| Fair Value of Financial Liabilities |
4.FAIR VALUE OF FINANCIAL LIABILITIES
Derivative Liability
Financial liabilities consisting of warrant liabilities measured at fair value on a recurring basis are summarized below. The fair value of the warrant liabilities recorded are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value at December 31, 2023 |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Warrant liability |
|
|
2,152,188 |
|
|
|
— |
|
|
|
— |
|
|
|
2,152,188 |
|
Total liabilities |
|
$ |
2,152,188 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,152,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value at June 30, 2024 |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Warrant liability |
|
|
5,346,638 |
|
|
|
— |
|
|
|
— |
|
|
|
5,346,638 |
|
Total liabilities |
|
$ |
5,346,638 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,346,638 |
|
The table below provides a summary of the changes in fair value of the warrant liabilities measured on a recurring basis using significant unobservable inputs (Level 3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
Warrant liabilities: |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Balance, beginning of period |
|
$ |
9,573,197 |
|
|
$ |
224,399 |
|
|
$ |
2,152,188 |
|
|
$ |
245,341 |
|
Issuance of warrants |
|
|
677,919 |
|
|
|
— |
|
|
|
3,917,630 |
|
|
|
— |
|
Exercises of warrants |
|
|
(3,191,675 |
) |
|
|
— |
|
|
|
(3,191,675 |
) |
|
|
— |
|
Amendments of warrants |
|
|
(6,870,296 |
) |
|
|
— |
|
|
|
(6,870,296 |
) |
|
|
— |
|
Loss (Gain) on fair value of warrant liability |
|
|
5,157,493 |
|
|
|
(102,799 |
) |
|
|
9,338,791 |
|
|
|
(123,741 |
) |
Balance, end of period |
|
|
5,346,638 |
|
|
|
121,600 |
|
|
|
5,346,638 |
|
|
|
121,600 |
|
|