v3.26.1
FAIR VALUE OF FINANCIAL INSTRUMENTS
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS

5. FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy at March 31, 2026 and December 31, 2025:

                
   Fair Value Measurement at March 31, 2026 
   Total   Level 1   Level 2   Level 3 
Investments in other equity securities - embedded conversion feature  $

2,913,000

   $-   $-   $

2,913,000

 
Investments in other equity securities - warrants  $

285,000

   $-   $-   $

285,000

 
Embedded conversion feature liabilities  $252,000   $-   $-   $252,000 

 

   Fair Value Measurement at December 31, 2025 
   Total   Level 1   Level 2   Level 3 
Embedded conversion feature liabilities  $1,576,000   $-   $-   $1,576,000 

 

The Company assesses the inputs used to measure fair value using the three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. For investments where little or no public market exists, management’s determination of fair value is based on the best available information, which may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration various factors including earnings history, financial condition, recent sales prices of the Company’s securities and liquidity risks. There were no transfers into or out of Level 3 during the three months ended March 31, 2026 or during the year ended December 31, 2025.

 

The changes in Level 3 fair value hierarchy during the three months ended March 31, 2026 and 2025 were as follows:

                     
   Level 3 Balance
at Beginning of
Period		   Fair Value
Adjustments		    Grants   Level 3 Balance
at End of Period		 
Three months ended March 31, 2026                          
Investments in other equity securities - embedded conversion feature  $-   $

1,300,000

    $

1,613,000

   $

2,913,000

 
Investments in other equity securities - warrants  $-   $

(800,000

)   $

1,085,000

   $

285,000

 
Embedded conversion feature liabilities  $1,576,000   $(1,324,000)   $-   $252,000 

 

   Level 3 Balance
at Beginning of
Period		   Fair Value
Adjustments		    Grants   Level 3 Balance
at End of Period		 
Three months ended March 31, 2025                                            
Embedded conversion feature liabilities  $-   $-    $2,269,000   $2,269,000