NOTE 17 – FAIR VALUE

 

Financial Liabilities Measured at Fair Value on a Recurring Basis

  

There were no transfers between Level 3 during the year ended December 31, 2025, and 2024.

 

The following table presents changes in Level 3 asset and liability measured at fair value for the year ended December 31, 2025 and 2024:

 

   Warrants Liability 
Balance – December 31, 2024  $- 
Issuance – warrant liability   8,078 
Reclassification of warrant liability to equity   

(1,067

)
Fair Value adjustments – warrant liability   (6,204)
Balance – December 31, 2025  $807 

 

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 December 31, 2025 
   Level I   Level II   Level III   Total 
Warrant liability  $-    -    807    807 

 

Historical Timeline

Fiscal YearFiled
2025Apr 15, 2026Showing above
2016Mar 31, 2017
2015Mar 30, 2016

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.