Note 12 - Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE

12

–

FAIR VALUE MEASUREMENTS

The following table presents information about warrant derivative liabilities that are measured at fair value on a recurring basis as of

December 31, 2018,

and indicate the fair value hierarchy of the valuation techniques we utilized to determine such fair value. In general, fair values determined by Level 

1

inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 

2

inputs utilize data points that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level 

3

inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.  

	Derivatives at Fair Value as of December 31, 2018
(in thousands)	Level 1		Level 2		Level 3			Total
Warrant liabilities		-		-		(865	)		(865	)
Total warrant liabilities	$	-	$	-	$	(865	)	$	(865	)

	Derivatives at Fair Value as of December 31, 2017
(in thousands)	Level 1		Level 2		Level 3			Total
Warrant liabilities		-		-		(2,387	)		(2,387	)
Total warrant liabilities	$	-	$	-	$	(2,387	)	$	(2,387	)

The following table presents a reconciliation of Level

3

activity for the years ended

December 31, 2017

and

2018:

	Level 3 Liabilities
(in thousands)	Warrant Liabilities
Balance at January 1, 2017	$	-
New warrants issued		3,080
Unrealized losses, net		2,608
Settlement of warrants		(3,301	)
Balance at December 31, 2017	$	2,387
Unrealized gains, net		(1,522	)
Balance at December 31 ,2018	$	865

The

2017

Warrants are Level

3

derivative liabilities and are valued using a lattice model that uses unobservable inputs such as volatility and future probability of issuing new shares.