Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

v3.5.0.2
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Schedule of the level of the inputs used in the company's fair value calculation for instruments carried at fair value

The table below reflects the level of the inputs used in the Company’s fair value calculations:

 

    Quoted Prices
in Active
Markets
(Level 1) 		    Significant
Observable Inputs
(Level 2) 		    Significant
Unobservable
Inputs
(Level 3) 		    Total Fair
Value 		 
                                 
June 30, 2016                                
Derivative liabilities - warrants   $ -     $ -     $ 440,562     $ 440,562  
Derivative liabilities - debt conversion feature   $ -     $ -     $ 644,852     $ 644,852  
December 31, 2015                                
Derivative liabilities - warrants   $ -     $ -     $ 658,286     $ 658,286  
Schedule of the carrying values and the estimated fair values, based on level 3 inputs

The table below reflects the carrying values and the estimated fair values, based on Level 3 inputs, of the Company’s outstanding notes payable, including the related accrued interest, at June 30, 2016:

 

    Carrying Values     Estimated
Fair Values		  
Senior secured note payable, including accrued interest   $ 2,000,000     $ 2,000,000  
2014 junior secured notes payable, including accrued interest     3,600,181       3,845,125  
2010 junior secured notes payable, including accrued interest     1,167,211       1,167,211  
Schedule of restatement of quarterly financial statements

In the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, filed with the Securities and Exchange Commission on August 15, 2016, the weighted average shares outstanding – basic and diluted for the three months ended June 30, 2016 and 2015 were understated, and the net loss per share attributable to common stockholders – basic and diluted for the three months ended June 30, 2016 and 2015 were overstated, in each instance due to calculation errors related to a reverse stock split effectuated by the Company in July 2016. The effect of these errors is presented below. No other qualitative or quantitative changes have been made to the condensed consolidated financial statements as of and for the periods ended June 30, 2016 and 2015.

 

    For The Three Months Ended June 30,  
    2016     2015  
Weighted average shares outstanding – basic and diluted, as previously reported     1,971,071       1,472,998  
Correction     356,858       398,073  
Weighted average shares outstanding – basic and diluted, as restated     2,327,929       1,871,071  

 

    For The Three Months Ended June 30,  
    2016     2015  
Net loss per share attributable to common stockholders – basic and diluted, as previously reported   $ (0.90 )   $ (2.08 )
Correction     0.13       0.44  
Net loss per share attributable to common stockholders – basic and diluted, as restated   $ (0.77 )   $ (1.64 )