| FAIR VALUE OF FINANCIAL LIABILITIES |
4.
FAIR VALUE OF FINANCIAL LIABILITIES
Derivative
Liability
Financial
liabilities consisting of warrant liabilities measured at fair value on a recurring basis are summarized below. The fair value of the
warrant liabilities recorded are as follows:
SCHEDULE
OF FAIR VALUE MEASUREMENT OF EMBEDDED DERIVATIVE LIABILITIES AND WARRANT LIABILITIES
| | |
Fair value at March 31, 2026 | |
| | |
Total | | |
Level 1 | | |
Level 2 | | |
Level 3 | |
| Liabilities: | |
| | |
| | |
| | |
| |
| Warrant liability | |
$ | 1,237,440 | | |
$ | — | | |
$ | — | | |
$ | 1,237,440 | |
| Total liabilities | |
$ | 1,237,440 | | |
$ | — | | |
$ | — | | |
$ | 1,237,440 | |
| | |
Fair value at December 31, 2025 | |
| | |
Total | | |
Level 1 | | |
Level 2 | | |
Level 3 | |
| Liabilities: | |
| | |
| | |
| | |
| |
| Warrant liability | |
$ | 1,492,395 | | |
$ | — | | |
$ | — | | |
$ | 1,492,395 | |
| Total liabilities | |
$ | 1,492,395 | | |
$ | — | | |
$ | — | | |
$ | 1,492,395 | |
The
table below provides a summary of the changes in fair value of the warrant liabilities measured on a recurring basis using significant
unobservable inputs (Level 3):
SCHEDULE OF CHANGES IN FAIR VALUE OF THE DERIVATIVE LIABILITIES AND WARRANT LIABILITIES
|
|
2026 |
|
|
2025 |
|
| |
|
Three Months Ended
March 31, |
|
|
|
2026 |
|
|
2025 |
|
| Warrant
liability: |
|
|
|
|
|
|
| Balance,
beginning of period |
|
$ |
1,492,395 |
|
|
$ |
2,690,605 |
|
| Issuance
of warrants |
|
|
— |
|
|
|
— |
|
| Exercise
of warrants |
|
|
— |
|
|
|
— |
|
| Amendment
of warrants |
|
|
— |
|
|
|
— |
|
| Gain
on fair value of warrant liability |
|
|
(254,955) |
|
|
|
(825,989 |
) |
| Balance,
end of period |
|
$ |
1,237,440 |
|
|
$ |
1,864,616 |
|
|