FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 15 – FAIR VALUE MEASUREMENTS

The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value as previously defined in the summary of accounting policies and procedures.

The Company’s financial liabilities as of December 31 that are measured at fair value on a recurring basis were as follows:

	Level 1		Level 2		Level 3
2017
Derivative instruments (included in current liabilities)		—		—		—
2016
Derivative instruments (included in current liabilities)		—		—	$	18,056,631

We classified the derivative liability as Level 3 due to the lack of relevant observable market data over fair value inputs such as the probability-weighting of the various scenarios in the arrangement. The change in the derivative activity for the years ended December 31, 2017 and 2016 is included in Note 8 to the consolidated financial statements.

During the year ended December 31, 2017, no non-financial assets and liabilities were measured at fair value. The Company’s non-financial assets and liabilities that were measured at fair value during the year ended December 31, 2016 were as follows:

	Level 1		Level 2		Level 3
Property and equipment	$	—	$	100,339		—
Current assets	$	311,867		—		—
Accounts payables and other current liabilities	$	914,218		—		—
Intangible assets	$	112,408		—	$	2,401.208
Goodwill	$	—		—	$	6,569,354