v3.26.1
Note 7 - Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

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 March 31, 2026 and December 31, 2025:

 

   

March 31, 2026

  
   

Level 1

    

Level 2

    

Level 3

    

Total

  

Assets:

                                

Money market funds (cash equivalents)

   $ 21,034,628     $ —     $ —     $ 21,034,628  

Total assets measured and recorded at fair value

   $ 21,034,628     $ —     $ —     $ 21,034,628  

 

   

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  

 

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):

 

   

Three Months Ended March 31,

  
   

2026

    

2025

  

Balance, beginning of period

   $ —     $ 89,010  

Change in fair value of warrant liabilities

     —       (61,194 )

Balance, end of period

   $ —     $ 27,816  

 

No liabilities were measured at fair value as of March 31, 2026 and December 31, 2025.

 

The Company had previously issued formerly-outstanding warrants to purchase 27,816 shares of common stock in a private placement (the "Private Warrants") and while outstanding had classified the warrants as derivative liabilities, pursuant to ASC 815, as the Private Warrants had an exercise price that was subject to potential adjustment, with subsequent changes in their fair values having been recognized in the consolidated statement of operations at each reporting date. 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:

 

   

March 31, 2025

  

Risk-free interest rate

     4.15 %

Remaining expected term of Private Warrants (years)

     0.71  

Expected volatility(1)

     163.50 %

Stock price on valuation date

   $ 0.95  

Exercise price

   $ 11.50  

Expected dividend

     — %

(1) Based on volatility implied by the Company's publicly traded warrant market price.