v3.25.1
Derivative Liabilities (Tables)
12 Months Ended
Dec. 31, 2024
DERIVATIVE LIABILITIES  
Summary of Inputs valuation to be Level 3 in Fair Value

The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used the Black-Scholes model to determine the value of conversion feature of the Warrants issued with the notes convertible into Series D Preferred Stock based on the assumptions below:

 

 

 

2024

 

 

2023

 

Annual volatility rate

 

 

128

%

 

 

123

%

Risk free rate

 

 

4.25

%

 

 

4.23

%

Remaining term

 

5.37 years

 

 

6.37 years

 

Fair value of common stock

 

$

1.00

 

 

$

2.02

 

Summary of Change in the Fair Value of the Derivative Liability

The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2024 and 2023.

 

Year Ended

 

2024

 

 

2023

 

Fair value of derivative (warrants), beginning of year

 

$

1,797,341

 

 

$

2,172,417

 

Exercise of warrants

 

 

-

 

 

 

-

 

Change in fair value of derivative

 

 

(905,174

)

 

 

(375,076

)

Fair value of derivative (warrants), end of year

 

$

892,167

 

 

$

1,797,341