Note 3 FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company adopted the FASB standard related to fair
value measurement at inception. The standard defines fair value, establishes a framework for measuring fair value and expands disclosure
of fair value measurements. The standard applies under other accounting pronouncements that require or permit fair value measurements
and, accordingly, does not require any new fair value measurements. The standard clarifies that fair value is 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market
participants would use in pricing an asset or liability. The recorded values of long-term debt approximate their fair values, as
interest approximates market rates. As a basis for considering such assumptions, the standard established a three-tier fair value
hierarchy, which prioritizes the inputs used in measuring fair value as follows.
Level 1. Observable inputs such
as quoted prices in active markets;
Level 2. Inputs, other than quoted prices
in active markets, that are observable either directly or indirectly; and
Level 3. Unobservable inputs in which
there is little or no market data, which require the reporting entity to develop its own assumptions.
The Companys financial instruments are cash,
accounts receivable, and accounts payable. The recorded values of cash, accounts receivable, and accounts payable approximate their
fair values based on their short-term nature.