v3.26.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
SCHEDULE OF ASSETS AND LIABILITIES ARE MEASURED AT FAIR VALUE

The following tables summarize the Company’s assets and liabilities that are measured at fair value in the condensed consolidated financial statements:

 SCHEDULE OF ASSETS AND LIABILITIES ARE MEASURED AT FAIR VALUE

                     
   Fair Value Measurements as at December 31, 2025 (audited) 
   Level 1   Level 2   Level 3   Total 
Other noncurrent assets:                    
Investment in equity securities (a)  $37,374   $-    $-    $37,374 
Total financial assets  $37,374   $-    $-    $37,374 

 

                     
   Fair Value Measurements as at March 31, 2026 
   Level 1   Level 2   Level 3   Total 
Other noncurrent assets:                    
Investment in equity securities (a)  $42,975   $-   $-   $42,975 
Total financial assets  $42,975   $-   $-   $42,975 

 

                 
   Fair Value Measurements as at December 31, 2025 (audited) 
   Level 1   Level 2   Level 3   Total 
Liabilities                
Sponsor earnout shares (b)  $-   $-   $4,700   $4,700 
Total financial liabilities  $-   $-   $4,700   $4,700 

 

                 
   Fair Value Measurements as at March 31, 2026 
   Level 1   Level 2   Level 3   Total 
Liabilities                
Sponsor earnout shares (b)  $-   $-   $4,700   $4,700 
Total financial liabilities  $-   $-   $4,700   $4,700 

 

(a) These represent equity investments with a readily determinable fair value. The Company has measured its investments to fair value in accordance with ASC 321, “Investments-Equity Securities,” based on quoted prices in active markets.

 

(b)

For Level 3 earnout liability, the Company assesses the fair value of expected earnout liability at each reporting period using the Monte Carlo Method, which is consistent with the initial measurement of the expected earnout consideration. This fair value measurement is considered a Level 3 measurement because the Company estimates projections during the earnout period utilizing various potential pay-out scenarios. The Monte Carlo simulation method repeats a process thousands of times in an attempt to predict all the possible future outcomes. At the end of the simulation, several random trials produce a distribution of outcomes that are then analyzed to determine the average present value of earnout. Change in the fair value of earnout liability is reflected in the unaudited condensed consolidated statements of operations.

 

The make-whole obligation liability related to the Prior B. Riley Purchase Agreement is measured at fair value categorized within Level 1 of the fair value hierarchy. See Note 4.