4. Note Receivable

As of September 30, 2026, the Company had a note receivable with an outstanding principal balance of $3,750,000, consisting of $1,000,000 classified as current and $2,750,000 as long term. These are recorded on the balance sheet net of $157,727 discount. The note bears interest at a stated rate of 5.0% per annum and accrues interest on the outstanding principal balance. Accrued interest receivable related to the note totaled $171,875 as of September 30, 2026, and is included in prepaids and other current assets in the accompanying consolidated balance sheet. The current portion of the note receivable represents principal payments contractually due within twelve months of the balance sheet date, with the remaining balance due thereafter. The Company evaluated the note for expected credit losses under ASC 326 and determined that no allowance was required at September 30, 2026.

Schedule of note receivable maturities