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Derivative Liabilities (Tables)
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value of Derivative Liabilities

In determining the fair value of the derivative liabilities, the Company used the Black-Scholes option pricing model at December 31, 2018 and 2017:

 

    December 31, 2018  
Common stock issuable upon exercise of warrants     1,129,121  
Market value of common stock on measurement date   $ 1.20  
Exercise price   $ 1.68  
Risk free interest rate (1)     2.46 – 2.63 %
Expected life in years     1.3 – 3.3 years  
Expected volatility (2)     74% – 124 %
Expected dividend yields (3)     0 %

 

    December 31, 2017  
Common stock issuable upon exercise of warrants     1,020,717  
Market value of common stock on measurement date   $ 5.79  
Exercise price   $ $7.70 to $7.00  
Risk free interest rate (1)     1.89 %
Expected life in years     2 years  
Expected volatility (2)     70.69 %
Expected dividend yields (3)     0 %

 

  (1) The risk-free interest rate was determined by management using the applicable Treasury Bill as of the measurement date.
  (2) The historical trading volatility was determined by calculating the volatility of the Company’s peers’ common stock.
  (3) The Company does not expect to pay a dividend in the foreseeable future.
Schedule of Change in Derivative Liabilities

The following table shows the change in the Company’s derivative liabilities rollforward for the years ended December 31, 2018 and 2017:

 

    Amount  
Balance, December 31, 2016     -  
Initial valuation of derivative liabilities of warrants     2,718,554  
Change in fair value of derivative liabilities     (861,302 )
         
Balance, December 31, 2017   $ 1,857,252  
Initial valuation of derivative liabilities upon issuance of warrants     149,321  
Cancellation of warrants     (1,253,140 )
Change in fair value of derivative liabilities     (426,981 )
         
Balance, December 31, 2018     326,452