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FAIR VALUE OF FINANCIAL INSTRUMENTS
3 Months Ended
Dec. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE I – FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments at fair value are measured on a recurring basis. Related unrealized gains or losses are recognized in unrealized gain (loss) on change in fair value of the warrants classified as a liability in the condensed consolidated statements of operations. For additional disclosures regarding methods and assumptions used in estimating fair values of these financial instruments, see Note B.

The following table presents the fair value of the Company’s financial instruments as of December 31, 2023 and summarizes the significant unobservable inputs in fair value measurement of Level 3 financial assets and liabilities as of December 31, 2023. The Company did not have any assets or liabilities categorized as Level 1 or 2 as of December 31, 2023.

Fair value at

Valuation

Unobservable

Volatility

 

    

December 31, 2023

    

Technique

    

Input

    

Input

 

Liabilities:

 

  

 

  

 

  

  

Common Warrants

$

581,000

Monte Carlo simulation

 

Annualized volatility

140.00

%

Series A Warrants

$

1,065,000

Monte Carlo simulation

Annualized volatility

140.00

%

NOTE I – FAIR VALUE OF FINANCIAL INSTRUMENTS, continued

The change in fair value of the Common Warrants and the Series A Warrants for the three-month period ended December 31, 2023 is summarized as follows:

    

 Common Warrants

    

Series A Warrants

    

Totals

Fair value at October 1, 2023

$

1,468,000

$

2,817,000

$

4,285,000

Change in fair value

(887,000)

(1,752,000)

(2,639,000)

Fair Value at December 31, 2023

$

581,000

$

1,065,000

$

1,646,000