| SCHEDULE OF ASSETS THAT ARE MEASURED AT FAIR VALUE ON A RECURRING BASIS |
|
|
SCHEDULE OF ASSETS THAT ARE MEASURED AT FAIR VALUE ON A RECURRING BASIS
| Description | |
Carrying Value at December 31, 2022 | | |
Quoted Price in Active Markets (Level 1) | |
| Assets: | |
| | | |
| | |
| Money Market Fund | |
$ | 304,675,000 | | |
$ | 304,675,000 | |
| Total | |
$ | 304,675,000 | | |
$ | 304,675,000 | |
|
| SCHEDULE OF ASSETS AND LIABILITIES ARE MEASURED AT FAIR VALUE |
The
following tables summarize the Company’s assets and liabilities that are measured at fair value in the unaudited condensed consolidated
financial statements:
SCHEDULE OF ASSETS AND LIABILITIES ARE MEASURED AT FAIR VALUE
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at December 31, 2023 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Other noncurrent assets: | |
| | | |
| | | |
| | | |
| | |
| Investment in equity securities (a) | |
$ | 218,556 | | |
$ | - | | |
$ | - | | |
$ | 218,556 | |
| Total financial assets | |
$ | 218,556 | | |
$ | - | | |
$ | - | | |
$ | 218,556 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at September 30, 2024 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Other noncurrent assets: | |
| | | |
| | | |
| | | |
| | |
| Investment in equity securities (a) | |
$ | 67,562 | | |
$ | - | | |
$ | - | | |
$ | 67,562 | |
| Total financial assets | |
$ | 67,562 | | |
$ | - | | |
$ | - | | |
$ | 67,562 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at December 31, 2023 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Liabilities | |
| | | |
| | | |
| | | |
| | |
| SAFE notes (b) | |
$ | - | | |
$ | - | | |
$ | 5,212,200 | | |
$ | 5,212,200 | |
| Total financial liabilities | |
$ | - | | |
$ | - | | |
$ | 5,212,200 | | |
$ | 5,212,200 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at September 30, 2024 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Liabilities | |
| | | |
| | | |
| | | |
| | |
| Total financial liabilities | |
$ | - | | |
$ | - | | |
$ | 2,972,800 | | |
$ | 2,972,800 | |
| (a) | | These represent
equity investments with a readily determinable fair value. The Company has measured its investments to fair value in accordance with
ASC 321, Investments-Equity Securities, based on quoted prices in active markets. |
| (b) | | The
valuation of the Level 3 measurement considered the probabilities of the occurrence of the scenarios as discussed in Note 2 the
audited consolidated financial statements of Legacy Stardust Power and notes thereto for the period March 16, 2023 (inception) to
December 31, 2023 included in the Company’s Registration Statement on Form S-4/A filed with the SEC on May 8,
2024. |
| (c) | | For
Level 3 earnout liability, the Company assesses the fair value of expected earnout liability at each reporting period
using the Monte Carlo Method, which is consistent with the initial measurement of the expected earnout consideration. This fair
value measurement is considered a Level 3 measurement because the Company estimates projections during the earnout period utilizing
various potential pay-out scenarios. The Monte Carlo simulation method repeats a process thousands of times in an attempt to predict
all the possible future outcomes. At the end of the simulation, several random trials produce a distribution of outcomes that are
then analyzed to determine the average present value of earnout. Change in the fair value of
earnout liability is reflected in our unaudited condensed consolidated statements of operations. |
|
The
