XML 30 R11.htm IDEA: XBRL DOCUMENT
v3.22.1

Fair Value Measurements | 12 Months Ended
--- | ---
Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 4 – Fair Value Measurements The Company measures and records certain financial assets and liabilities at fair value on a recurring basis. Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following three levels of inputs are used to measure the fair value of financial assets and liabilities: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The following table summarizes the assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020, by level within the fair value hierarchy: Schedule of Fair Value Assets and Liabilities
|  | December 31, 2021 |
|  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Marketable securities (certificates of deposit) |  | $ | - |  |  | $ | 1,255,266 |  |  | $ | - |  |  | $ | 1,255,266 |
Total assets measured at fair value |  | $ | - |  |  | $ | 1,255,266 |  |  | $ | - |  |  | $ | 1,255,266 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration - common stock |  | $ | - |  |  | $ | - |  |  | $ | 8,684,669 |  |  | $ | 8,684,669 |
Contingent consideration - warrants |  |  | - |  |  |  | - |  |  |  | 1,747,972 |  |  |  | 1,747,972 |
Total liabilities measured at fair value |  | $ | - |  |  | $ | - |  |  | $ | 10,432,641 |  |  | $ | 10,432,641 |
|  | December 31, 2020 |
|  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Marketable securities (certificates of deposit) |  | $ | - |  |  | $ | 4,335,446 |  |  | $ | - |  |  | $ | 4,335,446 |
Total assets measured at fair value |  | $ | - |  |  | $ | 4,335,446 |  |  | $ | - |  |  | $ | 4,335,446 |
The Company’s financial instruments that are measured at fair value on a recurring basis consist of certificates of deposit. In connection with the acquisitions of Idaho Molecular, Inc and Advanced Conceptions, Inc. on December 31, 2021, the Company recorded a liability for contingent consideration in the form of shares of common stock and warrants to purchase common stock. The fair value of contingent consideration is calculated using a discounted probability weighted valuation model. Discount rates used in such calculation are a significant assumption that are not observed in the market, and therefore, the resulting fair value represents a Level 3 measurement. The changes for Level 3 items measured at fair value on a recurring basis are as follows: Schedule of Changes in Fair Value Measurement
Fair value as of December 31, 2020 |  | $ | - |
Contingent considered issued for business acquisitions |  |  | 10,432,641 |
Fair value as of December 31, 2021 |  | $ | 10,432,641 |
The fair value of the contingent consideration is based on the fair value of the contingent consideration-common stock and contingent consideration-warrants. The fair value of the contingent consideration-common stock is equal to the probability-adjusted value of the Company’s common stock as of December 31, 2021. The fair value of the contingent consideration-warrants is equal to the probability adjusted value of a call option with terms consistent with the terms of the warrants as of December 31, 2021. Prior to the probability adjustments, the warrants were valued based on the following inputs: Schedule of Contingent Consideration Common Stock and Warrants
|  | December 31, 2021 |
Stock price |  | $ | 8.93 |
Strike price |  | $ | 9.13 |
Volatility |  |  | 80.00 | %
Risk-free rate |  |  | 1.30 | %
Expected term |  |  | 5.0 |
In order to calculate the probability-adjusted value of the contingent consideration-common stock and contingent consideration-warrants, the Company estimated the probability of achieving certain milestones, which include regulatory approval for identified products, as well as production and net revenue targets. The probability of achieving the milestone related to net revenues was estimated using a Monte Carlo simulation valuation model. The unobservable significant inputs to the valuation model were as follows:
|  | December 31, 2021 |
Stock price |  | $ | 8.93 |
Risk-free rate |  |  | 1.30 | %
Expected term |  |  | 5.0 |
Weighted-average cost of capital |  |  | 27.00 | %
Revenue discount rate |  |  | 9.50 | %
Equity volatility |  |  | 80.00 | %
Asset volatility |  |  | 80.00 | %
Revenue volatility |  |  | 30.00 | %
Fair Value of Other Financial Instruments The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, notes receivable, accounts payable, accrued liabilities, and other liabilities approximate fair value due to their short-term maturities and are excluded from the fair value tables above.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration