NOTE
9 – FAIR VALUE MEASUREMENTS
The
following tables summarize the Company’s assets and liabilities that are measured at fair value in the condensed consolidated financial
statements:
SCHEDULE OF ASSETS AND LIABILITIES ARE MEASURED AT FAIR VALUE
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at December 31, 2025 (audited) | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Other noncurrent assets: | |
| | | |
| | | |
| | | |
| | |
| Investment in equity securities (a) | |
$ | 37,374 | | |
$ | - | | |
$ | - | | |
$ | 37,374 | |
| Total financial assets | |
$ | 37,374 | | |
$ | - | | |
$ | - | | |
$ | 37,374 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at June 30, 2026 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Other noncurrent assets: | |
| | | |
| | | |
| | | |
| | |
| Investment in equity securities (a) | |
$ | 28,802 | | |
$ | - | | |
$ | - | | |
$ | 28,802 | |
| Total financial assets | |
$ | 28,802 | | |
$ | - | | |
$ | - | | |
$ | 28,802 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at December 31, 2025 (audited) | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Liabilities | |
| | | |
| | | |
| | | |
| | |
| Total financial liabilities | |
$ | - | | |
$ | - | | |
$ | 4,700 | | |
$ | 4,700 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at June 30, 2026 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Liabilities | |
| | | |
| | | |
| | | |
| | |
| Total financial liabilities | |
$ | - | | |
$ | - | | |
$ | 4,700 | | |
$ | 4,700 | |
| (a) |
These
represent equity investments with a readily determinable fair value. The Company has measured its investments to fair value in accordance
with ASC 321, “Investments-Equity Securities,” based on quoted prices in active markets. |
| (b) |
For
Level 3 earnout liability, the Company assesses the fair value of expected earnout liability at each reporting period using the
Monte Carlo Method, which is consistent with the initial measurement of the expected earnout consideration. This fair value
measurement is considered a Level 3 measurement because the Company estimates projections during the earnout period utilizing
various potential pay-out scenarios. The Monte Carlo simulation method repeats a process thousands of times in an attempt to predict
all the possible future outcomes. At the end of the simulation, several random trials produce a distribution of outcomes that are
then analyzed to determine the average present value of the earnout. Change in the fair value of earnout liability is reflected in
the unaudited condensed consolidated statements of operations.
|
The
make-whole obligation liability related to the Prior B. Riley Purchase Agreement is measured at fair value categorized within Level
1 of the fair value hierarchy. See Note 4.
Stardust
Power Inc. and Subsidiaries
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
|