| SCHEDULE OF FAIR VALUE HIERARCHY OF THE VALUATION INPUTS |
The
following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring
basis at June 30, 2026 and June 30, 2025, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine
such fair value:
SCHEDULE OF FAIR
VALUE HIERARCHY OF THE VALUATION INPUTS
| | |
| |
June 30, | | |
June 30, | |
| Description | |
Level | |
2026 | | |
2025 | |
| Assets: | |
| |
| | | |
| | |
| Trading securities | |
1 | |
$ | — | | |
$ | 5 | |
| | |
| |
| | | |
| | |
| Liabilities: | |
| |
| | | |
| | |
| Winston & Strawn Agreement | |
3 | |
$ | — | | |
$ | 2,489,945 | |
| Warrant liability – Private Warrants | |
3 | |
$ | 184,588 | | |
$ | 123,062 | |
| Earnout liability | |
3 | |
$ | 263,000 | | |
$ | 11,369,000 | |
| Convertible notes derivative | |
3 | |
$ | — | | |
$ | 103,185 | |
| Merger financing derivative | |
3 | |
$ | — | | |
$ | 63,696 | |
| Tau agreement | |
3 | |
$ | — | | |
$ | 539,787 | |
| Debenture – derivative | |
3 | |
$ | 252,374 | | |
$ | — | |
| Secured Convertible Note | |
3 | |
$ | 11,210,358 | | |
$ | — | |
| Warrants liability – Equity SPA | |
3 | |
$ | 3,013,367 | | |
$ | — | |
|
| SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION |
SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION
| Input | |
June
30, 2025 | |
| Market price of public shares | |
$ | 0.19 | |
| Equity volatility | |
| 167.7 | % |
| Risk-free rate | |
| 4.21 | % |
| Subscription agreement measurement input | |
| 4.21 | % |
| Input | |
June
30, 2026 | | |
June
30, 2025 | |
| Market price of public shares | |
$ | 0.20 | | |
$ | 0.19 | |
| Risk-free rate | |
| 4.15 | % | |
| 3.67 | % |
| Dividend yield | |
| 0.00 | % | |
| 0.00 | % |
| Volatility | |
| 205.12 | % | |
| 167.7 | % |
| Exercise price | |
$ | 689.86 | | |
$ | 689.86 | |
| Warrants and rights expiration date description | |
$ | 689.86 | | |
$ | 689.86 | |
| | |
| | | |
| | |
| Effective expiration date | |
| February
2029 | | |
| February
2029 | |
| Input | |
June
30, 2026 | | |
June
30, 2025 | |
| Market price of public shares | |
$ | 0.20 | | |
$ | 0.19 | |
| Revenue volatility | |
| 50.00 | % | |
| 12.00 | % |
| Discount factor for revenue | |
| 22.32 | % | |
| 9.31 | % |
| Earnout liability measurement input | |
| 22.32 | % | |
| 9.31 | % |
| Input | |
June
30, 2025 | |
| Market price of public shares | |
$ | 0.19 | |
| Risk-free rate | |
| 4.13 | % |
| Discount rate | |
| 15.63 | % |
| Probability of default | |
| 14.3 | % |
| Recovery rate | |
| 28.9 | % |
| Volatility | |
| 167.7 | % |
| Effective expiration date | |
| February
2026 | |
| Input | |
June
30, 2026 | | |
October
8, 2025 | |
| Market price of public shares | |
$ | 0.20 | | |
$ | 0.36 | |
| Conversion Price | |
$ | 0.75 | | |
$ | 0.75 | |
| Principal and interest balance at valuation
date | |
$ | 10,904,221 | | |
$ | 10,097,782 | |
| Risk-free rate | |
| 4.18 | % | |
| 3.73 | % |
| Discount rate | |
| 17.95 | % | |
| 11.30 | % |
| Volatility | |
| 205.12 | % | |
| 165.13 | % |
| Effective expiration date | |
| October
2030 | | |
| October
2030 | |
| Term | |
| 4.28
years | | |
| 5
years | |
| Input | |
June
30, 2025 | |
| Market price of public shares | |
$ | 0.19 | |
| Risk-free rate | |
| 4.13 | % |
| Discount rate | |
| 15.63 | % |
| Probability of default | |
| 14.3 | % |
| Recovery rate | |
| 28.9 | % |
| Volatility | |
| 167.7 | % |
| Derivative liability measurement input | |
| 167.7 | % |
| Effective expiration date | |
| February
2026 | |
| Input | |
June
30, 2025 | |
| Anticipated Monthly Advance
Amounts | |
$ | 40,000 | |
| Risk-free rate | |
| 3.75 | % |
| Volatility | |
| 167.7 | % |
| Commitment amount measurement input | |
| 167.7 | % |
| Effective expiration date | |
| July
2026 | |
| Input | |
June
30, 2026 | | |
August
4, 2025 | |
| Market price of public shares | |
$ | 0.20 | | |
$ | 0.22 | |
| Risk-free rate | |
| 3.71 | % | |
| 3.75 | % |
| Discount rate | |
| 20.06 | % | |
| 15.41 | % |
| Volatility | |
| 205.12 | % | |
| 165.9 | % |
| Effective expiration date | |
| August
2026 | | |
| August
2026 | |
| Input | |
September
16, 2025 | |
| Discount rate | |
| 11.21 | % |
| Probability of default | |
| 8.98 | % |
| Recovery rate | |
| 42.90 | % |
| Effective expiration date | |
| March
2026 | |
| Input | |
June
30, 2026 | | |
