Warrants |
10. Warrants
The following table summarizes the Company’s outstanding warrants to purchase common stock as of September 30, 2020 and December 31, 2019:
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Number of Warrants:
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Warrant Issuance
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September 30, 2020
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December 31, 2019
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Exercise Price
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Expiration Date
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Liability-classified Warrants
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November 2015 Investors
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-
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104,168
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$
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63.60
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May 2021
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November 2015 Placement Agent
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279
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279
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$
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63.60
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Nov. 2020
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March 2016 Investors
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50,651
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50,651
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$
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50.40
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Sept. 2021
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September 2016 Investors
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4,584
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67,084
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$
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36.00
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Mar. 2022
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June 2017 Investors
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82,072
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126,264
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$
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48.00
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Dec. 2022
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June 2017 Placement Agent
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15,153
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15,153
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$
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49.50
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June 2022
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October 2017 Investors
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108,846
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136,058
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$
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34.20
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Apr. 2023
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October 2017 Placement Agent
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16,327
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16,327
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$
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36.72
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Oct. 2022
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Total liability classified warrants
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277,912
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515,984
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Equity-classified Warrants
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October 2018 Investors
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160,257
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480,771
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$
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20.04
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Apr. 2024
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October 2018 Placement Agent
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28,848
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28,848
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$
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19.50
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Oct. 2023
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January 2019 Investors
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458,715
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895,886
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$
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9.60
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Jan. 2024
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Total equity-classified warrants
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647,820
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1,405,505
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Total outstanding warrants
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925,732
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1,921,489
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The following table summarizes the Company’s warrant activity for the nine months ended September 30, 2020:
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Number of Warrants
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Liability-classified
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Equity- classified
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Total
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Weighted average exercise price
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Balance, January 1, 2020
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515,984
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1,405,505
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1,921,489
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$
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22.10
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Exchanged during the period
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(238,072)
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(757,685)
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(995,757)
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$
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(22.64)
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Balances, September 30, 2020
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277,912
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647,820
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925,732
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$
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21.52
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At September 30, 2020, the weighted average remaining contractual life of the outstanding warrants was 3.0 years.
The following table summarizes the fair value of the liability-classified warrants as of the respective balance sheet dates:
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Fair Value as of:
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Warrant Issuance:
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September 30, 2020
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December 31, 2019
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November 2015 Investors
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$
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-
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$
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55
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November 2015 Placement Agent
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-
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-
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March 2016 Investor
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3,026
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439
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September 2016 Investors
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1,093
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3,196
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June 2017 Investors
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32,218
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11,736
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June 2017 Placement Agent
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3,573
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845
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October 2017 Investors
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64,196
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23,772
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October 2017 Placement Agent
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6,675
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1,674
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Total:
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$
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110,781
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$
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41,717
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The assumptions used in calculating the fair values of the liability-classified warrants are as follows:
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September 30, 2020
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December 31, 2019
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Trading market prices
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$
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2.08
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$
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1.91
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Fundamental transaction volatility
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134
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%
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102
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%
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Dividend
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-
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-
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Fundamental transaction risk-free rate
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0.17-0.21
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%
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1.57-1.72
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%
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Equivalent volatility
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77-89
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%
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85-94
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%
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Equivalent risk-free rate
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0.10-0.12
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%
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1.57-1.59
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%
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Fundamental transaction likelihood
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90
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%
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50
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%
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Fundamental transaction timing
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November 2020
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April 2020
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As discussed in Note 2, on June 17, 2020, the Company entered into the Original Merger Agreement, which meets the definition of a fundamental transaction as defined by the warrant agreements. Therefore, the Company adjusted the likelihood and timing of its fundamental transaction assumptions when calculating the fair values of the liability-classified warrants as of September 30, 2020.
Changes in the fair value of the warrant liabilities, carried at fair value, reported as “unrealized gain (loss) gain on fair value of warrants” in the statement of operations:
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For the Three Months Ended September 30,
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For the Nine Months Ended September 30,
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2020
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2019
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2020
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2019
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November 2015 Investors
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$
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2,262
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$
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9,560
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$
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(969)
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$
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233,713
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November 2015 Placement Agent
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-
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-
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-
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435
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March 2016 Investors
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3,336
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6,286
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(2,587)
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153,959
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September 2016 Investors
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8,246
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28,382
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(17,323)
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318,464
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June 2017 Investors
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29,330
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69,660
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(42,397)
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587,610
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June 2017 Placement Agent
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2,775
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5,804
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(2,728)
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62,268
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October 2017 Investors
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50,075
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112,729
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(55,452)
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744,355
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October 2017 Placement Agent
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4,613
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10,439
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(5,001)
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82,910
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Total:
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$
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100,637
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$
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242,860
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$
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(126,457)
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$
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2,183,714
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