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The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy: (Tables)
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy:

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy:

 

   Fair Value Measurement at June 30, 2021 
   Total   Level 1   Level 2   Level 3 
Investments in convertible and term promissory
notes of Avalanche International, Corp.
(“AVLP”) and Ault and Company, Inc. (“Ault &
Company”) – related parties		  $13,913,000   $—   $—   $13,913,000 
Investments in common stock and warrants of
AVLP – a related party		   4,753,000    450,000    —    4,303,000 
Investment in common stock and warrants of
Alzamend Neuro, Inc. (“Alzamend”) – a related
party		   55,602,000    46,025,000    —    9,577,000 
Investments in marketable equity securities   30,172,000    30,172,000    —    — 
Investments in debt and equity securities   4,013,000    —    —    4,013,000 
Total Investments  $108,453,000   $76,647,000   $—   $31,806,000 

 

   Fair Value Measurement at December 31, 2020 
   Total   Level 1   Level 2   Level 3 
Investments in convertible promissory notes and
advances of AVLP and Alzamend – related
parties		  $10,668,000   $—   $—   $10,668,000 
Investments in common stock and warrants of
AVLP – a related party		   5,486,000    500,000    —    4,986,000 
Investment in common stock and warrants of
Alzamend – a related party		   653,000    —    —    653,000 
Investments in marketable equity securities   2,563,000    2,563,000    —    — 
Investments in debt and equity securities   262,000    —    —    262,000 
Total Investments  $19,632,000   $3,063,000   $—   $16,569,000 
The following table summarizes the changes in investments in debt and equity securities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the six months ended June 30, 2021:

The following table summarizes the changes in investments in debt and equity securities measured and carried at fair value on a recurring basis with the use of significant unobservable inputs (Level 3) for the six months ended June 30, 2021:

 

   Investments in 
   debt and equity 
   securities 
Balance at January 1, 2021  $262,000 
Investment in convertible promissory notes   1,136,000 
Investment in convertible preferred stock   600,000 
Investment in warrants   2,467,000 
Change in fair value of warrants   1,224,000 
Accretion of discount   980,000 
Conversion to marketable securities   (2,656,000)
Balance at June 30, 2021  $4,013,000 
The fair value of the Company’s holdings warrants was estimated using the Black-Scholes option-pricing method and the following assumptions:

Investments in debt and equity securities in the preceding table include the Company’s investments in certain preferred stocks and common stock warrants that do not have readily determinable market values as defined under GAAP. The Company applied standard valuation techniques in valuing the preferred stock and made assumptions regarding the expected duration of the investment and the effects of subordination in liquidation. The fair value of the Company’s holdings warrants was estimated using the Black-Scholes option-pricing method and the following assumptions:

     
Exercise price  $15.00 
Remaining contractual term (in years)   2.56 
Volatility   115.6%
Weighted average risk free interest rate   0.355% 
Expected dividend yield   0%