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Debt Obligations (Tables) | 3 Months Ended
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Mar. 31, 2020
Summary of Secured Convertible Debentures and Proceeds Investment Agreement | Debt obligations is comprised of the following:
|  | March 31, 2020 |  |  | December 31, 2019 |
2019 Secured convertible notes, at fair value |  | $ | — |  |  | $ | 1,593,809 |
2018 Proceeds investment agreement, at fair value |  |  | 6,193,000 |  |  |  | 6,500,000 |
Unsecured promissory notes payable, less unamortized discount of $-0- and $66,061 at March 31, 2020 and December 31, 2019, respectively |  |  | 300,000 |  |  |  | 233,939 |
Unsecured promissory notes payable – Related party |  |  | 289,000 |  |  |  | — |
Debt obligations |  | $ | 6,782,000 |  |  | $ | 8,327,748 |
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 three months ended March 31, 2020:
|  | Amount |
Balance at December 31, 2019 |  | $ | 1,593,809 |
Principal repaid during the period by issuance of common stock |  |  | (1,259,074 | )
Principal repaid during the period by payment of cash |  |  | (747,180 | )
Change in fair value of secured convertible note during the period |  |  | 412,445 |
Balance at March 31, 2020 |  | $ | — |
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 to determine the fair value of secured convertible notes:
|  | December 31, 2019 |
|  | Assumptions |
Volatility – range |  |  | 115 | %
Risk-free rate |  |  | 1.60 | %
Contractual term |  |  | 0.6 years |
Calibrated stock price |  | $ | 1.06 |
Debt yield |  |  | 123.6 | %
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 March 31, 2020 and December 31, 2019 to probability weighted present value of expected patent asset proceeds for the litigation involving both Axon and WatchGuard:
|  |  | March 31, 2020 |  |  |  | December 31, 2019 |
Discount rate |  |  | 3.6% - 21.3 | % |  |  | 3.0% - 16.6 | %
Expected term to patent asset proceeds payment |  |  | 0.33 years – 3.75 years |  |  |  | 0.58 years - 4 years |
Probability of success |  |  | 5.9% - 38.5 | % |  |  | 5.9% - 38.5 | %
Estimated minimum return payable to BKI |  | $ | 21 million |  |  | $ | 21 million |
Negotiation discount |  |  | 43.3 | % |  |  | 43.3 | %
Schedule of Fair Value of Debentures Activity | The following represents activity in the PIA during the three months ended March 31, 2020:
Beginning balance as of December 31, 2019 |  | $ | 6,500,000 |
Repayment of obligation |  |  | — |
Change in the fair value during the period |  |  | (307,000 | )
Ending balance as of March 31, 2020 |  | $ | 6,193,000 |

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