Equity Method Investment |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Equity Method Investment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| EQUITY METHOD INVESTMENT | NOTE 5 — EQUITY METHOD INVESTMENT
In February 2023, the Company acquired, through KeepZone, approximately 49.1% of the issued and outstanding shares of common stock of SciSparc U.S., a related party of the Company, for approximately $3.0 million in cash. KeepZone has the right to appoint two of five directors to the board of SciSparc U.S. The Company’s management concluded that the Company has significant influence, but not control, over SciSparc U.S. and, accordingly, accounts for the investment using the equity method. The carrying amount of the investment is adjusted to reflect the Company’s proportionate share of the net earnings or losses and decreased by any dividends received. The Company’s share of income or loss related to this investment is reported as equity earnings (loss) of affiliate in the consolidated statements of operations.
The activity in the investment accounted for using the equity method was as follows:
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