v3.25.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements
17. Fair Value Measurements

 

The following table summarizes the assets and liabilities measured at fair value on a recurring basis:

 

   Level 1   Level 1   Level 3 
  

Digital

Assets

  

Warrant

Liability

  

Derivative

Liability

 
December 31, 2024  $-   $40,391,302   $184,699,998 
Purchase of digital assets   19,100,000    -    - 
Change in fair value   (649,638)   (24,781,975)   (9,700,000)
Settlement of derivative liability   -    -    (174,999,998)
December 31, 2025  $18,450,362   $15,609,327   $- 

 

   Level 1   Level 2   Level 3   Level 3 
   Warrant Liability   Marketable Securities   Derivative Liability   Contingent Consideration 
December 31, 2023  $7,696,605   $1,135,200   $-   $1,569,360 
Settlement by issuance of shares   -    -    -    (1,404,753)
Reclassification to equity   -    -    -    (1,334,516)
 Reclassification to accounts payable and accrued liabilities   -    -    -    (184,448)
Sales and maturities of marketable securities   -    (1,135,200)   -    - 
Recognition of a derivative asset   -    -    (9,200,000)   - 
Change in fair value   32,694,697    -    193,899,998    1,354,357 
December 31, 2024  $40,391,302   $-   $184,699,998   $- 

 

Digital assets

 

Digital assets arose from our Bitcoin investment. Change in fair value of digital assets reflect gains or losses arising from the remeasurement of our bitcoin investment based on an exchanged quoted price. Refer to Note 5.

 

Warrant liability

 

Warrant liability consists of warrants issued by the Company in public offerings, private placements, and forward purchase contracts. As of December 31, 2025 and 2024, the number of warrants outstanding was 8,046,045 and 8,046,076, respectively, with a weighted-average exercise price of $11.50. The warrants are exercisable and will expire on September 16, 2027, or earlier upon redemption or liquidation. All warrants are publicly traded.

Derivative liability

 

The derivative liability relates to the net new shares from the Tether transaction. Refer to Note 12. As of the settlement date on February 7, 2025, the fair value of the derivative was $174,999,998, determined as the difference between the value of the net new shares based on the settlement date share price of $12.75 and the forward price of $7.50.

 

In December 2024, the derivative has been valued using the Monte Carlo simulation methodology that included simulating the stock price using a risk-neutral Geometric Brownian Motion-based pricing model. The key inputs used in the model include:

 

Valuation Date  December 20, 2024   December 31, 2024 
Number of shares   33,333,333    33,333,333 
Expected term (months)   1.25    1.00 
Risk-free interest rate   4.36%   4.35%
Expected volatility   104%   238%

 

Contingent consideration

 

The contingent consideration liability arose in May 2023 from the Callin acquisition. The increase in fair value during the year is attributable to changes in the Company’s stock price and the increased probability of each contingency being met. On May 15, 2024, the contingent consideration liability was derecognized. One of the contingent payments was settled through the issuance of shares and the remaining contingent payment was reclassified to equity and accounts payable.