Loan Portfolio Indemnification Obligations (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2026

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

Significant Unobservable Input		March 31, 2026				December 31, 2025
Pooled Probability of Default or PD (Ratings 2–5)			7.25	%			7.25	%
Pooled Loss Given Default or LGD (inclusive of 17.5% and 16.6% cannabis qualitative premium as of March 31, 2026 and December 31, 2025, respectively)			35	%			35	%
Tranche C PD (Rating 9, individually evaluated)			35	%			35	%
Tranche C LGD on uncollateralized gap			50	%			50	%
Stand-ready risk premium loading			120% of expected loss				120% of expected loss
Discount rate			4.35	%			4.0	%
Weighted average pay out year – Tranche A			3.8 years				4 years
Weighted average pay out year – Tranche B			2.8 years				3 years
Weighted average pay out year – Tranche C			1.8 years				2 years
Weighted average pay out year – Stand Ready Premium			2.8 years				3 years

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 expected credit loss liability as of March 31, 2026 is as follows:

Tranche		Ratings				Loan Balance				Loss Method		Reserve
Tranche A - Pass Rated			2–5			$	35,376,181			Pooled; rates 0.5%–1.8%		$	404,218
Tranche B - Elevated Risk			6–8				6,803,605			Pooled; rates 3.2%–4.4%			164,493
Tranche C - Specific Risk			9				9,346,394			Individual evaluation			389,402
Total						$	51,526,180					$	958,113

The expected credit loss liability as of December 31 2025 is as follows:

Tranche		Ratings				Loan Balance				Loss Method		Reserve
Tranche A - Pass Rated			2–5			$	35,544,024			Pooled; rates 0.5%–1.8%		$	406,066
Tranche B - Elevated Risk			6–8				7,168,435			Pooled; rates 3.2%–9.2%			296,304
Tranche C - Specific Risk			9				9,346,394			Individual evaluation			389,402
Total						$	52,058,853					$	1,091,772

The indemnified portfolio is segmented into three tranches. Loans rated 9 or 10 are individually evaluated rather than included in the pooled analysis:

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 change of the contract asset for the three months ended March 31, 2026:

Schedule of Contract Asset

		ASC460				ASC 326				Total
		Stand-ready guarantee liability				Financial indemnification liability				Total
Beginning, December 31, 2025		$	2,049,599			$	1,048,101			$	3,097,700
Amortization			(85,401	)			(43,671	)			(129,072	)
Balance, March 31, 2026			1,964,198				1,004,430				2,968,628
Less: current portion			(341,600	)			(174,683	)			(516,283	)
Total non-current portion		$	1,622,598			$	829,747			$	2,452,345

The following table summarizes the changes of the contract asset for the year ended December 31, 2025:

		Stand-ready guarantee liability				Financial indemnification liability				Total
Balance, December 31, 2024		$	-			$	-			$	-
Initial recognition as per Second Amended CAA			2,135,000				1,091,772				3,226,772
Amortization			(85,401	)			(43,671	)			(129,072	)
Balance, December 31, 2025			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

The following table summarizes the changes of the contract asset for the year ended December 31, 2025 and December 31, 2024:


		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 three months ended March 31, 2026.

Summary of Movement of Liabilities

		Stand-ready guarantee liability				Financial indemnification liability				Total
Balance, December 31, 2025		$	1,957,083			$	1,091,772			$	3,048,855
Benefit			(182,917	)			(133,659	)			(316,576	)
Balance, March 31, 2026			1,774,166				958,113				2,732,279
Less: current portion			(709,667	)			(414,868	)			(1,124,535	)
Total non-current portion		$	1,064,499			$	543,245			$	1,607,744

		Stand-ready guarantee liability				Financial indemnification liability				Total
Balance, December 31, 2024		$	-			$	-			$	-
Initial recognition as per Second Amended CAA			2,135,000				1,091,772				3,226,772
Benefit			(177,917	)			-				(177,917	)
Balance, December 31, 2025			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

The following table summarizes the changes of the liabilities for the year ended December 31, 2025 and December 31, 2024:

		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			$	-			$	-			$	-

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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