Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement

v3.7.0.1
Fair Value Measurement
6 Months Ended
Jun. 30, 2017
Fair Value Measurement [Abstract]  
FAIR VALUE MEASUREMENT

NOTE 8 – FAIR VALUE MEASUREMENT

 

ASC Topic 820 establishes a fair value hierarchy, giving the highest priority to quoted prices in active markets and the lowest priority to unobservable data and requires disclosures for assets and liabilities measured at fair value based on their level in the hierarchy. Also, ASC Topic 820 provides clarification that in circumstances, in which a quoted price in an active market for the identical liabilities is not available, a reporting entity is required to measure fair value using one or more of the techniques provided for in this update.

 

The standard describes a fair value hierarchy based on three levels of input, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:

 

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Input other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets of liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

 

The Company had no instruments recorded on the June 30, 2017 balance sheet that are measured at fair value on a recurring basis.

 

The following table sets forth the liabilities at December 31, 2016 which were recorded on the balance sheet at fair value on a recurring basis by level within the fair value hierarchy. As required, these are classified based on the lowest level of input that is significant to the fair value measurement:

 

          Fair Value Measurements at Reporting Date Using  
    December 31, 2016    

Quoted

Prices in

Active

Markets for

Identical

Assets

   

Significant Other

Observable

Inputs

   

Significant

Unobservable

Inputs

 
          (Level 1)     (Level 2)     (Level 3)  
Derivative liability – stock warrants   $ 1,250,000               -               -     $ 1,250,000  
Derivative liability – Series C Preferred Stock     2,093,623       -       -       2,093,623  
    $ 3,343,623       -       -     $ 3,343,623