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Warrants (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of fair value of the outstanding warrants

	As of December 31,						As of April 28,
Stock options	2017			2016			2016
Market price per share (USD/share)	$	1.73		$	1.50		$	1.89
Exercise price (USD/share)		2.20			2.20			2.20
Risk free rate		2.36	%		2.40	%		1.84	%
Dividend yield		0	%		0	%		0	%
Expected term/Contractual life (years)		8.3			9.3			10.0
Expected volatility		241.20	%		232.20	%		224.19	%

Schedule of reconciliation of the beginning and ending balances of warrants liability

	December 31,
	2017		2016			2015
Beginning balance	$	1,499,362	$	162,736		$	553,060
Warrants issued to HLI		-		1,889,269			-
Warrants redeemed		-		(25,026	)		-
Fair value change of the issued warrants included in earnings		229,749		(527,617	)		(390,324	)
Ending balance	$	1,729,111	$	1,499,362		$	162,736

Schedule of of the warrants activity

	Number			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding as of January 1, 2016		551,380		$	9.86		1.49
Granted		1,000,000			2.20
Forfeited		-
Exercised		-
Redeemed		(551,380	)		9.86
Outstanding as of December 31, 2016		1,000,000		$	2.20
Granted		-
Forfeited		-
Exercised		-
Redeemed		-
Outstanding as of December 31, 2017		1,000,000		$	2.20

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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