Note 6 - Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Fair Value Disclosures [Text Block]

6. Fair Value of Financial Instruments

The Company measures and discloses fair value measurements as required by FASB Accounting Standards Codification ("ASC") Topic No. 820, Fair Value Measurements and Disclosures.

Fair value is an exit price, representing the amount that would be received upon the sale of an asset or the amount that would be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the FASB establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

• Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 – Include other inputs that are directly or indirectly observable in the marketplace.

• Level 3 – Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table presents information about the financial liabilities that are measured at fair value on a recurring basis at September 30, 2025 and December 31, 2024 (unaudited except for December 31, 2024, in thousands):

Level 3	September 30, 2025		December 31, 2024
Notes Warrants	$	78	$	197
Additional Warrants		9		27
Total	$	87	$	224

The following tables present the changes in the fair value (unaudited, except for December 31, 2024, in thousands):

	Notes			Additional
	Warrants			Warrants			Total
Measurement at December 31, 2024	$	197		$	27		$	224
Change in fair value	$	(107	)	$	(16	)	$	(123	)
Measurement at March 31, 2025	$	90		$	11		$	101
Change in fair value	$	17		$	3		$	20
Measurement at June 30, 2025	$	107		$	14		$	121
Change in fair value	$	(29	)	$	(5	)	$	(34	)
Measurement at September 30, 2025	$	78		$	9		$	87

	Notes			Additional
	Warrants			Warrants			Total
Measurement at December 31, 2023	$	334		$	263		$	597
Change in fair value	$	28		$	(214	)	$	(186	)
Measurement at March 31, 2024	$	362		$	49		$	411
Change in fair value	$	(24	)	$	(18	)	$	(42	)
Measurement at June 30, 2024	$	338		$	31		$	369
Change in fair value	$	(203	)	$	(17	)	$	(220	)
Measurement at September 30, 2024	$	135		$	14		$	149