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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Debt with Warrants (Policies)
9 Months Ended
Sep. 30, 2025
Policies  
Debt with Warrants

Debt with Warrants

 

In accordance with ASC Topic 470-20-25, when the Company issues debt with warrants, the Company treats the fair value of the warrants as a debt discount, recorded as a contra-liability against the debt, and amortizes the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statements of operations using the straight-line method. The offset to the contra-liability is recorded as either equity or liability in the Company’s consolidated balance sheets depending on the accounting treatment of the warrants. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statements of operations.