| Schedule of Warrant Liability at Fair Value |
The
following table presents the fair value hierarchy for the Group’s liabilities that are measured and recorded at fair value as of
December 31, 2024 and 2025:
| |
|
For
the year ended December 31, |
|
| |
|
2024 |
|
|
2025 |
|
| |
|
Level
1
Inputs |
|
|
Level
2
Inputs |
|
|
Level
3
Inputs |
|
|
Level
1
Inputs |
|
|
Level
2
Inputs |
|
|
Level
3
Inputs |
|
|
Balance
at fair value |
|
| |
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
| Warrant
liability |
|
|
— |
|
|
|
— |
|
|
|
68,556 |
|
|
|
— |
|
|
|
— |
|
|
|
24,377 |
|
|
|
3,486 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Schedule of Black Scholes Model for the Valuation of the Fair Value of Warrants |
The valuation involves complex and subjective judgements as well as the Company’s best estimates
on the valuation date. Key inputs related to the Black Scholes model for the valuation of the fair value of warrants are as follows:
| | |
Issuance date
November 23,
2022 | | |
As of
December 31,
2023 | | |
As of
December 31,
2024 | | |
As of
December 31,
2025 | |
| Expiration of warrant (years) | |
| 5 | | |
| 3.9 | | |
| 2.9 | | |
| 1.9 | |
| Stock price per ADS (US$) | |
| 1.17 | | |
| 0.20 | | |
| 1.13 | | |
| 0.35 | |
| Exercise price per ADS (US$) | |
| 2.75 | | |
| 2.75 | | |
| 1.45 | | |
| 0.75 | |
| Risk-free rate | |
| 3.96 | % | |
| 3.92 | % | |
| 4.27 | % | |
| 3.73 | % |
| Dividend yield | |
| — | | |
| — | | |
| — | | |
| — | |
| Standard derivation in the value of stock | |
| 132.3 | % | |
| 132.8 | % | |
| 140.7 | % | |
| 135.7 | % |
| Calculated fair value per ADS (US$) | |
| 0.95 | | |
| 0.10 | | |
| 0.85 | | |
| 0.18 | |
| | |
Issuance date
October 28,
2024 | | |
As of
December 31,
2024 | | |
As of
December 31,
2025 | |
| Expiration of warrant (years) | |
| 5 | | |
| 4.8 | | |
| 3.8 | |
| Stock price per ADS (US$) | |
| 1.48 | | |
| 1.13 | | |
| 0.35 | |
| Exercise price per ADS (US$) | |
| 1.45 | | |
| 1.45 | | |
| 0.75 | |
| Risk-free rate | |
| 4.11 | % | |
| 4.37 | % | |
| 3.73 | % |
| Dividend yield | |
| — | | |
| — | | |
| — | |
| Standard derivation in the value of stock | |
| 125.4 | % | |
| 127.8 | % | |
| 135.7 | % |
| Calculated fair value per ADS (US$) | |
| 1.27 | | |
| 0.95 | | |
| 0.26 | |
|
| Schedule of Warrants Outstanding and Fair Values |
The
warrants outstanding and fair values at each of the respective valuation dates of the warrants issued on November 23, 2022 are summarized
below:
| |
|
Warrants
Outstanding
Issued on
November 23,
2022 |
|
|
Calculated
Fair
Value per ADS |
|
|
Fair
Value |
|
| |
|
|
|
|
US$ |
|
|
RMB |
|
| Fair
Value as of November 23, 2022 |
|
|
5,454,546 |
|
|
|
0.95 |
|
|
|
36,838 |
|
| Gain
on change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
(11,219 |
) |
| Effect
of exchange rate changes |
|
|
— |
|
|
|
— |
|
|
|
(1,243 |
) |
| Fair
Value as of December 31, 2022 |
|
|
5,454,546 |
|
|
|
0.64 |
|
|
|
24,376 |
|
| Gain
on change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
(20,732 |
) |
| Effect
of exchange rate changes |
|
|
— |
|
|
|
— |
|
|
|
308 |
|
| Fair
Value as of December 31, 2023 |
|
|
5,454,546 |
|
|
|
0.10 |
|
|
|
3,952 |
|
| Modification
of warrants |
|
|
4,894,565 |
|
|
|
— |
|
|
|
— |
|
| Loss
on change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
58,818 |
|
| Effect
of exchange rate changes |
|
|
— |
|
|
|
— |
|
|
|
610 |
|
| Fair
Value as of December 31, 2024 |
|
|
10,349,111 |
|
|
|
0.85 |
|
|
|
63,380 |
|
| Modification
of warrants |
|
|
9,608,103 |
|
|
|
— |
|
|
|
— |
|
| Loss
on change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
(25,630 |
) |
| Exercised |
|
|
(2,946,220 |
) |
|
|
— |
|
|
|
(15,080 |
) |
| Effect
of exchange rate changes |
|
|
— |
|
|
|
— |
|
|
|
(998 |
) |
| Fair
Value as of December 31, 2025 |
|
|
17,010,994 |
|
|
|
0.18 |
|
|
|
21,672 |
|
The
warrants outstanding and fair values at each of the respective valuation dates of the warrants issued on October 28, 2024 are summarized
below:
| | |
Warrants
Outstanding
Issued on
October 28,
2024 | | |
Calculated Fair
Value per ADS | | |
Fair
Value | |
| | |
| | |
US$ | | |
RMB | |
| Fair Value as of October 28, 2024 | |
| 761,719 | | |
| 1.27 | | |
| 6,888 | |
| Gain on change in fair value of warrant liability | |
| — | | |
| — | | |
| (1,752 | ) |
| Effect of exchange rate changes | |
| — | | |
| — | | |
| 40 | |
| Fair Value as of December 31, 2024 | |
| 761,719 | | |
| 0.95 | | |
| 5,176 | |
| Modification of warrants | |
| 707,179 | | |
| — | | |
| — | |
| Gain on change in fair value of warrant liability | |
| — | | |
| — | | |
| (2,394 | ) |
| Effect of exchange rate changes | |
| — | | |
| — | | |
| (77 | ) |
| Fair Value as of December 31, 2024 | |
| 1,468,898 | | |
| 0.26 | | |
| 2,705 | |
|
| Schedule of Summarizes the Activities Related to Fair Value of the Warrants |
The
following table summarizes the activities related to fair value of the warrants issued on November 23, 2022 and October 28,
2024:
| | |
For the Year Ended
December 31, | |
| | |
2024 | | |
2025 | |
| | |
RMB | | |
RMB | |
| Fair value of warrants at beginning of the year (Level 3) | |
| 3,952 | | |
| 68,556 | |
| Issuances | |
| 6,888 | | |
| — | |
| Exercised | |
| — | | |
| (15,080 | ) |
| Change in fair value | |
| 57,066 | | |
| (28,024 | ) |
| Effect of exchange rate changes | |
| 650 | | |
| (1,075 | ) |
| Fair value of warrants at end of the year (Level 3) | |
| 68,556 | | |
| 24,377 | |
|