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PREPAID EXPENSES AND OTHER CURRENT ASSETS
 9 Months Ended
Sep. 30, 2025
Prepaid Expenses And Other Assets Current Abstract  
PREPAID EXPENSES AND OTHER CURRENT ASSETS

4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

   Receivable -
Zowie
Technology		   Other   Prepaid
Expenses
and Other
Current
Assets
Total		 
             
Balance at December 31, 2024  $186,000   $122,000   $308,000 
Other changes   (58,000)   (23,000)   (81,000)
Balance at September 30, 2025  $128,000   $99,000   $227,000 

 

In prior filings the Company accounted for its receivable from preferred share repurchase with Zowie Technology (the “Zowie Repurchase”) under ASC 321 as an equity security without a readily determinable fair value. During the quarter ended September 30, 2025, management determined that the Zowie repurchase represents a contractual receivable rather than an equity security because (i) it is repayable in cash at the Company’s election and (ii) Zowie’s conversion option is not substantive. The receivable has an annual interest rate of .7%. Accordingly, the Company accounts for the receivable under ASC 310 and now evaluates it for credit losses under ASC 326. Management concluded that the reclassification is immaterial to the financial statements; therefore, prior-period amounts have not been restated. The reclassification had no impact on total assets, liabilities, shareholders’ equity, net income.