Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.20.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
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: 
 
 
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.
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:

 
 
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:

 
 
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