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FAIR VALUE MEASUREMENTS
 9 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 8 – FAIR VALUE MEASUREMENTS 

 

Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy is applied to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

 

The three levels of the fair value hierarchy under the guidance for fair value measurements are described below:

 

Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Our Level 1 assets include cash equivalents, banker’s acceptances, trading securities investments and investment funds. The Company measures trading securities investments and investment funds at quoted market prices as they are traded in an active market with sufficient volume and frequency of transactions.

 

Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified contractual term, a Level 2 input must be observable for substantially the full term of the asset or liability.

 

Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. Level 3 assets and liabilities include cost method investments. Quantitative information for Level 3 assets and liabilities reviewed at each reporting period includes indicators of significant deterioration in the earnings performance, credit rating, asset quality, business prospects of the investee, and financial indicators of the investee’s ability to continue as a going concern.

 

 

The Company’s fair value liabilities at June 30, 2024, are as follows.

 

   Quoted Prices  Significant       
   in Active  Other   Significant   Balance 
   Markets for  Observable   Unobservable   as of 
   Identical Assets  Inputs   Inputs   June 30, 
   (Level 1)  (Level 2)   (Level 3)   2024 
Liabilities                  
Warrant liabilities  $ -  $10,428,397   $    -   $10,428,397 
                     
   $ -  $10,428,397   $-   $10,428,397 

 

At September 30, 2023, the Company had no fair value liabilities.

 

A summary of the warrant liabilities activity for the nine months ended June 30, 2024, is as follows:

 

   Series A Warrants   Series B Warrants   Prefunded Warrants   Total 
Warrant Liabilities at September 30, 2023  $ -   $ -   $ -   $ - 
Warrants Issued   11,242,940    2,942,711    3,093,960    17,279,611 
Warrants Exercised   (864,214)   -    (3,179,110)   (4,043,324)
Fair market revaluation   (2,221,206)   (671,834)   85,150    (2,807,890)
Warrant Liabilities at June 30, 2024  $8,157,520   $2,270,877   $-   $10,428,397