NOTE K - WARRANT LIABILITY

As of December 31, 2024, warrants to purchase a total of 623,834 shares of the Company’s common stock were outstanding (the “Private Warrants”). The Private Warrants expired unexercised during the year ended December 31, 2025.  

Each of the Private Warrants entitled the registered holder to purchase one share of the Company’s common stock at a price of $11.50 per share, subject to adjustment. The Private Warrants expired at 5:00 p.m., New York City time, on December 22, 2025. The Private Warrants included provisions that affected the settlement amount. Such variables are outside of those used to determine the fair value of a fixed-for-fixed instrument, and as such, the Private Warrants did not meet the criteria for equity treatment under guidance contained in ASC 815. The Company classified the Private Warrants as a liability at their fair value subject to re-measurement at each balance sheet date and adjusted at each reporting period until exercised or expired, and any change in fair value is recognized in the Company's Consolidated Statements of Operations. The fair value of the of the Private Warrant as of December 31, 2025 was zero as they expired.  Prior to their expiration, the fair value of the Private Warrants was determined using the Black-Scholes option pricing model. The following table represents the assumptions for the Black-Scholes option-pricing model used in determining the fair value of the Private Warrants as of December 31, 2024:

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The significant assumptions utilized in the Black-Scholes calculation consist of interest rate for U.S. Treasury Bonds, as published by the U.S. Federal Reserve, and expected volatility estimated using historical daily volatility of guideline public companies.