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DERIVATIVE LIABILITY
 12 Months Ended
Dec. 31, 2024
Derivative Liability  
DERIVATIVE LIABILITY

NOTE 18 – DERIVATIVE LIABILITY

 

The following table sets forth a summary of the changes in the fair value of Level 3 derivative liabilities that are measured at fair value on a recurring basis:

 

      
Beginning balance as of January 1, 2024  $- 
Issuance of derivative liabilities   142,319 
Change in fair value of derivative liabilities   (142,319)
Ending balance as of December 31, 2024  $- 

 

In applying the Black-Scholes option pricing model to derivatives issued and outstanding during the year ended December 31, 2024, the Company used the following assumptions:

 

   For The Year Ended 
   December 31, 
   2024 
Risk free interest rate   3.58% - 4.38%
Expected term (years)   1.50 – 5.00 
Expected volatility   49.40% - 60.19%
Expected dividends   0.00%

 

During the year ended December 31, 2024, the Company recorded new derivative liabilities in the aggregate amount of $142,319 related to the PIPE Warrants associated with the PIPE Convertible Notes. See Note 11 – PIPE Convertible Notes for additional details. See Note 17 – Stockholders’ Deficit for warrants issued and deemed to be derivative liabilities.

 

During the year ended December 31, 2024, the Company recomputed the fair value of the derivative liabilities to be $0. The Company recorded a gain on the change in fair value of these derivative liabilities of $142,319 for the year ended December 31, 2024.