Warrants Classified as Liabilities |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warrants Classified as Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| WARRANTS CLASSIFIED AS LIABILITIES | NOTE 5 – WARRANTS CLASSIFIED AS LIABILITIES
In December 2025, as of the Closing Date and Over-Allotment Closing Date, the Company did not have adequate authorized shares of common stock to settle all of the Firm Warrants, the Over-allotment Warrants and the Underwriter Warrants (collectively, the “Offering Warrants”). Therefore, pursuant to ASC No. 480, the Company classified the Offering Warrants as liabilities in its consolidated balance sheet as of December 31, 2025. The classification of the Offering Warrants, including whether the Offering Warrants should be recorded as liabilities or as equity, is evaluated at the end of each reporting period with changes in the fair value reported in other income (expense) in the consolidated statements of operations.
The fair values of the Firm Warrants and Underwriter Warrants issued on the Closing Date were determined using the Black Scholes model with the following assumptions: (i) expected term based on the remaining contractual terms, (ii) risk-free interest rate of 3.7%, which was based on a comparable US Treasury 5-year bond, (iii) expected volatility of 102.8% and (iv) an expected dividend of zero.
The fair values of the Underwriter Warrants and Over-Allotment Warrants issued on the Over-Allotment Closing Date, were determined using the Black Scholes model with the following assumptions: (i) expected term based on the remaining contractual terms, (ii) risk-free interest rate of 3.7%, which was based on a comparable US Treasury 5-year bond, (iii) expected volatility of 102.6% and (iv) an expected dividend of zero.
On January 23, 2026, the Company filed the Authorized Shares Amendment and increased its authorized shares such that the Company had adequate authorized shares to settle the Offering Warrants. Accordingly, the Company reclassified the Offering Warrants to equity effective January 23, 2026.
The fair values of the Offering Warrants at January 23, 2026, were determined using the Black Scholes model with the following assumptions: (i) expected term based on the remaining contractual terms, (ii) risk-free interest rate of 3.84%, which was based on a comparable US Treasury 5-year bond, (iii) expected volatility of 102.3% and (iv) an expected dividend of zero.
As of March 31, 2026, the Company had the following liability-classified warrants outstanding (amounts in thousands):
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