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Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Measurements [Abstract]  
FAIR VALUE MEASUREMENTS
B.FAIR VALUE MEASUREMENTS:

 

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2026 and December 31, 2025.

 

Fair Value on a Recurring Basis

 

The Company follows the guidance in ASC 820, Fair Value Measurement, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period. The estimated fair value of the Company’s investments and money market accounts represent Level 1 measurements. The estimated fair value of the earn-out liabilities represents Level 3 measurements. There were no transfers between levels within the fair value measurement hierarchy during the three months ended March 31, 2026. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

 

Description  Level  March 31,
2026		   December 31,
2025		 
Assets:           
Investments  1  $5,115   $4,872 
              
Liabilities:             
Earn-out liabilities  3  $560   $560 

 

Investments

 

The Company’s investments consisted of the following as of March 31, 2026:

 

   Cost   Unrealized
Gain (Loss)		   Fair
Value		 
Money market fund  $1,803   $
      —
   $1,803 
Corporate bonds   1,768    22    1,790 
Mutual funds   1,521    1    1,522 
   $5,092   $23   $5,115 

The Company’s investments consisted of the following as of December 31, 2025:

 

   Cost   Unrealized
Gain (Loss)		   Fair
Value		 
Money market fund  $1,788   $
      —
   $1,788 
Corporate bonds   1,768    25    1,793 
Mutual funds   1,291    
—
    1,291 
   $4,847   $25   $4,872 

 

Earn-Out Liabilities

 

In connection with certain of the Company’s asset acquisitions, certain earn-out liabilities were established which reflect the estimated amounts payable upon the achievement of sales from acquired intangible assets over a period of time following the acquisition. As of March 31, 2026, the Company has earn-out liabilities associated with its purchase of Trend Brand Solutions, T.R. Miller Co., and Premier NYC.

 

Assumptions used in determining the fair value of the earn-out liabilities include the acquired asset’s projected gross profit, discount rates, remaining time intervals and residual earn-out percentages. The following table summarizes the key unobservable inputs into the models used to estimate the fair value of the earn-out liabilities at March 31, 2026:

 

Unobservable Inputs  March 31,
2026		 
Projected annual gross profit  $392 - $4,398 
Earnout percentage   40.0% - 45.0%
Expected volatility   25.0%
Risk-free rate   3.6% - 4.3%
Discount rate   5.0% - 5.2%
Required Metric Risk Premium   5.3% - 7.7%
Time period to settlement   0.6 - 1.6 years 

 

A reconciliation of the earn-out liabilities is included below:

 

Balance as of December 31, 2025  $560 
Payments earned and paid   
—
 
Balance as of March 31, 2026  $560 
      
Current portion of contingent earn-out liabilities  $105 
Long-term contingent earn-out liabilities  $455