Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Notes)

v3.8.0.1
Fair Value Measurements (Notes)
 9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

The fair value topic of the FASB Accounting Standards Codification defines fair value as the exchange price that would be received for an asset or paid to 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 accounting guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:
 
Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. The Company currently does not have any Level 1 financial assets or liabilities.
 
Level 2 - Observable inputs other than quoted prices included in Level 1. Level 2 inputs include quoted prices for identical assets or liabilities in non-active markets, quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for substantially the full term of the asset or liability.
 
Level 3 - Unobservable inputs reflecting management’s own assumptions about the input used in pricing the asset or liability.

The following table presents the asset reported in the consolidated balance sheet measured at its fair value on a recurring basis as of September 30, 2017 by level within the fair value hierarchy.
September 30, 2017
 
 
Quoted prices in active markets for identical assets
 
Significant other observable inputs
 
Significant unobservable inputs
 
 
 
Total
 
Level 1
 
Level 2
 
Level 3
 
Total gains (losses)
Recurring fair value measurements
 
 
 
 
 
 
 
 
 
     Available-for-sale equity securities
 
 
 
 
 
 
 
 
 
          EuroSite Power Inc.
$
334,570

 
$
—

 
$
—

 
$
334,570

 
$
(184,998
)
Total recurring fair value measurements
$
334,570

 
$
—

 
$
—

 
$
334,570

 
$
(184,998
)

      
The Company utilizes a Level 3 category fair value measurement to value its investment in EuroSite Power as an available-for-sale security at period end. That measurement is determined by management based on the lowest closing sales price in a 15 day trading period prior to period end.

The following table summarizes changes in level 3 assets which are comprised of available-for-sale securities for the period:
Fair value at acquisition on May 18, 2017
$
519,568

     Unrealized loss recognized in other comprehensive loss
(184,998
)
Fair value at September 30, 2017
$
334,570