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DERIVATIVE LIABILITIES
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE LIABILITIES DERIVATIVE LIABILITIES
The Company determined that certain warrants to purchase common stock do not satisfy the criteria for classification as equity instruments due to the existence of certain net cash and non-fixed settlement provisions that are not
within the sole control of the Company. Conversion and exercise prices may be lowered if the Company issues securities at lower prices in the future. Such warrants are measured at fair value at each reporting date, and the changes in fair value are included in determining net income (loss) for the period. The Company used a Model Monte Carlo Simulation model to determine the fair value of the derivative liabilities.
December 31, 2025
Common stock issuable upon exercise of warrants45,077
Market value of common stock on measurement date$1.70 
Exercise price$90.66 
Risk free interest rate (1)3.42 %
Expected life in years1 year
Expected volatility (2)187.0 %
Expected dividend yields (3)— %
December 31, 2024
Common stock issuable upon exercise of warrants15,480
Market value of common stock on measurement date$11.40 
Exercise price$264.00 
Risk free interest rate (1)4.17 %
Expected life in years2 years
Expected volatility (2)80.0 %
Expected dividend yields (3)— %
__________________________________________
(1)The risk-free interest rate was determined using the applicable Treasury Bill as of the measurement date.
(2)The historical trading volatility for 2025 and 2024 was based on historical fluctuations in stock price for Boxlight.
(3)The Company does not expect to pay a dividend in the foreseeable future.
The following table shows the change in the Company’s derivative liabilities for the years ended December 31, 2025 and 2024:
Amount
(in thousands)
Balance, December 31, 2024$1 
Exercise of warrants— 
Issuance of warrants— 
Change in fair value of derivative liabilities4 
Balance, December 31, 2025$5 
Amount
(in thousands)
Balance, December 31, 2023$205 
Exercise of warrants— 
Issuance of warrants— 
Change in fair value of derivative liabilities(204)
Balance, December 31, 2024$1 
The following table shows the change in the Company’s related party derivative liabilities for the year ended December 31, 2025:
Amount
(in thousands)
Balance, December 31, 2024$— 
Initial recognition of related party derivative liability on November 3, 2025265 
Change in fair value of related party derivative liability211 
Balance, December 31, 2025$476 
The related party derivative liability was recognized as a result of the conversion feature embedded in the Amended and Restated Inventory Finance Agreement with J.J. Astor & Co. dated November 3, 2025, which was accounted for separately at fair value and remeasured at December 31, 2025.
The following table presents the change in the Company’s common warrant liabilities for the year ended December 31, 2025:
Amount
(in thousands)
Balance, December 31, 2024$— 
Issuance during the year3,396 
Change in fair value(1,394)
Balance, December 31, 2025$2,002 
The common warrant liability was recognized in connection with warrants issued during the year ended December 31, 2025. The warrants were initially recorded at fair value on the issuance date and were remeasured at fair value at December 31, 2025.