FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, by level within the fair value hierarchy:


	June 30, 2026
	Level 1		Level 2		Level 3		Total
Financial assets:
Debt interest rate conversion feature	—		—		—		—
Total financial assets	$	—	$	—	$	—	$	—

Investment in unconsolidated entity:	$	—	$	—	$	8,300	$	8,300

Financial liabilities:
Debt conversion option	$	—	$	—	$	—	$	—


	December 31, 2025
	Level 1		Level 2		Level 3		Total
Financial assets:
Debt interest rate conversion feature	—		—		211		$	211
Total financial assets	$	—	$	—	$	211	$	211

Investment in unconsolidated entity:	$	—	$	—	$	8,800	$	8,800

Financial liabilities:
Debt conversion option	$	—	$	5,187	$	—	5,187

Schedule of Measurement Inputs

The following additional assumptions are used in the model:


	June 30,	December 31,
	2026	2025
Expected term (years)	5.0	5.0
Volatility	96.8%	96.4%
Risk-free interest rate	4.2%	3.7%
Expected dividend yield	—%	—%
Discount for lack of marketability	31.0%	31.0%

The following additional assumptions were used in the model:


	May 28,	December 31,
	2026	2025
Stated interest rate	5.0%	5.0%
Adjusted interest rate	1.5%	1.5%
Implied debt yield	14.3%	13.2%
Federal regulation probability	Various	various
Year of event	Various	various

The following table provides the assumptions regarding Level 2 fair value measurements inputs at their measurement dates prior to extinguishment upon conversion of the Convertible Debenture as of May 28, 2026:


	May 28,	December 31,
	2026	2025
Expected volatility	91.6%	89.8%
Expected term (years)	3.47	3.9
Risk-free interest rate	4.3%	3.9%
Expected dividend yield	—%	—%
Value of underlying share	C$0.70	C$0.50
Exercise price	C$2.00	C$2.00

Schedule of Derivative Assets In The Condensed Consolidated Balance Sheets

The following table provides a roll forward of the fair value of the debt interest rate feature in connection with the conversion of the convertible debenture:


Balance - December 31, 2025	$	211
Change in fair value during the period, recognized in change in fair value of financial instruments	4
Foreign currency exchange impact	(1)
Reclassification to equity in connection with extinguishment of debt	(214)
Balance - June 30, 2026	$	—

Schedule of Derivative Liability In The Condensed Consolidated Balance Sheets

The following table provides a roll forward of the fair value of the debt conversion option feature in connection with the conversion of the convertible debenture:


Balance - December 31, 2025	$	5,187
Change in fair value during the period, recognized in change in fair value of financial instruments	2,814
Foreign currency exchange impact	61
Reclassification to equity in connection with extinguishment of debt	(8,062)
Balance - June 30, 2026	$	—

- Definition

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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