v3.26.1
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2025
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Financial Assets and Liabilities Recorded at Fair Value

The following tables summarize financial assets and liabilities recorded at fair value on a recurring basis, by the level of valuation inputs in the fair value hierarchy on December 31, 2025 and December 31, 2024:

 

 Schedule of Financial Assets and Liabilities Recorded at Fair Value

                              
   December 31, 2025   December 31, 2024 
   Total Fair Value  

Quoted Prices in Active Markets

(Level 1)

  

Significant Other Unobservable Inputs

(Level 3)

   Total Fair Value  

Quoted Prices in Active Markets

(Level 1)

  

Significant Other
Unobservable
Inputs

(Level 3)

 
Description                              
Liabilities:                              
PIPE warrants  $280   $-   $280   $79,512  

$

-  

$

79,512 
Public warrants   10,896    10,896    -    246,445    246,445    - 
Private placement warrants   14    -    14    9,632    -    9,632 
Abaca warrant   28,430    -    28,430    1,024,900    -    1,024,900 
Forward purchase derivative liability   -    -    -    7,309,580    -    7,309,580 
Third anniversary payment consideration   -    -    -    322,000    -    322,000 
Schedule of Non-Recurring Fair Value Measurement

 Schedule of Non-Recurring Fair Value Measurement

                    
   December 31, 2025 
   Carrying amount
$		   Fair value
$		   Fair value measurement using 
           Level 1
$		   Level 2
$		   Level 3
$		 
Liabilities                    
Stand-ready guarantee liability  $2,135,000   $2,135,000   $-   $-   $2,135,000 
Schedule of Valuation Methodology and Significant Unobservable Inputs

The ASC 460 Guarantee liability was classified as Level 3 because its fair value was determined using significant unobservable inputs for which there is no active market. The following table summarizes the valuation methodology and significant unobservable inputs used in the Level 3 measurement:

 

 Schedule of Valuation Methodology and Significant Unobservable Inputs

Input   Value Used   Sensitivity
Probability of Default -Tranches A & B (Ratings 2–5, pooled)   7.25%, derived from loan level analysis of the portfolio.   An increase raises fair value
Probability of Default - Tranche C (Rating 9, individually evaluated)   35%, based on Rating 9 definition, past-maturity status, and personal guarantees   An increase raises fair value
Loss Given Default - Tranches A & B   25.00% for Tranche A and 35% for Tranche B, inclusive of 13% cannabis-specific qualitative premium reflecting court access limitations, collateral possession restrictions, and refinancing risk   An increase raises fair value
Loss Given Default - Tranche C (uncollateralized gap)   50%, representing the midpoint of the Rating 9 anticipated loss range applied to the uncollateralized exposure   An increase raises fair value
Stand-Ready Risk Premium   120% loading applied to total expected loss, reflecting compensation for uncapped exposure, cannabis concentration risk, portfolio illiquidity, and six-year guarantee term commitment   An increase raises fair value
Discount Rate   4.0% risk-free rate (6-year Treasury)   An increase reduces fair value
Weighted Average Payout Timing   Tranche A: 4 years; Tranche B: 3 years; Tranche C: 2 years; Stand-ready premium: 3 years — based on the portfolio’s contractual maturity profile   A longer weighted average payout timing reduces fair value
Schedule of Carrying Amounts and Fair Values of Financial Instruments

           Level 1
$		   Level 2
$		   Level 3
$		 
   December 31, 2025 
   Carrying amount
$		   Fair value
$		   Fair value measurement using 
           Level 1
$		   Level 2
$		   Level 3
$		 
Assets                    
Cash and cash equivalents  $6,779,040   $6,779,040   $6,779,040   $-   $- 
Investment in preferred securities   1,450,000    1,450,000    -    -    1,450,000 
Liabilities                         
Deferred consideration   3,000,000    3,000,000    3,000,000    -    - 
Public warrants   10,896    10,896    10,896    -    - 
Private placement warrants   14    14    -    -    14 
PIPE warrants   280    280    -    -    280 
Abaca warrants   28,430    28,430    -    -    28,430 

 

          

Level 1
$

  

Level 2
$

  

Level 3
$

 
   December 31, 2024 
  

Carrying amount
$

  

