Company: IVHI
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001683168-25-001303
Chunk: 147

Company: Invech Holdings, Inc.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 2
Chunk 147
---
.

     F-6 

Fair Value of Financial Instruments

The Company follows paragraph 825-10-50-10 of
the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of
the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments.
Paragraph 820-10-35-37 establishes a framework for measuring fair value in accordance with US GAAP and expands disclosures about fair
value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37
establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad
levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities
and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described
below:

Level 1: Quoted market prices available in active
markets for identical assets or liabilities as of the reporting date.

Level 2: Pricing inputs other than quoted prices
in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3: Pricing inputs that are generally unobservable
inputs and not corroborated by market data.

The carrying amount of the Company’s financial
assets and liabilities, such as cash and accrued expenses, approximate their fair value because of the short maturity of those instruments.
The Company’s related party debt approximates the fair value of such instruments based upon management’s best estimate of
interest rates that would be available to the Company for similar financial arrangements at December 31, 2024 and 2023.

Income Taxes

The Company follows Section 740-10-30 of the FASB
Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax assets and
liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates
in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance
to the extent management concludes it is more likely than not that