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 (Tables)

NOTE 7 - FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2017

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2017:


	Balance at September 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	$	938,228	$	—	$	—	$	938,228

Schedule of Fair Value Liability of Warrant Derivative Instruments

The following is a roll forward through September 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		2,046,348
Change in fair value included in other (income) loss		(1,901,219	)
Balance at September 30, 2017	$	938,228

Schedule of Fair Value Assumptions Used to Value Warrants

Thus, for the nine months ended September 30, 2017, the Company recognized a gain from the change in derivative liability of $1,901,219 included in the statement of operations under Other Income (Expense), Warrant Derivative Gain related to these warrant derivative instruments.


		BSM Inputs


Warrants
		For the Period January 25, to September 30, 2017
Expected Volatility		58-142%
Expected Remaining Term		4.22-4.89 years
Risk Free Interest Rate		1.978-1.939%