Does Craters & Freighters hold any investments using Level 2 inputs?

According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters does not hold any investments using Level 2 or Level 3 inputs. The company's investments in stocks, mutual funds, and exchange traded funds are valued using Level 1 inputs, which are quoted prices in active markets for identical assets or liabilities.

ASC 820, "Fair Value Measurement," provides a framework for measuring the fair value of certain assets and liabilities. It also enhances disclosures about how the fair value was determined based on the significant levels of inputs used. Level 2 inputs are defined as quoted prices in active markets for similar assets or liabilities and other external inputs that are observable. Level 3 inputs are unobservable inputs in which there is little or no market data, which requires the entity to develop its own assumptions.

This indicates that Craters & Freighters' investments are in more liquid and readily valued assets. For a prospective franchisee, this suggests a relatively conservative approach to managing the company's investments, as Level 1 assets are generally considered less risky and easier to value than those requiring Level 2 or Level 3 inputs.