| 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 MEASUREMENT OF EMBEDDED DERIVATIVE LIABILITIES AND WARRANT LIABILITIES
| |
|
Fair value at March 31, 2026 |
|
| |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Warrant liability |
|
$ |
1,237,440 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,237,440 |
|
| Total liabilities |
|
$ |
1,237,440 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,237,440 |
|
| |
|
Fair value at December 31, 2025 |
|
| |
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Warrant liability |
|
$ |
1,492,395 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,492,395 |
|
| Total liabilities |
|
$ |
1,492,395 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,492,395 |
|
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
|
|
2026 |
|
|
2025 |
|
| |
|
Three Months Ended
March 31,
|
|
|
|
2026 |
|
|
2025 |
|
| Warrant
liability: |
|
|
|
|
|
|
| Balance,
beginning of period |
|
$ |
1,492,395 |
|
|
$ |
2,690,605 |
|
| Issuance
of warrants |
|
|
— |
|
|
|
— |
|
| Exercise
of warrants |
|
|
— |
|
|
|
— |
|
| Amendment
of warrants |
|
|
— |
|
|
|
— |
|
| Gain
on fair value of warrant liability |
|
|
(254,955) |
|
|
|
(825,989 |
) |
| Balance,
end of period |
|
$ |
1,237,440 |
|
|
$ |
1,864,616 |
|
|