v3.25.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
SCHEDULE OF ASSETS AND LIABILITIES ARE MEASURED AT FAIR VALUE

The following tables summarize the Company’s assets and liabilities that are measured at fair value in the consolidated financial statements:

 

   Level 1   Level 2   Level 3   Total 
   Fair Value Measurements as at December 31, 2023 
   Level 1   Level 2   Level 3   Total 
Other noncurrent assets:                    
Investment in equity securities (a)  $218,556   $-   $-   $218,556 
Total financial assets  $218,556   $-   $-   $218,556 

 

   Level 1   Level 2   Level 3   Total 
   Fair Value Measurements as at December 31, 2024 
   Level 1   Level 2   Level 3   Total 
Other noncurrent assets:                    
Investment in equity securities (a)  $1,496,422   $-   $-   $1,496,422 
Total financial assets  $1,496,422   $-   $-   $1,496,422 

 

   Level 1   Level 2   Level 3   Total 
   Fair Value Measurements as at December 31, 2023 
   Level 1   Level 2   Level 3   Total 
Liabilities                    
SAFE notes (b)  $-   $-   $5,212,200   $5,212,200 
Sponsor earnout shares (c)   -    -    -    - 
Total financial liabilities  $-   $-   $5,212,200   $5,212,200 

 

   Level 1   Level 2   Level 3   Total 
   Fair Value Measurements as at December 31, 2024 
   Level 1   Level 2   Level 3   Total 
Liabilities                    
Sponsor earnout shares (c)   -    -    532,700    532,700 
Total financial liabilities  $-   $-   $532,700   $532,700 

 

(a)   These represent equity investments with a readily determinable fair value. The Company has measured its investments to fair value in accordance with ASC 321, Investments-Equity Securities, based on quoted prices in active markets.

 

 

Stardust Power Inc. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(b)   The valuation of the Level 3 measurement considered the probabilities of the occurrence of the scenarios as discussed in Note 2 the audited consolidated financial statements of Legacy Stardust Power and notes thereto for the period March 16, 2023 (inception) to December 31, 2023, included in the Company’s Registration Statement on Form S-4/A filed with the SEC on May 8, 2024.

 

(c)   For Level 3 earnout liability, the Company assesses the fair value of expected earnout liability at each reporting period using the Monte Carlo Method, which is consistent with the initial measurement of the expected earnout consideration. This fair value measurement is considered a Level 3 measurement because the Company estimates projections during the earnout period utilizing various potential pay-out scenarios. The Monte Carlo simulation method repeats a process thousands of times in an attempt to predict all the possible future outcomes. At the end of the simulation, several random trials produce a distribution of outcomes that are then analyzed to determine the average present value of earnout. Change in the fair value of earnout liability is reflected in our consolidated statements of operations.
SCHEDULE OF RECONCILIATION OF ACTIVITY AND CHANGES IN FAIR VALUE

The following table provides a reconciliation of activity and changes in fair value for the Company’s SAFE notes, convertible notes and Sponsor earnout liability:

 

   SAFE notes at fair value   Convertible notes at fair value   Sponsor Earnout
liability at fair value		 
Balance as at March 16, 2023 (inception)  $-   $-   $- 
Issuance of notes   5,000,000    -    - 
Change in fair value   212,200    -    - 
Balance as at December 31, 2023  $5,212,200   $-   $- 
Issuance of notes   200,000    2,100,000    - 
Sponsor earnout liability recognized on closing of Business Combination   -    -    4,608,900 
Change in fair value   955,000    471,400    (4,076,200)
Issuance of common stock upon conversion   (6,367,200)   (2,571,400)   - 
Balance as at December 31, 2024  $-   $-   $532,700