Sintx Technologies, Inc. Fair Value Disclosure

5. Fair Value Measurements

 

Financial Instruments Measured and Recorded at Fair Value on a Recurring Basis

 

The Company has issued certain warrants to purchase shares of common stock, which are considered mark-to-market liabilities and are re-measured to fair value at each reporting period in accordance with accounting guidance. Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

 

	Level 1	-	quoted market prices for identical assets or liabilities in active markets.
	Level 2	-	observable prices that are based on inputs not quoted on active markets but corroborated by market data.
	Level 3	-	unobservable inputs reflecting management’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

 

 

The Company classifies assets and liabilities measured at fair value in their entirety based on the lowest level of input that is significant to their fair value measurement. No financial assets were measured on a recurring basis as of December 31, 2025 and 2024. The following tables set forth the financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2025 and 2024.

 Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis by Level Within Fair Value Hierarchy

		Fair Value Measurements as of December 31, 2025 (in thousands)
Description		Level 1				Level 2				Level 3				Total
Derivative liabilities
Common stock warrants		$	-			$	-			$	827			$	827

 

		Fair Value Measurements as of December 31, 2024 (in thousands)
Description		Level 1				Level 2				Level 3				Total
Derivative liabilities
Common stock warrants		$	-			$	-			$	208			$	208

 

The Company did not have any transfers of assets and liabilities between Level 1 and Level 2 of the fair value measurement hierarchy during the years ended December 31, 2025 and 2024. The following table presents a reconciliation of the derivative liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2025 and 2024 (in thousands):

 Schedule of Fair Value Measurement Hierarchy of Derivative Liability

		Common Stock Warrants
Balance as of December 31, 2023		$	304
Issuance of derivatives			3,366
Exercise of warrants			(1	)
Change in fair value			(3,475	)
Other			14
Balance as of December 31, 2024		$	208
Issuance of derivatives			495
Change in fair value			124
Balance as of December 31, 2025		$	827

 

Common Stock Warrants

 

The Company has issued certain warrants to purchase shares of common stock, which are considered derivative liabilities because they have registration rights which could require a cash settlement and are re-measured to fair value at each reporting period in accordance with accounting guidance. As of December 31, 2025, and 2024, the derivative liability was calculated using the Monte Carlo Simulation valuation.

 

The assumptions used in estimating the common stock warrant liability using the Monte Carlo simulation valuation model as of December 31, 2025 and 2024 were as follows:

 Schedule of Assumptions Used in Estimating Fair Value

		December 31, 2025				December 31, 2024
Weighted-average risk-free interest rate			3.42-3.65	%			4.12-4.35	%
Weighted-average expected life (in years)			0.11-4.48				0.10-4.09
Expected dividend yield			-	%			-	%
Weighted average expected volatility			115.0-175.0	%			140.0%-210.0	%

 

 

Other Financial Instruments

 

The Company’s recorded values of cash and cash equivalents, account and other receivables, accounts payable and accrued liabilities approximate their fair values based on their short-term nature. The recorded value of notes payable approximates the fair value as the interest rate approximates market interest rates.