v3.26.1
Note 10 - Fair Value
3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

NOTE 10: FAIR VALUE

 

The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures.

 

Fair Value Measurements and Disclosure (Topic 820) of the FASB establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories:

 

 

Level 1 – Quoted unadjusted prices for identical instruments in active markets.

 

 

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets.

 

 

Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company.

 

The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest-bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company does not have any material financial liabilities that were required to be measured at fair value on a recurring basis at March 31, 2026.

 

As of March 31, 2026 and December 31, 2025, the carrying amount of the financial instruments such as cash and cash equivalents (excluding money market funds disclosed in the table below), restricted cash, long-term restricted cash and accounts payable approximate their fair value due to short-term nature and the market rates of interest of these instruments. As such, these instruments are classified as Level 1.

 

The tables below present the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of March 31, 2026 and December 31, 2025.

 

  

March 31, 2026

 
  

Level 1

  

Level 2

  

Level 3

  

Total

 

Assets

                

Money Market Funds (included in Cash and cash equivalents)

 $876  $  $  $876 

 

  

December 31, 2025

 
  

Level 1

  

Level 2

  

Level 3

  

Total

 

Assets

                

Money Market Funds (included in Cash and cash equivalents)

 $1,206  $  $  $1,206 

 

The following table below present the carrying amount and estimated fair value of financial instruments as of March 31, 2026 and December 31, 2025, (in thousands) that are not measured at fair value:

 

  

March 31, 2026

 
  

Carrying Value

  

Estimated Fair Value

 

Long-term notes payable

 $2,750  $2,667 

 

  

December 31, 2025

 
  

Carrying Value

  

Estimated Fair Value

 

Long-term notes payable

 $2,750  $2,662 

 

The fair value was estimated using a net present value measurement, which is based on unobservable inputs, and as such, is classified as Level 3.