|12 Months Ended|
Dec. 31, 2015
|Derivative Instruments and Hedging Activities Disclosure [Abstract]|
On October 16, 2013, the Merger provided for up to an additional $14,100,000 of payments to the former holders of ONE Group membership interests ("TOG Members") and to a liquidating trust ("Liquidating Trust"), established for the benefit of TOG Members and holders of warrants to acquire membership interests of ONE Group ("TOG Warrant Holders"), based on a formula as described in the Merger Agreement and which is contingent upon the exercise of outstanding Company warrants to purchase 5,750,000 shares of Common Stock at an exercise price of $5.00 per share (the “Parent Warrants”). The Company is required to make any payments on a monthly basis. Additionally, certain ONE Group employees are entitled to receive a contingent sign-on bonus of an aggregate of approximately $900,000 upon the exercise of the Parent Warrants. Any Parent Warrants that were unexercised would have expired on the date that is the earlier of (i) February 27, 2016 or (ii) the forty-fifth (45th) day following the date that the Company’s Common Stock closes at or above $6.25 per share for 20 out of 30 trading days commencing on February 27, 2014. See footnote 22 for discussion of Warrant expiration.
The Company estimated the fair value of the derivative liability based on the period of time between the balance sheet date and the exercise date and the remote possibility of exercise. The warrants expired on February 27, 2016 and the remaining balance will be written off in the first quarter of 2016.
The following tables summarize the components of derivative liabilities:
Fair value hierarchy:
The Company recorded $6,141,000 and $3,854,000 of derivative income for the years ended December 31, 2015 and 2014, respectively.