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FAIR VALUE MEASUREMENT
 9 Months Ended
Sep. 30, 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 September 30, 2021 and December 31, 2020:

 

   September 30, 2021 
   Level 1   Level 2   Level 3   Total 
Liabilities:                
Warrant derivative liabilities  $—   $—   $17,942,020   $17,942,020 
Contingent consideration promissory notes and earn-out agreement   —    —    5,244,400    5,244,400 
   $—   $—   $23,186,420   $23,186,420 

 

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

 

The following table represents the change in Level 3 tier value measurements for the nine months ended September 30, 2021:

 

   Contingent Consideration Promissory Note   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 
           
Issuance of contingent consideration promissory note - Nobility Healthcare Division Acquisition   350,000    — 
           
Change in fair value of financial instruments   —    2,863,422 
           
Balance, June 30, 2021  $350,000   $29,527,224 
           
Issuance of contingent consideration promissory note - Nobility Healthcare Division Acquisition   650,000    — 
           
Issuance of contingent consideration earn-out agreement - TicketSmarter Acquisition   4,244,400    — 
           
Change in fair value of financial instruments        (11,585,204)
           
Balance, September 30, 2021  $5,244,400   $17,942,020