Fair Value Measurement

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurement

17. Fair Value Measurement

The Company records cash equivalents, short-term investments, contingent consideration, and warrant liability at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants based on assumptions that market participants would use in pricing an asset or liability. As discussed in Note 2, the Company classifies assets and liabilities measured at fair value using the fair value hierarchy per ASC 820.

The Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2019 consisted of the following:

	Fair Value Measurement at December 31, 2019
	Total		Level 1		Level 2		Level 3
Recurring fair value measurements
Cash equivalents - money market funds	$	8,034,640	$	8,034,640	$	—	$	—
Short-term investments		28,277,386		—		28,277,386		—
Contingent consideration		2,750,000		—		—		2,750,000
Warrant liability		10,000		—		—		10,000

The Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2018 consisted of the following:

	Fair Value Measurement at December 31, 2018
	Total		Level 1		Level 2		Level 3
Recurring fair value measurements
Cash equivalents — money market fund	$	29,375,509	$	29,375,509	$	—	$	—
Warrant liability		65,000		—		—		65,000

Cash equivalents and short-term investments valued using publicly quoted market prices, data from third party pricing services, and other market observable data at the end of each reporting period. Short-term investments had quoted prices at December 31, 2019 as shown below:

	As of December 31, 2019
	Amortized Cost		Unrealized Gain		Market Value
United States treasury securities	$	3,394,579	$	3,228	$	3,397,807
Corporate debt securities		24,862,800		16,779		24,879,579
Total	$	28,257,379	$	20,007	$	28,277,386

The fair value of contingent payments classified as a liability was estimated using the Monte Carlo simulation valuation model with Level 3 inputs. The assumptions used to estimate the fair value of contingent payments that were classified as a liability at December 31, 2019 were as follows:

Expected volatility	95.3	%
Risk-free interest rate	1.6	%
Cost of capital	30.0	%

If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. There were no transfers into and out of any of the levels of the fair value hierarchy during 2019 or 2018.

Assets recorded at fair value on a nonrecurring basis, such as property and equipment, intangible assets, and goodwill are recognized at fair value when they are impaired. During the years ended December 31, 2019 and 2018, the Company recognized goodwill and intangible asset impairments (Note 6) measured at fair value on a nonrecurring basis.