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FAIR VALUE MEASUREMENT
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT

NOTE 6. FAIR VALUE MEASUREMENT

 

In accordance with ASC Topic 820 — Fair Value Measurements and Disclosures (“ASC 820”), the Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business.

 

ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

 

● Level 1 — Quoted prices in active markets for identical assets and liabilities
   
● Level 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities)
   
● Level 3 — Significant unobservable inputs (including the Company’s own assumptions in determining the fair value)

 

The following table represents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:

 

   June 30, 2025 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Warrant derivative liabilities  $—   $—   $1,955   $1,955 
                     
   $—   $—   $1,955   $1,955 

 

 

   December 31, 2024 
   Level 1   Level 2   Level 3   Total 
Liabilities:                    
Warrant derivative liabilities  $—   $—   $4,554,640   $4,554,640 
                     
   $—   $—   $4,554,640   $4,554,640 

 

The following table represents the change in Level 3 tier value measurements for the six months ended June 30, 2025:

 

  

Warrant

Derivative
Liabilities

 
     
Balance, December 31, 2024  $4,554,640 
      
Issuance of pre-funded warrant derivative liabilities in February 2025 public equity offering   1,803 
      
Issuance/Activation of Series A Warrants issued in connection with the February 2025 public equity offering   1,340,214 
      
Issuance/Activation of Series B Warrants issued in connection with the February 2025 public equity offering   5,406,408 
      
Transition of warrant derivative liability to equity due to exercise of pre-funded warrant derivative liabilities in February 2025 public equity offering   (1,803)
      
Transition of warrant derivative liability to equity due to exercise of Series B common stock purchase warrants issued in June 2024 Private Placement   (1,989,806)
      
Transition of warrant derivative liability to equity due to exercise of Series B common stock purchase warrants issued in February 2025 Public Equity Offering   (5,406,320)
      
Transition of warrant derivative liability to equity due to elimination of net cash settlement provisions relative to the Series A common stock purchase warrants issued in February 2025 Public Equity Offering   (530,101)
      
Change in fair value of warrant derivative liabilities   (3,373,080)
      
Balance, June 30, 2025  $1,955