Quarterly report pursuant to Section 13 or 15(d)

Disclosures about Fair Value

v3.5.0.2
Disclosures about Fair Value
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Disclosures about Fair Value

15. DISCLOSURES ABOUT FAIR VALUE

 

Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables according to FASB ASC 820 pricing levels.

 

    Fair Value Measurement Using  
          Quoted prices              
          in active     Significant        
          markets of     other     Significant  
          identical     observable     Unobservable  
    Recorded     assets     inputs     Inputs  
    value     (Level 1)     (Level 2)     (Level 3)  
September 30, 2016                                
Assets:                                
Available-for-sale securities   $ 11,480     $ 11,480     $ -     $ -  
Liabilities:                                
Embedded conversion feature     -       -       -       -  
Warrants     -                       -  
December 31, 2015                                
Assets:                                
Available-for-sale securities   $ 31,322     $ 31,322     $ -     $ -  
Liabilities:                                
Embedded conversion feature     1,094,300       -       -       1,094,300  
Warrants     137,308                       137,308  

 

The Company’s available-for-sale equity securities were valued using Level 1 inputs as summarized above. Level 1 inputs are based on unadjusted prices for identical assets in active markets that the Company can access. Level 2 inputs are based on quoted prices for similar assets other than quoted prices in Level 1, quoted prices in markets that are not yet active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets.

 

The derivative liabilities are measured at fair value using quoted market prices and estimated volatility factors based on historical quoted market prices for the Company’s common stock and are classified within Level 3 of the valuation hierarchy.