v3.26.1
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES RECORDED AT FAIR VALUE

The following table sets forth the fair value of the Company’s financial assets and liabilities by level within the fair value hierarchy as of June 30, 2026.

 

             
   At June 30, 2026 
   Level 1   Level 2   Level 3   Total 
Liabilities:                
Note payable (Note 7)  $-   $-   $3,626,977   $3,626,977 
CCS Note (Note 7)   -    -    5,125,000    5,125,000 
Public Warrants   -    -    4,531,000    4,531,000 
Private Placement Warrants   -    -    2,522,675    2,522,675 
New Warrants   -     -     43,651    43,651 
Note payable – Polar (Note 7)   -    -    1,845,636    1,845,636 
Total liabilities  $-   $-   $17,694,939   $17,694,939 

 

The following table sets forth the fair value of the Company’s financial assets and liabilities by level within the fair value hierarchy as of December 31, 2025.

 

   Level 1   Level 2   Level 3   Total 
   At December 31, 2025 
   Level 1   Level 2   Level 3   Total 
Liabilities:                
Note payable (Note 7)  $-   $-   $3,323,407   $3,323,407 
CCS Note (Note 7)   -    -    5,220,666    5,220,666 
Public Warrants   -    -    483,000    483,000 
Private Placement Warrants   -    -    268,800    268,800 
Note payable – Polar (Note 7)   -    -    1,438,609    1,438,609 
Total liabilities  $-   $-   $10,734,482   $10,734,482 
SCHEDULE OF CHANGES IN FAIR VALUE OF THE COMPANY LIABILITIES MEASURED USING LEVEL 3 INPUTS

The following table summarizes the changes in fair value of the Company’s liabilities measured using Level 3 inputs for the:

 

   Balance   Issuances   Payments   Fair Value   Ending Balance 
   Six Months Ended June 30, 2026 
   Beginning   Acquisitions &       Change in     
   Balance   Issuances   Payments   Fair Value   Ending Balance 
Note payable (Note 7)  $3,323,407   $1,200,000   $(847,624)  $(48,806)  $3,626,977 
CCS Note (Note 7)   5,220,666    -    -    (95,666)   5,125,000 
Public Warrants   483,000    -    -    4,048,000    4,531,000 
Private Placement Warrants   268,800    -    -    2,253,875    2,522,675 
New Warrants   -    33,702    -    9,949    43,651 
Note payable – Polar (Note 7)   1,438,609    -    -    407,027    1,845,636 
Total  $10,734,482   $1,233,702   $(847,624)  $6,574,379   $17,694,939 

 

 

The following table summarizes the changes in fair value of the Company’s liabilities measured using Level 3 inputs for the:

 

   Balance   & Issuances   Payments   Fair Value   Balance 
   Year Ended December 31, 2025 
   Beginning   Acquisitions       Change in   Ending 
   Balance   & Issuances   Payments   Fair Value   Balance 
Note payable (Note 7)  $-   $2,788,000   $(37,740)  $535,407   $3,323,407 
CCS Note (Note 7)   -    4,796,223    -    424,443    5,220,666 
Loan payable to related party (Note 9)   -    10,311,423    (10,214,709)   (96,714)   - 
Public Warrants   -    121,900,000    -    (121,417,000)   483,000 
Private Placement Warrants   -    88,768,000    -    (88,499,200)   268,800 
Note payable – Polar (Note 7)   -    6,480,632    -    (5,042,024)   1,438,609 
Total  $-   $235,044,278   $(10,252,449)  $(214,095,088)  $10,734,482 
SCHEDULE OF KEY INPUTS INTO MODELS FOR NOTE PAYABLE

The fair value of the Company’s liabilities recorded under the fair value option was estimated using Level 3 fair value measurements. The significant inputs to the calculation of the fair value of liabilities recorded under the fair value option as of June 30, 2026, were as follows:

 

   Three Months Ended June 30, 2026 
   Note Payable(1)   CCS Note(1) 
Valuation Inputs:          
Expected term (in years)   1.50    1.50 
Risk-adjusted discount rate   13.90% - 16.95%   13.90%

 

  (1) Fair value was estimated using a discounted cash flow model, which applies a risk-adjusted discount rate to projected future cash flows. The valuation involves significant judgement in determining key inputs such as forecasted revenue growth, margin expectations and discount rates.

 

The fair value of the Company’s liabilities recorded under the fair value option was estimated using Level 3 fair value measurements. The significant inputs to the calculation of the fair value of liabilities recorded under the fair value option as of December 31, 2025, were as follows:

 

   Year Ended December 31, 2025 
           Loan Payable to 
   Note Payable(1)   CCS Note(1)   Related Party(1) 
Valuation Inputs:            
Expected term (in years)   0.25 - 1.00    1.25 - 1.00    0.25 - 1.00 
Risk-adjusted discount rate   11.89%   11.96% - 16.95%   11.89% - 17.38%

 

  (1) Fair value was estimated using a discounted cash flow model, which applies a risk-adjusted discount rate to projected future cash flows. The valuation involves significant judgement in determining key inputs such as forecasted revenue growth, margin expectations and discount rates.
Public Warrants [Member]  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
SCHEDULE OF KEY INPUTS INTO MODELS FOR NEW WARRANTS

The key inputs into the models for the Public Warrants at June 30, 2026, were as follows:

 

Input  June 30, 2026 
      
Warrant exercise price  $11.50 
Risk-free rate   4.169%
Dividend yield   0.00%
Expected term (years)   3.9333 
Expected volatility   223.44%
Class A common stock price  $0.440 
Private Placement Warrants [Member]  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
SCHEDULE OF KEY INPUTS INTO MODELS FOR NEW WARRANTS

The key inputs into the models for the Private Placement Warrants were as follows:

 

Input  June 30, 2026 
     
Warrant exercise price  $11.50 
Risk-free rate   4.169%
Dividend yield   0.00%
Expected term (years)   3.9333 
Expected volatility   223.44%
Class A common stock price  $0.440 
New Warrants [Member]  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
SCHEDULE OF KEY INPUTS INTO MODELS FOR NEW WARRANTS

 

Input  June 30, 2026 
     
Warrant exercise price  $0.21 
Risk-free rate   4.190%
Dividend yield   0.00%
Expected term (years)   4.9500 
Expected volatility   223.44%
Class A common stock price  $0.440 
Loan Payable Polar [Member]  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
SCHEDULE OF KEY INPUTS INTO MODELS FOR NOTE PAYABLE

The key inputs into the model for the Note Payable – Polar were as follows:

 

Input  June 30, 2026 
     
Risk-free rate   4.06%
Expected term (years)   1.50 
Expected volatility   223.44%
Class A common stock price  $0.44