Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Fair Value Measurement

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Note 4 - Fair Value Measurement
 6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

4.         Fair Value Measurement

 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first two are considered observable and the last unobservable, may be used to measure fair value which are the following:

 

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Level 1—Quoted prices in active markets for identical assets or liabilities. The Company considers a market to be active when transactions for the asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

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Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

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Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The valuation of Level 3 investments requires the use of significant management judgments or estimation.

 

The Company’s fair value hierarchies for its financial assets and liabilities, which require fair value measurement on a recurring basis are as follows:

 

   

Total

    

Level 1

    

Level 2

    

Level 3

  

June 30, 2024

                                

Liabilities

                                

Warrant liabilities

   $ 49     $ —     $ —     $ 49  

December 31, 2023

                                

Liabilities

                                

Warrant liabilities

   $ 366     $ —     $ —     $ 366  

 

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities for the six months ended June 30, 2024, which were measured at fair value on a recurring basis:

 

   

Warrant Liabilities

  

Balance as of December 31, 2023

   $ 366  

Loss on modification of warrant

     109  

Gain on revaluation of warrants

     (426 )

Balance as of June 30, 2024

   $ 49  

 

Refer to Note 11. Capitalization and Equity Structure – Warrants for additional information regarding the valuation of warrants.