DERIVATIVE LIABILITY - WARRANTS (Tables)

9 Months Ended

Sep. 30, 2016

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 nine months ended 2016 and 2015 is as follows:

Share Purchase Warrants	Weighted Average Inputs for the Period
	For the Nine			For the Nine
	Months Ending			Months Ending
	September 30,			September 30,
Date of valuation	2016			2015
Exercise price	$	1.20		$	7.56
Contractual term (years)		1.3			4.5
Volatility (annual)		105	%		159	%
Risk-free rate		1	%		1	%
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 September 30, 2016
	Fair Value Measurements
	Fair Value		Level 1		Level 2		Level 3		Total
Derivative liability - warrants	$	29,000		-		-	$	29,000	$	29,000
Total	$	29,000		-		-	$	29,000	$	29,000

	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

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 nine months ended September 30, 2016:

	Derivative liability – warrants
Balance – December 31, 2015	$	26,493,000
Reclassification of derivative liabilities to equity at exercise date		(5,074,000)
Reclassification of fair value of derivative liabilities to equity on amendment of warrant agreements		(15,465,000)
Change in fair value of warrant liability		(5,925,000)
Balance – September 30, 2016	$	29,000