BNB PLUS CORP. Fair Value Disclosure
NOTE L – FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company’s financial instruments at fair value are measured on a recurring basis. Related unrealized gains or losses are recognized in unrealized gain (loss) on change in fair value of the warrants classified as a liability in the consolidated statements of operations. For additional disclosures regarding methods and assumptions used in estimating fair values of these financial instruments, see Note C.
The following table presents the fair value of the Company’s financial instruments as of September 30, 2025.
Fair value at | |||
| September 30, 2025 | ||
Liabilities: | |||
Common Warrants | $ | 20.00 | |
Series A Warrants | $ | — | |
Series A Warrants - modified | $ | 10.00 | |
Private Common Warrants | $ | 340.00 | |
The fair value of the warrants classified as a liability as of September 30, 2025, was determined using the Black Scholes and Probability Weighted Expected Return models. The fair value for the warrants classified as a liability as of September 30, 2025, was calculated using the following assumptions:
Series A | Private | Series A | | ||||||||||
Common | Series A | Warrants – | Common | ||||||||||
| Warrants | | Warrants | | modified | | Warrants | ||||||
Stock price | $ | 3.88 | $ | 3.88 | $ | 3.88 | $ | 3.88 | |||||
Exercise price | $ | 9,135 | $ | 60,000 | $ | 9,135 | $ | 9,135 | |||||
Dividend yield | 0 | % | 0 | % | 0 | % | 0 | % | |||||
Selected Volatility | 172.50 | % | 190.00 | % | 172.50 | % | 170.00 | % | |||||
Risk free rate | 3.61 | % | 3.61 | % | 3.61 | % | 3.65 | % | |||||
Fundamental transaction probability (significant unobservable input) | 80.00 | % | 80.00 | % | 80.00 | % | 80.00 | % | |||||
Fundamental transaction Black Scholes Volatility | 227.30 | % | 100.00 | % | 227.30 | % | 227.30 | % | |||||
Fundamental transaction timing (significant unobservable input) | 09/30/2027 | 09/30/2027 | 09/30/2027 | 09/30/2027 | |||||||||
The change in fair value of the Common Warrants (issued in February 2024), the Series A Warrants (issued in February 2022) and the Private Common Warrants (issued in February 2024) for the fiscal year ended September 30, 2025, is summarized as follows:
| Series A | Private | | ||||||||||||
Common | Series A | Warrants- | Common | ||||||||||||
| Warrants | | Warrants | | modified | | Warrants | | Totals | ||||||
Fair value at October 1, 2024 | $ | 27,000 | $ | 15,000 | $ | 16,000 | $ | 262,000 | $ | 320,000 | |||||
(26,980) | (15,000) | (15,990) | (261,660) | (319,630) | |||||||||||
Fair Value at September 30, 2025 | $ | 20 | $ | — | $ | 10 | $ | 340 | $ | 370 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 22, 2025 | Showing above |
| 2024 | Dec 17, 2024 | |
| 2023 | Dec 7, 2023 | |
| 2022 | Dec 14, 2022 | |
| 2020 | Dec 17, 2020 | |
| 2019 | Dec 12, 2019 | |
| 2016 | Dec 6, 2016 | |
| 2015 | Dec 14, 2015 | |
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.