FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Dec. 31, 2025

SCHEDULE OF FAIR VALUE HIERARCHY OF THE VALUATION INPUTS

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2025 and June 30, 2025, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

		December 31,		June 30,
Description	Level	2025		2025
Assets:
Trading securities	1	$	5	$	5

Liabilities:
Winston & Strawn agreement	3	$	690,400	$	2,489,945
Warrant liability – Private Warrants	3	$	275,659	$	123,062
Earnout liability	3	$	861,000	$	11,369,000
Convertible notes Chardan derivative	3	$	—	$	103,185
Merger financing derivative	3	$	—	$	63,696
Tau agreement	3	$	—	$	539,787
Debentures – derivative	3	$	583,069	$	—
Convertible Notes – derivative	3	$	—	$	—
Secured Convertible Note	3	$	12,149,840	$	—
Warrant liability – Equity SPA	3	$	3,933,333	$	—

SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION

	June 30,
Input	2025
Market price of public shares	$	0.19
Equity volatility		167.7	%
Risk-free rate		4.21	%
Subscription agreement measurement input		4.21	%

	December 31,			June 30,
Input	2025			2025
Market price of public shares	$	0.25		$	0.19
Risk-free rate		3.56	%		3.67	%
Dividend yield		0.00	%		0.00	%
Volatility		189.6	%		167.7	%
Exercise price	$	689.86		$	689.86
Warrants and rights expiration date description	$	689.86		$	689.86
Effective expiration date		February 2029			February 2029

	December 31,			June 30,
Input	2025			2025
Market price of public shares	$	0.25		$	0.19
Revenue volatility		50.00	%		12.00	%
Discount factor for revenue		22.56	%		9.31	%
Earnout liability measurement input		22.56	%		9.31	%

	June 30,
Input	2025
Market price of public shares	$	0.19
Risk-free rate		4.13	%
Discount rate		15.63	%
Probability of default		14.3	%
Recovery rate		28.9	%
Volatility		167.7	%
Effective expiration date		February 2026

	June 30,
Input	2025
Market price of public shares	$	0.19
Risk-free rate		4.32	%
Discount rate		12.43	%
Probability of default		5.9	%
Recovery rate		47.6	%
Effective expiration date		December 31, 2025

	June 30,
Input	2025
Market price of public shares	$	0.19
Risk-free rate		3.63	%
Discount rate		12.02	%
Probability of default		44.0	%
Recovery rate		47.6	%
Volatility		167.7	%
Effective expiration date		January 2028

	December 31,			October 8,
Input	2025			2025
Market price of public shares	$	0.25		$	0.36
Conversion Price	$	0.75		$	0.75
Principal and interest balance at valuation date	$	10,353,408		$	10,097,782
Risk-free rate		3.71	%		3.73	%
Discount rate		14.93	%		11.30	%
Volatility		189.63	%		165.13	%
Effective expiration date		October 2030			October 2030
Term		4.77 years			5 years

	June 30,
Input	2025
Market price of public shares	$	0.19
Risk-free rate		4.13	%
Discount rate		15.63	%
Probability of default		14.3	%
Recovery rate		28.9	%
Volatility		167.7	%
Derivative liability measurement input		167.7	%
Effective expiration date		February 2026

	June 30,
Input	2025
Anticipated Monthly Advance Amounts	$	40,000
Risk-free rate		3.75	%
Volatility		167.7	%
Commitment amount measurement input		167.7	%
Effective expiration date		July 2026

	December 31,			August 4,
Input	2025			2025
Market price of public shares	$	0.25		$	0.22
Risk-free rate		3.57	%		3.75	%
Discount rate		16.22	%		15.41	%
Volatility		189.63	%		165.9	%
Effective expiration date		August 2026			August 2026

	September 16,
Input	2025
Discount rate		11.21	%
Probability of default		8.98	%
Recovery rate		42.90	%
Effective expiration date		March 2026

	December 31,			October 8,
Input	2025			2025
Market price of public shares	$	0.25		$	0.36
Risk-free rate		3.71	%		3.73	%
Dividend yield		0.00	%		0.00	%
Volatility		189.63	%		165.13	%
Exercise price	$	0.75		$	0.75
Term		4.77 years			5 years
Derivative liability measurement input	$	0.75		$	0.75
Effective expiration date		October 2030			October 2030

