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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. The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 and 2016:
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Balance at
December 31,
2016
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Quoted Prices in Active Markets for Identical Assets
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Significant Other Observable Inputs
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Significant
Unobservable Inputs
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(Level 1)
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(Level 2)
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(Level 3)
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Liabilities:
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Fair value of liability for warrant derivative instruments
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$
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793,099
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$
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—
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$
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—
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$
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793,099
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Balance at
December 31,
2017
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Quoted Prices in Active Markets for Identical Assets
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Significant Other Observable Inputs
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Significant
Unobservable Inputs
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(Level 1)
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(Level 2)
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(Level 3)
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Liabilities:
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Fair value of liability for warrant derivative instruments
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$
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—
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$
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—
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$
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—
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$
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—
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The following is a roll forward through December 31, 2017 of the fair value liability of warrant derivative instruments:
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Fair Value of
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Liability for
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Warrant
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Derivative
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Instruments
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Balance at December 31, 2015
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$
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—
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Initial fair value of warrant liability included in expense ($217,980) and debt discount ($529,000)
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746,980
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Change in fair value included in other (income) expense
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46,119
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Balance at December 31, 2016
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793,099
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Initial fair value of warrant liability
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2,046,347
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Gain on change in fair value included in Other Income and Expense
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(2,743,686
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)
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Balance at final valuation and written off to Additional Paid In Capital
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(95,760
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)
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Balance at December 31, 2017
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$
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—
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