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Note 25 - Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
25—FAIR
VALUE OF FINANCIAL INSTRUMENTS
 
The following disclosure of the estimated fair value of financial instruments was made in accordance with the requirements of ASC
820
‘‘Disclosure about fair value of financial instruments’’ and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.
 
ASC
820
defines
three
levels of inputs that
may
be used to measure fair value and requires that the assets or liabilities carried at fair value be disclosed by the input level under which they were valued. The input levels are defined as follows:
 
Level
1:
Quoted (unadjusted) prices in active markets for identical assets and liabilities that the reporting entity can access at the measurement date.
Level
2:
Inputs other than quoted prices included within Level
1
that are observable for the asset or liability, either directly or indirectly.
Level
3:
Unobservable inputs for the asset or liability.
 
    ASC 820
Level		   December 31,  
2018		   December 31,  
2017
Assets:                    
Cash and cash equivalents  
Level 1
    
19,464
      
20,004
  
Liabilities:                    
Short-term borrowings  
Level 1
    
3,683
      
2,718
  
Long-Term Debt  
Level 1
    
1,830
      
1,217
  
Investor Warrants  
Level 3
    
–
      
840
  
 
The recorded amount of cash and cash equivalents, short term investment and short-term borrowings are a reasonable estimate of their fair value due to the short-term maturities of these instruments.
 
The fair market value (Level
1
measurement) of the Company’s long-term debt is estimated using interest rate available to the Company in corresponding markets for debt with similar terms and maturities (see note
14
-
1
Long-term debt).
 
Concerning Investor and Placement Agent Warrants, the Company uses a Black-Scholes option pricing model. The fair value of the Warrants changed over time depending on the volatility and share price at balance sheet date (see note
14
-
2
- Financial instruments carried at fair value).
 
The following tables provide a reconciliation of fair value for which the Company used Level
3
inputs, for the period from
December 31, 2016
to
December 31, 2018
:
 
All amounts in
thousands Euros unless otherwise
stated		   Investor
Warrants
2012		   Investor
Warrants
2013		   Investor
Warrants
2016		   Total Financial
instruments
carried at fair
value
As of December 31, 2016    
640
      
1,118
      
2,162
      
3,921
  
Warrants forfeited (see note 21)
(1)
.
   
(489
 )    
–
      
–
      
(489
 )
Warrants exercises (see note 21)
(1)
    
(136
 )    
–
      
–
      
(136
 )
FV adjustments (see note 21)
(1)
    
–
      
(656
 )    
(1,388
 )    
(2,044
 )
USD/EUR exchange impact
(2)
    
(16
 )    
(135
 )    
(262
 )    
(412
 )
As of December 31, 2017    
–
      
328
      
512
      
840
  
FV adjustments (see note 21)
(1)
    
–
      
(345
 )    
(544
 )    
(889
 )
USD/EUR exchange impact
(2)
    
–
      
17
      
32
      
49
  
As of December 31, 2018    
–
      
–
      
–
      
–
  
 
(
1
)
Reported in the Consolidated Statement of Income in line “Financial (expenses) income net”
(
2
)
Reported in the Consolidated Statement of Income in line “Foreign currency exchange gain (loss), net”
 
Please refer to “Note
14
– Long term debt and financial instruments carried out at fair value” for additional details.