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FAIR VALUE MEASUREMENTS
 3 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 7 – 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 December 30, 2024 and September 30, 2024, are as follows.

 

   Quoted Prices  Significant   Significant   Balance 
   in Active  Other   Unobservable   as of 
   Markets for  Observable   Inputs   December 31,, 
   Identical Assets  Inputs   (Level 3)   2024 
   (Level 1)  (Level 2)         
Liabilities               
Warrant liabilities  $717,200  $8,737,642   $-   $9,454,842 
                   
                   
   $717,200  $8,737,642   $-   $9,454,842 

 

   Quoted Prices  Significant   Significant   Balance 
   in Active  Other   Unobservable   as of 
   Markets for  Observable   Inputs   September 30, 
   Identical Assets  Inputs   (Level 3)   2024 
   (Level 1)  (Level 2)         
                
Liabilities                  
Warrant liabilities  $4,160,658  $1,038,778   $-   $5,199,436 
                   
   $4,160,658  $1,038,778   $-   $5,199,436 

 

 

A summary of the warrant liabilities activity for the three months ended December 31, 2024, is as follows:

 

   Series A Warrants   Series B Warrants   Total 
Warrant Liabilities at September 30, 2024  $4,160,658   $1,038,778   $5,199,436 
Warrants Issued   -    -    - 
Warrants Exercised   (5,669,908)   (94,898)   (5,764,806)
Fair market revaluation   2,226,450    7,793,762    10,020,212 
Warrant Liabilities at December 31, 2024  $717,200   $8,737,642   $9,454,842 

 

For the three months ended December 31, 2024, the company recognized losses on changes in fair value of warrant liability of $10,020,212 which represents the change in the fair value of the of the warrants unexercised at the measurement period.

 

For the three months ended December 31, 2024, the company recognized losses on exercise of warrant liabilities of $15,796,105 which represents the difference between the fair value of the shares issued and the fair value of the warrants exercised.