Loop Media, Inc. - 10-KT filing on 2022-01-21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2021

See below for estimated useful lives:


Equipment		5 years
Software		3 years

Schedule of fair value measurements


		Quoted Prices in				Significant
		Active Markets		Significan Other		Unobservable
		For Identical Items		Observable Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)		Total
Derivative liabilities		—		—		1,058,633		1,058,633
Total	$	—	$	—	$	1,058,633	$	1,058,633

Schedule of changes in fair value measurements




Balance as of December 31, 2020	$	—
Derivative liability issued with convertible debentures		1,217,650
Change in fair value		(159,017)
Balance as of September 30, 2021	$	1,058,633

The following table summarizes the unobservable inputs used in the valuation of the derivatives during the nine months ended September 30, 2021:



Expected term	1.17 - 2 years

Discount rate	7.12% - 11.09%

Volatility	90% - 110.0%

Schedule of weighted average diluted shares

The following securities are excluded from the calculation of weighted average diluted shares at September 30, 2021, and December 31, 2020, respectively, because their inclusion would have been anti-dilutive.


	September 30,	December 31,
	2021	2020
Options to purchase common stock	17,833,356	8,312,306
Warrants to purchase common stock	15,464,700	8,585,558
Series A preferred stock	—	3,066,700
Series B preferred stock	20,000,000	20,000,000
Convertible debentures	5,815,323	7,079,622
Total common stock equivalents	59,113,379	47,044,186