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 June 30, 2025 and December 31, 2024:
| |
Level I | | |
Level II | | |
Level III | | |
Total | |
Assets | |
| | |
| | |
| | |
| |
Money Market Funds | |
$ | 1,597,673 | | |
$ | — | | |
$ | — | | |
$ | 1,597,673 | |
Total assets | |
$ | 1,597,673 | | |
$ | — | | |
$ | — | | |
$ | 1,597,673 | |
Liabilities | |
| | | |
| | | |
| | | |
| | |
July Investment Agreement Derivative | |
$ | — | | |
$ | — | | |
$ | 112,521,314 | | |
$ | 112,521,314 | |
CPU Share Allocation Obligation | |
| — | | |
| — | | |
$ | 4,166,671 | | |
| 4,166,671 | |
Total liabilities | |
$ | — | | |
$ | — | | |
$ | 116,687,985 | | |
$ | 116,687,985 | |
| |
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 six months ended June 30, 2025:
| |
July Investment Agreement Derivative (Level III) | | |
CPU Share Allocation Obligation (Level III) | |
| |
| | |
| |
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 | |
Additions | |
| — | | |
| — | |
Change in fair value | |
| 46,717,427 | | |
| (13,259,979 | ) |
Balance, June 30, 2025 | |
$ | 112,521,314 | | |
$ | 4,166,671 | |
|
Schedule of Investment Agreement Derivative |
The Company utilized the
following assumptions to value the July Investment Agreement Derivative:
| | June 30, 2025 | | | December 31, 2024 | | | | | | | | | Expected Business Combination date | | | September 30, 2025 | | | | June 30, 2025 | | Term | | | 0.25 | | | | 0.50 | | Risk free rate | | | 4.3 | % | | | 4.2 | % | CCC credit rating | | | 15.7 | % | | | 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 | | | 73.4 | % | | | 71.3 | % | Additional share allocation percentage | | | 10.0 | % | | | 10.0 | % | The Company utilized the
following assumptions to value the CPU Share Allocation Obligations:
| | June 30, 2025 | | | March 2025 (issuances) | | | February 2025 (issuances) | | | December 31, 2024 | | Expected Business Combination date | | | September 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 | | | 4.32 | % | | | 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 | | | 73.4 | % | | | 71.3 | % | | | 71.3 | % | | | 71.3 | % | Additional share allocation percentages | | | 7.90 | % | | | 1.80 | % | | | 1.35 | % | | | 4.75 | % |
|