| Schedule of Reconciliation Includes Initial Recognition of the Components of Investment |
The following reconciliation includes initial recognition of the components of the Orion Investment and activity to June 30, 2026:
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Convertible Debt |
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Production Payment |
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Principal |
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Unamortized Discount |
|
Embedded Derivative |
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Total Convertible Debt |
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|
Principal |
|
Initial recognition on April 1, 2025 |
|
$ |
195,000 |
|
$ |
(104,399 |
) |
$ |
97,200 |
|
$ |
187,801 |
|
|
$ |
23,953 |
|
Deferred interest cost |
|
|
12,978 |
|
|
- |
|
|
- |
|
|
12,978 |
|
|
|
- |
|
Discount amortization |
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|
- |
|
|
3,403 |
|
|
- |
|
|
3,403 |
|
|
|
5,731 |
|
Loss on embedded derivative |
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|
- |
|
|
- |
|
|
166,743 |
|
|
166,743 |
|
|
|
- |
|
Derecognition on conversion to common shares |
|
|
(97,500 |
) |
|
48,167 |
|
|
(161,575 |
) |
|
(210,908 |
) |
|
|
- |
|
Balance, December 31, 2025 |
|
$ |
110,478 |
|
$ |
(52,829 |
) |
$ |
102,368 |
|
$ |
160,017 |
|
|
$ |
29,684 |
|
Deferred interest cost |
|
|
5,522 |
|
|
- |
|
|
- |
|
|
5,522 |
|
|
|
- |
|
Discount amortization |
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|
- |
|
|
2,170 |
|
|
- |
|
|
2,170 |
|
|
|
4,564 |
|
Gain on embedded derivative |
|
|
- |
|
|
- |
|
|
(20,008 |
) |
|
(20,008 |
) |
|
|
- |
|
Balance, June 30, 2026 |
|
$ |
116,000 |
|
$ |
(50,659 |
) |
$ |
82,360 |
|
$ |
147,701 |
|
|
$ |
34,248 |
|
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