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FAIR VALUE OF FINANCIAL INSTRUMENTS
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy:

                    
   Fair Value Measurement at September 30, 2024 
   Total   Level 1   Level 2   Level 3 
Assets:                
Investment in common stock of Alzamend Neuro, Inc. (“Alzamend”) – a related party  $131,000   $131,000   $-   $- 
Investments in marketable equity securities   687,000    687,000    -    - 
Crypto assets   65,000    65,000    -    - 
Total assets measured at fair value  $883,000   $883,000   $-   $- 
Liabilities:                    
Warrant and embedded conversion feature liabilities  $8,000   $-   $-   $8,000 
Total liabilities measured at fair value  $8,000   $-   $-   $8,000 

 

   Fair Value Measurement at December 31, 2023 
   Total   Level 1   Level 2   Level 3 
Assets:                
Investment in common stock of Alzamend – a related party  $679,000   $679,000   $-   $- 
Investments in marketable equity securities   27,000    27,000    -    - 
Cash and marketable securities held in trust account   2,200,000    2,200,000    -    - 
Total assets measured at fair value  $2,906,000   $2,906,000   $-   $- 
Liabilities:                    
Warrant and embedded conversion feature liabilities  $970,000   $-   $-   $970,000 
Total liabilities measured at fair value  $970,000   $-   $-   $970,000 

 

The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the issuer’s securities and liquidity risks.

 

The changes in Level 3 fair value hierarchy during the three and nine months ended September 30, 2024 and 2023 were as follows:

                    
   Level 3 Balance at
Beginning of
Period		   Fair Value
Adjustments		   Grants   Level 3 Balance at
End of Period		 
Nine months ended September 30, 2024                    
Warrant liabilities  $60,000   $(52,000)  $-   $8,000 
Embedded conversion feature liabilities  $910,000   $(910,000)  $-   $- 
                     
Nine months ended September 30, 2023                    
Warrant liabilities  $651,000   $(4,981,000)  $4,330,000   $- 
Embedded conversion feature liabilities  $2,316,000   $(3,439,000)  $1,352,000   $229,000 

 

   Level 3 Balance at
Beginning of
Period		   Fair Value
Adjustments		   Grants   Level 3 Balance at
End of Period		 
Three months ended September 30, 2024                    
Warrant liabilities  $578,000   $(570,000)  $-   $8,000 
Embedded conversion feature liabilities  $155,000   $(155,000)  $-   $- 
                     
Three months ended September 30, 2023                    
Warrant liabilities  $2,446,000   $(2,446,000)  $-   $- 
Embedded conversion feature liabilities  $2,577,000   $(2,348,000)  $-   $229,000