Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value of Financial Instruments

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

	As of September 30, 2024
Description	Total		Level 1			Level 2	Level 3
Assets:
Short-term investments	$	250,391	$	250,391	$	—	$	—
Related party receivable	$	1,570,000	$	—	$	—	$	1,570,000
Liability:
Convertible promissory note, related party	$	(2,060,000)	$	—	$	—	$	(2,060,000)

	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
	Related Party		Earn-out Rec.,		Promissory Notes,
	Receivable		Related Party		Related Party
Balance at June 30, 2024	$	—	$	2,720,000	$	(2,680,000)
Issuance of non-convertible promissory note, related party		—		—		—
Loss on partial extinguishment		—		(1,480,000)		—
Gain on partial extinguishment		—		—		750,000
Change in fair value		140,000		190,000		(130,000)
Reclass contingent earn-out receivable, related party to related party receivable		1,430,000		(1,430,000)		—
Balance at September 30, 2024	$	1,570,000	$	—	$	(2,060,000)

	Contingent		Contingent
	Consideration Rec.,		Earn-out Rec.,		Related Party		Promissory Notes,
	Related Party		Related Party		Receivable		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)
Loss on partial extinguishment		—		(1,480,000)		—		—
Gain on partial extinguishment		—		—		—		920,000
Change in fair value		—		1,190,000		140,000		(244,250)
Reclass contingent earn-out receivable, related party to related party receivable		—		(1,430,000)		1,430,000		—
Balance at September 30, 2024	$	—	$	—	$	1,570,000	$	(2,060,000)

	Contingent
	Consideration
Balance at June 30, 2023	$	12,334,115
Payment of contingent consideration		(100,344)
Change in fair value		(286,855)
Reclassification to held for sale		(11,946,916)
Balance at September 30, 2023	$	—

	Contingent
	Consideration
Balance at December 31, 2022	$	12,224,614
Payment of contingent consideration		(100,344)
Change in fair value		(177,354)
Reclassification to held for sale		(11,946,916)
Balance at September 30, 2023	$	—

Schedule of fair value inputs and valuation methodologies

	As of September 30, 2024
	Valuation	Significant		Weighted Average
	Methodology	Unobservable Input		(range, if applicable)
Related party receivable	Discounted cash flow analysis	Timing of expected payment		2028
		Market interest rate		11.6%
		Fixed payment amount	$	2.5 million
Convertible promissory note, related party	Discounted cash flow analysis	Maturity term		11 months
		Market interest rate		12.1%
		Principal amount	$	2.25 million

	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 through		December 31, 2028