Annual report pursuant to Section 13 and 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.19.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Measurements Tables  
Fair value hierarchy financial assets measured

This was due to adoption of ASU 2017-11, which resulted in the reclassification of conversion feature derivative liabilities to equity as of January 1, 2018: 

 

    Fair Value at December 31,     Fair Value Measurement Using  
Description   2017     Level 1     Level 2     Level 3  
                         
Derivative Liabilities – Conversion Feature   $ 9,331,400     $ -     $ -     $ 9,331,400  
                                 
    $ 9,331,400     $ -     $ -     $ 9,331,400  
Fair value of the derivative liabilities using

The following table presents a reconciliation of the derivative liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

Balance at December 31, 2016   $ 6,987,000  
         
Change in Fair Market Value of Conversion Feature     3,494,550  
Derivative Debt Converted into Equity     (14,223,550 )
Issuance of Debt Instruments with Derivatives     13,073,400  
         
Balance at December 31, 2017   $ 9,331,400  
         
Reclassification of Derivative Liabilities to Equity     (9,331,400 )
         
Balance at December 31, 2018   $ -  
Reconciliation of the derivative liabilities measured

The following table presents a reconciliation of the Black Oak Contingent Consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

Roll forward of derivative liabilities - Contingent Consideration

       
Balance at December 31, 2016   $ 12,085,859  
         
Change in Fair Market Valuation of Contingent Consideration     4,426,047  
Payment of Contingent Consideration in Cash     (2,088,000 )
Settlement of Contingent Consideration     (4,739,638 )
Settlement of Contingent Consideration Recorded Against Additional Paid-In Capital     (4,692,697 )
Gain on Settlement of Contingent Consideration     (4,991,571 )
         
Balance at December 31, 2017 and Thereafter   $ -  
Reconciliation of the contingent consideration liability

The Company estimated the fair value of the derivative liabilities as of December 31, 2017 using the Black-Scholes-Merton option pricing model using the following assumptions:

 

    December 31,  
    2017  
       
Stock Price   $ 2.25 - $5.85  
Conversion and Exercise Price   $ 1.80 - $6.60  
Annual Dividend Yield     -  
Expected Life (Years)   0.46 - 3.42  
Risk-Free Interest Rate   1.04% - 2.50 %
Expected Volatility   43.80% - 123.56 %