v3.26.1
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
SCHEDULE OF FINANCE LIABILITIES MEASURED AT FAIR VALUE

The following table presents the Company’s financial liabilities measured at fair value on a recurring basis:

 

Description  Level  June 30, 2026   December 31, 2025 
Investments at fair value  1  $2,160,954   $- 
Derivative liabilities – Written call options  1  $58,830   $- 
Derivative liabilities – Convertible notes payables  3  $290,000   $1,460,000 
SCHEDULE OF VALUATION OF MEASUREMENT INPUT

The following inputs were used in the Monte Carlo simulation at each instrument inception measurement date:

 

Input 

Derivative 1

(Convertible Note 1)

  

Derivative 2

(Convertible Note 2)

  

Derivative 3

(Convertible Note 3)

  

Derivative 4

(Convertible Note 4)

 
Assumed instrument term   3.0 years    3.0 years    3.0 years    2.93 years 
Stock price  $13.25   $6.78   $3.90   $2.40 
Selected equity volatility   135%   130%   150%   140%
Risk-free rate (continuous compounded)   3.91%   3.68%   3.47%   3.62%
Debt discount rate   25.72%   28.69%   27.06%   27.94%

 

The following inputs were used in the Monte Carlo simulation to remeasure the derivative liabilities at each reporting date:

 

Input  June 30, 2026   December 31, 2025 
Assumed instrument term   2.50 years    3.0 years 
Stock price  $0.43   $2.63 
Selected equity volatility   145%   150%
Risk-free rate (continuous compounded)   4.10%   3.52%
Debt discount rate   29.66%   27.10%

 

The following range of inputs were used in the Monte Carlo simulation to remeasure the derivative liabilities at conversion dates (derivatives with multiple conversions are presented with the range of inputs):

 

Input 

Derivative 1

(Convertible Note 1)

  

Derivative 2

(Convertible Note 2)

  

Derivative 3

(Convertible Note 3)

  

Derivative 4

(Convertible Note 4)

 
Assumed instrument term   2.7-2.71    2.70    2.73    2.73-2.93 
Stock price  $0.88-1.04   $0.88   $1.03   $1.03-2.40 
Selected equity volatility   145%   145%   130%   130-145%
Risk-free rate (continuous compounded)   3.76%   3.76%   3.74%   3.47-3.74%
Debt discount rate   27.00-28.37%   27.00%   28.43%   27.94-28.97%
SCHEDULE OF RECONCILIATION OF THE DERIVATIVE LIABILITIES MEASURED AT FAIR VALUE

The following table provides a reconciliation of the derivative liabilities – convertible notes payable measured at fair value using Level 3 inputs for the three and six months ended June 30, 2026:

 

   Convertible Note 1   Convertible Note 2   Convertible Note 3   Convertible Note 4   Total 
Balance on December 31, 2025  $280,000   $580,000   $600,000   $—   $1,460,000 
Derivative liability recognized upon issuance of convertible note payable at fair value   -    -    -    2,310,000    2,310,000 
Reclassification of derivative liabilities upon conversion of convertible notes payable   -    -    -    (1,200,231)   (1,200,231)
Change in fair value of derivative liabilities – conversion remeasurement   -    -    -    (460,917)   (460,917)
Change in fair value — period-end remeasurement (March 31, 2026)   (110,000)   (210,000)   (210,000)   (138,852)   (668,852)
Balance on March 31, 2026  $170,000   $370,000   $390,000   $510,000   $1,440,000 
Reclassification of derivative liabilities upon conversion of convertible notes payable   (186,289)   (64,495)   (76,164)   (730,000)   (1,056,948)
Change in fair value of derivative liabilities – conversion remeasurement   16,289    (10,000)   150,000    220,000    376,289 
Change in fair value — period-end remeasurement (June 30, 2026)   -    (165,505)   (303,836)   -    (469,341)
Balance on June 30, 2026  $-   $130,000   $160,000   $-   $290,000