NOTE 9 - FINANCIAL ASSETS AT FAIR VALUE

Financial assets measured at fair value on a recurring basis are summarized below and disclosed on the consolidated balance sheet as of September 30, 2026 and December 31, 2025:

 SCHEDULE OF FINANCIAL ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS

The fair value of the SHRG warrants under level 2 category as of September 30, 2026 and December 31, 2025 were calculated using a binomial option pricing model valued with the following weighted average assumptions:

 SCHEDULE OF FAIR VALUE WEIGHTED AVERAGE ASSUMPTIONS

The Company has elected to recognize the convertible note at fair value and therefore there was no further evaluation of embedded features for bifurcation. The Company engaged third party valuation firm to perform the valuation of convertible notes. The fair value of the convertible notes is calculated using the binomial tree model based on probability of remaining as straight debt using discounted cash flow with the following assumptions:

Changes in the observable input values would likely cause material changes in the fair value of the Company’s Level 2 financial instruments. A significant increase (decrease) in this likelihood would result in a higher (lower) fair value measurement.

During the nine months ended September 30, 2026 and 2025, the Company held convertible notes receivable with SHRG. The following table shows the activity of the notes during the nine months ended September 30, 2026 and 2025.

SCHEDULE OF CONVERTIBLE NOTES RECEIVABLE, RELATED PARTY 

The Company remeasures its convertible note receivable from SHRG at fair value, with changes in fair value recognized in earnings. The carrying amount increased from $1,478,419 at December 31, 2025 to $1,494,183 at September 30, 2026, resulting in an unrealized gain of $15,764 for the nine months ended September 30, 2026. As of September 30, 2025, the carrying amount increased from $744,652 to $1,170,619, primarily due to the issuance of additional $430,000 of convertible notes during the period, partially offset by an unrealized loss of $4,033 resulting from the fair value remeasurement.

Realized loss on marketable securities for the three and nine months ended September 30, 2026 was $11,160 and $14,243, respectively. Realized gain on marketable securities for the three and nine months ended September 30, 2025 was $1,476 and $1,895, respectively. These gains were recorded directly to net loss.