stock |
Dividend charges recorded during
the three months and nine months ended September 30, 2016 and 2015 are as follows:
| |
|
For the three Months Ended |
|
| |
|
September 30, |
|
| |
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
| Series |
|
|
|
|
|
|
|
|
| A |
|
$ |
12,510 |
|
|
|
12,510 |
|
| A-1 |
|
|
7,380 |
|
|
|
7,381 |
|
| Total |
|
$ |
19,890 |
|
|
|
19,891 |
|
| |
|
For the nine Months Ended |
|
| |
|
September 30, |
|
| |
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
| Series |
|
|
|
|
|
|
|
|
| A |
|
$ |
37,530 |
|
|
|
37,529 |
|
| A-1 |
|
|
22,140 |
|
|
|
22,141 |
|
| Total |
|
$ |
59,670 |
|
|
|
59,670 |
|
|
| Schedule of Accrued Liabilities |
Accrued dividends payable
at September 30, 2016 and December 31, 2015 are comprised of the following:
| |
|
September 30, 2016 |
|
|
December 31, 2015 |
|
| Series |
|
|
|
|
|
|
|
|
| A |
|
$ |
297,176 |
|
|
$ |
259,646 |
|
| A-1 |
|
|
213,628 |
|
|
|
191,487 |
|
| Total |
|
$ |
510,804 |
|
|
$ |
451,133 |
|
|
| Schedule of Warrants and Derivative Warrant Liability |
As of September
30, 2016, the following warrants are outstanding:
| Issued to |
|
Amount |
|
|
Issue date |
|
Expiration Date |
|
Exercise Price |
|
| Term Note Lender(1) |
|
|
2,343,750 |
|
|
9/30/2016 |
|
9/30/2021 |
|
|
0.80 |
|
| Investment Bank |
|
|
1,969,837 |
|
|
12/9/2012 |
|
12/9/2019 |
|
|
0.20 |
|
| Investment Bank |
|
|
2,434,539 |
|
|
10/31/2014 |
|
10/31/2021 |
|
|
0.20 |
|
| Equity Investors |
|
|
2,487,000 |
|
|
9/8/2016 |
|
9/8/2021 |
|
|
0.80 |
|
| Equity Investors |
|
|
2,423,688 |
|
|
9/29/2016 |
|
9/29/2021 |
|
|
0.80 |
|
| |
|
|
11,658,814 |
|
|
|
|
|
|
|
|
|
| |
(1) |
Warrant was determined to be a derivative subject to fair value accounting and is booked as a warrant liability. |
|
| Schedule of Warrants Activity |
A
summary of the warrant activity during the nine months ended September 30, 2016 is presented below:
| |
|
|
|
|
Weighted |
|
|
Weighted |
|
|
|
|
| |
|
|
|
|
Average |
|
|
Average |
|
|
|
|
| |
|
Number of |
|
|
Exercise |
|
|
Remaining |
|
|
Intrinsic |
|
| |
|
Warrants |
|
|
Price |
|
|
Life in Years |
|
|
Value |
|
| Outstanding, December 31, 2015 |
|
|
437,335 |
|
|
$ |
0.60 |
|
|
|
- |
|
|
|
- |
|
| Issued |
|
|
11,658,814 |
|
|
|
0.57 |
|
|
|
4.7 |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Expired |
|
|
(437,335 |
) |
|
|
0.60 |
|
|
|
- |
|
|
|
- |
|
| Outstanding, September 30, 2016 |
|
|
11,658,814 |
|
|
$ |
.57 |
|
|
|
4.7 |
|
|
$ |
- |
|
| Exercisable, September 30, 2016 |
|
|
11,658,814 |
|
|
$ |
.57 |
|
|
|
4.7 |
|
|
$ |
- |
|
|
| Schedule of Fair Value Assumptions of Warrant Derivative Liability |
The following
table summarizes the calculated aggregate fair values for the warrant derivative liability using the Lattice Model method based
on the following assumptions:
| |
|
September 30, 2016 |
|
| |
|
|
|
| Risk free rate |
|
|
1.14 |
% |
| Volatility |
|
|
37.80 |
% |
| Dividends |
|
|
0 |
|
| Time to maturity |
|
|
5 years |
|
| Fair value per share price |
|
|
.0611 |
|
| Fair value of warrants |
|
$ |
143,200 |
|
|