| FAIR VALUE INFORMATION |
NOTE 27 — FAIR VALUE INFORMATION
Fair value hierarchy
The table below analyses assets and liabilities carried at fair value. The different levels are defined as follows:
Level 1: Quoted unadjusted prices in active markets for identical assets or liabilities that the Company can access at measurement date.
Level 2: Inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
As of December 31, 2021, and 2020, the Company’s financial assets and liabilities by level within the fair value hierarchy are as follows:
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|
|
|
|
|
|
|
|
|
|
|
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As of December 31, 2021 |
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|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
FINANCIAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
1,784,938 |
|
$ |
— |
|
$ |
— |
|
$ |
1,784,938 |
Accounts receivable |
|
|
— |
|
|
1,018,003 |
|
|
— |
|
|
1,018,003 |
Other Receivable |
|
|
|
|
|
|
|
|
66,000 |
|
|
|
Due from related parties |
|
|
— |
|
|
44,245 |
|
|
— |
|
|
44,245 |
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair value |
|
|
— |
|
|
— |
|
|
29,069 |
|
|
29,069 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
— |
|
|
1,078,381 |
|
|
— |
|
|
1,078,381 |
Derivative liability |
|
|
— |
|
|
250,000 |
|
|
— |
|
|
250,000 |
Loans payable |
|
|
— |
|
|
151,273 |
|
|
— |
|
|
151,273 |
Loans payable, related parties |
|
|
— |
|
|
425,551 |
|
|
— |
|
|
425,551 |
Lease liabilities |
|
|
— |
|
|
1,330,860 |
|
|
— |
|
|
1,330,860 |
Convertible debt obligations, net |
|
|
— |
|
|
1,274,010 |
|
|
— |
|
|
1,274,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2020 |
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
FINANCIAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
2,273,151 |
|
$ |
— |
|
|
— |
|
$ |
2,273,151 |
Accounts receivable |
|
|
— |
|
|
948,341 |
|
|
— |
|
|
948,341 |
Due from related parties |
|
|
— |
|
|
53,851 |
|
|
— |
|
|
53,851 |
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair value |
|
|
— |
|
|
— |
|
|
29,076 |
|
|
29,076 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
— |
|
|
821,820 |
|
|
— |
|
|
821,820 |
Derivative liability |
|
|
— |
|
|
250,000 |
|
|
— |
|
|
250,000 |
Loans payable |
|
|
— |
|
|
223,240 |
|
|
— |
|
|
223,240 |
Loans payable, related parties |
|
|
— |
|
|
589,502 |
|
|
— |
|
|
589,502 |
Lease liabilities |
|
|
— |
|
|
1,853,064 |
|
|
— |
|
|
1,853,064 |
Convertible debt obligations, net |
|
|
— |
|
|
1,531,639 |
|
|
— |
|
|
1,531,639 |
|
NOTE 29 — FAIR VALUE INFORMATION
Fair value hierarchy
The table below analyses assets and liabilities carried at fair value. The different levels are defined as follows:
Level 1: Quoted unadjusted prices in active markets for identical assets or liabilities that the Company can access at measurement date.
Level 2: Inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
During the year ended December 31, 2019, the Company recognized a gain on the change in fair value of derivative liabilities of $783,785 related to the mark-to-market of the bifurcated conversion options of convertible notes issued during 2019. See Note 19, Convertible Debt Obligations, for additional details. No gain or loss on the change in fair value was recorded for year ended December 31, 2020.
As of December 31, 2020 and 2019, the Company’s financial assets and liabilities by level within the fair value hierarchy are as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2020 |
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
FINANCIAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
2,273,151 |
|
$ |
— |
|
$ |
— |
|
$ |
2,273,151 |
Accounts receivable |
|
|
— |
|
|
948,341 |
|
|
— |
|
|
948,341 |
Due from related parties |
|
|
— |
|
|
53,851 |
|
|
— |
|
|
53,851 |
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair value |
|
|
— |
|
|
— |
|
|
29,076 |
|
|
29,076 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
— |
|
|
821,820 |
|
|
— |
|
|
821,820 |
Derivative liability |
|
|
— |
|
|
250,000 |
|
|
— |
|
|
250,000 |
Loans payable |
|
|
— |
|
|
223,240 |
|
|
— |
|
|
223,240 |
Loans payable, related parties |
|
|
— |
|
|
589,502 |
|
|
— |
|
|
589,502 |
Lease liabilities |
|
|
— |
|
|
1,853,064 |
|
|
— |
|
|
1,853,064 |
Convertible debt obligations, net |
|
|
— |
|
|
1,531,639 |
|
|
— |
|
|
1,531,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2019 |
|
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
FINANCIAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Financial assets at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
3,290,095 |
|
$ |
— |
|
|
— |
|
$ |
3,290,095 |
Accounts receivable |
|
|
— |
|
|
1,263,849 |
|
|
— |
|
|
1,263,849 |
Due from related parties |
|
|
— |
|
|
67,310 |
|
|
— |
|
|
97,310 |
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair value |
|
|
— |
|
|
— |
|
|
28,526 |
|
|
28,526 |
FINANCIAL LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities at amortized cost |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
— |
|
|
486,871 |
|
|
— |
|
|
486,871 |
Loans payable |
|
|
— |
|
|
1,281,888 |
|
|
— |
|
|
1,281,888 |
Loans payable, related parties |
|
|
— |
|
|
832,800 |
|
|
— |
|
|
832,800 |
Lease liabilities |
|
|
— |
|
|
2,273,739 |
|
|
— |
|
|
2,273,739 |
Convertible debt obligations, net |
|
|
— |
|
|
1,918,340 |
|
|
— |
|
|
1,918,340 |
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