v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 3 – FAIR VALUE MEASUREMENTS

 

The Company accounts for financial instruments in accordance with ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

 

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 

Level 2 – Quoted prices in non-active markets or in active markets for similar assets or liabilities, observable inputs other than quoted prices, and inputs that are not directly observable but are corroborated by observable market data.

 

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

 

There were no changes in the fair value hierarchy levelling during the three months ended March 31, 2026 and year ended December 31, 2025.

 

Fair value (continued)

 

The Company’s financial assets that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows:

 

   As of March 31, 2026 
   Level 1   Level 2   Level 3   Total 
   US$ 
                 
Assets:                
Cash equivalents:                
Money market funds   493    
-
    
-
    493 
Total assets   493    
-
    
-
    493 
   As of December 31, 2025 
   Level 1   Level 2   Level 3   Total 
   US$ 
                 
Assets:                
Cash equivalents:                
Money market funds   3,084    
-
    
-
    3,084 
Total assets   3,084    
-
    
-
    3,084 

 

The Company’s financial liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy are as follows:

 

   As of March 31, 2026 
   Level 1   Level 2   Level 3   Total 
   US$ 
                 
Liabilities:                
Warrants   
-
    
-
    1,685    1,685 
Total liabilities   
-
    
-
    1,685    1,685 

 

   As of December 31, 2025 
   Level 1   Level 2   Level 3   Total 
   US$ 
                 
Liabilities:                
Warrants   
-
    
-
    706    706 
Total liabilities   
-
    
-
    706    706 

 

The Company determined the fair value of the embedded conversion derivative using the Binomial Option Pricing Model, a Level 3 measurement, within the fair value hierarchy (see Note 7A).

 

The following table presents the changes in fair value of the level 3 liabilities for the period from December 31, 2025 through March 31, 2026:

 

   Three months
ended		   Three months
ended		 
   March 31,
2026		   March 31,
2025		 
Liability:        
Beginning balance   706    2,287 
Issuance of Common Warrants (*)   6,340    4,531 
Repricing of warrants under the Inducement Letter Agreements (**)   
-
    3,300 
Exercise of warrants into common stock   (13,485)   
-
 
Change in terms of warrant liability   (1,218)   
-
 
Change in fair value   9,342    (4,214)
Ending balance   1,685    5,904 

 

(*)Including $3,340 of loss upon entering the transaction.
  
(**)Repricing and exercise of the warrants under the Inducement Letter Agreements, which was charged to profit and loss. See Note 9A for further information.

The Company determined the fair value of the liabilities for the warrants using the Black-Scholes model, a Level 3 measurement, within the fair value hierarchy.

 

   Three months ended  Three months ended
   March 31,
2026		  March 31,
2025
       
Underlying value of Common Stock ($)  2.27 – 4.98  0.56
Exercise price ($)  1-43.91  0.93-2.31
Expected volatility (%)  80.8-163.3  114.2-120.7
Expected terms (years)  0.27-4.79  1.25-5
Risk-free interest rate (%)  3.70-3.88  3.9-4