AIxCrypto Holdings, Inc. Fair Value Disclosure
NOTE 4 — FAIR VALUE MEASUREMENTS
Below is the summary of our assets and liabilities measured at fair value on a recurring basis and categorized using the fair value hierarchy as of December 31, 2025:
| (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
| Assets | ||||||||||||||||
| Money Market funds | $ | 15,957,179 | $ | $ | $ | 15,957,179 | ||||||||||
| Digital Assets | $ | 10,250,497 | $ | 10,250,497 | ||||||||||||
| Total Assets | $ | 26,207,676 | $ | $ | $ | 26,207,676 | ||||||||||
| Liabilities | ||||||||||||||||
| Convertible Debt | $ | $ | $ | 142,236 | $ | 142,236 | ||||||||||
| Warrant Liabilities | 141,878 | 141,878 | ||||||||||||||
| Total Liabilities | $ | $ | $ | 284,114 | $ | 284,114 | ||||||||||
Below is the summary of our assets and liabilities measured at fair value on a recurring basis and categorized using the fair value hierarchy as of December 31, 2024:
| (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
| Assets | ||||||||||||||||
| Money Market funds | $ | 724,732 | $ | $ | $ | 724,732 | ||||||||||
| Total Assets | $ | 724,732 | $ | $ | $ | 724,732 | ||||||||||
| Liabilities | ||||||||||||||||
| Warrant Liabilities | $ | $ | $ | 269,175 | $ | 269,175 | ||||||||||
| Total Liabilities | $ | $ | $ | 269,175 | $ | 269,175 | ||||||||||
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.