Quarterly report pursuant to Section 13 or 15(d)

COMMON STOCK WARRANTS

v3.7.0.1
COMMON STOCK WARRANTS
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
COMMON STOCK WARRANTS

A summary of the Company’s warrant issuance activity and related information for the six months ended June 30, 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       4.6  
Cancelled     (200,000 )   $ 1.625       —    
Outstanding and exercisable at 6/30/2017     5,716,185     $ 1.89       3.8  

 

 

As described in Note 5, 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 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, while 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.