| Summary of Fair Value Hierarchy for Financial Liabilities Measured At Fair Value on a Recurring Basis |
The following tables summarize our fair value hierarchy for our financial liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025.
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Fair Value at |
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Level |
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June 30, 2026 |
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December 31, 2025 |
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Liabilities |
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Litigation financing |
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3 |
|
$ |
66,800,274 |
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$ |
63,287,048 |
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2022 Warrants |
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3 |
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583,057 |
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|
|
7,833,301 |
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March 2023 Warrants |
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3 |
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|
— |
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2,217,838 |
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December 2023 Warrants |
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3 |
|
|
212,293 |
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|
|
2,099,221 |
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Total of fair valued liabilities |
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|
$ |
67,595,624 |
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|
$ |
75,437,408 |
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| Schedule of Changes in Level 3 Fair Value Measurements |
Changes in our Level 3 fair value measurements were as follows:
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March 2023
Warrants |
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December 2023
Warrants |
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March 2023
Conversion Option |
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December 2023
Conversion Option |
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Litigation
financing |
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2022 Warrants |
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Total |
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Balance as of December 31, 2025 |
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$ |
2,217,838 |
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|
$ |
2,099,221 |
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|
$ |
— |
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$ |
— |
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$ |
63,287,048 |
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|
$ |
7,833,301 |
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$ |
75,437,408 |
|
Warrants Exercised |
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|
(1,247,388 |
) |
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(120,912 |
) |
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— |
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— |
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— |
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— |
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(1,368,300 |
) |
Issuance of new funding |
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— |
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— |
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— |
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— |
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13,704 |
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— |
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|
13,704 |
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Change in fair value |
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(970,450 |
) |
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(1,676,062 |
) |
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— |
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— |
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2,105,402 |
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(6,947,095 |
) |
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(7,488,205 |
) |
Balance as of March 31, 2026 |
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— |
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302,247 |
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— |
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— |
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65,406,154 |
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|
886,206 |
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|
66,594,607 |
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Issuance of new funding |
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— |
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— |
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— |
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— |
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1,879 |
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— |
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1,879 |
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Change in fair value |
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— |
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(89,954 |
) |
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— |
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— |
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1,392,241 |
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(303,149 |
) |
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|
999,138 |
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Balance as of June 30, 2026 |
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$ |
— |
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$ |
212,293 |
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$ |
— |
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$ |
— |
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$ |
66,800,274 |
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$ |
583,057 |
|
|
$ |
67,595,624 |
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Balance as of December 31, 2024 |
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$ |
1,910,950 |
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$ |
827,036 |
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$ |
2,745,000 |
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$ |
307,000 |
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$ |
56,950,377 |
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$ |
2,060,773 |
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$ |
64,801,136 |
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Change in fair value |
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(967,708 |
) |
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(420,606 |
) |
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(2,317,000 |
) |
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(141,000 |
) |
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1,713,439 |
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(1,090,063 |
) |
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(3,222,938 |
) |
Balance as of March 31, 2025 |
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943,242 |
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406,430 |
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|
428,000 |
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|
166,000 |
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58,663,816 |
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|
970,710 |
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|
61,578,198 |
|
Warrants Exercised |
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(615,685 |
) |
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— |
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— |
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— |
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— |
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— |
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|
|
(615,685 |
) |
Change in fair value |
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2,249,835 |
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|
1,205,399 |
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2,667,000 |
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|
343,000 |
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|
806,206 |
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3,413,384 |
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|
10,684,824 |
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Balance as of June 30, 2025 |
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$ |
2,577,392 |
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$ |
1,611,829 |
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$ |
3,095,000 |
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$ |
509,000 |
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$ |
59,470,022 |
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$ |
4,384,094 |
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$ |
71,647,337 |
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