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Note 5 - Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 5 - Fair Value of Financial Instruments

 

The carrying amounts of cash, accounts receivable, and other current assets and current liabilities approximate fair value due to their short-term nature. The carrying amount of notes receivable, net of the allowance for credit losses, approximates fair value because the stated interest rates are intended to reflect current market rates for loans with similar collateral and credit risk characteristics, taking into consideration the limited availability of third-party financing for franchise acquisitions. We maintain company-owned life insurance policies related to our nonqualified deferred compensation plan that are carried at their cash surrender value, which approximates their fair value.

 

The following table summarizes the carrying amounts of our financial assets and the corresponding fair value hierarchy used in estimating their fair values:

 

   

June 30, 2026

  

(in thousands)

     Total       Level 1       Level 2       Level 3  

Cash

   $ 1,640     $ 1,640     $ -     $ -  

Notes receivable

     6,149       -       6,149       -  

Accounts receivable

     48,856       -       48,856       -  

Company-owned life insurance policies

     393       393       -       -  

Total cash and investments

   $ 57,038     $ 2,033     $ 55,005     $ -  

 

   

December 31, 2025

  

(in thousands)

     Total       Level 1       Level 2       Level 3  

Cash

   $ 3,895     $ 3,895     $ -     $ -  

Notes receivable

     6,672       -       6,672       -  

Accounts receivable

     39,281       -       39,281       -  

Company-owned life insurance policies

     248       248       -       -  

Total cash and investments

   $ 50,096     $ 4,143     $ 45,953     $ -