v3.26.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements
7.Fair Value Measurements

 

The Company measures the fair value of financial assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value.

 

The Company uses three levels of inputs that may be used to measure fair value:

 

Level 1 Quoted prices in active markets for identical assets or liabilities.

 

Level 2 Quoted prices for similar assets and liabilities in active markets or inputs that are observable.

 

Level 3 Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions).

 

Transfer into and transfers out of the hierarchy levels are recognized as if they had taken place at the end of the reporting period. There have been no changes in Level 1, Level 2, and Level 3 and no changes in valuation. The fair value of the Company’s derivative liability was determined using significant unobservable measures and therefore classified as Level 3 . The Company does not have any financial instruments in the Level 1 or Level 2 category.

 

   Fair value measured as of December 31 2025 
   Total at December 31, 2025   Quoted prices in active markets   Significant other observable inputs   Significant unobservable inputs 
       (Level 1)   (Level 2)   (Level 3) 
Liabilities:                
Derivative liability  $1,218,258   $       -   $          -   $1,218,258 

 

The table below shows the inputs used to determine the fair value of the derivative liability:

 

   October 16,
2025		   December 31,
2025		 
Risk-free interest rate   3.52%   3.68%
Market discount rate   30%   30%
Term   5 years    4.79 years 
Expected volatility   130%   140%

 

The following table sets forth a summary of the change in the fair value of the derivative liability that are measured at fair value on a recurring basis for the year ended December 31, 2025

 

Balance, as of December 31, 2024  $- 
Fair value recognized upon issuance   3,631,210 
Payments made   (378,084)
Change in fair value   (2,034,868)
Balance, as of December 31, 2025  $1,218,258