Fair Value Measurements

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

14. FAIR VALUE MEASUREMENTS

ASC 820, “Fair Value Measurements” and ASC 825, “Financial Instruments”, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument is categorized within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:

Level 1

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Assets and liabilities measured at fair value on a recurring basis were presented on the Company’s consolidated balance sheet as of December 31, 2020 and 2019 as follows:

	Fair Value Measurements at December 31, 2020 Using Fair Value Hierarchy
Description	Total		Level 1		Level 2		Level 3
Derivative liability	$	636,014	$	-	$	-	$	636,014
Total	$	636,014	$	-	$	-	$	636,014

	Fair Value Measurements at December 31, 2019 Using Fair Value Hierarchy
Description	Total		Level 1		Level 2		Level 3
Derivative liability	$	383,852	$	-	$	-	$	383,852
Total	$	383,852	$	-	$	-	$	383,852