Quarterly report pursuant to Section 13 or 15(d)

Derivative Liabilities

Derivative Liabilities
6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Liabilities
8. Derivative Liabilities


Derivative liabilities at June 30, 2018 arose from an amendment the Company entered into with Brainlab, with respect to the Brainlab Note and related warrants (the “Brainlab warrants”), the provisions of which created: (a) a conversion feature allowing for $500,000 the principal balance of the Brainlab Note to be converted in a Qualified Public Offering, as defined in the amendment, at a public offering price that may be less than market value per share of the Company’s common stock; and (b) down round strike price protection with respect to Brainlab warrants. The conversion feature and the Brainlab warrants described herein terminated unexercised pursuant to the Company’s September 2018 repayment of the Brainlab Note as discussed in Note 5, and, accordingly, the Company had no derivative liabilities thereafter.


The fair values and the changes in fair values of derivative liabilities during the six months ended June 30, 2018 are as follows:


Balance, January 1, 2018   $ 95,786  
Reduction from warrant exercise     (31,468 )
Gain on change in fair value for the period     (42,023 )
Balance, June 30, 2018   $ 22,295