Note 8 - Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE

8

: FAIR VALUE OF FINANCIAL INSTRUMENTS

There were

no

financial assets outstanding that were required to be measured at fair value on a recurring basis at

December 31, 2018

or

December 31, 2017.

Warrants issued in the

April 3, 2017,

offering, which are discussed further in Note

9,

contained provisions that could have required the Company to settle the warrants in cash in an event outside the Company’s control or had price protection rights and were therefore accounted for as liabilities while they were outstanding, with changes in the fair values included in net loss for the respective periods. Because some of the inputs to the valuation model were either

not

observable or were

not

derived principally from or corroborated by observable market data by correlation or other means, the warrant liability was classified as Level

3

in the fair value hierarchy.

The following table summarizes the changes in the Company’s Level

3

warrant liability for the year ended

December 31, 2017:

Warrant liability
Beginning balance	$
Issuances of warrants		1,612,413
Warrant exercises		(1,893,160	)
Change in fair value		280,747
Ending balance	$

The Company’s intangible assets are classified within Level

3

of the fair value hierarchy, measured at fair value on a nonrecurring basis. Refer to Note

3

for further discussion. 

There were

no

transfers between Level

1,

Level

2

or Level

3

for the years ended

December 31, 2018

or

December 31, 2017.