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OTHER ASSETS
 9 Months Ended
Sep. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS

NOTE 8 – 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 was estimated at the date of grant and at each reporting period using a Black-Scholes-Merton pricing model with the following underlying assumptions:

 

   September 30,
2023		   December 31,
2022		 
Price at valuation  $0.02   $0.02 
Exercise price  $0.19   $0.19 
Risk free interest   4.61%   3.96%
Expected term (in years)   7    8 
Volatility   147.8%   155.6%

 

The Company considers this to be Level 3 inputs and is valued at each reporting period. For the three and nine months ended September 30, 2023, changes in the fair value of these warrants amounted to $(1) for both periods, leaving a balance of $2 as of September 30, 2023. For the three and nine months ended September 30, 2022, changes in the fair value of these warrants amounted to $(2) and $(12), respectively.

 

 

Financial Instruments 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 three and nine months ended September 30, 2023 and 2022.

 

The following table presents changes in Level 3 asset and liability measured at fair value for the quarters ended September 30, 2023 and 2022:

 

   Asset 
Balance – December 31, 2021  $19 
Fair value adjustments – Sanuwave warrants   (2)
Balance – March 31, 2022  $17 
Fair value adjustments – Sanuwave warrants   (8)
Balance – June 30, 2022  $9 
Fair value adjustments – Sanuwave warrants   (2)
Balance – September 30, 2022  $7 
      
Balance – December 31, 2022   3 
Fair value adjustments – Sanuwave warrants   2 
Balance – March 31, 2023  $5 
Fair value adjustments – Sanuwave warrants   (2)
Balance – June 30, 2023  $3 
Fair value adjustments – Sanuwave warrants   (1)
Balance – September 30, 2023  $2 

 

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 September 30, 2023 
   Level I   Level II   Level III   Total 
Asset:                    
Other assets  $-   $-   $2   $2 

 

   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