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Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2025
Fair Value of Financial Instruments [Abstract]  
Fair Value of Financial Instruments Note 7: Fair Value of Financial Instruments

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. To measure fair value, the Company uses a three-tier valuation hierarchy based upon observable and non-observable inputs:

Level 1 – Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date.

Level 2 – Significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:

 

Quoted prices for similar assets or liabilities in active markets;

Quoted prices for identical or similar assets or liabilities in non-active markets;

Inputs other than quoted prices that are observable for the asset or liability; and

Inputs that are derived principally from or corroborated by other observable market data.

 

Level 3 – Significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment.

The following table sets forth by level within the fair value hierarchy the Company’s financial assets that were accounted for at fair value on a recurring basis at December 31, 2025 and 2024 according to the valuation techniques the Company uses to determine their fair values. There have been no transfers of assets among the fair value hierarchies presented.

Pricing

Fair Value at

Category

December 31, 2025

December 31, 2024

Assets

(in thousands)

Cash and cash equivalents

Level 1

$

10,120

$

20,957

Cash and cash equivalents consist of cash on hand, bank deposits, and money market funds. The value was measured using quoted market prices in active markets. The carrying value approximates fair value. There have been no changes in the valuation techniques used by the Company to value the Company’s financial instruments.

The carrying value of accounts receivable and accounts payable approximates their estimated fair values due to the short maturities of these instruments.

Fair value measurements also apply to certain non-financial assets and liabilities measured at fair value on a nonrecurring basis. Property, plant and equipment and right of use assets are measured at fair value when an impairment is recognized and the related assets are written down to fair value. During the year ended December 31, 2025, the Company recognized changes of $0.3 million in

selling, general, and administrative expenses to write-down property, plant, and equipment to their estimated fair values. During the years ended December 31, 2024 and 2023, the Company recognized charges of $0.9 million and $1.0 million, respectively, in selling, general, and administrative expenses to write-down property, plant, and equipment and right of use assets to their estimated fair values. The Company measured the fair value of these assets using a discounted cash flow model based on projected cash flows, an estimated risk-adjusted rate of return, and market rental rates for comparable properties. The following table presents quantitative information about significant level 2 and level 3 inputs used to estimate the fair value of property, plant and equipment and right of use assets during the twelve months ended December 31, 2025 and 2024:

2025:

Fair Value
‎(in thousands)

Valuation Technique

Category

Input

Range

Property, plant and equipment (1)

$

-

Discounted cash flow

Level 3

Revenue growth rate

0% to 20%

Level 3

Discount rate

7.75% to 9.5%

2024:

Fair Value
‎(in thousands)

Valuation Technique

Category

Input

Range

Right of use assets (1)

$

763

Discounted cash flow

Level 2

Market rental rates

$37.56 per sq. ft.

Level 2

Discount rate

7.75%

Property, plant and equipment (1)

$

-

Discounted cash flow

Level 3

Revenue growth rate

0% to 3%

Level 3

Discount rate

7.75% to 8.5%

(1)The fair value specifically relates to only those locations which had impairment charges during the twelve months ended December 31, 2025 and 2024.

During the twelve months ended December 31, 2025, the Company recorded a $1.1 million adjustment to reflect an increase in the fair value to restore leased property to its original condition at the end of the lease. The change in the estimated value of the Company’s asset retirement obligation resulted in a $1.1 million increase in other long-term liabilities that was offset by a $1.0 million increase in property, plant and equipment and a $0.1 million asset impairment charge. The Company measured the fair value of its asset retirement obligation based on the estimated amounts and timing of settlements, an estimated risk adjusted rate of return, and expected inflation rates, which are considered Level 2 inputs

The carrying value of the Company’s borrowings under its Credit Agreement approximates fair value based upon Level 2 inputs of the market interest rates available to the Company for debt obligations with similar risks and maturities.