Annual report [Section 13 and 15(d), not S-K Item 405]

Fair Value of Financial Liabilities

v3.25.1
Fair Value of Financial Liabilities
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
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, 2024

 

Total

 

Level 1

 

Level 2

 

Level 3

 

Liabilities:

 

 

 

 

Warrant liability

 

2,690,605

 

 

—

 

 

—

 

 

2,690,605

 

Total liabilities

$

2,690,605

 

$

—

 

$

—

 

$

2,690,605

 

 

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

 

 

 

During the years ended December 31, 2024 and 2023, the Company had warrant liabilities of $2,690,605 and $2,152,188, respectively. 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):

 

 

Years Ended December 31,

 

Warrant liabilities:

 

2024

 

2023

 

Balance, beginning of period

 

$

2,152,188

 

$

245,341

 

Issuance of warrants

 

 

3,917,630

 

 

 

2,111,977

 

Exercise of warrants

 

 

(3,191,675

)

 

 

—

 

Amendment of warrants

 

 

(6,870,296

)

 

 

—

 

Loss (gain) on fair value of warrant liability

 

 

6,682,758

 

 

(205,130

)

Balance, end of period

 

$

2,690,605

 

$

2,152,188