Qumu Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Warrants Outstanding [Table Text Block]

As of March 31, 2021, the following warrants for the purchase of Qumu's common stock were outstanding and exercisable:


Description	Number of underlying warrant shares	Warrant exercise price (per share)		Warrant expiration date
Warrant issued in conjunction with October 2016 debt financing ("Hale warrant")	238,583	$	2.80	October 21, 2026
Warrant issued to sales partner, iStudy Co., Ltd. ("iStudy warrant")	100,000	$	2.43	August 31, 2028
Total warrants outstanding	338,583

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The Company’s liabilities measured at fair value on a recurring basis and the fair value hierarchy utilized to determine such fair values were as follows at March 31, 2021 and December 31, 2020 (in thousands):


			Fair Value Measurements Using
	Total Fair Value at March 31, 2021		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Warrant liability - Hale	$	1,443	$	—	$	—	$	1,443
Warrant liability - iStudy	550		—		—		550
Warrant liability	$	1,993	$	—	$	—	$	1,993
Derivative liability	$	—	$	—	$	—	$	—
Total	$	1,993	$	—	$	—	$	1,993


			Fair Value Measurements Using
	Total Fair Value at December 31, 2020		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Liabilities:
Warrant liability - Hale	2,245		—		—		2,245
Warrant liability - iStudy	665		—		—		665
Warrant liability	$	2,910	$	—	$	—	$	2,910
Derivative liability	$	37	$	—	$	—	$	37
Total	$	2,947	$	—	$	—	$	2,947

Schedule of Unobservable Inputs [Table Text Block]

The following table represents the significant unobservable input used in the fair value measurement of Level 3 warrant liability instruments:


			March 31, 2021
Probability-weighted timing of change in control			5.0 years

Schedule of Changes in Fair Value of Liabilities Measured on Recurring Basis

The following table summarizes the changes in fair value measurements for the three months ended March 31, 2021:


	Warrant liability		Derivative liability		Total
Balance at December 31, 2020	$	2,910	$	37	$	2,947
Reduction in warrant liability for partial exercise of Hale warrant	(560)		—		(560)
Change in fair value	(357)		(37)		(394)
Balance at March 31, 2021	$	1,993	$	—	$	1,993