v3.25.1
FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2024
Investments, All Other Investments [Abstract]  
FINANCIAL INSTRUMENTS

NOTE 14 — FINANCIAL INSTRUMENTS

 

The Company classified the following securities as financial instruments:

 

Liabilities:  Level 1   Level 2   Level 3   Total 
   December 31, 2024 
Liabilities:  Level 1   Level 2   Level 3   Total 
Subordinated convertible promissory notes  $-   $-   $5,490,324   $5,490,324 
Series A convertible preferred stock  $-   $-   $1,294,117   $1,294,117 
Equity:                    
Warrants  $-   $-   $3,993,491   $3,993,491 

 

Liabilities:  Level 1   Level 2   Level 3   Total 
   December 31, 2023 
Liabilities:  Level 1   Level 2   Level 3   Total 
Subordinated convertible promissory notes  $-   $-   $4,894,446   $4,894,446 
Series A convertible preferred stock  $-   $-   $1,294,117   $1,294,117 
Equity:                    
Warrants  $-   $-   $2,687,074   $2,687,074 

 

Management believes the carrying values of the above securities approximate their fair values. The subordinated convertible promissory notes carry an interest rate that is indicative of the Company’s overall borrowing cost and the length of time until maturity is not expected to significantly impact their value. The convertible preferred stock, which is akin to debt, has been discounted to its presented carrying value in accordance with the debt discounts and redemption premiums recognized.