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OTHER ASSETS
 12 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS

NOTE 11 – OTHER ASSETS

 

On April 9, 2020, pursuant to a licensing agreement entered into in March 2020, the Company received 10-year warrants to purchase 127,000 shares of Sanuwave Health, Inc. at a price of $0.19 per share. The fair value for warrants received is estimated at the date of grant using a Black-Scholes-Merton pricing model with the following underlying assumptions:

  2022   2021 
Price at valuation  $0.02   $ 0.19 – 0.26   
Exercise price  $0.19   $0.19 
Risk free interest   3.96%   0.66 – 0.73 %
Expected term (in years)   8    10 
Volatility   155.6%   140.6 – 143.9%

 

The Company considers this to be Level 3 inputs and is valued at each reporting period. The fair value of these warrants for the years ended December 31, 2022 and 2021 was $3 and $19, respectively. There was a net $16 and $6 change in fair value during the year ended December 31, 2022 and 2021, respectively.

 

Financial Liabilities Measured at Fair Value on a Recurring Basis

 

The fair value accounting standards define fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is determined based upon assumptions that market participants would use in pricing an asset or liability. Fair value measurements are rated on a three-tier hierarchy as follows:

 

● Level 1 inputs: Quoted prices (unadjusted) for identical assets or liabilities in active markets;
   
● Level 2 inputs: Inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly; and
   
● Level 3 inputs: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

There were no transfers between Level 3 during the years ended December 31, 2022 and 2021.

 

 

The following table presents changes in Level 3 asset and liability measured at fair value for the years ended December 31, 2022 and 2021:

 

   As of December 31, 2022 
   Asset   Liability 
Balance – December 31, 2020  $25   $2,471 
New Issuances   -    1,819 
Fair value adjustments – Sanuwave warrants   (6)   - 
Fair value adjustments – Warrant liability   -    6,956 
Reclassification liability to equity   -    (10,793)
Buy back of warrants   -    (453)
Balance – December 31, 2021  $19   $- 
New Issuances   -    - 
Fair value adjustments – Sanuwave warrants   (16)   - 
Balance – December 31, 2022  $3   $- 

 

The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy:

 

   Level I   Level II   Level III   Total 
   Fair Value Measurements as of December 31, 2022 
   Level I   Level II   Level III   Total 
Asset:                
Other assets  $     -   $     -   $    3   $3 

 

   Level I   Level II   Level III   Total 
   Fair Value Measurements as of December 31, 2021 
   Level I   Level II   Level III   Total 
Asset:                    
Other assets  $     -   $     -   $19   $19