Blink Charging Co. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurement

Fair Value Measurement

6 Months Ended

Jun. 30, 2017

6. FAIR VALUE MEASUREMENT

See Note 5 – Notes Payable – Convertible and Other Notes for warrants classified as derivative liabilities that were issued in connection with a convertible note.

Assumptions utilized in the valuation of Level 3 liabilities are described as follows:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016

Risk-free interest rate		1.50 - 1.55	%		0.58% - 1.08	%		1.47 - 1.55	%		0.58% - 1.16	%
Expected term (years)		1.28 - 5.00			2.28 - 5.00			1.28 - 5.00			2.28 - 5.00
Expected volatility		130% - 149	%		123% - 139	%		130% - 149	%		114% - 139	%
Expected dividend yield		0.00	%		0.00	%		0.00	%		0.00	%

The following table sets forth a summary of the changes in the fair value of Level 3 warrant liabilities that are measured at fair value on a recurring basis:

Derivative Liabilities
Beginning balance as of January 1, 2017	$	1,583,103
Issuance of warrants		651,527
Change in fair value of derivative liability		670,237
Ending balance as of June 30, 2017	$	2,904,867

Warrants Payable
Beginning balance as of January 1, 2017	$	155,412
Accrual of other warrant obligations		5,016
Change in fair value of warrants payable		109,964
Ending balance as of June 30, 2017	$	270,392

Assets and liabilities measured at fair value on a recurring or nonrecurring basis are as follows:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
Liabilities:
Derivative liabilities	$	-	$	-	$	2,904,867	$	2,904,867
Warrants Payable		-		-		270,392		270,392
Total liabilities	$	-	$	-	$	3,175,259	$	3,175,259

	December 31, 2016
	Level 1		Level 2		Level 3		Total
Liabilities:
Derivative liabilities	$	-	$	-	$	1,583,103	$	1,583,103
Warrants payable		-		-		155,412		155,412
Total liabilities	$	-	$	-	$	1,738,515	$	1,738,515

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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