v3.26.1
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2026
FAIR VALUE OF FINANCIAL INSTRUMENTS  
Fair Value of Financial Instruments

NOTE 14 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company follows the guidance in ASC 820, Fair Value Measurement, which establishes a framework for measuring fair value and requires disclosures about fair value measurements. ASC 820 defines a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1 Inputs - Quoted prices (unadjusted) for identical instruments in active markets.

Level 2 Inputs - 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 for which all significant inputs are observable.

Level 3 Inputs - Valuations based on inputs that are unobservable and involve significant management judgement or estimation.

As of June 30, 2026 and December 31, 2025, the Company’s derivative liability was measured at fair value using Level 3 inputs. A description of the valuation techniques and assumptions for Level 3 measurements is provided in Note 6.

 

 

 

Total

 

 

Quoted
Prices in
Active
Markets
For
Identical
Assets (Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Fair Value Measurement as of June 30, 2026:

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liability

 

$

356,857

 

 

$

-

 

 

$

-

 

 

$

356,857

 

Totals

 

$

356,857

 

 

$

-

 

 

$

-

 

 

$

356,857

 

Fair Value Measurement at December 31, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative Liability

 

$

1,249,030

 

 

$

-

 

 

$

-

 

 

$

1,249,030

 

Totals

 

$

1,249,030

 

 

$

-

 

 

$

-

 

 

$

1,249,030

 

The fair values of other financial assets and liabilities were estimated to approximate their carrying amounts due to their short-term maturities and historically negligible credit losses.