FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of fair value hierarchy for liabilities measured at fair value on a recurring basis


Description	Level	June 30, 2022		December 31, 2021
Assets:
Marketable securities held in Trust Account	1	$	220,250,778	$	220,085,699

Liabilities:
Warrant Liabilities – Public Warrants	1		1,035,098		5,719,000
Warrant Liabilities – Private Placement Warrants	3		607,869		3,329,270

Schedule of level 3 fair value measurements


							Initial
							Measurement
	June 30,			December 31,			February 2,
	2022			2021			2021
Risk-free interest rate		3.01	%		1.31	%		0.62	%
Time to expiration, in Years		5.29			5.54			6.00
Expected volatility		0.9	%		10.3	%		14.0 - 23.0	%
Dividend yield		0.00	%		0.00	%		0.00	%
Exercise price	$	11.50		$	11.50		$	11.50
Stock Price	$	9.83		$	9.71		$	10.00

Schedule of changes in the fair value of Level 3 warrant liabilities

The following table presents the changes in the fair value of Level 3 warrant liabilities:


	Private Placement		Public	Warrant Liabilities
Fair value as of January 1, 2021	$	—	—	—
Initial measurement on February 2, 2021		7,871,990	13,529,975	21,401,965
Change in fair value		(4,671,994)	(8,029,985)	(12,701,979)
Fair value as of March 31, 2021		3,199,996	5,499,990	8,699,986
Change in fair value		129,274	—	129,274
Transfer to Level 1		—	(5,499,990)	(5,499,990)
Fair value as of December 31, 2021		3,329,270	—	3,329,270
Change in fair value		(1,077,359)	—	(1,077,359)
Fair value as of March 31, 2022	$	2,251,911	—	2,251,911
Change in fair value		(1,644,042)	—	(1,644,042)
Fair value as of June 30, 2022	$	607,869	—	607,869

(1)

As a result of the difference in fair value of $1.23 per share of the Private Placement Warrants and the purchase of $1.00 per share (see Note 4), the Company recorded a charge of approximately $1.5 million as of the date of the private placement which is included in the private placement liability initial measurement within this table but is reported as part of the change in the statement of operations.

EQ Health Acquisition Corp. 10-Q