On June 27, 2016, the Company entered into the Ontario Note (refer to Note 7). In consideration of the loan amount, the Ontario Noteholder received a warrant to purchase 100,000 shares of the Company’s common stock at an exercise price of $2.61 (the “Ontario Warrant”). Using the Black-Scholes option pricing model, the fair value of the Ontario Warrant was determined to be $0.1 million. The Ontario Warrant is exercisable at any time through June 27, 2026, in whole or in part. As of December 31, 2018, there are 100,000 shares still available for purchase under the Ontario Warrant.

 

On August 11, 2016, the Company entered into the Anson August Note (refer to Note 7). In consideration of the loan amount, Anson received a warrant to purchase 300,000 shares of the Company’s common stock at an exercise price of $2.61 (the “Anson August Warrant”). Using the Black-Scholes option pricing model, the fair value of the Anson August Warrant was determined to be $0.4 million. The Anson August Warrant is exercisable at any time through August 11, 2026, in whole or in part. As of December 31, 2018, there are 300,000 shares still available for purchase under the Anson August Warrant.

 

On October 24, 2016, the Company entered into the Anson October Note (refer to Note 7). In consideration of the loan amount, Anson received a warrant to purchase 340,000 shares of the Company’s common stock at an exercise price of $2.39 per share (the “Anson October Warrant”). Using the Black-Scholes option price model, the fair value of the Anson October Warrant was determined to be $0.4 million. The Anson October Warrant is exercisable at any time through October 24, 2026, in whole or in part. The Anson October Warrant contains limitations that prevent Anson from acquiring shares of the Company’s common stock upon exercise of the Anson October Warrant that would result in the number of shares beneficially owned by Anson and to exceed 9.99% of the total number of shares of the Company’s common stock then issued and outstanding. As of December 31, 2018, there are 340,000 shares still available for purchase under the Anson October Warrant.

 

On November 15, 2017, the Company entered into a Securities Purchase Agreement (refer to Note 17) with certain investors pursuant to which such investors were issued warrants to purchase an aggregate of 875,000 shares of the Company’s common stock at an exercise price of $1.63 per share (the “SPA Warrants”). Each SPA Warrant is exercisable commencing on the sixth month anniversary of the date of issuance and will expire on the fifth anniversary of the date that it became exercisable. Using the Black-Scholes option price model, the fair value of the SPA Warrants was determined to be $0.4 million. During the third quarter of 2018, an investor exercised 750,000 warrants to purchase shares of common stock at an exercise price of $1.63 per share, resulting in proceeds received from the issuance of common stock of approximately $1.2 million. As of December 31, 2018, there are 125,000 shares still available for purchase under the SPA Warrants.

 

The fair values of warrants issued during 2017 were estimated on the date of issuance using the Black-Scholes option pricing model with the following assumptions by year:

 

 

There were no warrants issued during the year ended December 31, 2018.