Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 16 – Fair Value Measurements

The Company follows a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to measurements involving unobservable inputs (Level 3). The three levels of the fair value hierarchy are as follows:

Level 1 inputs - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 inputs - other inputs that are directly or indirectly observable in the marketplace.

Level 3 inputs - unobservable inputs which are supported by little or no market activity.

The Company categorizes its fair value measurements within the hierarchy based on the lowest level input that is significant to the fair value measurement in its entirety. The following table presents the amount and level in the fair value hierarchy of each of its assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018. The contingent liability is for the earn-out related to the purchase of Electronic Control Concepts. 

	September 30, 2019
	Level 1		Level 2		Level 3		TOTAL
LIABILITES
Contingent Liability		-		-	$	35,989	$	35,989

	December 31, 2018
	Level 1		Level 2		Level 3		TOTAL
LIABILITES
Contingent Liability		-		-	$	57,142	$	57,142

A summary of the activity of the contingent liability is as follows:

Contingent liability at December 31, 2018	$	57,142
Change in fair value		(7,719	)
Reclassification to accounts payable		(13,434	)
Contingent liability at September 30, 2019	$	35,989