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Note 2 - Marketable Securities and Investment Other Securities
 12 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 2 – MARKETABLE SECURITIES AND INVESTMENT OTHER SECURITIES

 

On April 7, 2022, the Company entered into an asset sale agreement to sell substantially all its manufacturing assets to a subsidiary of Steady State, LLC ("Steady State"). The equipment sale was initially valued at approximately $1.8 million for accounting purposes, the sale price consisting of a trade credit for products to be provided to the Company under the manufacturing and supply agreement and $1.4 million of which the Company invested into Steady State in the form of an equity investment consistent with the terms of Steady State's completed Series C financing.   The Company performed a valuation analysis and as of September 30, 2023 determined a $700,000 impairment was needed on the carrying value of this investment. The determination was based on a number of factors, including Steady State’s financial performance, our experience with production and cbdMD’s determination to re-source production to other suppliers. As such we believe it was prudent to reassess the carrying value of this non-liquid security. The Company performed an additional valuation analysis as of September 30, 2024 and determined that no further impairment was needed based on factors such as Steady State's financial performance and re-alignment of the business.

 

For the year ended September 30, 2024 and  September 30, 2023 the Company recorded $0 and an unrealized loss of $700,000, respectively of realized and unrealized loss on marketable and other securities, including impairments.

 

The table below summarizes the assets and liabilities related to marketable and other securities valued at fair value as of September 30, 2024:

  

  

In Active

         
  Markets for  Significant Other  Significant 
  

Identical Assets

  

Observable

  

Unobservable

 
  

and Liabilities

  

Inputs

  

Inputs

 
  

(Level 1)

  

(Level 2)

  

(Level 3)

 

Balance at September 30, 2022

 $-  $-  $(276,000)

Change in value of equities

  -   -   - 

Change in value of contingent liability

  -   -   - 

Additional Investment

  -   -   185,638 

Balance at September 30, 2023

  -   -   (90,362)

Change in value of contingent liability

  -   -   90,362 
Fair value of convertible notes        1,171,308 

Balance at September 30, 2024

 $-  $-  $1,171,308