v3.25.2
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 9 — FAIR VALUE MEASUREMENTS  

 

In accordance with ASC 820, “Fair Value Measurements and Disclosures”, the Company uses various inputs to measure the fair value of its stock-based compensation liability resulting from the cash-settled written put options related to the MSA with Artemis and the SaaS with EVEMeta on a recurring basis to determine the fair value of these liabilities. The Company determines the fair value of the stock-based compensation liability using a Monte Carlo simulation.

 

Further, as of March 31, 2025, the Company completed a fair value measurement for the cash settlement provision of its agreements with Artemis and EVEMeta, the liability classified award, using a Monte Carlo simulation model and determined a total fair value measurement of $1,441,700. The Company recognized a stock-based compensation liability to the extent in which services were provided to the Company, which was an estimate by the Company as of period end. This resulted in the recognition of a stock- based compensation liability of $44,392, of which $35,340 was capitalized to capitalized implementation costs and $9,052 was expensed as a software expense.

 

The following table classifies the Company’s liabilities measured at fair value on a recurring basis into the fair value hierarchy as of March 31, 2025 and December 31, 2024:

 

   March 31, 2025 
   Fair Value   Level 1   Level 2   Level 3 
Stock-Based Compensation Liability  $44,392   $
     -
   $
    -
   $44,392 

 

    December 31, 2024  
    Fair Value     Level 1      Level 2      Level 3   
Stock-Based Compensation Liability   $
-
   $
-
   $
-
   $
-
 

 

The following table presents changes in Level 3 liabilities measured at fair value for the three months ended March 31, 2025. Both observable and unobservable inputs were used to determine the fair value of positions that the Company has classified within the Level 3 category.

 

  

Stock-Based Compensation

Liability

 
Balance as of December 31, 2024  $
-
 
Change in fair value - Capitalized Implementation Costs   35,340 
Change in fair value - Software Expense   9,052 
Balance as of March 31, 2025  $44,392 

 

The key inputs for the Monte Carlo simulation for the stock-based compensation liability as of March 31, 2025 were as follows:

 

Stock-based compensation liability key valuation inputs*    
Valuation Date Stock Price  $6.61 
Volatility   90%
Risk-Free Rate   3.95%
Credit Risk Adjusted Rate   11.25%
Time period (years)   5.44 

 

* The valuation was based on a Monte Carlo simulation analysis of 100,000 iterations.