v3.26.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
SUMMARY OF ASSETS MEASURED AT FAIR VALUE ON NONRECURRING BASIS

Assets that are measured at fair value and classified as level 3 on a nonrecurring basis are as follows (in thousands):

 

Description  May 28, 2025 
Trade name  $5,100 
Developed technology  $40,000 
Legal and compliance framework  $2,400 
Goodwill  $70,435 
SUMMARY OF UNOBSERVABLE INPUTS

The significant unobservable inputs used in our level 3 fair value measurements during the year ended December 31, 2025 are as follows:

 

Areas   Valuation Techniques   Unobservable Inputs  

Range

(Weighted Average)

  
Trade name   Relief-from-Royalty Method   Royality Rate     1 %
        Revenue Growth Rate     53% average through FY2030, 3% thereafter  
        Discount rate     40 %
        Income tax rate     26 %
        Tax amortization period     20 yrs  
Developed technology   Multi-Period Excess Earnings Method (MPEEM)   Royalty rate     1 %
        Revenue Growth Rates     53% average through FY2030, 3% thereafter  
        Expense Growth Rates     16% - 26 %
        Contributory Assets’ Charge     17.1% - 193.6 %
        Obsolescence Curve     Sigmoid curve over 8-year life  
        Distributor EBIT margin for customer relationships     9 %
        Discount rate     40 %
        Income tax rate     26 %
        Tax amortization period     20 yrs  
Legal and compliance framework   Cost Approach   Replacement cost growth rate     3 %
        Cap Ex Rates     1 %
        Contributory Assets Rates     40 %
        After tax rate of return     40 %
        Useful life     7 yrs  
SUMMARY OF FAIR VALUE MEASUREMENTS DERIVATIVE LIABILITY

Rollforward of Exchangeable Shares Derivative Liability (Level 3) (in thousands):

 SUMMARY OF FAIR VALUE MEASUREMENTS DERIVATIVE LIABILITY

   Amount 
Initial recognition (May 28, 2025)  $105,498 
Change in fair value through reclassification   389,680 
Reclassification to permanent equity   (498,178)
Balance as of December 31, 2025  $- 
SCHEDULE OF UNOBSERVABLE INPUT

Significant unobservable inputs used in the Level 3 valuations were as follows:

 

Unobservable Inputs 

11/4/2025

Issuance

  

12/17/2025

Issuance

  

12/31/2025

Remeasurement

 
Volatility   130.0%   125.0%   130.0%
Risk-free rate   3.6%   3.5%   3.5%
Credit spread   9.0%   8.9%   8.9%
Risky yield   12.6%   12.4%   12.3%
Implied calibration discount   24.4%   16.5%   N/A 
Prepayment probability   N/A    N/A    70%
SUMMARY OF FAIR VALUE MEASUREMENTS EMBEDDED DERIVATIVE LIABILITY

Rollforward of Level 3 Recurring Fair Value Measurements – Embedded Derivative Liabilities (in thousands):

 SUMMARY OF FAIR VALUE MEASUREMENTS EMBEDDED DERIVATIVE LIABILITY

   Amount 
Initial recognition (November 4 , 2025 and December 17, 2025)  $8,715 
Change in fair value   (7,015)
Settlements   - 
Balance as of December 31, 2025  $1,700 
SUMMARY OF RECURRING FAIR VALUE MEASUREMENTS

The following table presents information about the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2025 (in thousands):

 

Description  Level   December 31, 2025   December 31, 2024 
Embedded derivative liabilities – Yorkville Debentures   3   $1,700    - 
Investment in Empress Royalty Corp.   1   $9,706    -