Note 11– Fair Value Measurements

 

The Company uses a fair value hierarchy, which has three levels based on the reliability of the inputs, to determine fair value. The Company’s assessment of the significance of an input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. Level 1 refers to fair values determined based on unadjusted quoted prices in active markets for identical instruments. ​Level 2 refers to fair values estimated using other observable inputs for the instruments, either directly or indirectly, for substantially the full term of the asset or liability. ​Level 3 includes fair values estimated using unobservable inputs for the instruments used to measure fair value to the extent that observable inputs are not available. The carrying amounts of cash and cash equivalents, financial investments, related party receivables, other current assets, accounts payable, related party payables, and other current payables approximate their fair values due to the short-term maturities of the instruments.

 

The fair value of debt was estimated using a discounted cash flow model and other observable inputs, therefore, are Level 2. Refer to Note 10 for the methodology for determining the fair value of Private Warrants.

 

During the year ended December 31, 2025 and 2024, there were no changes in the fair value methodology and no transfers between levels of the financial instruments. 

 

The following table lists the Company’s financial liabilities by level within the fair value hierarchy.

 

 

 December 31, 2025

 

 December 31, 2024

 

 

 Carrying 

 

 Fair Value

 

 

 Carrying 

 

 Fair Value

 

 

 Amount

 

 

 Level 1

 

 

 Level 2

 

 

 Level 3

 

 

 Amount

 

 

 Level 1

 

 

 Level 2

 

 

 Level 3

Private Warrants

$

4,588

 

$

-

 

$

4,588

 

$

-

 

$

6,983

 

$

-

 

$

6,983

 

$

-

Debt

$

179,786

 

$

-

 

$

184,139

 

$

-

 

$

132,011

 

$

-

 

$

132,488

 

$

-

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Mar 11, 2025
2023Mar 8, 2024
2022Mar 23, 2023
2021Feb 15, 2022
2020Mar 31, 2021

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.