| 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:
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Fair value at September 30, 2024 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Liabilities: |
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Warrant liability |
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$ |
4,015,352 |
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$ |
— |
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$ |
— |
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$ |
4,015,352 |
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Total liabilities |
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$ |
4,015,352 |
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$ |
— |
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$ |
— |
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$ |
4,015,352 |
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Fair value at December 31, 2023 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Liabilities: |
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Warrant liability |
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$ |
2,152,188 |
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$ |
— |
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$ |
— |
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$ |
2,152,188 |
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Total liabilities |
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$ |
2,152,188 |
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$ |
— |
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$ |
— |
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$ |
2,152,188 |
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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):
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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Warrant liabilities: |
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2024 |
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2023 |
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2024 |
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2023 |
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Balance, beginning of period |
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$ |
5,346,638 |
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$ |
121,600 |
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$ |
2,152,188 |
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$ |
245,341 |
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Issuance of warrants |
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— |
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— |
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3,917,630 |
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— |
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Exercises of warrants |
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— |
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— |
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(3,191,675 |
) |
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— |
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Amendments of warrants |
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— |
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— |
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(6,870,296 |
) |
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— |
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Loss (Gain) on fair value of warrant liability |
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(1,331,286 |
) |
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(18,193 |
) |
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8,007,505 |
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(141,934 |
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Balance, end of period |
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$ |
4,015,352 |
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$ |
103,407 |
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$ |
4,015,352 |
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$ |
103,407 |
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