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6. DERIVATIVE LIABILITIES
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE LIABILITIES

As of December 31, 2013, the Company did not have a sufficient number of common shares authorized to fulfill the possible exercise of all outstanding warrants and the conversion of all convertible notes payable. As a result, the Company determined that the warrants and the embedded conversion features of the outstanding debt instruments did not qualify for equity classification. Accordingly, the warrants and conversion features were treated as derivative liabilities and were carried at fair value. During the year ended December 31, 2016, all of the outstanding convertible notes that qualified as derivative liabilities were paid in full or converted to common stock. As of September 30, 2017, no warrants remained as derivative liabilities due to their expiration on July 25, 2017.

 

The following table sets forth the changes in the fair value of derivative liabilities for the nine months ended September 30, 2017:

 

Balance, December 31, 2016   $ (44 )
  Gain on change in fair value of derivative liabilities     44  
Balance, September 30, 2017   $ 0  

 

The aggregate gain on derivative liabilities for the nine months ended September 30, 2017 was $44.