3. Note Receivable

As of December 31, 2025, the Company had a note receivable with an outstanding principal balance of $3,467,998, consisting of $500,000 classified as current and $2,967,998 (net of $282,002 discount) classified as long-term on the accompanying consolidated balance sheet. The note bears interest at a stated rate of 5.0% per annum and accrues interest on the outstanding principal balance. Accrued interest receivable related to the note totaled $31,250 as of December 31, 2025, and is included in prepaids and other current assets in the accompanying consolidated balance sheet. The current portion of the note receivable represents principal payments contractually due within twelve months of the balance sheet date, with the remaining balance due thereafter. The Company evaluated the note for expected credit losses under ASC 326 and determined that no allowance was required at December 31, 2025.

Schedule of note receivable maturities