v3.25.2
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2025
Fair Value Measurements [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value

The following table presents assets and liabilities measured at fair value by classification within the fair value hierarchy at March 31, 2025 and December 31, 2024:

   Level I   Level II   Level III   Total 
Assets                
Money Market Funds  $3,607,557   $   $   $3,607,557 
Total assets  $3,607,557   $   $   $3,607,557 
Liabilities                    
July Investment Agreement Derivative  $   $   $65,803,887   $65,803,887 
CPU Share Allocation Obligation          $17,426,650    17,426,650 
Total liabilities  $   $   $83,230,537   $83,230,537 
   Level I   Level II   Level III   Total 
Assets                
Money Market Funds  $2,588,289   $   $   $2,588,289 
Total assets  $2,588,289   $   $   $2,588,289 
Liabilities                    
July Investment Agreement Derivative  $   $   $53,231,638   $53,231,638 
CPU Share Allocation Obligation          $10,231,516    10,231,516 
Total liabilities  $   $   $63,463,154   $63,463,154 
Schedule of Liabilities Measured at Fair Value Using Significant Unobservable Input

The following table provides a reconciliation of the beginning and ending balance associated with the liabilities measured at fair value using significant unobservable inputs (Level III) for the three months ended March 31, 2025 and for the period from February 8, 2024 (inception) to December 31, 2024:

 

   July Investment Agreement Derivative (Level III)   CPU Share Allocation Obligation (Level III) 
         
Balance, February 8, 2024 (inception)  $
   $
 
Additions   37,660,336    8,370,647 
Change in fair value   15,571,302    1,860,869 
Balance, December 31, 2024  $53,231,638   $10,231,516 
Additions   
    4,703,536 
Change in fair value   12,572,249    2,491,598 
Balance, March 31, 2025  $65,803,887   $17,426,650 
Schedule of Investment Agreement Derivative

The Company utilized the following assumptions to value the July Investment Agreement Derivative:

 

   March 31,
2025
   December 31,
2024
 
         
Expected Business Combination date   June 30, 2025    June 30, 2025 
Term   0.25    0.50 
Risk free rate   4.2%   4.2%
CCC credit rating   10.8%   8.7%
Present value factor   0.99    0.98 
Probability of Business Combination close   60.0%   60.0%
Expected Company fully diluted ownership of New EM   71.3%   71.3%
Additional share allocation percentage   10.0%   10.0%

The Company utilized the following assumptions to value the CPU Share Allocation Obligations:

 

   March 31,
2025
   March 2025
(issuances)
   February 2025
(issuances)
   December 31,
2024
 
Expected Business Combination date   June 30, 2025    June 30, 2025    June 30, 2025    June 30, 2025 
Term   0.25    0.25    0.35-0.37    0.50 
Risk free rate   4.23%   4.33%   4.31-4.34%   4.2%
Present value factor   0.99    0.99    0.99    0.98 
Probability of Business Combination close   60.0%   60.0%   60.0%   60.0%
Expected Company fully diluted ownership of New EM   71.3%   71.3%   71.3%   71.3%
Additional share allocation percentages   7.90%   1.80%   1.35%   4.75%