v3.25.2
Fair Value Measurements
 12 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

7. Fair Value Measurements

 

At June 30, 2025, there was no value ascribed to the derivative liabilities and as of June 30, 2024 the derivative liability related to warrants that was measured on a recurring basis was a level 3 liability and totaled $3,771. 

 

The following table presents the activity for level 3 liabilities measured at fair value using unobservable inputs for the years ended June 30, 2025 and 2024:

 

          
   Derivative liability - Avenue Warrants   Derivative liability - Conversion Option 
Balance at June 30, 2023  $894,280   $925,762 
Additions to level 3 liabilities   -    - 
Change in fair value of level 3 liabilities   (890,509)   (925,762)
Transfer in and/or out of level 3   -    - 
Balance at June 30, 2024  $3,771   $- 
Additions to level 3 liabilities   -    - 
Change in fair value of level 3 liabilities   (3,771)   - 
Transfer in and/or out of Level 3   -    - 
Balance at June 30, 2025  $-   $- 

 

The fair values of derivative liabilities for the Avenue Warrants and Conversion Option at June 30, 2024 in the accompanying balance sheet, were approximately $3,800 and zero, respectively. The total change in the fair value of the derivative liabilities totaled approximately $3,800 and $1.8 million for the years ended June 30, 2025, and 2024, respectively; and accordingly, was recorded in the accompanying statements of operations and comprehensive loss.

 

The assumptions used in the Black Scholes model to value the Avenue Warrants at June 30, 2025 included the closing stock price of $9.25 per share; the exercise price of $582.00, remaining term 1.4 years, risk free rate of 3.9% and volatility of 81.0%.

 

The Conversion Option was nil as of June 30, 2025 and June 30, 2024 as the corresponding debt matured and was repaid in December 2024.

 

The assumptions used in the Black Scholes model to value the derivative liabilities at June 30, 2024 included the closing stock price of $40.00 per share; for the Avenue Warrants, the exercise price of $582.00, remaining term 2.4 years, risk free rate of 4.6% and volatility of 82.0%; and for the Conversion Option, the conversion price of $698.00; remaining term of 5 months, risk free rate of 5.38% and volatility of 91.0%.

 

Financial assets

 

As of June 30, 2025, investments in U.S. Treasury Bills were valued through use of quoted prices and are classified as Level 1. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories.

 

                    
   Fair Value Measurements at 
   June 30, 2025 
   Level 1   Level 2   Level 3   Total 
                 
Cash  $3,978,271   $-   $-   $3,978,271 
U.S. Treasury Bills due in 3 months or less at purchase   13,566,276    -    -    13,566,276 
                     
Total  $17,544,547   $-   $-   $17,544,547 

 

   Fair Value Measurements at 
   June 30, 2024 
   Level 1   Level 2   Level 3   Total 
                 
Cash  $12,763,941   $-   $-   $12,763,941 
U.S. Treasury Bills due in 3 months or less at purchase   11,079,857    -    -    11,079,857 
                     
Total  $23,843,798   $-   $-   $23,843,798