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Assets and Liabilities Measured at Fair Value
 12 Months Ended
Dec. 31, 2024
Assets and Liabilities Measured at Fair Value [Abstract]  
Assets and Liabilities Measured at Fair Value

Note 19 – Assets and Liabilities Measured at Fair Value

 

The following tables presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of December 31 2023 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. There was no assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2024.

 

  

December 31,

2023

  

Quoted

Prices

In Active

Markets

(Level 1)

  

Significant

Other

Observable

Inputs

(Level 2)

  

Significant

Other

Unobservable

Inputs

(Level 3)

 
Assets                
Notes receivable - DigiTrax Convertible Notes  $        1,048,219   $
   —
   $
   —
   $1,048,219 
Notes receivable - Liquid Convertible Notes   1,553,808    
—
    
—
    1,553,808 
Total  $2,602,027   $
—
   $
—
   $2,602,027 

The Company evaluated the DigiTrax Convertible Notes and the Liquid Convertible Notes according to ASC 320 and concluded that these note receivables should be classified as available-for-sale security and measured at fair value. To evaluate the fair value of the available-for-sale security, the Company used the discounted cash flow method. The fair value changes of these notes were recorded as other comprehensive income on the accompanying consolidated statements of operations at each reporting date.  As a result of the unobservable inputs, the available-for-sale security was classified as Level 3 as of December 31, 2023.

 

Assets Measured at Fair Value on a non-recurring basis

 

Fair value of the long-lived assets was determined by the Company based on the income approach using the discounted cash flow associated with the underlying assets, which incorporated certain assumptions including projected revenue, growth rates and projected operating costs based on current economic condition, expectation of management and projected trends of current operating results. Considerable management judgement is used to estimate future cashflows, particularly revenues expected to be generated from the usage of the long-lived assets and estimates of the price market participants would pay to lease the operating lease right-use assets, which are based on comparable market rental information that could be reasonably obtained for the property. Accordingly, actual results may vary significantly from the Company estimates as they are forward-looking and include assumptions about economic and market conditions with uncertain future outcomes.

 

There were no transfers among the three hierarchies for the years ended December 31, 2024 or 2023.