SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Changes in Fair Value of Level 3 Liability

The changes in the fair value of the Level 3 liability are as follows (in US dollars):

	Warrants with down-round Protection June 30,
	2017			2016
	(unaudited)
Balance, Beginning of the period		681,970			321,695
Warrants issued as consideration for placement services		273,650			234,008
Amount classified out of stockholders’ deficit and presented as Warrants with down-round protection		-			341,662
Change in fair value Warrants with down-round protection		(191,075	)		(64,212	)
Balance, End of period		764,545			833,153

Schedule of Warrant Inputs

The key inputs used in the fair value calculations were as follows:

	June 30,
	2017		2016
Dividend yield (%)		-		-
Expected volatility (%) (*)		56.59		62.16
Risk free interest rate (%)		0.92		0.72-1.11
Expected term of options (years)		0.70-4.98		1.70-5.00
Exercise price (US dollars)		4.50, 7.75		4.50, 7.75
Share price (US dollars) (**)		2.38		2.38
Fair value (US dollars)		0.06-0.76		0.61

(*)

Due to the low trading volume of the Company’s Common Stock, the expected volatility was based on the historical volatility of the share price of other public companies that operate in the same industry sector as the Company.

(**)

The Common Stock price, per share reflects the Company’s management’s estimation of the fair value per share of Common Stock as of June 30, 2017 and 2016. In reaching its estimation for such periods, management considered, among other things, a valuation prepared by a third-party valuation firm following the issuance of the Series C Units (See Note 3).