Debt Agreements (Tables)

9 Months Ended

Sep. 30, 2018

We calculated the dividend of approximately $

0.3

million resulting from the trigger of the down round provision on

September 25, 2018

using the Black Scholes Option Pricing Model and the assumptions indicated in the table below:

Assumption	Pre-reset			Post-reset
Exercise price per share	$	1.96		$	0.25
Expected price volatility		71	%		71	%
Expected term (in years)		5.84			5.84
Risk-free interest rate		3.02	%		3.02	%
Dividend yield		0.00	%		0.00	%
Weighted-average fair value of warrants	$	0.05		$	0.14

The key assumptions used to value the Horizon Warrants were as follows:

Assumption
Date of issuance	July 27, 2017
Expected price volatility		47	%
Expected term (in years)		7.00
Risk-free interest rate		2.12	%
Dividend yield		0.00	%
Weighted-average fair value of warrants	$	1.02

The key assumptions used to value the new Horizon warrants were as follows:

Assumption
Date of issuance	March 21, 2018
Expected price volatility		86	%
Expected term (in years)		7.00
Risk-free interest rate		2.82	%
Dividend yield		0.00	%
Weighted-average fair value of warrants	$	0.81