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NOTE 4 - FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2025

NOTE 4 – FAIR VALUE MEASUREMENTS

The following table presents the Company’s liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024, classified within the fair value hierarchy:

	Fair Value Measurements
	Level 1	Level 2	Level 3	Total
December 31, 2025
Liabilities:
Contingent consideration - 42 Telecom Ltd.	`$-`	`$-`	`$3,732,734`	`$3,732,734`
Contingent consideration - Telvantis Voice Services, Inc.	`$-`	`$-`	`$31,105,750`	`$31,105,750`
Total liabilities	`$-`	`$-`	`$34,838,484`	`$34,838,484`

December 31, 2024
Total liabilities	`$-`	`$-`	`$-`	`$-`

The Company had no assets measured at fair value on a recurring basis as of December 31, 2025 or 2024. The contingent consideration liabilities are classified as Level 3 within the fair value hierarchy as their valuation requires significant unobservable inputs. There were no transfers between levels during the year ended December 31, 2025.

The fair value of the 42 Telecom contingent consideration was remeasured at December 31, 2025 using a risk-neutral Monte Carlo simulation of projected FCCN share prices, consistent with the methodology applied at the acquisition date. Key inputs to the remeasurement included an updated FCCN stock price of $4.13, updated risk-free rates, and a remaining term of approximately 7 months to the guarantee measurement date of July 31, 2026 and a probability of achieving the bonus share trigger of 100%, based on 42 Telecom’s full year 2025 net income of exceeded the $1,000,000 threshold. The net change in fair value of the contingent consideration for the year ended December 31, 2025 resulted in a gain of $3,387,266, recognized within other income (expense) in the consolidated statements of operations and comprehensive Income (loss). The decrease in fair value reflects the net effect of the increased stock price offset by the reduction in the remaining lock-up period and updated discount for lack of marketability.

The Telvantis contingent consideration was initially recognized at its acquisition-date fair value of $31,105,750 on December 31, 2025. As the acquisition closed on December 31, 2025, no remeasurement was required during the year ended December 31, 2025.

The following table presents changes in fair value of contingent consideration measured at fair value for the years ended December 31, 2025 and 2024:

			Contingent
			Consideration
Balance, December 31, 2023			`$-`
Purchase price consideration			`-`
Change in fair value			`-`
Balance, December 31, 2024			`-`
Purchase price consideration - 42 Telecom Ltd.			`7,120,000`
Purchase price consideration - Telvantis Voice Services, Inc.			`31,105,750`
Change in fair value			`(3,387,266)`
Balance, December 31, 2025			`$34,838,484`