Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Balances of Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of derivative liabilities which are measured at fair value on a recurring basis by level as of March 31, 2017:

	Fair Value Measurements Using
	Quoted Prices in		Significant Other		Significant
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total

As of March 31, 2017
Derivative liability	$	-	$	-	$	783,579	$	783,579
Warrant liability		-		-		29,949		29,949
Commitment in excess of authorized stock		-		-		19,554		19,554
Total	$	-	$	-	$	833,082	$	833,082

Schedule Changes in Liabilities with Significant Unobservable Inputs

The following table presents changes in the derivative liabilities with significant unobservable inputs (Level 3) for the three months ended March 31, 2017:

							Commitment
							In Excess of
	Warrant			Derivative			Authorized			Total
	Liability			Liability			Stock			Liability
Balance December 31, 2016	$	82,436		$	679,036		$	58,456		$	819,928

Liability on issuance of debt and warrants		2,842			627,510			-			630,352

Elimination of liability on conversion		-			(410,509	)		-			(410,509	)

Change in estimated fair value (1)		(55,329	)		(112,458	)		-			(167,787	)

Change in commitment in excess of authorized stock		-			-			(38,902	)		(38,902	)

Balance March 31, 2017	$	29,949		$	783,579		$	19,554		$	833,082

(1) Included in the Condensed Statements of Operation on the line “Change in fair value of derivative and warrant liabilities.”

Schedule of Derivative and Warrant Liabilities

Management used the following inputs to value the Derivative and Warrant Liabilities for the three months ended March 31, 2017:

	Derivative Liability	Warrant Liability
Expected term	6 months to 2 years	5 years
Exercise price	$0.0001 - $0.074	$0.02 - $0.1287
Expected volatility	216% to 240%	242% to 249%
Expected dividends	None	None
Risk-free interest rate	0.79% to 1.06%	1.93%
Forfeitures	None	None

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

SPECTRASCIENCE INC 10-Q