v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

6. Fair Value Measurements

 

The following table presents our liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy at March 31, 2025 and December 31, 2024.

 

Description  Fair value   (Level 1)   (Level 2)   (Level 3) 
   Fair Value Measurement at Reporting Date Using 
Description  Fair value   (Level 1)   (Level 2)   (Level 3) 
As of March 31, 2025:                    
Derivative liabilities related to warrants  $1,486,568   $—   $1,486,568   $— 
                     
As of December 31, 2024:                    
Derivative liabilities related to warrants  $333,189   $—   $333,189   $— 

 

 

HEPION PHARMACEUTICALS, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

The unrealized gains or losses on the derivative liabilities are recorded as a change in fair value of derivative liabilities- warrants in our consolidated statement of operations. See Note 4 for a rollforward of the derivative liability for three months ended March 31, 2025. The financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, we review the assets and liabilities that are subject to ASC 815-40. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3.