Annual report pursuant to Section 13 and 15(d)

NOTE 17 - FAIR VALUE MEASUREMENTS

v3.8.0.1
NOTE 17 - FAIR VALUE MEASUREMENTS
12 Months Ended
Dec. 31, 2017
Note 17 - Fair Value Measurements  
NOTE 17 - FAIR VALUE MEASUREMENTS

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:

 

 

 

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

 


 

 

Balance at

December 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

 

$

 

 

$

 

 

$

 

 

$

 

 

The following is a roll forward through December 31, 2017 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

 

 

 

 

 

 

Initial fair value of warrant liability

 

 

2,046,347

 

Gain on change in fair value included in Other Income and Expense

 

 

(2,743,686

)

Balance at final valuation and written off to Additional Paid In Capital

 

 

(95,760

)

Balance at December 31, 2017

 

$