Quarterly report pursuant to Section 13 or 15(d)

NOTE 7 - FAIR VALUE MEASUREMENTS

v3.7.0.1
NOTE 7 - FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
NOTE 7 - FAIR VALUE MEASUREMENTS

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 June 30, 2017:

 

 

 

Balance at

June 30,

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

 

$

2,161,426

 

 

$

—

 

 

$

—

 

 

$

2,161,426

 

 

The following is a roll forward through June 30, 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

 

 

1,081,000

 

 

Change in fair value included in other (income) loss

 

 

287,327

 

 

Balance at June 30, 2017

 

$

2,161,426