Duos Technologies Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

NOTE 7 - FAIR VALUE MEASUREMENTS

NOTE 7 - FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2017

NOTE 7 – 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. The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2017:


	Balance at March 31, 2017		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	$	2,203,487	$	—	$	—	$	2,203,487

The following is a roll forward through March 31, 2017 of the fair value liability of warrant derivative instruments:


	Fair Value of
	Liability for
	Warrant
	Derivative
	Instruments
Balance at December 31, 2016	$	793,099
Initial fair value of warrant liability		828,000
Change in fair value included in other (income) loss		582,388
Balance at March 31, 2017	$	2,203,487