v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 6 – FAIR VALUE MEASUREMENTS

 

The Company measures certain financial assets and liabilities at fair value in accordance with ASC 820, Fair Value Measurement. ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements based on the observability of inputs used in measuring fair value. These levels are:

 

Level 1 -  Quoted prices in active markets for identical assets or liabilities.

 

Level 2 -  Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities in active markets or other inputs that are observable or can be corroborated by observable market data.

 

Level 3 -  Unobservable inputs that are supported by little or no market activity and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

 

The Company elected the fair value option under ASC 825 for the April 2026 Debentures. The April 2026 Debentures are classified within Level 3 of the fair value hierarchy due to the use of significant unobservable inputs. The fair value of the April 2026 Debentures was $3,809,864 as of June 30, 2026. During the six months ended June 30, 2026, the Company recognized a change in fair value of $195,184, which is included in other income (expense), net in the accompanying consolidated statements of operations. 

 

The following table summarizes the changes in the fair value of the Company’s Level 3 senior secured debt during the six-month period ended June 30, 2026, which were measured at fair value on a recurring basis:

 

    June 30,  
    2026  
       
Balance as of January 1, 2026   $ -  
Senior Secured Debt     4,005,048  
Change in fair value     (195,184 )
Balance as of June 30, 2026   $ 3,809,864