| 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 June 30, 2026 |
|
| |
|
Total |
|
|
Level
1 |
|
|
Level
2 |
|
|
Level
3 |
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Warrant
liability |
|
$ |
1,307,269 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,307,269 |
|
| Total liabilities |
|
$ |
1,307,269 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,307,269 |
|
| |
|
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
| Warrant
liabilities: |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
| |
|
Three
Months Ended June 30, |
|
|
Six
Months Ended June 30, |
|
| Warrant
liabilities: |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
| Balance, beginning of period |
|
$ |
1,237,440 |
|
|
$ |
1,864,616 |
|
|
$ |
1,492,395 |
|
|
$ |
2,690,605 |
|
| Issuance of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Exercises of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Amendments of warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Loss (gain) on fair
value of warrant liability |
|
|
69,829 |
|
|
|
260,602 |
|
|
|
(185,126 |
) |
|
|
(565,387 |
) |
| Balance, end of period |
|
$ |
1,307,269 |
|
|
$ |
2,125,218 |
|
|
$ |
1,307,269 |
|
|
$ |
2,125,218 |
|
|