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INVESTMENTS | 3 Months Ended
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Mar. 31, 2026
INVESTMENTS |
INVESTMENTS | NOTE 6 – INVESTMENTS During the three months ended March 31, 2026, the Company executed the following investments in private entities. In March 2026, the Company entered into a Simple Agreement for Future Equity ("SAFE") with a private entity for total cash consideration of $3.0 million. The SAFE provides the Company with the right to convert the investment to equity interests upon the occurrence of specified triggering events, including an equity financing, liquidity event, or dissolution event. The investment contains two embedded derivative features requiring bifurcation, but no value was attributed to them as of March 31, 2026 due to the remoteness of the contingent events. During the same period, the Company also invested $3.0 million through a contractual alternative investment vehicle (the "Fund") to acquire a beneficial interest in the preferred shares of a privately held corporation. Legal title is held by a nominee entity on bare trust for the Company's benefit. The Company capitalized $30 thousand of directly related transaction costs. The Company does not have the ability to exercise significant influence over either investee, and neither of the two investments have a readily determinable fair value. Accordingly, each investment is carried at the alternative measurement available under ASC 321. As of March 31, 2026, the Company had not recorded any impairment or other adjustments required under ASC 321 related to these investments. Investments as of March 31, 2026 and December 31, 2025, are as follows:
|  | As of March 31, 2026 |  |  | As of December 31, 2025 |
Debt security investments measured at fair value |  |  |  |  |  |
Short-term Non-banking Loans |  |  | 1,250,000 |  |  |  | 3,413,975 |
Commercial Business Loans |  |  | - |  |  |  | 10,244,122 |
Equity investments at fair value |  |  | 1,239,864 |  |  |  | 955,747 |
Equity investments at measurement alternative |  |  | 6,030,000 |  |  |  | - |
Total Investments |  | $ | 8,519,864 |  |  | $ | 14,613,844 |
Fair value measurement The following table presents the fair value measurements of our investments by major class, as of March 31, 2026, according to the fair value hierarchy:
|  | As of March 31, 2026 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Short-term non-banking loans |  | $ | — |  |  | $ | — |  |  | $ | 1,250,000 |  |  | $ | 1,250,000 |
Commercial business loans |  |  | — |  |  |  | — |  |  |  | - |  |  |  | - |
Equity investments |  |  | 1,239,864 |  |  |  | — |  |  |  | — |  |  |  | 1,239,864 |
Total |  | $ | 1,239,864 |  |  | $ | — |  |  | $ | 1,250,000 |  |  | $ | 2,489,864 |
The following table presents the fair value measurements of our investments by major class, as of December 31, 2025, according to the fair value hierarchy:
|  | As of December 31, 2025 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Short-term non-banking loans |  | $ | — |  |  | $ | — |  |  | $ | 3,413,975 |  |  | $ | 3,413,975 |
Commercial business loans |  |  | — |  |  |  | — |  |  |  | 10,244,122 |  |  |  | 10,244,122 |
Equity investments |  |  | 955,747 |  |  |  | — |  |  |  | — |  |  |  | 955,747 |
Total |  | $ | 955,747 |  |  | $ | — |  |  | $ | 13,658,097 |  |  | $ | 14,613,844 |
The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 investment assets for the three months ended March 31, 2026:
|  | Balance |
Balance as of January 1, 2026 |  | $ | 13,658,097 |
Net change in unrealized depreciation |  |  | (11,508,097 | )
Purchases and other adjustments to cost |  |  | — |
Sales and redemptions |  |  | (900,000 | )
Balance as of March 31, 2026 |  | $ | 1,250,000 |
The following table lists our Level 3 investments held as of March 31, 2026 and the unobservable inputs used to determine their valuation:
Security Type |  | 03/31/26 FMV |  |  | Valuation Technique |  | Unobservable Inputs |  | Range |
Short-term non-banking loans |  | $ | 1,250,000 |  |  | discounted cash flow |  | determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness, including assessment related to individual note creditworthiness |  | 24-73% |
Commercial business loans |  |  | - |  |  | discounted cash flow |  | forecasted cash flows available to creditors in a foreclosure sale |  | 18-24% |
Total |  | $ | 1,250,000 |  |  |  |  |  |  |  |
The following table presents a reconciliation of the beginning and ending fair value balances for our Level 3 investment assets for the year ended December 31, 2025:
|  | Balance |
Balance as of January 1, 2025 |  | $ | 13,006,231 |
Net change in unrealized depreciation |  |  | (2,748,134 | )
Purchases and other adjustments to cost |  |  | 7,900,100 |
Sales and redemptions |  |  | (4,500,100 | )
Balance as of December 31, 2025 |  | $ | 13,658,097 |
The following table lists our Level 3 investments held as of December 31, 2025 and the unobservable inputs used to determine their valuation:
Security Type |  | 12/31/25 FMV |  |  | Valuation Technique |  | Unobservable Inputs |  | Range |
Short-term non-banking loans |  | $ | 3,413,975 |  |  | discounted cash flow |  | determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness, including assessment related to individual note creditworthiness |  | 18-24% |
Commercial business loans |  |  | 10,244,122 |  |  | discounted cash flow |  | determining private company interest rate based on changes in market rates of instruments with comparable creditworthiness |  | 18-24% |
Total |  | $ | 13,658,097 |  |  |  |  |  |  |  |
There were no transfers between Level 1, Level 2, or Level 3 of the fair value hierarchy during the reporting period.

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