| Schedule of Fair Value Hierarchy |
In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial liabilities that are required to be measured at fair value on a recurring and non-recurring basis and the related activity for periods presented:
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Fair Value as of June 30, 2026 |
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Fair Value as of December 31, 2025 |
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Carrying Value |
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Level 1 |
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Level 2 |
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Level 3 |
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Carrying Value |
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Level 1 |
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Level 2 |
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Level 3 |
| Financial liabilities: |
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| November 2024 Debentures |
$ |
2,729,000 |
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$ |
- |
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$ |
- |
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$ |
2,729,000 |
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$ |
163,672 |
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$ |
- |
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$ |
- |
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$ |
163,672 |
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| Derivative liability |
$ |
251,000 |
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$ |
- |
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$ |
- |
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$ |
251,000 |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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| Public Warrants |
$ |
105 |
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$ |
105 |
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$ |
- |
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$ |
- |
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$ |
1,612 |
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$ |
1,612 |
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$ |
- |
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$ |
- |
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| Private Warrants |
$ |
51 |
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$ |
- |
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$ |
- |
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$ |
51 |
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$ |
589 |
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$ |
- |
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$ |
- |
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$ |
589 |
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| SPA Warrants |
$ |
1,781 |
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$ |
- |
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$ |
- |
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$ |
1,781 |
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$ |
9,080 |
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$ |
- |
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$ |
- |
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$ |
9,080 |
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| Total warrant liability |
$ |
1,937 |
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$ |
105 |
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$ |
- |
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$ |
1,832 |
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$ |
11,281 |
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$ |
1,612 |
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$ |
- |
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$ |
9,669 |
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| Non-recurring fair value instruments: |
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| Series C Preferred Stock at March 27, 2026 |
$ |
3,659,502 |
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$ |
- |
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$ |
- |
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$ |
3,659,502 |
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| Series C Preferred Stock at June 28, 2026 |
$ |
8,320,000 |
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$ |
- |
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$ |
- |
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$ |
8,320,000 |
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| Schedule of Changes in Fair Value |
The following table sets forth a summary of the changes in fair value of the Company’s financial liabilities categorized within Level 3:
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November 2024 Debentures |
Warrant
Liability |
Derivative Liability |
| Balance, December 31, 2024 |
$ |
2,583,832 |
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$ |
172,833 |
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$ |
- |
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| Change in fair value of November 2024 Debentures |
536,060 |
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- |
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- |
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| Change in fair value of warrant liabilities |
- |
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(64,829) |
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- |
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| Balance June 30, 2025 |
$ |
3,119,892 |
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$ |
108,004 |
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$ |
- |
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| Balance, December 31, 2025 |
$ |
163,672 |
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$ |
9,669 |
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$ |
- |
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| Issuance of November 2024 Debentures |
4,485,000 |
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- |
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- |
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| Fair value conversion of November 2024 Debentures to Common Stock |
(283,790) |
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- |
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- |
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| Exchange of November 2024 Debentures to Series C Preferred Stock |
(2,729,994) |
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- |
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- |
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| Change in fair value of November 2024 Debentures |
1,094,112 |
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- |
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- |
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| Change in fair value of warrant liabilities |
- |
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(7,837) |
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- |
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| Change in fair value of derivative liability |
- |
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- |
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251,000 |
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| Balance, June 30, 2026 |
$ |
2,729,000 |
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$ |
1,832 |
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$ |
251,000 |
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