REVIVA PHARMACEUTICALS HOLDINGS, INC. Fair Value Disclosure
7. FAIR VALUE MEASUREMENTS
The following tables provide a summary of the assets and liabilities that are required to be measured at fair value on a recurring basis and where they are classified within the fair value hierarchy as of December 31, 2025 and 2024:
|
December 31, 2025 |
||||||||||||||||
|
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
|
Assets: |
||||||||||||||||
|
Money market funds (cash equivalents) |
$ | 13,228,720 | $ | — | $ | — | $ | 13,228,720 | ||||||||
|
Total assets measured and recorded at fair value |
$ | 13,228,720 | $ | — | $ | — | $ | 13,228,720 | ||||||||
|
December 31, 2024 |
||||||||||||||||
|
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
|
Assets: |
||||||||||||||||
|
Money market funds (cash equivalents) |
$ | 12,203,627 | $ | — | $ | — | $ | 12,203,627 | ||||||||
|
Total assets measured and recorded at fair value |
$ | 12,203,627 | $ | — | $ | — | $ | 12,203,627 | ||||||||
|
Liabilities: |
||||||||||||||||
|
Warrant liabilities |
$ | — | $ | — | $ | 89,010 | $ | 89,010 | ||||||||
|
Total liabilities measured and recorded at fair value |
$ | — | $ | — | $ | 89,010 | $ | 89,010 | ||||||||
The following table summarizes the changes in the fair value of the warrant liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
|
Year Ended December 31, |
||||||||
|
2025 |
2024 |
|||||||
|
Balance, beginning of period |
$ | 89,010 | $ | 806,655 | ||||
|
Change in fair value of |
(89,010 | ) | (717,645 | ) | ||||
|
Balance, end of period |
$ | — | $ | 89,010 | ||||
In prior years, the Company issued warrants to purchase 27,816 shares of common stock in a private-placement (the "Private Warrants") and classified the warrants as derivative liabilities, pursuant to ASC 815, as the Private Warrants have an exercise price that is subject to potential adjustment, with subsequent changes in their fair values to be recognized in the consolidated statement of operations at each reporting date. The Company calculated the fair value of the Private Warrants as of December 31, 2024 as $89,010 using a Lattice model. The Private Warrants expired on December 14, 2025. Upon expiration, the associated warrant liabilities were derecognized, and the remaining fair value was written off through the consolidated statement of operations.
The assumptions and key inputs used in the Lattice calculation were the following:
|
December 31, 2024 |
||||
|
Risk-free interest rate |
4.17 | % | ||
|
Remaining expected term of Private Warrants |
0.95 | |||
|
Expected volatility(1) |
128.70 | % | ||
|
Stock price on valuation date |
$ | 36.20 | ||
|
Exercise price |
$ | 230.00 | ||
|
Expected dividend |
— | % | ||
(1) Based on volatility implied by the Company's publicly traded warrant market price.
Want the next REVIVA PHARMACEUTICALS HOLDINGS, INC. fair value disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment REVIVA PHARMACEUTICALS HOLDINGS, INC.'s next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2024 | Apr 3, 2025 | |
| 2023 | Apr 15, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2020 | May 4, 2020 | |
| 2019 | May 22, 2019 | |
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.