SCHEDULE OF CHANGES IN THE FAIR VALUE

The following table presents the changes in the fair value of the following:

SCHEDULE OF CHANGES IN THE FAIR VALUE

	Private		Tau
	Placement		Agreement
	Warrants		Liability
Fair value as of June 30, 2025	$	123,062	$	539,787
Write of receivable		—		(205,238	)
Change in valuation inputs or other assumptions		61,531		(334,549	)
Fair value as of September 30, 2025	$	184,593	$	—
Change in valuation inputs or other assumptions		91,066		—
Fair value as of December 31, 2025	$	275,659	$	—

	Private			Tau
	Placement			Agreement
	Warrants			Liability
Fair value as of June 30, 2024	$	307,656		$	—
Initial measurement		—			1,090,949
Transferred to equity		—			(303,000	)
Change in valuation inputs or other assumptions		(246,125	)		184,559
Fair value as of September 30, 2024	$	61,531		$	972,508
Transfer to equity		—			115,277
Change in valuation inputs or other assumptions		61,531			73,284
Fair value as of December 31, 2024	$	123,063		$	783,945

ATLASCLEAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025

(Unaudited)

	Conversion			Earnout
	Derivative			Liability
Fair value as of June 30, 2025	$	103,185		$	11,369,000
Change in valuation inputs or other assumptions		(103,185	)		116,000
Fair value as of September 30, 2025	$	—		$	11,485,000
Change in valuation inputs or other assumptions		—			(10,624,000	)
Fair value as of December 31, 2025	$	—		$	861,000

	Conversion			Earnout
	Derivative			Liability
Fair value as of June 30, 2024	$	16,462,690		$	12,298,000
Change in valuation inputs or other assumptions		(14,320,179	)		340,000
Fair value as of September 30, 2024	$	2,142,511		$	12,638,000
Change in valuation inputs or other assumptions		(1,117,805	)		(1,594,000	)
Fair value as of December 31, 2024	$	1,024,706		$	11,044,000

	Winston & Strawn			Merger Financing
	Agreement			Derivative
Fair value as of June 30, 2025	$	2,489,945		$	63,696
Change in valuation inputs or other assumptions		(1,798,624	)		(63,696	)
Fair value liability as of September 30, 2025	$	691,321		$	—
Change in valuation inputs or other assumptions		(921	)		—
Fair value liability as of December 31, 2025	$	690,400		$	—

	Winston & Strawn		Merger Financing
	Agreement		Derivative
Fair value as of June 30, 2024	$	2,425,647	$	—
Initial measurement		—		113,044
Change in valuation inputs or other assumptions		34,841		63,195
Fair value liability as of September 30, 2024	$	2,460,488	$	176,239
Change in valuation inputs or other assumptions		13,041		(25,749	)
Fair value liability as of December 31, 2024	$	2,473,529	$	150,490

				Secured
	Contingent			Convertible
	Guarantee			Derivative
Fair value as of June 30, 2024	$	3,256,863		$	—
Shares issued as partial payment		(1,210,290	)		—
Change in valuation inputs or other assumptions		839,774			89,535
Exchange to Merger financing note		(2,886,347	)		—
Fair value as of September 30, 2024	$	—		$	89,535
Change in valuation inputs or other assumptions		—			(89,535	)
Fair value liability as of December 31, 2024	$	—		$	—

ATLASCLEAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025

(Unaudited)

				Convertible
	Debenture			Notes
	Derivative			Derivative
Fair value as of June 30, 2025	$	—		$	—
Initial measurement		352,067			382,154
Change in valuation inputs or other assumptions		837,888			52,873
Fair value as of September 30, 2025	$	1,189,955		$	435,027
Change in valuation inputs or other assumptions		(606,886	)		(435,027	)
Fair value as of December 31, 2025	$	583,069		$	—

	Secured			2025
	Convertible			Warrant
	Note			Liability
Fair value as of June 30, 2025	$	—		$	—
Principal amount		10,097,782			—
Day 1 fair value charge to earnings		4,488,179			—
Initial measurement October 8, 2025		14,585,961			5,874,061
Accrued interest through December 31, 2025		255,626			—
Change in valuation inputs or other assumptions		(2,691,747	)		(1,940,728	)
Fair value as of December 31, 2025	$	12,149,840		$	3,933,333

AtlasClear Holdings, Inc. 10-Q