following tables summarize the Company’s assets and liabilities that are measured at fair value in the consolidated financial statements:
SCHEDULE
OF ASSETS AND LIABILITIES ARE MEASURED AT FAIR VALUE
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| | |
Fair Value Measurements as at December 31, 2023 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Other noncurrent assets: | |
| | | |
| | | |
| | | |
| | |
| Investment in equity securities(a) | |
$ | 218,556 | | |
$ | — | | |
$ | — | | |
$ | 218,556 | |
| Total financial assets | |
$ | 218,556 | | |
$ | — | | |
$ | — | | |
$ | 218,556 | |
| | |
Fair Value Measurements as at December 31, 2023 | |
| | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| Liabilities | |
| | |
| | |
| | |
| |
| SAFE notes(b) | |
$ | — | | |
$ | — | | |
$ | 5,212,200 | | |
$ | 5,212,200 | |
| Convertible notes (c) | |
| | | |
| | | |
| | | |
| | |
| Total financial liabilities | |
$ | — | | |
$ | — | | |
$ | 5,212,200 | | |
$ | 5,212,200 | |
| (a) |
These represent equity investments with a readily determinable fair value. The Company has measured its investments to fair value in accordance with ASC 321, Investments-Equity Securities, based on quoted prices in active markets. |
| (b) |
The
valuation of the Level 3 measurement considered the probabilities of the occurrence of the scenarios as discussed in Note 2. |
|
|
| SCHEDULE OF RECONCILIATION OF ACTIVITY AND CHANGES IN FAIR VALUE |
The
following table provides a reconciliation of activity and changes in fair value for the Company’s SAFE notes, convertible
notes and Sponsor earnout liability:
SCHEDULE OF RECONCILIATION OF ACTIVITY AND CHANGES IN FAIR VALUE
| | |
SAFE notes at fair value | | |
Convertible notes at fair value | |
|
Sponsor Earnout liability at fair value |
|
| Balance as at March 16, 2023 (inception) | |
$ | - | | |
$ | - | |
|
$ |
|
| Issuance of notes | |
| 2,000,000 | | |
| - | |
|
|
|
| Change in fair value | |
| - | | |
| - | |
|
|
|
| Balance as at June 30, 2023 | |
$ | 2,000,000 | | |
$ | - | |
|
$ |
|
| Issuance of notes | |
| - | | |
| - | |
|
|
|
| Change in fair value | |
| - | | |
| - | |
|
|
|
| Balance as at September 30, 2023 | |
$ | 2,000,000 | | |
$ | - | |
|
$ |
|
| Issuance of notes | |
| 3,000,000 | | |
| - | |
|
|
|
| Change in fair value | |
| 212,200 | | |
| - | |
|
|
|
| Balance as at December 31, 2023 | |
$ | 5,212,200 | | |
$ | - | |
|
$ |
|
| Issuance of notes | |
| 200,000 | | |
| - | |
|
|
|
| Change in fair value | |
| 107,900 | | |
| - | |
|
|
|
| Balance as at March 31, 2024 | |
$ | 5,520,100 | | |
$ | - | |
|
$ |
|
| Issuance of notes | |
| - | | |
| 2,100,000 | |
|
|
|
| Change in fair value | |
| 847,100 | | |
| 471,400 | |
|
|
|
| Balance as at June 30, 2024 | |
$ | 6,367,200 | | |
$ | 2,571,400 | |
|
$ |
|
| Issuance of common stock upon conversion | |
| (6,367,200 | ) | |
| (2,571,400 | ) |
|
|
|
| Sponsor earnout liability recognized on closing of Business Combination | |
| - | | |
| - | |
|
|
|
| Change in fair value | |
| - | | |
| - | |
|
|
) |
| Balance as at September 30, 2024 | |
$ | - | | |
$ | - | |
|
$ |
|
|
The
following table provides a reconciliation of activity and changes in fair value for the Company’s SAFE note using inputs classified
as Level 3:
SCHEDULE
OF RECONCILIATION OF ACTIVITY AND CHANGES IN FAIR VALUE
| | |
SAFE note at Fair Value | |
| Balance as at March 16, 2023 (inception) | |
$ | — | |
| Issuance of SAFE notes | |
| 5,000,000 | |
| Change in fair value | |
| 212,200 | |
| Balance as at December 31, 2023 | |
$ | 5,212,200 | |
|
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