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FAIR VALUE MEASUREMENT
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT

NOTE 9. 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 December 31, 2021 and 2020.

   December 31, 2021 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Warrant derivative liabilities  $—   $—   $14,846,932   $14,846,932 
Contingent consideration promissory notes and contingent consideration earn-out agreement   —    —    967,212    967,212 
   $—   $—   $15,814,144   $15,814,144 

 

    December 31, 2020 
    Level 1    Level 2    Level 3    Total 
Liabilities:                    
Warrant derivative liabilities  $—   $—   $—   $— 
Contingent consideration promissory notes and contingent consideration earn-out agreement   —    —    —    — 
   $—   $—   $—   $— 

 

 

The following table represents the change in Level 3 tier value measurements:

   Contingent
Consideration
Promissory Notes and Earn-Out Agreement		   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   —    — 
           
Issuance of contingent consideration promissory note - Revenue Cycle Management Segment Acquisition   350,000    — 
           
Issuance of contingent consideration promissory note - Revenue Cycle Management Segment Acquisition   650,000    — 
           
Issuance of contingent consideration earn-out agreement – Ticketing Segment Acquisition   3,700,000    — 
           
Change in fair value of contingent consideration promissory note - Revenue Cycle Management Acquisition   (32,788)   — 
           
Change in fair value of contingent consideration earn-out agreement –Ticketing Segment Acquisition   (3,700,000)   — 
           
Change in fair value of warrant derivative liabilities due to modification   

—

    

295,780

 
           
Change in fair value of warrant derivative liabilities   —    (36,664,908)
           
Balance, December 31, 2021  $967,212   $14,846,932 

 

The following table represents the change in other Level 3 tier value measurements:

 

   2019   2020         
   Secured   Secured   Proceeds     
   Convertible   Convertible   Investment     
   Notes   Notes   Agreement   Total 
                 
Balance, December 31, 2019  $1,593,809   $—   $6,500,000   $8,093,809 
                     
Issuance of secured convertible debt   —    778,859    —    778,859 
                     
Conversion of secured convertible debentures   (1,259,074)   (1,665,666)   —    (2,924,740)
                     
Repayment of proceeds investment agreement   —    —    (1,250,000)   (1,250,000)
                     
Repayment of secured convertible notes   (747,180)   (1,000)   —    (748,180)
                     
Change in fair value of secured convertible debentures and proceeds investment agreement   412,445    887,807    (5,250,000)   (3,949,748)
                     
Balance, December 31, 2020  $—   $—   $—   $— 
                     
Balance, December 31, 2021  $—   $—   $—   $—