Quarterly report pursuant to Section 13 or 15(d)

Fair Value

v3.7.0.1
Fair Value
3 Months Ended
Jan. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value

10. FAIR VALUE

 

The authoritative guidance for fair value measurements 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 the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

 

● Level 1 — Quoted prices in active markets for identical assets or liabilities.

 

● Level 2— Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities.

 

● Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities.

 

The following table provides the liabilities carried at fair value measured on a recurring basis as of January 31, 2017 and October 31, 2016:

 

January 31, 2017   Level 1     Level 2     Level 3     Total  
                         
Common stock warrant liability, warrants exercisable at $10.63- $18.75 from February 2017 through August 2017   $ -     $ -     $ 10,652     $ 10,652  
                                 

 

October 31, 2016   Level 1     Level 2     Level 3     Total  
                         
Common stock warrant liability, warrants exercisable at $10.63- $18.75 from November 2016 through August 2017   $ -     $ -     $ 20,156     $ 20,156  
                                 

 

Common stock warrant liability:

 

    January 31, 2017  
    (Unaudited)  
Beginning balance: October 31, 2016   $ 20,156  
Change in fair value     (9,504 )
         
Balance at January 31, 2017   $ 10,652