GridAI Technologies Corp. Fair Value Disclosure
Note 5 - Fair Value Disclosures
Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of observability of inputs used in measuring fair value.
The fair value of the Company’s financial instruments are as follows:
Fair Value Measured at Reporting | |||||||||||||||
Date Using | |||||||||||||||
Carrying | |||||||||||||||
| Amount | | Level 1 | | Level 2 | | Level 3 | | Fair Value | ||||||
December 31, 2025: | |||||||||||||||
Money market funds | $ | 18 | $ | 18 | $ | — | $ | — | $ | 18 | |||||
Deferred consideration | 6,250,000 | — | 6,250,000 | — | 6,250,000 | ||||||||||
Note payable | 2,027,184 | — | 2,027,184 | — | 2,027,184 | ||||||||||
December 31, 2024: | |||||||||||||||
Money market funds | $ | 12,723 | $ | 12,723 | $ | — | $ | — | $ | 12,723 | |||||
At December 31, 2025 and 2024, the Company had no other assets or liabilities that are subject to fair value methodology and estimation in accordance with U.S. GAAP.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 1, 2026 | Showing above |
| 2024 | Apr 1, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 20, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Apr 1, 2019 | |
| 2017 | Mar 16, 2018 | |
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.