NOTE 9 – FAIR VALUE MEASUREMENT

The Company accounts for the Existing Warrants and New Warrants to purchase an aggregate of 3,900,014 shares of the Company’s Common Stock as derivative liabilities (the “Liability-Classified Warrants”) in accordance with the guidance contained in ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity. For certain Liability-Classified Warrants, the Company does not control the occurrence of events, such as a tender offer or exchange, that may trigger cash settlement of the Liability-Classified Warrants and not result in a change of control of the Company. As a result, such Liability-Classified Warrants do not meet the criteria for equity treatment and the Liability-Classified Warrants must be recorded as a derivative liability. Additionally, certain other Liability-Classified Warrants contain adjustments to the settlement amount based on a variable that is not an input to the fair value of a “fixed-for-fixed” option as defined under ASC 815-40 and, accordingly, such Liability-Classified Warrants are not considered indexed to the Company’s own stock and are not eligible for an exception from derivative accounting.

On February 8, 2024, in connection with the Warrant Exercise and Issuance, the Company estimated the aggregate fair value of the Existing Warrants (see Note 6- Stockholders’ Equity for details) to be $1,115,334 using the Black-Scholes option pricing model (Level 3 inputs). The following table shows the detail of the valuation assumptions used:

SCHEDULE OF FAIR VALUE VALUATION ASSUMPTIONS

On February 8, 2024, the Company estimated the aggregate issuance date fair value of the warrant liability related to the New Warrants (see Note 6 - Stockholders’ Equity for details) as $2,189,420 using the Black-Scholes option pricing model (Level 3 inputs). The following table shows the detail of the valuation assumptions used:

On December 31, 2025 and 2024, the Company estimated the aggregate fair value of the warrants classified as derivative liabilities to purchase an aggregate of 3,900,014 shares of Common Stock to be $1,399,349 and $2,520,851, respectively, using the Black-Scholes option pricing model (Level 3 inputs) using the following assumptions:

The following table sets forth a summary of the changes in the fair value of Level 3 liabilities that are measured at fair value on a recurring basis during the years ended December 31, 2025 and 2024:

 SCHEDULE OF FAIR VALUE MEASURED ON RECURRING BASIS

Assets and liabilities measured at fair value on a recurring basis are as follows:

 SCHEDULE OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS