7 - INVESTMENTS

Investments recorded using the cost method

During the fourth quarter of 2025, the Company determined that its cost method investments were fully impaired, resulting in an impairment loss of $235,877. As of September 30, 2026, the carrying value of these investments was zero. No impairment losses were recognized during the three and nine months ended September 30, 2026 and 2025.

Investments recorded at fair value

For investments for which the Company has elected the fair value option under ASC 825, the investments are measured at fair value on a recurring basis with changes in fair value recognized in earnings.

During the nine months ended September 30, 2026, the Company acquired a non-controlling equity interest in a privately held entity. The Company does not have the ability to exercise significant influence over the investee and accounts for the investment at fair value under ASC 825. The initial carrying value of approximately $0.3 million reflects management’s estimate of fair value at the acquisition date, which considers the transaction price and other available information. Subsequent changes in fair value are recognized in earnings in the period in which they occur. As of September 30, 2026, the fair value of the investment is approximately $0.3 million.

The investment will be measured based on unobservable inputs and, as such, is a level 3 asset in the fair value hierarchy. As of September 30, 2026, the fair value of the investment approximates the initial investment amount.