v3.25.2
3. FAIR VALUE OF FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2025
Notes  
3. FAIR VALUE OF FINANCIAL INSTRUMENTS

3.FAIR VALUE OF FINANCIAL INSTRUMENTS 


Under FASB ASC 820-10-5, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. Under GAAP, certain assets and liabilities must be measured at fair value, and FASB ASC 820-10-50 details the disclosures that are required for items measured at fair value.

 

The Company does not have any financial instruments that must be measured under the new fair value standard. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:

 

Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

 

Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

 

Level 3 – Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

 

The following schedules summarize the valuation of financial instruments at fair value on a non-recurring basis in the balance sheets as of June 30, 2024 and December 31, 2023.

 

 

Fair Value Measurements as of June 30, 2025

 

Level 1

 

Level 2

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

   Commitment fees – lines of credit

$

-

 

$

25,872

 

$

-

 

   ZenaTech securities

 

-

 

 

5,031,886

 

 

-

 

   Total assets

 

-

 

 

5,057,758

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

   Short-term debt

 

-

 

 

21,000

 

 

-

 

   Short-term advance from affiliate

 

 

 

 

317,893

 

 

 

 

   Long-term debt, including current portion

 

-

 

 

1,022,411

 

 

-

 

Total liabilities

$

-

 

$

(1,361,304

)

$

-

 

 

Ameritek sold Ecker Capital, LLC to ZenaTech, Inc., a related party, on October 1, 2024. As a result of this sale, Ameritek owns an investment in ZenaTech, Inc. As of December 31, and as of June 30, 2025 Ameritek owned

- 1,000,000 common shares of ZenaTech stock or approximately $2,631,886,

- 5,000 super voting shares of ZenaTech stock or approximately $150,000, and,

- 750,000 preferred shares of ZenaTech stock or approximately $2,250,000.

 

Ameritek owes Epazz, a related party, $317,793, representing amounts transferred in error as of June 30, 2025 and December 31, 2024 (note 10).

 

For a detailed description of the sale, please refer to notes 5, Divestitures, and note 10, Related Parties.

 

 

Fair Value Measurements as of December 31, 2024

 

Level 1

 

Level 2

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

   Commitment fees – lines of credit

$

-

 

$

27,720

 

$

-

 

   ZenaTech securities

 

-

 

 

5,031,886

 

 

-

 

   Total assets

 

-

 

 

5,059,606

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

   Short-term debt

 

-

 

 

21,000

 

 

-

 

   Short-term advance from affiliate

 

-

 

 

317,793

 

 

-

 

   Long-term debt, including current portion

 

-

 

 

1,022,411

 

 

-

 

Total liabilities

$

-

 

$

(1,361,204

)

$

-

 

 

There were no transfers of financial assets or liabilities between Level 1 and Level 2 inputs for the balance sheet periods ended June 30, 2025, and December 31, 2024.