| Schedule of assets and liabilities that are measured at fair value on a recurring basis |
The following table presents, for each of the fair value hierarchy levels required under ASC 820, the Company’s assets and liabilities from continuing operations that are measured at fair value on a recurring basis:
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|
December 31, 2019 |
|
Fair Value Measurements Using |
|
Quoted prices in |
|
Significant other |
|
Significant |
|
active markets for |
|
observable |
|
unobservable |
|
identical assets |
|
inputs |
|
inputs |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
Assets |
|
|
|
|
|
|
Investments in money market funds* |
|
$ |
2,240,230 |
|
|
$ |
— |
|
|
$ |
— |
|
Investment in Aytu |
|
$ |
— |
|
|
$ |
7,628,947 |
|
|
$ |
— |
|
Liabilities |
|
|
|
|
|
|
Warrant liability** |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,460 |
|
Unit purchase option liability** |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
Fair Value Measurements Using |
|
Quoted prices in |
|
Significant other |
|
Significant |
|
active markets for |
|
observable |
|
unobservable |
|
identical assets |
|
inputs |
|
inputs |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
Assets |
|
|
|
|
|
|
Investments in money market funds* |
|
$ |
7,324,932 |
|
|
$ |
— |
|
|
$ |
— |
|
Liabilities |
|
|
|
|
|
|
Contingent consideration |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,256,210 |
|
Warrant liability** |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,950 |
|
Unit purchase option liability** |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,216 |
|
|
|
|
|
|
|
|
*Investments in money market funds are reflected in cash and cash equivalents on the accompanying consolidated balance sheets.
**Warrant liability and unit purchase option liability are reflected in accrued expenses and other current liabilities on the accompanying consolidated balance sheets.
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| Summary of changes in the fair value of the Level 2 investment |
The table presented below is a summary of changes in fair value of the Company's Level 2 valuation for the Investment in Aytu for the year ended December 31, 2019:
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|
|
|
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Investment in |
|
|
|
Aytu |
|
Balance at December 31, 2018 |
|
$ |
— |
|
|
Initial valuation of Investment in Aytu upon issuance of Aytu Preferred Stock |
|
7,575,015 |
|
|
Change in fair value of Investment in Aytu |
|
53,932 |
|
|
Balance at December 31, 2019 |
|
$ |
7,628,947 |
|
|
|
| Summary of changes in the fair value of the Level 3 valuation for the Warrant Liability and the Investor Rights Obligation |
The tables presented below are a summary of changes in the fair value of the Company’s Level 3 valuations for the warrant liability, unit purchase option liability and contingent consideration from continuing operations for the years ended December 31, 2019 and 2018:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant |
|
Unit purchase |
|
Contingent |
|
|
|
|
liability |
|
option liability |
|
consideration |
|
Total |
Balance at December 31, 2018 |
|
$ |
2,950 |
|
|
$ |
7,216 |
|
|
$ |
1,256,211 |
|
|
$ |
1,266,377 |
|
Change in fair value due to Lachlan Settlement |
|
— |
|
|
— |
|
|
(1,277,150 |
) |
|
(1,277,150 |
) |
Change in fair value |
|
510 |
|
|
3,378 |
|
|
20,939 |
|
|
24,827 |
|
Balance at December 31, 2019 |
|
$ |
3,460 |
|
|
$ |
10,594 |
|
|
$ |
— |
|
|
$ |
14,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant |
|
Unit purchase |
|
Contingent |
|
|
|
|
liability |
|
option liability |
|
consideration |
|
Total |
Balance at December 31, 2017 |
|
$ |
8,185 |
|
|
$ |
26,991 |
|
|
$ |
2,577,134 |
|
|
$ |
2,612,310 |
|
Purchase price allocation measurement period adjustment of contingent consideration |
|
— |
|
|
— |
|
|
(1,210,000 |
) |
|
(1,210,000 |
) |
Change in fair value |
|
(5,235 |
) |
|
(19,775 |
) |
|
(110,923 |
) |
|
(135,933 |
) |
Balance at December 31, 2018 |
|
$ |
2,950 |
|
|
$ |
7,216 |
|
|
$ |
1,256,211 |
|
|
$ |
1,266,377 |
|
|