|12 Months Ended|
Dec. 31, 2016
|Derivative Liabilities [Abstract]|
The Company has identified derivative instruments arising from embedded conversion features in the Company’s Convertible Notes Payable and Accounts Payable at December 31, 2016. The Company had no financial assets measured at fair value on a recurring basis as of December 31, 2015.
The following summarizes the Black-Scholes assumptions used to estimate the fair value of the derivative liability and warrant liability at the date of issuance and for the convertible notes converted during the year ended December 31, 2016.
Risk-free interest rate: The Company uses the risk-free interest rate of a U.S. Treasury Note with a similar term on the date of the grant.
Dividend yield: The Company uses a 0% expected dividend yield as the Company has not paid dividends to date and does not anticipate declaring dividends in the near future.
Volatility: The volatility was estimated using the historical volatilities of the Company’s common stock.
Remaining term: The Company’s remaining term is based on the remaining contractual maturity of the warrants.
The following are the changes in the derivative liabilities during the year ended December 31, 2016.
The following are the changes in the warrant liability during the year ended December 31, 2016.
The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.
Reference 1: http://www.xbrl.org/2003/role/presentationRef