Derivative Liability (Tables)

12 Months Ended

Dec. 31, 2015

A summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s common stock purchase warrants that are categorized within Level 3 of the fair value hierarchy for the years ended 2015 and 2014 is as follows:


Stock Purchase Warrants	Weighted Average Inputs for the Period
Date of valuation	For the Year Ending December 31, 2015			For the Year Ending December 31, 2014
Strike price	$	0.74		$	10.70

Volatility (annual)		155	%		166	%

Risk-free rate		1.8	%		1.00	%

Contractual term (years)		4.2			2. 25

Dividend yield (per share)		0	%		0	%

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet under Derivative liability – warrants:


	As of December 31, 2015
	Fair Value Measurements
	Fair Value		Level 1		Level 2		Level 3		Total
Derivative liability - warrants	$	26,493,000		—		—	$	26,493,000	$	26,493,000

Total	$	26,493,000		—		—	$	26,493,000	$	26,493,000


	As of December 31, 2014
	Fair Value Measurements
	Carrying Value		Level 1		Level 2		Level 3		Total
Derivative liability - warrants	$	9,000		—		—	$	9,000	$	9,000

Total	$	9,000		—		—	$	9,000	$	9,000

Schedule of Changes in Level 3 Liabilities Measured at Fair Value

The following table presents changes in Level 3 liabilities measured at fair value for the year ended December 31, 2015:


	Derivative liability – warrants

Balance – December 31, 2014	$	9,000

Additions during the period		15,446,000

Settlement of debt		(16,835,000	)

Change in fair value of warrant liability		27,873,000


Balance – December 31, 2015	$	26,493,000