| Schedule of Fair Value Hierarchy |
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial liabilities that are required to be measured at fair value on a recurring and non-recurring basis and the related activity for periods presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value as of June 30, 2026 | | Fair Value as of December 31, 2025 | | Carrying Value | | Level 1 | | Level 2 | | Level 3 | | Carrying Value | | Level 1 | | Level 2 | | Level 3 | | Financial liabilities: | | | | | | | | | | | | | | | | | November 2024 Debentures | $ | 2,729,000 | | | $ | - | | | $ | - | | | $ | 2,729,000 | | | $ | 163,672 | | | $ | - | | | $ | - | | | $ | 163,672 | | | Derivative liability | $ | 251,000 | | | $ | - | | | $ | - | | | $ | 251,000 | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | | | | | | | Public Warrants | $ | 105 | | | $ | 105 | | | $ | - | | | $ | - | | | $ | 1,612 | | | $ | 1,612 | | | $ | - | | | $ | - | | | Private Warrants | $ | 51 | | | $ | - | | | $ | - | | | $ | 51 | | | $ | 589 | | | $ | - | | | $ | - | | | $ | 589 | | | SPA Warrants | $ | 1,781 | | | $ | - | | | $ | - | | | $ | 1,781 | | | $ | 9,080 | | | $ | - | | | $ | - | | | $ | 9,080 | | | Total warrant liability | $ | 1,937 | | | $ | 105 | | | $ | - | | | $ | 1,832 | | | $ | 11,281 | | | $ | 1,612 | | | $ | - | | | $ | 9,669 | | | | | | | | | | | | | | | | | | | Non-recurring fair value instruments: | | | | | | | | | | | | | | Series C Preferred Stock at March 27, 2026 | $ | 3,659,502 | | | $ | - | | | $ | - | | | $ | 3,659,502 | | | | | | | | | | | Series C Preferred Stock at June 28, 2026 | $ | 8,320,000 | | | $ | - | | | $ | - | | | $ | 8,320,000 | | | | | | | | | |
|
| Schedule of Changes in Fair Value |
The following table sets forth a summary of the changes in fair value of the Company’s financial liabilities categorized within Level 3: | | | | | | | | | | | | | November 2024 Debentures | Warrant
Liability | Derivative Liability | | Balance, December 31, 2024 | $ | 2,583,832 | | $ | 172,833 | | $ | - | | | Change in fair value of November 2024 Debentures | 536,060 | | - | | - | | | Change in fair value of warrant liabilities | - | | (64,829) | | - | | | Balance June 30, 2025 | $ | 3,119,892 | | $ | 108,004 | | $ | - | | | | | | | Balance, December 31, 2025 | $ | 163,672 | | $ | 9,669 | | $ | - | | | Issuance of November 2024 Debentures | 4,485,000 | | - | | - | | | Fair value conversion of November 2024 Debentures to Common Stock | (283,790) | | - | | - | | | Exchange of November 2024 Debentures to Series C Preferred Stock | (2,729,994) | | - | | - | | | Change in fair value of November 2024 Debentures | 1,094,112 | | - | | - | | | Change in fair value of warrant liabilities | - | | (7,837) | | - | | | Change in fair value of derivative liability | - | | - | | 251,000 | | | Balance, June 30, 2026 | $ | 2,729,000 | | $ | 1,832 | | $ | 251,000 | |
|