v3.26.3
Derivative Liability
 6 Months Ended
Jun. 30, 2026
Derivative Liability [Abstract]  
DERIVATIVE LIABILITY
14. DERIVATIVE LIABILITY

 

The derivative liability was the conversion feature bifurcated from the convertible note contract as presented in Note 13. The movement of the derivative liability is as follows:

 

    As of
June 30,
2026		     As of
December 31,
2025		  
Beginning balance   $ 1,657,399     $ -  
Issuance of derivative liability     -       2,058,567  
Convert into shares     (4,816 )     　-  
Decrease in fair value     (1,512,221 )     (401,168 )
Ending balance   $ 140,362     $ 1,657,399  

 

The fair value of the conversion feature (hereafter “Convertible Component”) in the amount of $140,362 was estimated using the Monte Carlo Simulation Model combined with Least Squares Monte Carlo (LSM) method to compute the Convertible Component’s fair value. The assumptions used to perform the Monte-Carlo simulation model below:

 

    August 2025
Convertible Notes		     November 2025
Convertible Notes		  
Assumption Parameters   Issuance
Date
(August 7,
2025)		     Reporting
date
(June 30,
2026)		     Issuance
Date
(November 17,
2025)		     Reporting
date
(June 30,
2026)		  
Risk-Free Rate     3.90 %     3.72 %     3.70 %     3.98 %
Expected Stock Price Volatility     130 %     178 %     132 %     112 %
Risk-Adjusted Discount Rate     12.30 %     14.92 %     12.80 %     15.18 %
Expected Term (Years)     1.00       0.12       1.00       0.31