MAIA Biotechnology, Inc. Fair Value Disclosure
4. FAIR VALUE OF FINANCIAL LIABILITIES
Derivative Liability
Financial liabilities consisting of warrant liabilities measured at fair value on a recurring basis are summarized below. The fair value of the warrant liabilities recorded are as follows:
| Fair value at December 31, 2025 | ||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||
| Liabilities: | ||||||||||||||||
| Warrant liability | $ | 1,492,395 | $ | $ | $ | 1,492,395 | ||||||||||
| Total liabilities | $ | 1,492,395 | $ | $ | $ | 1,492,395 | ||||||||||
| Fair value at December 31, 2024 | ||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||
| Liabilities: | ||||||||||||||||
| Warrant liability | $ | 2,690,605 | $ | $ | $ | 2,690,605 | ||||||||||
| Total liabilities | $ | 2,690,605 | $ | $ | $ | 2,690,605 | ||||||||||
As of December 31, 2025 and 2024, the Company had warrant liabilities of $1,492,395 and $2,690,605, respectively. The table below provides a summary of the changes in fair value of the warrant liabilities measured on a recurring basis using significant unobservable inputs (Level 3):
| Years Ended December 31, | ||||||||
| Warrant liabilities: | 2025 | 2024 | ||||||
| Balance, beginning of period | $ | 2,690,605 | $ | 2,152,188 | ||||
| Issuance of warrants | 3,917,630 | |||||||
| Exercise of warrants | (3,191,675 | ) | ||||||
| Amendment of warrants | (6,870,296 | ) | ||||||
| (Gain) loss on fair value of warrant liability | (1,198,210 | ) | 6,682,758 | |||||
| Balance, end of period | $ | 1,492,395 | $ | 2,690,605 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 21, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 24, 2023 | |
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.