v3.25.2
DEBT
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
Convertible Debenture
On November 14, 2022, the Company entered into the Subscription Agreement with BT DE Investments, Inc., providing for the issuance of a $56.8 million (C$75.3 million) convertible debenture. The debenture is denominated in Canadian Dollars ("CAD" or "C$"). The debenture is convertible into 19.9% ownership of the Company’s common shares at a conversion price of C$2.00 per common share of the Company. The debenture will accrue interest at a stated annualized rate of 5% until such time that there is federal regulation permitting the use of CBD as an ingredient in food products and dietary supplements in the United States. Following federal regulation of CBD, the stated annualized rate of interest shall reduce to 1.5%. Interest is accrued annually and payable on the maturity date or date of earlier conversion. The maturity date for the debenture is November 14, 2029.
The following is a summary of the Company's convertible debenture as of June 30, 2025:
As of June 30, 2025
Principal AmountUnamortized Debt Discount and CostsNet Carrying Amount
Convertible Debenture
Convertible debenture due November 2029$62,962 $(14,346)$48,616 
The following is a summary of the Company's convertible debenture as of December 31, 2024:
As of December 31, 2024
Principal AmountUnamortized Debt Discount and CostsNet Carrying Amount
Convertible Debenture
Convertible debenture due November 2029$58,172 $(14,541)$43,631 
The debenture was C$75.3 million per the subscription agreement and translated to USD on the transaction date. For the three months ended June 30, 2025 and June 30, 2024, the Company recognized a foreign currency loss of $2,600 and a gain of $430, respectively, related to the net carrying value of the debenture within the condensed consolidated statement of operations. Additionally, for the six months ended June 30, 2025 and June 30, 2024, the Company recognized a foreign currency loss of $2,538 and a gain of $1,355, respectively, related to the net carrying value of the debenture within the condensed consolidated statement of operations.
Interest is accrued annually and payable on the maturity date or date of earlier conversion. On conversion, accrued interest will either be converted into common shares equal to the amount of accrued interest or will be paid in cash if agreed with the Lender. As of June 30, 2025 and June 30, 2024, the principal amount of the debenture includes $7,549 and $4,636, respectively, of accrued interest expense. The following is a summary of the interest expense and amortization expense, recorded within the statement of operation, of the Company's convertible debenture for the three and six months ended June 30, 2025 and June 30, 2024:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Interest expense$749 $721 $1,471 $1,454 
Amortization of debt discounts and costs514 427 977 828 
Total interest and amortization expense
$1,263 $1,148 $2,448 $2,282