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Debt Obligations (Tables)
 12 Months Ended
Dec. 31, 2019
Summary of Secured Convertible Debentures and Proceeds Investment Agreement

Debt obligations is comprised of the following:

 

    December 31, 2019     December 31, 2018  
2019 Secured convertible notes, at fair value   $ 1,593,809     $ —  
2018 Proceeds investment agreement, at fair value     6,500,000       9,142,000  
Unsecured promissory note payable, less unamortized discount of $66,061 at December 31, 2019     233,939       —  
Debt obligations   $ 8,327,748     $ 9,142,000  
2019 Secured Convertible Notes [Member]  
Schedule of Fair Value of Embedded Derivatives and Warrants

The following represents the resulting fair value as determined on August 5, 2019, the date of origination:

 

Secured convertible notes   $ 1,845,512  
Common stock issued as Commitment Shares     118,749  
Common stock purchase warrants     535,739  
         
Gross cash proceeds   $ 2,500,000  
Summary of Fair Value and Adjusted Carrying Value of Secured Convertible Notes

Following is an analysis of the activity in the secured convertible notes during the year ended December 31, 2019:

 

    Amount  
Balance at December 31, 2018   $ —  
Issuance of convertible notes on August 5, 2019, at fair value     1,845,512  
Principal repaid during the period by issuance of common stock     (648,067 )
Principal repaid during the period by payment of cash     (123,457 )
Change in fair value of secured convertible note during the period     519,821  
         
Balance at December 31, 2019   $ 1,593,809  
Schedule of Certain Estimates and Assumptions of Fair Value of Secured Convertible Notes

Following is a range of certain estimates and assumptions utilized as of December 31, 2019 and August 5. 2019 (inception date) to determine the fair value of secured convertible notes:

 

    December 31, 2019     August 5, 2019  
    Assumptions     Assumptions  
Volatility – range     115 %     110 %
Risk-free rate     1.60 %     1.78 %
Contractual term     0.6 years       0.9 years  
Calibrated stock price   $ 1.06     $ 0.86  
Debt yield     123.6 %     88.6 %
2018 Proceeds Investment Agreement [Member]  
Schedule of Fair Value of Embedded Derivatives and Warrants

The Company elected to account for the PIA on the fair value basis. Therefore, the Company determined the fair value of the PIA and PIA Warrants which yielded estimated fair values of the PIA including their embedded derivatives and the detachable PIA Warrants as follows:

 

Proceeds investment agreement   $ 9,067,513  
Common stock purchase warrants     932,487  
         
Gross cash proceeds   $ 10,000,000  
Schedule of Certain Estimates and Assumptions of Weighted Patent Asset

Following is a range of certain estimates and assumptions utilized as of December 31, 2019 and 2018 to probability weighted present value of expected patent asset proceeds for the litigation involving both Axon and WatchGuard:

 

      December 31, 2019       December 31, 2018  
Discount rate     3.0% - 16.6 %      4.7% - 21.75 % 
Expected term to patent asset proceeds payment     0.58 years - 4 years       0.93 years - 1.1 years  
Probability of success     5.9% - 38.5 %      17.7% - 77.0 %
Estimated minimum return payable to BKI   $ 21 million     $ 22.5 million  
Negotiation discount     43.3 %     54.4 %
Schedule of Fair Value of Debentures Activity

The following represents activity in the PIA during the year ended December 31, 2019 and 2018:

 

Beginning balance as of January 1, 2018   $ -  
Origination date at fair value of the Debentures     9,067,513  
Change in the fair value during the period     74,487  
Ending balance as of December 31, 2018   $ 9,142,000  
         
Beginning balance as of January 1, 2019   $ 9.142,000  
Repayment of obligation     (6,000,000 )
Change in the fair value during the period     3,358,000  
Ending balance as of December 31, 2019   $ 6,500,000  
2018 Secured Convertible Debentures [Member]  
Schedule of Fair Value of Embedded Derivatives and Warrants

The Company elected to account for the 2018 Debentures on the fair value basis. Therefore, the Company determined the fair value of the 2018 Debentures and 2018 Warrants which yielded estimated fair values of the 2018 Debentures including their embedded derivatives and the detachable 2018 Warrants as follows:

 

Secured convertible debentures   $ 4,565,749  
Common stock purchase warrants     1,684,251  
         
Gross cash proceeds   $ 6,250,000  
Summary of Fair Value and Adjusted Carrying Value of Secured Convertible Notes

The following represents activity in the 2018 Debentures during the year ended December 31, 2018:

 

Beginning balance as of January 1, 2018   $ -  
Origination date at fair value of the Debentures     4,565,749  
Conversions exercised during the period     (275,000 )
Principal payments made on Debentures     (6,600,000 )
Change in the fair value during the period     2,309,251  
Ending balance as of December 31, 2018   $ -