CareCloud, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table summarizes the Company’s financial instruments that are not measured at fair value on a recurring basis by fair value hierarchy as of December 31, 2014 and December 31, 2013:

	Carrying Value at		Fair Value as of December 31, 2014, using,
	December 31, 2014		Level 1		Level 2		Level 3		Total
Financial Assets
Cash	$	1,048,660	$	1,048,660	$	-	$	-	$	1,048,660
Financial Liabilities
Borrowings under line of credit		1,215,000		-		1,215,000		-		1,215,000
Notes payable - Other⁽¹⁾		645,180		-		-		644,974		644,974

	Carrying Value at		Fair Value as of December 31, 2013, using,
	December 31, 2013		Level 1		Level 2		Level 3		Total
Financial Assets
Cash	$	497,944	$	497,944	$	-	$	-	$	497,944
Financial Liabilities
Borrowings under line of credit		1,015,000		-		1,015,000		-		1,015,000
Notes payable - Other⁽¹⁾		1,341,691		-		-		1,349,308		1,349,308
Convertible note		472,429		-		-		473,042		473,042

(1) Excludes note payable to the CEO.

Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]

The following table presents the change in the estimated fair value of Company’s liability under notes payable other, measured using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013:

	2014		2013
Fair value measurement at beginning of year		1,349,308	$	1,038,431
Promissory notes issued during the year		565,280		1,225,000
Repayment of notes payable		(1,217,886)		(889,262)
Changes in fair values		(51,728)		(24,861)
Fair value measurement at end of year	$	644,974	$	1,349,308

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table provides a reconciliation of the beginning and ending balances for the contingent consideration measured at fair value using significant unobservable inputs (Level 3):

	Fair Value Measurement
	at Reporting Date Using
	Significant Unobservable
	Outputs, Level 3
Balance at December 31, 2013	$	-
Contingent consideration from 2014 acquisitions		4,437,685
Change in fair value		(1,811,362)
Balance at December 31, 2014	$	2,626,323

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References + Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References + Details