v3.26.3
Note 8 - Fair Value
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 8 – Fair Value

 

Our consolidated balance sheets include various financial instruments (primarily cash, accounts receivable and accounts payable and accrued expenses) that are carried at cost, which approximates fair value due to the short-term nature of the instruments.

 

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

We elected to account for the secured notes payable under the fair value option. The fair value of the secured notes payable is calculated using unobservable Level 3 inputs.  At the date of issuance and September 30, 2026, the fair value of the secured notes is deemed to be equivalent to the face value of the loan plus accrued interest as the terms of the loan including maturity and interest rate are considered market based.  We have no other financial assets or liabilities measured at fair value on a recurring basis.

 

Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We had no financial assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2026 or December 31, 2025.

 

Non-Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

We had no non-financial assets or liabilities measured at fair value on a recurring basis as of September 30, 2026 or December 31, 2025.

 

Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

We measure our long-lived assets, including property and equipment and operating lease right of use assets, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be impaired. No impairment was recognized during the nine months ended September 30, 2026 or 2025.

 

The following table presents our liabilities measured at fair value as of September 30, 2026: 

 

   

Quoted Prices in

Active

Markets for

Identical

Assets (Level 1)

    

Significant

Other

Observable

Inputs

(Level 2)

    

Significant

Unobservable

Inputs

(Level 3)

  
                         

Notes payable

   $ -     $ -     $ 1,477,500  

Notes payable – related party

     -       -       323,000  

Total liabilities

   $ -     $ -     $ 1,800,500  

 

The following table presents changes in the fair value of our Level 3 liabilities for the nine months ending September 30, 2026:

 

   

Notes Payable

    

Notes Payable –

Related Party

    

Total Notes

Payable

  
                         

Balance at December 31, 2025

   $ 300,000     $ 200,000     $ 500,000  

Notes payable at issuance

     1,075,000       100,000       1,175,000  

Change in fair value

     102,500       23,000       125,500  

Balance at September 30, 2026

   $ 1,477,500     $ 323,000     $ 1,800,500