Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE

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FAIR VALUE
6 Months Ended
Jun. 30, 2019
FAIR VALUE  
FAIR VALUE

2. FAIR VALUE

In accordance with Fair Value Measurements and Disclosures Topic of the FASB ASC 820, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value:

·

Level 1: Input prices quoted in an active market for identical financial assets or liabilities.

·

Level 2: Inputs other than prices quoted in Level 1, such as prices quoted for similar financial assets and liabilities in active markets, prices for identical assets, and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data.

·

Level 3: Input prices quoted that are significant to the fair value of the financial assets or liabilities which are not observable or supported by an active market.

To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

In August 2014, as part of an underwritten public offering, the Company issued 49,425 warrants to purchase common stock (the “August 2014 Warrants”). The August 2014 Warrants are listed on the NASDAQ Capital Market under the symbol “CLRBW”, however, there are certain periods where trading volume is low; therefore, they are classified as Level 2 within the hierarchy.

The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input applicable to each financial instrument as of June 30, 2019 and December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

 

    

Level 1

    

Level 2

    

Level 3

    

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

  

 

 

  

 

 

  

 

 

  

August 2014 Warrants

 

$

 —

 

$

46,000

 

$

 —

 

$

46,000

Total

 

$

 —

 

$

46,000

 

$

 —

 

$

46,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

    

Level 1

    

Level 2

    

Level 3

    

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

  

 

 

  

 

 

  

 

 

  

August 2014 Warrants

 

$

 —

 

$

43,000

 

$

 —

 

$

43,000

Total

 

$

 —

 

$

43,000

 

$

 —

 

$

43,000

 

To estimate the fair value of the August 2014 Warrants, the Company calculated the weighted average closing price for the trailing 10‑day period with trades that ended on the balance sheet date.