| FAIR VALUE OF FINANCIAL LIABILITIES |
4.
FAIR VALUE OF FINANCIAL LIABILITIES
Derivative
Liability
Financial
liabilities consisting of warrant liabilities measured at fair value on a recurring basis are summarized below. The fair value of the
warrant liabilities recorded are as follows:
SCHEDULE OF FAIR VALUE MEASUREMENTS OF EMBEDDED DERIVATIVE LIABILITIES AND WARRANT LIABILITIES
| | |
Fair value at June 30, 2025 | |
| | |
Total | | |
Level 1 | | |
Level 2 | | |
Level 3 | |
| Liabilities: | |
| | | |
| | | |
| | | |
| | |
| Warrant liability | |
$ | 2,125,218 | | |
$ | — | | |
$ | — | | |
$ | 2,125,218 | |
| Total liabilities | |
$ | 2,125,218 | | |
$ | — | | |
$ | — | | |
$ | 2,125,218 | |
| | |
Fair value at December 31, 2024 | |
| | |
Total | | |
Level 1 | | |
Level 2 | | |
Level 3 | |
| Liabilities: | |
| | | |
| | | |
| | | |
| | |
| Warrant liability | |
$ | 2,690,605 | | |
$ | — | | |
$ | — | | |
$ | 2,690,605 | |
| Total liabilities | |
$ | 2,690,605 | | |
$ | — | | |
$ | — | | |
$ | 2,690,605 | |
The
table below provides a summary of the changes in fair value of the warrant liabilities measured on a recurring basis using significant
unobservable inputs (Level 3):
SCHEDULE OF CHANGES IN FAIR VALUE OF THE DERIVATIVE LIABILITIES AND WARRANT LIABILITIES
| | |
| | |
| | |
| | |
| |
| | |
Three Months Ended
June 30, | | |
Six Months Ended
June 30, | |
| Warrant liabilities: | |
2025 | | |
2024 | | |
2025 | | |
2024 | |
| Balance, beginning of period | |
$ | 1,864,616 | | |
$ | 9,573,197 | | |
$ | 2,690,605 | | |
$ | 2,152,188 | |
| Issuance of warrants | |
| — | | |
| 677,919 | | |
| — | | |
| 3,917,630 | |
| Exercises of warrants | |
| — | | |
| (3,191,675 | ) | |
| — | | |
| (3,191,675 | ) |
| Amendments of warrants | |
| — | | |
| (6,870,296 | ) | |
| — | | |
| (6,870,296 | ) |
| Loss (gain) on fair value of warrant liability | |
| 260,602 | | |
| 5,157,493 | | |
| (565,387 | ) | |
| 9,338,791 | |
| Balance, end of period | |
$ | 2,125,218 | | |
$ | 5,346,638 | | |
$ | 2,125,218 | | |
$ | 5,346,638 | |
|