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ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 3 Months Ended
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Mar. 31, 2022
Payables and Accruals [Abstract] |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 11. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Other current liabilities at March 31, 2022 and December 31, 2021 consisted of:
|  | March 31, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Accounts payable |  | $ | 11,448,000 |  |  | $ | 6,902,000 |
Accrued payroll and payroll taxes |  |  | 4,364,000 |  |  |  | 5,027,000 |
Financial instrument liabilities |  |  | 4,267,000 |  |  |  | 4,249,000 |
Accrued legal |  |  | 1,787,000 |  |  |  | 2,637,000 |
Other accrued expenses |  |  | 5,373,000 |  |  |  | 3,940,000 |
|  | $ | 27,239,000 |  |  | $ | 22,755,000
Financial Instruments Under authoritative guidance used by the FASB on determining whether an instrument (or embedded feature) is indexed to an entity’s own stock, instruments that do not have fixed settlement provisions are deemed to be derivative instruments. In prior years, the Company granted certain warrants that resulted in these warrants accounted for as a financial instrument and being re-measured every reporting period with the change in value reported in the statement of operations. The financial instruments were valued using a variety of pricing models with the following valuation assumptions:
|  | March 31, 2022 |  |  | December 31, 2021 |
Contractually stipulated stock price |  | $ | 2.50 |  |  | $ | 2.50 |
Exercise price |  | $ | 2.50 |  |  | $ | 2.50 |
Contractually defined remaining term |  |  | 5.0 |  |  |  | 5.0 |
Contractually defined volatility |  |  | 135 | % |  |  | 135 | %
Dividend yield |  |  | 0 | % |  |  | 0 | %
Risk-free interest rate |  |  | 2.4 | % |  |  | 1.3 | %
Per the terms of the warrant agreements underlying the financial instruments, the value to the warrant holders is defined within the agreement based on a stock price, contractual term, volatility factor and dividend rate as defined in the warrant agreement, and not indexed to the company’s stock, resulting in the financial instrument accounting. The risk-free interest rate was based on rates established by the Federal Reserve Bank. The following table sets forth a summary of the changes in the estimated fair value of the financial instruments during the three months ended March 31, 2022 and 2021:
|  | March 31, 2022 |  |  | March 31, 2021 |
Beginning balance |  | $ | 4,249,000 |  |  | $ | 4,192,000 |
Change in fair value |  |  | 18,000 |  |  |  | 679,000 |
Ending balance |  | $ | 4,267,000 |  |  | $ | 4,871,000 |

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- Definition The entire disclosure for accounts payable and accrued liabilities at the end of the reporting period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(a),20,24) -URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 + Details
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- References No definition available. + Details
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