Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value of Financial Instruments

Schedule of fair value of financial instruments measured on a recurring basis

	As of June 30, 2024
Description	Total		Level 1			Level 2	Level 3
Assets:
Short-term investments	$	34,424	$	34,424	$	—	$	—
Contingent earn-out receivable, related party	$	2,720,000	$	—	$	—	$	2,720,000
Liability:
Non-convertible promissory note, related party	$	740,000	$	—	$	—		740,000
Convertible promissory note, related party	$	1,940,000	$	—	$	—	$	1,940,000

	As of December 31, 2023
Description	Total			Level 1		Level 2	Level 3
Assets:
Short-term investments	$	2,206,555	$	2,206,555	$	—	$	—
Contingent consideration receivable, related party	$	268,000	$	—	$	—	$	268,000
Contingent earn-out receivable, related party	$	1,720,000	$	—	$	—	$	1,720,000

Schedule of change in fair value, as determined by Level 3 inputs, for assets and liabilities using unobservable Level 3 inputs

	Contingent
	Earn-out Rec.,		Promissory Note,
	Related Party		Related Party
Balance at March 31, 2024		2,720,000		2,081,750
Issuance of non-convertible promissory note, related party		—		750,000
Gain on partial extinguishment		—		(170,000)
Change in fair value		—		18,250
Balance at June 30, 2024	$	2,720,000	$	2,680,000

	Contingent		Contingent
	Consideration Rec.,		Earn-out Rec.,		Promissory Note,
	Related Party		Related Party		Related Party
Balance at December 31, 2023	$	268,000	$	1,720,000	$	—
Issuance of non-convertible promissory note, related party		—		—		750,000
Issuance of convertible promissory note, related party		(268,000)		—		1,985,750
Gain on partial extinguishment		—		—		(170,000)
Change in fair value		—		1,000,000		114,250
Balance at June 30, 2024	$	—	$	2,720,000	$	2,680,000

	Contingent
	Consideration
Balance at March 31, 2023	$	11,234,114
Change in fair value		1,100,000
Balance at June 30, 2023	$	12,334,114

	Contingent
	Consideration
Balance at December 31, 2022	$	12,224,614
Change in fair value		109,500
Balance at June 30, 2023	$	12,334,114

Schedule of fair value inputs and valuation methodologies

	As of June 30, 2024
	Valuation	Significant		Weighted Average
	Methodology	Unobservable Input		(range, if applicable)
Contingent earn-out receivable, related party	Discounted cash flow analysis	Timing of expected payments		2026-2029
		Discount rate		15.0%
		Future revenue projections	$	153.2 million
		Minimum earn-out payment		3% or $5 million
		Earn-out through		December 31, 2028
Convertible promissory note, related party	Discounted cash flow analysis	Maturity term		1.2 years
		Market interest rate		14.8%
		Principal amount	$	2.25 million
Non-convertible promissory note, related party	Discounted cash flow analysis	Market interest rate		15.3%
		Principal amount	$	0.8 million
		Maturity term		1 month

	As of December 31, 2023
	Valuation	Significant		Weighted Average
	Methodology	Unobservable Input		(range, if applicable)
Contingent consideration receivable, related party	Discounted cash flow analysis	Maturity term		1 year
		Market interest rate		14.7%
		Principal amount	$	2.25 million
Contingent earn-out receivable, related party	Discounted cash flow analysis	Timing of expected payments		2026-2029
		Discount rate		15.0%
		Future revenue projections	$	141.4 million
		Minumum earn-out payment		3% or $5.0 million
		Earn-out term though		December 31, 2028