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Fair Value Measurement
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurement

NOTE 4. FAIR VALUE MEASUREMENT

 

In accordance with ASC Topic 820 — Fair Value Measurements and Disclosures (“ASC 820”), the Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business.

 

ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

 

● Level 1 — Quoted prices in active markets for identical assets and liabilities
   
● Level 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities)
   
● Level 3 — Significant unobservable inputs (including the Company’s own assumptions in determining the fair value)

 

The following table represents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020:

 

    March 31, 2021  
    Level 1     Level 2     Level 3     Total  
Liabilities:                                
Warrant derivative liabilities   $ —     $ —     $ 26,663,802     $ 26,663,802  
    $ —     $ —     $ 26,663,802     $ 26,663,802  

 

      December 31, 2020
      Level 1       Level 2       Level 3       Total  
Liabilities:                                
Warrant derivative liabilities     —       —       —       —  
    $ —     $ —     $ —     $ —  

 

The following table represents the change in Level 3 tier value measurements for the three months ended March 31, 2021:

 

    Warrant Derivative  
    Liabilities  
       
Balance, December 31, 2020   $ —  
         
Issuance of detachable warrants in the January 14, 2021 Offering     21,922,158  
         
Issuance of detachable warrants in the February 1, 2021 Offering     27,476,352  
         
Issuance of detachable pre-funded warrants in the January 14, 2021
Offering		     378,615  
         
Issuance of detachable pre-funded warrants in the February 1, 2021
Offering		     1,438,934  
         
Transition of derivative warrant liability to equity on pre-funded warrants     —  
         
Change in fair value of warrant derivative liabilities     (24,552,257 )
         
Balance, March 31, 2021   $ 26,663,802