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Derivatives (Tables)
 12 Months Ended
Dec. 31, 2015
Derivatives [Abstract]  
Schedule of derivative warrant instruments activity

 

  Shares subject to warrants  Fair Value 
       
Balance, December 31, 2013  1,968,623  $6,707,255 
         
Transfer from liability to equity classification  (319,294)  (2,203,443)
         
Change in fair value  -   2,206,099 
         
Balance, December 31, 2014  1,649,329   6,709,911 
         
Transfer from liability to equity classification  (21,960)  (48,691)
         
Change in fair value  -   (3,812,318)
         
Balance, December 31, 2015  1,627,369  $2,848,902 
Summary of fair values of derivative warrants on basis of valuation model
  December 31,  December 31, 
  2015  2014 
       
Market value of common stock on measurement date (1) $3.23  $5.89 
Adjusted exercise price $2.48  $2.48 
Risk free interest rate (2)  1.06%  1.10%
Warrant lives in years  2.0 years   3.0 years 
Expected volatility (3)  87%  71%
Expected dividend yield (4)  -   - 
Probability of stock offering in any period over 5 years (5)  100%  100%
Offering price (6) $2.60  $4.50 

 

(1)The market value of common stock at the above measurement dates is based on the Company’s trading price quoted on the NYSE MKT.

  

(2)The risk-free interest rate was determined by management using the Treasury Bill rate as of the respective measurement date.

 

(3)As of December 31, 2015, the volatility was estimated using the historical volatilities of the Company’s common stock traded in NYSE MKT market. As of December 31, 2014, the volatility was estimated using the historical volatilities of comparable companies in the same industry and region.

 

(4)Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future.
  
(5)Management determines the probability of future stock offering at each evaluation date.
  
(6)Represents the estimated offering price in future offerings as determined by management.