Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Note 4 – Fair Value Measurements

The carrying value and fair value of the Company’s financial instruments are as follows:

	Level 1		Level 2		Level 3		Total
March 31, 2024
	Level 1		Level 2		Level 3		Total
Liabilities
Warrant liabilities	$	—	$	—	$	1,766	$	1,766

	Level 1		Level 2		Level 3		Total
As of December 31, 2023
	Level 1		Level 2		Level 3		Total
Liabilities
Warrant liabilities	$	—	$	—	$	1,766	$	1,766

The fair value of the warrants outstanding was estimated using the Black-Scholes model. The application of the Black-Scholes model requires the use of a number of inputs and significant assumptions including volatility. The following reflects the inputs and assumptions used:

Schedule of Fair Value Assumptions

As of
	March 31, 2024			December 31, 2023
Stock price	$	0.03		$	0.07
Exercise price	$	6.40		$	6.40
Remaining term (in years)		3.25			3.50
Volatility		165.2	%		171.8	%
Risk-free rate		3.9	%		3.84	%
Expected dividend yield		—	%		—	%
Warrant measurement input		—			—

The warrant liabilities will be remeasured at each reporting period with changes in fair value recorded in other income (expense), net on the consolidated statements of operations. The change in fair value of the warrant liabilities was as follows:

Warrant liabilities
Estimated fair value at December 31, 2022	$	203,043
Issuance of warrant liabilities		-
Change in fair value		(79,418	)
Estimated fair value at March 31, 2023	$	123,625

Estimated fair value at December 31, 2023	$	1,766
Estimated fair value at beginning balance	$	1,766
Change in fair value		-
Estimated fair value at March 31, 2024	$	1,766
Estimated fair value at ending balance	$	1,766

Can B̅ Corp. and Subsidiaries

Condensed Notes to Unaudited Consolidated Financial Statements

March 31, 2024

Can B Corp 10-Q/A