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Fair Value Measurements
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

8. Fair Value Measurements

 

Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy included in U.S. GAAP gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable, and these valuations have the lowest priority.

 

Management believes that the carrying values of cash and equivalents, accounts receivable, accounts payable, accrued expenses, and the 2019 Related Notes approximate fair value because of their short maturity. Management believes that the carrying value of the contingent consideration approximates fair value given the March 2, 2020 transaction proximity to March 31, 2020. Management believes that the carrying value of the 2020 Notes approximates fair value given the March 2, 2020 transaction proximity to March 31, 2020.

 

The table below reflects all other notes payable at December 31, 2019.

 

        December 31, 2019  
        Fair Value  
2016 Unrelated Notes   (a)   $ 942,256  
2017 Unrelated Notes   (a)     2,011,859  
2018 Unrelated Notes   (a)     1,028,792  
Total       $ 3,982,907  

 

        December 31, 2019  
        Fair Value  
2016 Related Notes   (a)   $ 405,784  
2017 Related Notes   (a)     445,810  
2018 Related Notes   (a)     457,241  
Total       $ 1,308,835  

 

  (a) The fair value was based upon Level 2 inputs. See Note 10 for additional information about the Company’s 2016, 2017, and 2018 Unrelated Notes. See Note 11 for additional information about the Company’s 2016, 2017, and 2018 Related Notes.