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OTHER ASSETS
 6 Months Ended
Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER ASSETS

NOTE 9 – 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:

 

   June 30, 2024   June 30, 2023 
Price at valuation  $0.02   $0.04 
Exercise price  $0.19   $0.19 
Risk free interest   4.52%   3.97%
Expected term (in years)   6    7 
Volatility   196.7%   155.6%

 

The Company considers this to be Level 3 inputs which are valued at each reporting period. For the three and six months June 30, 2024, changes in the fair value of these warrants amounted to $11 and $500, leaving a balance of $2,000 as of June 30, 2024. For the three and six months ended June 30, 2023, changes in the fair value of these warrants amounted to $(2,000) and $0, respectively, leaving a balance of $3,000 as of June 30, 2023.

 

 

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 six months ended June 30, 2024, and 2023.

 

The following table presents changes in Level 3 asset and liability measured at fair value for the quarters ended June 30, 2024 and 2023:

 

   Asset 
Balance – December 31, 2022  $3,000 
Fair value adjustments – Sanuwave warrants   2,000 
Balance – March 31, 2023  $5,000 
Fair Value adjustments – Sanuwave warrants   (2,000)
Balance – June 30, 2023   3,000 
      
Balance – December 31, 2023   1,000 
Fair value adjustments – Sanuwave warrants   1,000 
Balance – March 31, 2024  $2,000 
Fair Value adjustments – Sanuwave warrants   - 
Balance – June 30, 2024   2,000 

 

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 June 30, 2024 
   Level I   Level II   Level III   Total 
Asset:                
Other assets  $-   $-   $2,000   $2,000 

 

   Level I   Level II   Level III   Total 
   Fair Value Measurements as of June 30, 2023 
   Level I   Level II   Level III   Total 
Asset:                
Other assets  $-   $-   $3,000   $3,000