Note 4 - Fair Value Measurements

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE 4 – FAIR VALUE MEASUREMENTS

The following table summarizes the Company’s fair value hierarchy for its assets and liabilities measured at fair value on a recurring basis:

September 30, 2025	Fair Value		Level 1		Level 2		Level 3
Assets:
Money market funds	$	-	$	-	$	-	$	-
Liabilities:
Derivatives	$	74,366,000	$	-	$	-	$	74,366,000

December 31, 2024	Fair Value		Level 1		Level 2		Level 3
Assets:
Money market funds	$	300,000	$	300,000	$	-	$	-
Liabilities:
Derivatives	$	-	$	-	$	-	$	-

The derivative liability, described in Note 10 – Derivative Liability for Cryptocurrency Private Placement, is measured at fair value on a recurring basis and classified within Level 3 of the fair value hierarchy. The liability is valued using a Monte Carlo simulation model in accordance with ASC 820, Fair Value Measurement. The model incorporates both observable and unobservable inputs that reflect market participant assumptions at the measurement date.

The principal valuation technique applied is a market approach using simulated future price paths for ATH over the period between the execution of the Crypto SPA (as defined below) and the Closing Date (as defined below). Key inputs include (i) the observable market price of ATH as of the reporting date, (ii) ATH price volatility derived from comparable digital-asset markets, and (iii) discount factors consistent with risk-free interest rates over the expected term of the instrument. Because ATH is a relatively new digital asset and does not have a deep, liquid market, volatility estimates and expected term assumptions represent significant unobservable inputs.

A higher assumed volatility or longer expected term would increase the estimated fair value, while a lower volatility assumption would decrease the estimated fair value. Because the ATH price and volatility inputs are interrelated, changes in one input may magnify or mitigate the impact of changes in another.