Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

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 that are measured at fair value on a recurring basis:



	March 31, 2020
	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*	$	4,436,860	$	—	$	—
Investment in Aytu	$	—	$	14,708,768	$	—
Liabilities
Warrant liability**	$	—	$	—	$	760
Unit purchase option liability**	$	—	$	—	$	2,014



	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

*Investments in money market funds are reflected in cash and cash equivalents on the accompanying condensed consolidated balance sheets.

**Warrant liability and UPO liability are reflected in accrued expenses and other current liabilities on the accompanying condensed consolidated balance sheets.

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, UPO liability and contingent consideration for the three months ended March 31, 2020 and 2019:



	Warrant			Unit purchase			Contingent
	liability			option liability			consideration		Total
Balance at December 31, 2019	$	3,460		$	10,594		$	—	$	14,054
Change in fair value	(2,700		)	(8,580		)	—		(11,280		)
Balance at March 31, 2020	$	760		$	2,014		$	—	$	2,774



	Warrant		Unit purchase		Contingent
	liability		option liability		consideration		Total
Balance at December 31, 2018	$	2,950	$	7,216	$	1,256,210	$	1,266,376
Change in fair value	14,800		32,777		20,940		68,517
Balance at March 31, 2019	$	17,750	$	39,993	$	1,277,150	$	1,334,893