Note 5 - Warrant liability

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

5. Warrant liability

The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging - Contracts in Entity’s Own Equity. For warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter.

Warrant liabilities are categorized within Level 3 of the fair value hierarchy and are measured at fair value on a recurring basis.

The warrants issued in April 2023, July 2023, and September 2023 (the “2023 Warrants”) are measured at fair value at each reporting period and the reconciliation of changes in fair value during the nine months ended September 30, 2025 is presented in the following table:

	Common Share
	Purchase
($ in thousands)	Warrants
Balance at January 1, 2025	$	1
Change in fair value of warrant derivative liability		(1	)
Balance at September 30, 2025	$	—

On September 30, 2025, the Company used the Black-Scholes Merton model to estimate the fair value of the 2023 Warrants derivative liability at approximately $0, using the following inputs:

							September 2023
	April 2023			July 2023			Inducement
	Warrants			Warrants			Warrants
Initial exercise price	$	600.00		$	600.00		$	600.00
Stock price on valuation date	$	1.58		$	1.58		$	1.58
Risk-free rate		3.68	%		3.68	%		3.68	%
Term (in years)		2.5			2.8			3.4
Rounded annual volatility		124	%		124	%		124	%

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