Duos Technologies Group, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

NOTE 17 ??? FAIR VALUE MEASUREMENTS

NOTE 17 – FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2016

NOTE 17 – FAIR VALUE MEASUREMENTS

We currently measure and report at fair value the liability for warrant derivative instruments. The fair value liabilities for price adjustable warrants have been recorded as determined utilizing the BSM option pricing model and Monte Carlo simulations (see Note 16). The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:


	Balance at December 31, 2016		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
Liabilities:
Fair value of liability for warrant derivative instruments	$	793,099	$	—	$	—	$	793,099

The following is a roll forward through December 31, 2016 of the fair value liability of warrant derivative instruments:


	Fair Value of
	Liability for
	Warrant
	Derivative
	Instruments
Balance at December 31, 2015	$	—
Initial fair value of warrant liability included in expense ($217,980) and debt discount ($529,000)		746,980
Change in fair value included in other (income) expense		46,119
Balance at December 31, 2016	$	793,099