v3.26.1
FAIR VALUE
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE

NOTE 12 – FAIR VALUE

 

Financial Liabilities Measured at Fair Value on a Recurring Basis

 

The fair value accounting standards define fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is determined based upon assumptions that market participants would use in pricing an asset or liability. Fair value measurements are rated on a six-tier hierarchy as follows:

 

● Level 1 inputs: Quoted prices (unadjusted) for identical assets or liabilities in active markets;
   
● Level 2 inputs: Inputs, other than quoted prices included in Level 1, that are observable either directly or indirectly; and
   
● Level 3 inputs: Unobservable inputs for which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

There were no transfers between Level 3 during the six months ended June 30, 2026, and 2025.

 

The following table presents changes in Level 3 asset and liability measured at fair value for the six months ended June 30, 2026, and 2025:

  

   Warrant Liability 
Balance December 31, 2025  $807 
Fair value adjustments – warrant liability   (676)
Balance, June 30, 2026  $131 

 

   Warrant Liability 
Balance December 31, 2024  $- 
Issuance – warrant liability   5,147 
Fair value adjustments – warrant liability   (986)
Balance, June 30, 2025  $4,161 

 

The Company measures certain financial liabilities at fair value on a recurring basis, including its warrant liability, using Level 3 valuation techniques such as the Black-Scholes option pricing model.

 

The following are the inputs used in the Company’s valuation models:

   Warrant Liability
June 30, 2026		   Warrant Liability
December 31, 2025		   Warrant Liability
June 30, 2025		 
Stock price  $0.52    2.31   $0.93 
Expected volatility   155.52%   150%   150.86%
Risk-free interest rate   3.92%   3.73%   3.79%
Expected term (in years)   3.88    4.38    4.88 

 

The following table sets forth the Company’s assets and liabilities which are measured at fair value on a recurring basis by level within the fair value hierarchy:

 

   Level I   Level II   Level III   Total 
  Fair Value Measurements as of June 30, 2026 
   Level I   Level II   Level III   Total 
Warrant liability   -    -    131    131 

 

   Level I   Level II   Level III   Total 
   Fair Value Measurements as of June 30, 2025 
   Level I   Level II   Level III   Total 
Warrant liability  $-    -    4,161    4,161 

 

 

ENVUE MEDICAL, INC.

Notes to the Interim Condensed Consolidated Financial Statements (Unaudited)

(Amounts in thousands except share and per share data)