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FAIR VALUE
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE

NOTE 12 – FAIR VALUE

 

Financial Liabilities Measured at Fair Value on a Recurring Basis

 

The fair value accounting standards define fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is determined based upon assumptions that market participants would use in pricing an asset or liability. Fair value measurements are rated on a three-tier hierarchy as follows:

 

● Level 1 inputs: Quoted prices (unadjusted) for identical assets or liabilities in active markets;
   
● Level 2 inputs: Inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly; and
   
● Level 3 inputs: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

There were no transfers between Level 3 during the three months ended March 31, 2026, and 2025.

 

The following table presents changes in Level 3 asset and liability measured at fair value for the three months ended March 31, 2026, and 2025:

 

SCHEDULE OF CHANGES IN LEVEL 3 AND LIABILITY MEASURED AT FAIR VALUE  

   Convertible Debenture 
Balance, December 31, 2024  $- 
Convertible Debenture issued   1,313 
Change in fair value of Convertible Debenture   (58)
Balance, March 31, 2025  $1,255 

  

    Warrants Liability 
Balance – December 31, 2025  $807 
Fair value adjustment of warrant liability   17 
Balance – March 31, 2026  $824 

 

 

ENVUE MEDICAL, INC.

Notes to the Interim Condensed Consolidated Financial Statements (unaudited)

(Amounts in thousands except share and per share data)

 

The Company measures certain financial liabilities at fair value on a recurring basis, including its warrant liability and previously its convertible debenture, using Level 3 valuation techniques such as the Black-Scholes option pricing model and Monte Carlo simulation.

 

The following are the inputs used in the Company’s valuation models:

 

SCHEDULE OF INPUTS USED IN LEVEL 3 VALUATION TECHNIQUES

   Warrant Liability
 March 31, 2026		   Warranty Liability
December 31, 2025		   Convertible Debenture
March 31, 2025		 
Stock price  $2.38    2.31   $34.10 
Expected volatility   152%   150%   141%
Risk-free interest rate   3.92%   3.73%   4.18%
Expected term (in years)   4.13    4.38    0.62 

 

The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy:

 

                 
   Fair Value Measurements as of March 31, 2026 
   Level I   Level II   Level III   Total 
Warrant liability  $       -   $     -   $824  

$

824 

 

                     
    Fair Value Measurements as of March 31, 2025 
    Level I    Level II    Level III    Total 
Convertible Debenture  $-   $-   $

1,255

  

$ 

1,255