Quarterly report pursuant to Section 13 or 15(d)

Fair value of financial instruments (Tables)

v3.19.1
Fair value of financial instruments (Tables)
 3 Months Ended
Mar. 31, 2019
Financial Instruments, Owned, at Fair Value [Abstract]  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table presents information as of December 31, 2018 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a recurring basis:
 
Financial Instrument
 
Fair Value
 
 
Valuation technique
 
Significant Unobservable inputs
Convertible notes receivable
 
$
837,817
 
 
Monte Carlo Simulation
 
Probability of conversion and interest rates on comparable financial instruments
Investment in warrants
 
$
67,000
 
 
Black-Scholes Option Pricing Model
 
Common stock volatility and discount
 
 
 
 
 
 
 
 
Fair Value Option, Disclosures [Table Text Block]
The assumptions used to measure the fair value of the convertible notes receivable as of original issuance date and as of December 31, 2018 were as follows:
 
 
 
Issuance
Dates
 
 
December 31,
2018
 
Risk-Free Interest Rate
 
 
2.41%-2.47
%
 
 
2.41
%
Probability of conversion into equity
 
 
50%-90
%
 
 
90
%
Expected Volatility
 
 
91.95
%
 
 
91.95
%
Term
 
 
 .09-.59 years
 
 
 
.09 year
 
 
 
 
 
 
 
 
 
 
The assumptions used to measure the fair value of the warrants as of original issuance date and as of December 31, 2018 were as follows:
 
 
 
Issuance
Date
 
 
December 31,
2018
 
Risk-Free Interest Rate
 
 
2.47
%
 
 
2.41
%
Expected Dividend Yield
 
 
0
%
 
 
0
%
Expected Volatility
 
 
91.95
%
 
 
91.95
%
Term
 
 
 5 years
 
 
 
5 years
 
Fair Market Value of Common Stock
 
$
0.3275
 
 
$
0.16
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements, Nonrecurring [Table Text Block]
The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2018 are presented in the following table:
 
 
 
Quoted
 
 
 
 
 
 
 
 
 
prices
 
 
  
 
 
 
 
 
 
in active
 
 
Significant
 
 
 
 
 
 
markets for
 
 
other
 
 
Significant
 
 
 
identical
 
 
observable
 
 
unobservable
 
 
 
assets
 
 
inputs
 
 
inputs
 
 
 
(level 1)
 
 
(level 2)
 
 
(level 3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible notes receivable
 
$
-
 
 
$
-
 
 
$
837,317
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in warrants
 
 
-
 
 
 
-
 
 
 
67,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
-
 
 
$
-
 
 
$
904,317
 
 
 
 
 
 
 
 
 
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
A summary of the changes in the Company’s convertible notes receivable at fair value using significant observable inputs (Level 3) as of and for the quarter ended March 31, 2019 is as follows:
 
 
 
2019
 
Convertible notes receivable, December 31, 2018
 
$
837,317
 
Notes issued (face value $215,000), at fair value
 
 
196,000
 
Increase in fair value
 
 
531,405
 
Conversion of notes into common stock
 
 
(1,564,722
)
Investment in notes receivable, March 31, 2019
 
$
-
 
 
 
 
 
 
 
 
 
Schedule Of Changes In Investment In Warrants measure At Fair Value [Table Text Block]
A summary of the changes in the Company’s investment in warrants measured at fair value using significant observable inputs (Level 3) as of and for the quarter ended March 31, 2019 is as follows:
 
 
 
2019
 
Investment in warrants, December 31, 2018
 
$
67,000
 
Warrants issued to the Company
 
 
19,000
 
Increase in fair value
 
 
55,000
 
Conversion of warrants into common stock
 
 
(141,000
)
Investment in warrants, March 31, 2019
 
$
-