Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of fair value assets and liabilities

The following table presents the Company’s assets and liabilities that are measured at fair value at September 30, 2018 and December 31, 2017 ($ in thousands):  

	Fair value measured at September 30, 2018
	Total carrying value at September 30,		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
	2018		(Level 1)		(Level 2)		(Level 3)
Assets
Marketable securities - mutual and exchange traded funds	$	3,409	$	—	$	3,409	$	—
Investments at Hoth	$	1,700	$	—	$	—	$	1,700
Investments at TheBit Daily	$	25	$	—	$	—	$	25
Investments at DatChat	$	1,000	$	—	$	—	$	1,000
Liabilities
Fair value of warrant liabilities	$	262	$	—	$	—	$	262

	Fair value measured at December 31, 2017
	Total carrying value at December		Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs
	31, 2017		(Level 1)		(Level 2)		(Level 3)
Assets
Marketable securities - mutual and exchange traded funds	$	3,998	$	—	$	3,998	$	—
Investments at Hoth	$	1,020	$	—	$	—	$	1,020
Liabilities
Fair value of warrant liabilities	$	822	$	—	$	—	$	822

Schedule of fair value assumptions

A summary of quantitative information with respect to the valuation methodology and significant unobservable inputs used for the Company’s warrant liabilities that are categorized within Level 3 of the fair value hierarchy at the date of issuance and as of September 30, 2018 and December 31, 2017 is as follows:

Date of valuation	September 30, 2018		December 31, 2017
Risk-free interest rate		2.81%		1.98%
Expected volatility		69.41% - 106.63%		100.00% - 132.21%
Expected life (in years)		2.19-2.31		2.94 - 3.06
Expected dividend yield		—		—

A summary of quantitative information with respect to the valuation methodology and significant unobservable inputs used for the Company’s valuation in Hoth that are categorized within Level 3 of the fair value hierarchy at the date of issuance and as of September 30, 2018 and December 31, 2017 is as follows:

Date of valuation	September 30, 2018			December 31, 2017
Risk-free interest rate		2.24	%		1.39	%
Expected volatility		75.00	%		75.00	%
Expected life (in years)		1.00			1.00

Schedule of fair value of the company's level 3 financial liabilities

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities for the nine months ended September 30, 2018 and 2017 that are measured at fair value on a recurring basis ($ in thousands): 

	Fair Value of Level 3 financial liabilities
	September 30, 2018			September 30, 2017
Beginning balance	$	822		$	702
Fair value adjustment of warrant liabilities		(560	)		259
Ending balance	$	262		$	961

Schedule of fair value of the Company's Level 3 financial assets

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial assets for the nine months ended September 30, 2018 and 2017 that are measured at fair value on a recurring basis: 

	Fair Value of Level 3 investment
	September 30,		September 30,
	2018		2017
Beginning balance	$	1,020	$	—
Purchase of investment in TheBit Daily LLC at fair value		25		—
Purchase of investment in DatChat at fair value		1,000
Fair value of Hoth upon issuance		—		675
Change in fair value of Hoth		680		345
Ending balance	$	2,725	$	1,020

Schedule of hierarchy for nonfinancial assets measured at fair value on a non-recurring basis

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The following tables presents the Company’s hierarchy for nonfinancial assets measured at fair value on a non-recurring basis (in thousands):</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 75%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td> <td style="padding-bottom: 1pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net carrying value at December 31,  2017</b></font></td> <td style="padding-bottom: 1pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td> <td style="padding-bottom: 1pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Impairment Charges -<br />Nine months ended <br />September 30, 2018</b></font></td> <td style="padding-bottom: 1pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td></tr> <tr style="background-color: rgb(204,238,255); vertical-align: bottom"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Assets</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="background-color: white; vertical-align: bottom"> <td style="text-align: left; padding-left: 18px; width: 64%"><font style="font: 10pt Times New Roman, Times, Serif">Patent Portfolios, net</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">1,500</font></td> <td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">1,051</font></td> <td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p> <table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 75%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td> <td style="padding-bottom: 1pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Net carrying value at December 31,  2017</b></font></td> <td style="padding-bottom: 1pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td> <td style="padding-bottom: 1pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b>Impairment Charges -<br />Nine months ended <br />September 30, 2017</b></font></td> <td style="padding-bottom: 1pt; font-weight: bold"><font style="font: 10pt Times New Roman, Times, Serif"><b> </b></font></td></tr> <tr style="background-color: rgb(204,238,255); vertical-align: bottom"> <td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Assets</font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> <tr style="background-color: white; vertical-align: bottom"> <td style="text-align: left; padding-left: 18px; width: 64%"><font style="font: 10pt Times New Roman, Times, Serif">Patent Portfolios, net</font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">3,578</font></td> <td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td> <td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; width: 15%"><font style="font: 10pt Times New Roman, Times, Serif">—</font></td> <td style="text-align: left; width: 1%"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td></tr> </table>