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

FAIR VALUE OF FINANCIAL LIABILITIES

v3.26.1
FAIR VALUE OF FINANCIAL LIABILITIES
 12 Months Ended
Dec. 31, 2025
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:

 

 SCHEDULE OF FAIR VALUE MEASUREMENTS OF EMBEDDED DERIVATIVE LIABILITIES AND WARRANT LIABILITIES

    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  

 

    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  

 

 

As of December 31, 2025 and 2024, the Company had warrant liabilities of $1,492,395 and $2,690,605, 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):

 

Warrant liabilities:   2025     2024  
    Years Ended December 31,  
Warrant liabilities:   2025     2024  
Balance, beginning of period   $ 2,690,605     $ 2,152,188  
Issuance of warrants     —       3,917,630  
Exercise of warrants     —       (3,191,675 )
Amendment of warrants     —       (6,870,296 )
(Gain) loss on fair value of warrant liability     (1,198,210 )     6,682,758  
Balance, end of period   $ 1,492,395     $ 2,690,605