Loan Portfolio Indemnification Obligations (Tables)
|
12 Months Ended |
Dec. 31, 2025 |
|---|
| Loan Portfolio Indemnification Obligations |
|
| Schedule of Balance Sheet Impact |
The following table summarizes the October 1, 2025, inception date, consolidated
balance sheet impact of ASC 460 and ASC 326.
Schedule of Balance Sheet Impact
| | |
ASC 460 | | |
ASC 326 | | |
Total | |
| Contract asset | |
$ | 2,135,000 | | |
$ | 1,091,772 | | |
$ | 3,226,772 | |
| Financial indemnification liability | |
| - | | |
| 1,091,772 | | |
| 1,091,772 | |
| Stand-ready guarantee liability | |
$ | 2,135,000 | | |
$ | - | | |
$ | 2,135,000 | |
|
| Schedule of Significant Unobservable Input |
Schedule
of Significant Unobservable Input
| Significant Unobservable Input | |
Value | |
| Pooled Probability of Default or PD (Ratings 2–5) | |
| 7.25 | % |
| Pooled Loss Given Default or LGD (inclusive of 13% cannabis qualitative premium) | |
| 35 | % |
| Tranche C PD (Rating 9, individually evaluated) | |
| 35 | % |
| Tranche C LGD on uncollateralized gap | |
| 50 | % |
| Stand-ready risk premium loading | |
| 120% of expected loss | |
| Discount rate | |
| 4.0 | % |
| Weighted average pay out year – Tranche A | |
| 4 years | |
| Weighted average pay out year – Tranche B | |
| 3 years | |
| Weighted average pay out year – Tranche C | |
| 2 years | |
| Weighted average pay out year – Stand Ready Premium | |
| 3 years | |
|
| Schedule of Expected Credit Loss Liability |
The
indemnified portfolio is segmented into three tranches. Loans rated 9 or 10 are individually evaluated rather than included in the
pooled analysis:
Schedule of Expected Credit Loss Liability
| Tranche | |
Ratings | |
Loan
Balance | | |
Loss Method | |
Reserve | |
| Tranche A - Pass Rated | |
2–5 | |
$ | 35,544,024 | | |
Pooled; rates 0.453%–1.81% | |
$ | 406,066 | |
| Tranche B - Elevated Risk | |
6–8 | |
| 7,168,435 | | |
Pooled; rates 3.17%–9.21% | |
| 296,304 | |
| Tranche C - Specific Risk | |
9 | |
| 9,346,394 | | |
Individual evaluation | |
| 389,402 | |
| Total | |
| |
$ | 52,058,853 | | |
| |
$ | 1,091,772 | |
|
| Schedule of Contract Asset |
The
following table summarizes the changes of the contract asset for the year ended December 31, 2025 and December 31, 2024:
Schedule
of Contract Asset
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
For the Year Ended
December 31, 2025 | | |
For the Year Ended
December 31, 2024 | |
| | |
ASC460 | | |
ASC 326 | | |
Total | | |
ASC 460 | | |
ASC 326 | | |
Total | |
| Beginning balance | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | |
| Initial recognition as per Second Amended CAA | |
| 2,135,000 | | |
| 1,091,772 | | |
| 3,226,772 | | |
| - | | |
| - | | |
| - | |
| Amortization | |
| (85,401 | ) | |
| (43,671 | ) | |
| (129,072 | ) | |
| - | | |
| - | | |
| - | |
| Ending balance | |
| 2,049,599 | | |
| 1,048,101 | | |
| 3,097,700 | | |
| - | | |
| - | | |
| - | |
| Less: current portion | |
| (341,600 | ) | |
| (174,683 | ) | |
| (516,283 | ) | |
| - | | |
| - | | |
| - | |
| Total non-current portion | |
$ | 1,707,999 | | |
$ | 873,418 | | |
$ | 2,581,417 | | |
$ | - | | |
$ | - | | |
$ | - | |
|
| Summary of Movement of Liabilities |
The
following table summarizes the changes of the liabilities for the year ended December 31, 2025 and December 31, 2024:
Summary of Movement of
Liabilities
| | |
ASC460 | | |
ASC
326 | | |
Total | | |
ASC
460 | | |
ASC
326 | | |
Total | |
| | |
For
the Year Ended
December 31, 2025 | | |
For
the Year Ended
December 31, 2024 | |
| | |
ASC460 | | |
ASC
326 | | |
Total | | |
ASC
460 | | |
ASC
326 | | |
Total | |
| Beginning balance | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 1,393,131 | | |
$ | 1,393,131 | |
| Initial recognition as per
Second Amended CAA | |
| 2,135,000 | | |
| 1,091,772 | | |
| 3,226,772 | | |
| - | | |
| - | | |
| - | |
| Benefit | |
| (177,917 | ) | |
| - | | |
| (177,917 | ) | |
| - | | |
| (1,393,131 | ) | |
| (1,393,131 | ) |
| Ending
balance | |
| 1,957,083 | | |
| 1,091,772 | | |
| 3,048,855 | | |
| - | | |
| - | | |
| - | |
| Less:
current portion | |
| (711,667 | ) | |
| (433,968 | ) | |
| (1,145,635 | ) | |
| - | | |
| - | | |
| - | |
| Total
non-current portion | |
$ | 1,245,416 | | |
$ | 657,804 | | |
$ | 1,903,220 | | |
$ | - | | |
$ | - | | |
$ | - | |
|