Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements of Financial Instruments

v3.8.0.1
Fair Value Measurements of Financial Instruments
 12 Months Ended
Dec. 31, 2017
Fair Value Measurements of Financial Instruments [Abstract]  
Fair Value Measurements of Financial Instruments

10. Fair Value Measurements of Financial Instruments



The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017:







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Description

 

Level 1

 

Level 2

 

Level 3

 

Gains (Losses)

Goodwill (non-recurring)

 

$

 -

 

$

 -

 

$

 803,118 

 

$

 -

Intangibles, net (non-recurring)

 

$

 -

 

$

 -

 

$

 676,436 

 

$

 -



The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Description

 

Level 1

 

Level 2

 

Level 3

 

Gains (Losses)

Goodwill (non-recurring)

 

$

 -

 

$

 -

 

$

 803,118 

 

$

 (2,247,447)

Intangibles, net (non-recurring)

 

$

 -

 

$

 -

 

$

 627,119 

 

$

 (1,684,203)



The Company recorded goodwill, intangible assets and an earn-out payable as a result its business combinations, and these assets were valued with the assistance of a valuation consultant and consisted of Level 3 valuation techniques.



The Company’s financial instruments consist of cash, accounts receivable, accounts payable, and accrued liabilities. The estimated fair value of cash, accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to the short-term nature of these instruments. None of these instruments are held for trading purposes.