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FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2025

Investments, All Other Investments [Abstract]

FINANCIAL INSTRUMENTS

3. FINANCIAL INSTRUMENTS

Assets and liabilities recorded at fair value on a recurring basis in the Condensed Consolidated Balance Sheets and assets and liabilities measured at fair value on a non-recurring basis or disclosed at fair value, are categorized based upon the level of judgment associated with inputs used to measure their fair values. The accounting guidance for fair value provides a framework for measuring fair value and requires certain disclosures about how fair value is determined. Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The accounting guidance also establishes a three-level valuation hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based upon whether such inputs are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions made by the reporting entity. The three-level hierarchy for the inputs to valuation techniques is briefly summarized as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

The following table shows the Company’s short-term investments by significant investment category as of March 31, 2025, and December 31, 2024.

SCHEDULE OF SHORT TERM INVESTMENTS

		As of March 31, 2025
		Adjusted				Unrealized				Unrealized				Market
		Cost				Gains				Losses				Value
Level 1:
Money Market Funds		$	5,435			$	-			$	-			$	5,435
Total Financial Assets		$	5,435			$	-			$	-			$	5,435

		As of December 31, 2024
		Adjusted				Unrealized				Unrealized				Market
		Cost				Gains				Losses				Value
Level 1:
Money Market Funds		$	2,945				-				-			$	2,945
Total Financial Assets		$	2,945			$	-			$	-			$	2,945

Unrealized gains or losses resulting from our short-term investments are recorded in accumulated other comprehensive gain or loss as they are classified as available for sale. During the three months ended March 31, 2025, as well as the three months ended March 31, 2024, no gain (loss) was recorded to comprehensive loss.

The warrant liabilities are measured at fair value on a recurring basis. The subsequent measurement of the warrant liabilities as of March 31, 2025, is classified as Level 3 due to the use of an observable market quote in a non-active market and the management’s assumption of the expected stock price volatility.

The following table presents the fair value in the beginning of the period, the changes in the fair value, and the fair value at the end of the period of warrant liabilities:

SCHEDULE OF FAIR OF WARRANT LIABILITIES

Level 3:		March 31, 2025				December 31, 2024
Fair value at inception for December 31, 2024 or the beginning of the period for March 31, 2025		$	(10,131	)		$	(19,703	)
Warrants issued with Private Placement			(5,185	)			-
Change in fair value of warrant liabilities			4,029				9,572
Fair value as of period end		$	(11,287	)		$	(10,131	)

The Company uses the modified Black-Scholes option pricing model to determine the fair value of warrant liabilities. The following table summarizes the assumptions used to compute the fair value of the Company’s warrants:

		As of March 31, 2025				As of December 31, 2024
Expected stock price volatility			88	%			88	%
Risk-free interest rate			3.97	%			4.25	%
Dividends yield			0	%			0	%
Weighted average expected life of warrants (years)			3.78				3.50
Weighted average exercise price		$	1.56			$	1.45

Our other financial instruments also include accounts receivable, accounts payable, accrued liabilities and customer deposits. Due to the short-term nature of these instruments, their fair values approximate their carrying values on the balance sheet.