AVAILABLE-FOR-SALE SECURITIES, AT FAIR VALUE

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

AVAILABLE-FOR-SALE SECURITIES, AT FAIR VALUE

Convertible Promissory Note—The Company holds investments in convertible promissory notes in two separate unrelated entities (“Convertible Promissory Notes”) for an initial investment of $1,000,000 each. The first note bore an annual interest rate of 8% and matured on September 30, 2025. The unrelated entity that was due to repay the first convertible promissory note on September 30, 2025, stopped operations in August 2025. The Company believes that it will be able to recover a portion of the convertible note premium and accrued interest, and has recorded an estimated 50% credit loss. The company not intend to sell either of of the notes and it is not more likely than not that the Company will be required to sell these notes before recovery of its amortized cost basis. The second note bears an annual interest rate of 5% and matures on October 15, 2028. As part of the agreement for the investment in the second note, the Company has a commitment to invest an additional $500,000 during 2025 and has funded a total of $2,500,000 of the total commitment, which includes the additional commitment

and the initial investment, as of September 30, 2025. The total value of the combined investment in these two entities was $3,194,593 and $2,205,904 as of September 30, 2025 and December 31, 2024, respectively. The company does not intend to sell either of the notes and it is not more likely than not that the Company will be required to sell these notes before recovery of its amortized cost basis.

The Company applies the available-for-sale method of accounting for its investments in the Convertible Promissory Notes, which are debt investments. The Convertible Promissory Notes do not qualify for either the held-to-maturity method due to the Convertible Promissory Notes’ conversion rights or the trading securities method because the Company holds the Convertible Promissory Notes as long-term investments. The Convertible Promissory Notes are measured at fair value at each reporting period-end. As of September 30, 2025 and December 31, 2024, the Company evaluated the fair value of its investments and determined that the fair value approximates the carrying value of $3,194,593, including the recorded credit loss of $622,788, and $2,205,904, which includes accrued accumulated non-cash interest income of $317,381 and $205,904, respectively.

Credit losses recognized for the three months ended September 30, 2025 and 2024 were $622,788 and $—, respectively. Credit losses recognized for the nine months ended September 30, 2025 and 2024 were $622,788 and $—, respectively.

The following table provides a rollforward of the allowance for credit losses on available-for-sale securities for the nine months ended September 30, 2025:


	Convertible Promissory Notes
Balance at December 31, 2024	$	—
Current period provision for expected credit losses	622,788
Write-offs charged against the allowance	—
Recoveries of amounts previously written off	—
Balance at September 30, 2025	$	622,788

Interest income recognized for the three months ended September 30, 2025 and 2024 was $29,918 and $20,165, respectively. Interest income recognized for the nine months ended September 30, 2025 and 2024 was $111,477 and $79,805, respectively.