Fair value
$

   Fair value measurement using 
          

Level 1
$

  

Level 2
$

  

Level 3
$

 
Assets                    
Cash and cash equivalents  $2,324,647   $2,324,647   $2,324,647   $-   $- 
Forward purchase agreement   4,584,221    4,584,221    4,584,221    -    - 
Loans   360,552    359,505    -    -    359,505 
Liabilities                         
Deferred consideration   3,016,343    3,016,343    3,016,343    -    - 
Senior secured promissory note   11,004,173    10,221,652    -    -    10,221,652 
Public warrants   246,445    246,445    246,445    -    - 
Private placement warrants   9,632    9,632    -    -    9,632 
PIPE warrants   79,512    79,512    -    -    79,512 
Abaca warrants   1,024,900    1,024,900    -    -    1,024,900 
Third anniversary payment consideration   322,000    322,000    -    -    322,000 
Forward purchase derivative   7,309,580    7,309,580    -    -    7,309,580 
Schedule of Fair Value Assets Measured on Recurring Basis

The change in the liability measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value are presented in the following table:

 

   PIPE Warrants   Abaca Warrant   Private Placement Warrants   Third anniversary payment consideration   Forward Purchase Derivative 
   For the Year Ended December 31, 2025     
   PIPE Warrants   Abaca Warrant   Private Placement Warrants   Third anniversary payment consideration   Forward Purchase Derivative 
Balance, January 1, 2025  $79,512   $1,024,900   $9,632   $322,000   $7,309,580 
Fair value adjustment   (79,232)   (996,470)   (9,618)   (63,133)   - 
Exchanged for Common Stock     -       -       -       258,867       -  
Exchanged for Series B Convertible Preferred Stock and Series B Warrants   -    -    -    -    (7,309,580)
Balance, December 31, 2025  $280   $28,430   $14   $-   $- 

 

   PIPE Warrants   Abaca Warrant   Private Placement Warrants   Third anniversary payment consideration   Forward Purchase Derivative 
   For the Year ended December 31, 2024     
   PIPE Warrants   Abaca Warrant   Private Placement Warrants   Third anniversary payment consideration   Forward Purchase Derivative 
Balance, January 1, 2024  $273,124   $3,384,085   $25,070   $810,000   $7,309,580 
Fair value adjustment   (193,612)   (2,359,185)   (15,438)   (488,000)   - 
Balance, December 31, 2024  $79,512    1,024,900   $9,632   $322,000   $7,309,580 
Schedule of Level 3 Fair Value Measurements Inputs

The following table provides quantitative information regarding Level 3 fair value measurements inputs for the third anniversary payment consideration as of their measurement dates:

 

    December 31, 2024 
      
Stock price   $9.00 
Payment date    10/15/2025 
Third anniversary consideration   $1,500,000 
Risk free interest rate    4.2%
Market discount rate    5.8%
Remaining term in years    0.75 
Expected volatility    86.2%
Warrant [Member]  
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Schedule of Level 3 Fair Value Measurements Inputs

The following table provides quantitative information regarding Level 3 fair value measurements inputs as it relates to the private placement warrants, public warrants, third anniversary payment consideration and Abaca warrants as of their measurement dates:

 

   PIPE Warrants   Private Warrants   Third Anniversary Payment Consideration   Abaca Warrants   PIPE Warrants   Private Warrants   Third Anniversary Payment Consideration   Abaca Warrants 
   As on December 31, 2025       As on December 31, 2024     
   PIPE Warrants   Private Warrants   Third Anniversary Payment Consideration   Abaca Warrants   PIPE Warrants   Private Warrants   Third Anniversary Payment Consideration   Abaca Warrants 
Exercise price  $100   $230.00   $-   $40.00   $100.00   $230.00   $-   $40.00 
Share price  $1.06   $1.06   $-   $1.06   $9.00   $9.00   $9.00   $9.00 
Expected term (years)   1.7    1.7    -    2.8    2.7    2.7    0.8    3.87 
Volatility   115%   115%   -    115%   103%   103%   103%   103%
Risk-free rate   3.5%   3.5%   -    3.5%   4.3%   4.3%   4.3%   4.3%