v3.26.1
DERIVATIVE INSTRUMENTS
3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS

NOTE 8. DERIVATIVE INSTRUMENTS

 

The Company records a derivative liability related to the derivatives embedded within the Series I Preferred Stock, primarily related to make-whole and penalty dividend features (see Note 7. Stockholders’ Equity). Changes in fair value are recognized in earnings in change in fair value – derivative liability in the unaudited condensed consolidated statements of operations.

 

The following table presents the fair value of the Company’s embedded derivatives as of March 31, 2026:

 

   Balance Sheet Location  Fair Value 
Series I derivative liability  Non-current liabilities  $25,000 
Total     $25,000 

 

For the three months ended March 31, 2026, the Company recognized a loss of $6,000 related to embedded derivatives.