Quarterly report pursuant to Section 13 or 15(d)

COMMON STOCK WARRANTS

v3.7.0.1
COMMON STOCK WARRANTS
3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
COMMON STOCK WARRANTS

Fair value measurement valuation techniques, to the extent possible, should maximize the use of observable inputs and minimize the use of unobservable inputs. The Company’s fair value measurements of all warrants are designated as Level 1 since all of the significant inputs are observable and quoted prices were available for the four comparative companies in an active market.

 

A summary of the Company’s warrant issuance activity and related information for the three months ended March 31, 2017 is as follows:

 

    Shares    

Weighted Average

Exercise

Price

   

Weighted

Average

Remaining Contractual Life

 
Outstanding at 12/31/2016     3,504,847     $ 1.85       3.9  
                         
Issued     2,411,338     $ 1.50       4.9  
Cancelled     (200,000 )   $ 1.625       --  
Outstanding and exercisable at 3/31/2017     5,716,185     $ 1.75       4.0  

 

 

As further described in Note 4, 200,000 warrants were cancelled and 200,000 shares of common stock were issued to the Noteholders’ as consideration for converting the Company’s short-term debt.

 

The fair value of all warrants issued are determined by using the Black-Scholes-Merton valuation technique and were assigned based on the relative fair value of both the common stock and the warrants issued.

 

The inputs used in the Black-Scholes-Merton valuation technique to value each of the warrants issued in the three months ended March 31, 2017 as of their respective issue dates are as follows:

 

Event

Description

 

Date

MDVX

Stock Price

Exercise Price of Warrant Grant Date Fair Value

Life

of Warrant

Risk Free Rate of Return (%) Annualized Volatility Rate (%)
Private Placement 2/8/17 $1.04 $1.50 $0.75 5 years 1.81 104.49

 

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.