DERIVATIVE CONVERSION FEATURE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVE CONVERSION FEATURE | NOTE 4 - DERIVATIVE CONVERSION FEATURE
A summary of the Company’s derivative conversion feature arising from convertible notes as at June 30, 2026 is as follows:
The Company used an option pricing model to calculate the derivative conversion feature. A summary of the Company’s weighted average inputs used in the model for the six months ended June 30, 2026 and the year ended December 31, 2025 is as follows:
The risk-free interest rate was based on rates established by the Federal Reserve Bank. Beginning with the year ended December 31, 2025, the Company estimated expected volatility using a peer-based approach rather than the historical volatility of its own common shares. The Company’s common shares trade infrequently on the OTC Markets, and management determined that historical volatility derived solely from Company-specific trading data was not reflective of market-participant assumptions. As at the date of these financial statements, all convertible notes were past their maturity date and accordingly, the expected term of the conversion feature of the notes was assumed to be 1 year from the date of these financial statements. The expected annual dividend yield was based on the fact that the Company has not customarily paid dividends in the past and does not expect to pay dividends in the future.
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