| Fair Value Measurement |
12. FAIR VALUE MEASUREMENT
Assumptions utilized in the valuation of Level
3 liabilities are described as follows:
| |
|
For the Years Ended |
|
| |
|
December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| |
|
|
|
|
|
|
| Risk-free interest rate |
|
|
1.47%-2.45 |
% |
|
|
1.62 - 2.63 |
% |
| Contractual term (years) |
|
|
1.00-10.00 |
|
|
|
0.25 - 3.25 |
|
| Expected volatility |
|
|
74%-140 |
% |
|
|
113% - 217 |
% |
| Expected dividend yield |
|
|
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:
| |
|
December 31, |
|
| |
|
2019 |
|
|
2018 |
|
| Derivative Liabilities |
|
|
|
|
|
|
|
|
| Beginning balance as of January 1 |
|
$ |
- |
|
|
$ |
3,448,390 |
|
| Conversion of derivative liability to equity |
|
|
- |
|
|
|
(419,415 |
) |
| Reclassify derivative liability to equity |
|
|
- |
|
|
|
(36,445 |
) |
| Change in fair value of derivative liability |
|
|
- |
|
|
|
(2,992,530 |
) |
| Ending balance as of December 31 |
|
$ |
- |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Warrants Payable |
|
|
|
|
|
|
|
|
| Beginning balance as of January 1 |
|
$ |
5,965 |
|
|
$ |
1,154,120 |
|
| Exchange of warrants payable for equity |
|
|
- |
|
|
|
(1,183,091 |
) |
| Accrual of other warrant obligations |
|
|
- |
|
|
|
2,135,430 |
|
| Change in fair value of warrants payable |
|
|
(863 |
) |
|
|
(2,100,494 |
) |
| Ending balance as of December 31 |
|
$ |
5,102 |
|
|
$ |
5,965 |
|
Assets and liabilities measured at fair value on a recurring or
nonrecurring basis are as follows:
| |
|
December 31, 2019 |
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alternative fuel credits |
|
$ |
- |
|
|
$ |
476,992 |
|
|
$ |
- |
|
|
$ |
476,992 |
|
| Marketable securities |
|
|
3,150,332 |
|
|
|
- |
|
|
|
- |
|
|
|
3,150,332 |
|
| Total assets |
|
$ |
3,150,332 |
|
|
$ |
476,992 |
|
|
$ |
- |
|
|
$ |
3,627,324 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Warrants payable |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,102 |
|
|
$ |
5,102 |
|
| Total liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,102 |
|
|
$ |
5,102 |
|
| |
|
|
December 31, 2018 |
|
| |
|
|
Level 1 |
|
|
|
Level 2 |
|
|
|
Level 3 |
|
|
|
Total |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alternative fuel credits |
|
$ |
- |
|
|
$ |
331,120 |
|
|
$ |
- |
|
|
$ |
331,120 |
|
| Marketable securities |
|
|
2,878,664 |
|
|
|
- |
|
|
|
- |
|
|
|
2,878,664 |
|
| Total assets |
|
$ |
2,878,664 |
|
|
$ |
331,120 |
|
|
$ |
- |
|
|
$ |
3,209,784 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Warrants payable |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,965 |
|
|
$ |
5,965 |
|
| Total liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,965 |
|
|
$ |
5,965 |
|
|