October
8, 2025 | |
| Market price of public shares | |
$ | 0.20 | | |
$ | 0.36 | |
| Risk-free rate | |
| 4.18 | % | |
| 3.73 | % |
| Dividend yield | |
| 0.00 | % | |
| 0.00 | % |
| Volatility | |
| 205.125 | % | |
| 165.13 | % |
| Exercise price | |
$ | 0.75 | | |
$ | 0.75 | |
| Term | |
| 4.27
years | | |
| 5
years | |
| Derivative liability measurement input | |
| 0.75 | | |
| 0.75 | |
| | |
| | | |
| | |
| Effective expiration date | |
| October
2030 | | |
| October
2030 | |
|
| SCHEDULE OF CHANGES IN THE FAIR VALUE |
The
following table presents the changes in the fair value of the following:
SCHEDULE
OF CHANGES IN THE FAIR VALUE
| | |
Private Placement | | |
Tau Agreement | |
| | |
Warrants | | |
Liability | |
| Fair value as of June 30, 2025 | |
$ | 123,062 | | |
$ | 539,787 | |
| Write off receivable | |
| — | | |
| (205,238 | ) |
| Change in valuation
inputs or other assumptions | |
| 61,525 | | |
| (334,549 | ) |
| Fair value as of June 30, 2026 | |
$ | 184,588 | | |
$ | — | |
| | |
Private Placement | | |
Tau Agreement | |
| | |
Warrants | | |
Liability | |
| Fair value as of June 30, 2024 | |
$ | 307,656 | | |
$ | — | |
| Initial measurement | |
| — | | |
| 1,090,949 | |
| Fair value of advance requests | |
| — | | |
| 1,652,300 | |
| Transferred to equity | |
| — | | |
| (1,911,472 | ) |
| Change in valuation
inputs or other assumptions | |
| (184,594 | ) | |
| (291,990 | ) |
| Fair value as of June 30, 2025 | |
$ | 123,062 | | |
$ | 539,787 | |
| | |
Conversion | | |
Earnout | |
| | |
Derivative | | |
Liability | |
| Fair value as of June 30, 2025 | |
$ | 103,185 | | |
$ | 11,369,000 | |
| Change in valuation
inputs or other assumptions | |
| (103,185 | ) | |
| (11,106,000 | ) |
| Fair value as of June 30, 2026 | |
$ | — | | |
$ | 263,000 | |
| | |
Conversion | | |
Earnout | |
| | |
Derivative | | |
Liability | |
| Fair value as of June 30, 2024 | |
$ | 16,462,690 | | |
$ | 12,298,000 | |
| Change in valuation inputs or other assumptions | |
| (16,359,505 | ) | |
| (929,000 | ) |
| Fair value as of June 30, 2025 | |
$ | 103,185 | | |
$ | 11,369,000 | |
| | |
Winston &
Strawn | | |
Merger Financing | |
| | |
Agreement | | |
Derivative | |
| Fair value as of June 30, 2025 | |
$ | 2,489,945 | | |
$ | 63,696 | |
| Change in valuation inputs or other assumptions | |
| (1,799,545 | ) | |
| (63,696 | ) |
| Fair value of settlement consideration | |
| (1,260,700 | ) | |
| — | |
| Loss on settlement | |
| 570,300 | | |
| — | |
| Fair value liability as of June 30, 2026 | |
$ | — | | |
$ | — | |
| | |
Winston &
Strawn | | |
Merger Financing | |
| | |
Agreement | | |
Derivative | |
| Fair value as of June 30, 2024 | |
$ | 2,425,647 | | |
$ | — | |
| Initial measurement | |
| — | | |
| 113,044 | |
| Change in valuation
inputs or other assumptions | |
| 64,298 | | |
| (49,348 | ) |
| Fair value liability as of June 30, 2025 | |
$ | 2,489,945 | | |
$ | 63,696 | |
| | |
Contingent | | |
| |
| | |
Guarantee | | |
| |
| Fair value as of June 30, 2024 | |
$ | 3,256,863 | | |
| | |
| Shares issued as partial payment | |
| (1,210,290 | ) | |
| | |
| Change in valuation inputs or other assumptions | |
| 839,774 | | |
| | |
| Exchange to Merger
financing note | |
| (2,886,347 | ) | |
| | |
| Fair value as of June 30, 2025 | |
$ | — | | |
| | |
| | |
Debenture | | |
Convertible
Notes | |
| | |
Derivative | | |
Derivative | |
| Fair value as of June 30, 2025 | |
$ | — | | |
$ | — | |
| Initial measurement | |
| 352,067 | | |
| 382,154 | |
| Change in valuation
inputs or other assumptions | |
| (99,693 | ) | |
| (382,154 | ) |
| Fair value as of June 30, 2026 | |
$ | 252,374 | | |
$ | — | |
| | |
Secured | | |
2025 | |
| | |
Convertible
Note | | |
Warrant Liability | |
| Fair value as of June 30, 2025 | |
$ | — | | |
$ | — | |
| Principal amount | |
| 10,097,782 | | |
| — | |
| Day 1 fair value charge
to earnings | |
| 4,488,179 | | |
| — | |
| Initial measurement October 8, 2025 | |
| 14,585,961 | | |
| 5,874,061 | |
| Accrued interest through June 30, 2026 | |
| 806,439 | | |
| — | |
| Fair value of warrants exercised | |
| — | | |
| (1,094,669 | ) |
| Change in valuation
inputs or other assumptions | |
| (4,182,042 | ) | |
| (1,766,025 | ) |
| Fair value as of
June 30, 2026 | |
$ | 11,210,358 | | |
$ | 3,013,367 | |
|