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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair value measurements

3. Fair value measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

•
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
•
Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
•
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

 

In accordance with the fair value hierarchy described above, the following table sets forth the Company’s assets and liabilities

measured at fair value on a recurring basis:

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Note
Reference

 

Input Level

 

Fair Value

 

 

Carrying
Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (money market funds)

 

 

 

Level 1

 

$

38,339,762

 

 

$

38,339,762

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

Note
Reference

 

Input Level

 

Fair Value

 

 

Carrying
Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (money market funds)

 

 

 

Level 1

 

$

32,626,768

 

 

$

32,626,768

 

 

Due to the number of embedded provisions contained in the Company's convertible promissory notes, prior to the Company's initial public offering ("IPO") in January 2023, the fair value option, as prescribed by ASC 815, was elected and applied in connection with the preparation of these financial statements. In connection with the Company's IPO, the Company's convertible promissory notes converted into an aggregate of 2,736,488 shares of common stock. As a result, the remaining convertible promissory note balance, including accrued interest, was eliminated, increasing additional paid-in capital.

 

Balance January 1, 2023

 

$

12,965,480

 

Issuance of convertible promissory notes

 

 

(12,965,480

)

Balance at December 31, 2023

 

$

-