4. FAIR VALUE MEASUREMENTS

3 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 4                  FAIR VALUE MEASUREMENTS

The deferred consideration of $60,000 and $90,000 at December 31, 2020 and September 30, 2020, respectively, represents the fair value of the contingent earnout consideration related to the acquisition of Kablooe. The current and non-current portions of this liability are shown in the corresponding categories on the condensed consolidated balance sheets in each period presented. During the three months ended December 31, 2020, the Company reduced this liability from $90,000 to $60,000 based on the low likelihood of Kablooe reaching the first year’s earnings target.

The following table presents the placement in the fair value hierarchy and summarizes the changes in fair value of the aforementioned liability for the three months ended December 31, 2020:

					Fair value measurement at reporting date using
					Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
		Balance			(Level 1)		(Level 2)		(Level 3)
September 30, 2020	$	90,000		$	–	$	–	$	90,000
Decrease in fair value of Kablooe contingent earnout consideration		(30,000	)		–		–		(30,000	)
December 31, 2020	$	60,000		$	–	$	–	$	60,000