| 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:
SCHEDULE OF FAIR VALUE MEASUREMENTS OF EMBEDDED DERIVATIVE LIABILITIES AND WARRANT LIABILITIES
| |
|
Fair value at September 30, 2025 |
|
| |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Warrant liability |
|
$ |
1,745,907 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,745,907 |
|
| Total liabilities |
|
$ |
1,745,907 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,745,907 |
|
| |
|
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 |
|
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):
SCHEDULE OF CHANGES IN FAIR VALUE OF THE DERIVATIVE LIABILITIES AND WARRANT LIABILITIES
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| Warrant liabilities: |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| Balance, beginning of period |
|
$ |
2,125,218 |
|
|
$ |
5,346,638 |
|
|
$ |
2,690,605 |
|
|
$ |
2,152,188 |
|
| Issuance of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,917,630 |
|
| Exercises of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,191,675 |
) |
| Amendments of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,870,296 |
) |
| Loss (gain) on fair value of warrant liability |
|
|
(379,311 |
) |
|
|
(1,331,286 |
) |
|
|
(944,698 |
) |
|
|
8,007,505 |
|
| Balance, end of period |
|
$ |
1,745,907 |
|
|
$ |
4,015,352 |
|
|
$ |
1,745,907 |
|
|
$ |
4,015,352 |
|
|