v3.24.3
FAIR VALUE MEASUREMENT
 9 Months Ended
Sep. 30, 2024
FAIR VALUE MEASUREMENT [Abstract]  
FAIR VALUE MEASUREMENT
NOTE 11 - FAIR VALUE MEASUREMENT
 
Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2. Significant other inputs that are directly or indirectly observable in the marketplace.

Level 3. Significant unobservable inputs which are supported by little or no market activity.

   
As of September 30, 2024
  
 
 
(in thousands)
  
Quoted prices in
active markets for
identical assets
(Level 1)
    
Significant
other observable
inputs
(Level 2)
    
Significant unobservable inputs
(Level 3)
  
                   
Repurchase agreement
   $ 300,742.5     $ -    
$
-
  
Total assets measured at fair value
   $ 300,742.5     $ -     $ -  

   
As of December 31, 2023
  
 
 
(in thousands)
  
Quoted prices in
active markets for
identical assets
(Level 1)
    
Significant
other observable
inputs
(Level 2)
    
Significant unobservable inputs
(Level 3)
  
                   
Current Liabilities
                  
Derivative liability
   $ -     $ -    
$
17,282.5
  
                         
Liabilities
                        
Derivative liability
     -
       -
      
1,120.3
  
Total liabilities measured at fair value
   $ -     $ -     $ 18,402.8  

The fair value of the repurchase agreement is based on quoted market prices of the counter-party collateral.  Our repurchase agreement exposes us to credit risk and is collateralized by U.S. Treasury Bills.  We have not experienced any material losses related to these securities.

The estimated fair value of the conversion feature of the Derivative liability is based on traditional valuation methods including Black-Scholes option pricing models and Monte Carlo simulations. The derivative liability component of Convertible promissory notes are classified as Level 3 due to significant unobservable inputs.