FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Apr. 30, 2025

SCHEDULE OF FAIR VALUE ON FINANCIAL LIABILITIES

As of April 30, 2025 and October 31, 2024, the estimated fair values of the Company’s financial liabilities are presented in the following table:

	April 30, 2025
2023 Series Convertible Notes Payable - Stock Settled - Derivative/Warrant Liability	$	9,056
2023 Series B Convertible Notes Payable – Stock Settled – Derivative/Warrant Liability		117,416
2024 Series Senior Secured Convertible Notes Payable – Stock Settled – Derivative/Warrant Liability		143,028
2025 Series Senior Secured Convertible Notes Payable – Stock Settled – Derivative/Warrant Liability		4,766,490
Total	$	5,035,990

	October 31, 2024
2023 Series Convertible Notes Payable - Stock Settled - Derivative/Warrant Liability	$	9,024
2023 Series B Convertible Notes Payable – Stock Settled – Derivative/Warrant Liability		116,982
2024 Series Senior Secured Convertible Notes Payable – Stock Settled – Derivative/Warrant Liability		154,966
Total	$	280,972

SCHEDULE OF FAIR VALUE DERIVATIVE LIABILITIES ON RECURRING BASIS

The following table presents a roll-forward of the fair value of the derivative liabilities associated with the Company’s warrants included with its 2024 Series Senior Secured Convertible Notes Payable and its 2023 Series Convertible Notes Payable, categorized as Level 3:

	Six Months Ended April 30, 2025			Year Ended October 31, 2024
Beginning Balance	$	280,972		$	893,263
Additions		4,760,115			3,159,788
Subtractions		-			(990,719	)
Total (gains) or losses (realized/unrealized)		(5,097	)		(2,781,360	)
Ending Balance	$	5,035,990		$	280,972

SCHEDULE OF FAIR VALUE DERIVATIVE LIABILITIES ON WARRANTS GRANTED

The fair value of the warrants granted in connection with the 2023 Series Convertible Notes Payable, the 2024 Series Senior Secured Convertible Notes Payable - Stock Settled and the 2025 Series Senior Secured Convertible Notes Payable – Stock Settled during the periods presented was estimated using the Black-Scholes option-pricing model with the following assumptions at April 30, 2025 and October 31, 2024:

	April 30, 2025			October 31, 2024
Risk-free interest rate		3.72	%		4.15	%
Dividend yield		0.00	%		0.00	%
Volatility factor		130.52% - 130.84	%		130.13	%
Weighted average expected life (years)		2.0 - 2.5			2.5

Vitro Biopharma, Inc. 10-Q