Quarterly report [Sections 13 or 15(d)]

Fair Value of Financial Liabilities

v3.25.1
Fair Value of Financial Liabilities
 3 Months Ended
Mar. 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:

 

Fair value at March 31, 2025

 

Total

 

Level 1

 

Level 2

 

Level 3

 

Liabilities:

 

 

 

 

Warrant liability

 

1,864,616

 

 

—

 

 

—

 

 

1,864,616

 

Total liabilities

$

1,864,616

 

$

—

 

$

—

 

$

1,864,616

 

 

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):

 

 

Three Months Ended
March 31,

 

Warrant liabilities:

 

2025

 

2024

 

Balance, beginning of period

 

$

2,690,605

 

$

2,152,188

 

Issuance of warrants

 

 

—

 

 

 

3,239,711

 

Exercise of warrants

 

 

—

 

 

 

—

 

Amendment of warrants

 

 

—

 

 

 

—

 

(Gain) loss on fair value of warrant liability

 

 

(825,989

)

 

4,181,298

 

Balance, end of period

 

$

1,864,616

 

$

9,573,197