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Supplemental Financial Statement Information | 9 Months Ended
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Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supplemental Financial Statement Information | Note 17: Supplemental Financial Statement Information Other Expense, net Components of Other Income (Expense), net, are summarized as follows (in thousands):
Schedule of other income expense, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Interest Expense (a) |  | $ | (157 | ) |  | $ | (176 | ) |  | $ | (450 | ) |  | $ | (625 | )
Gain (Loss) on Revaluation of Warrants (b) |  |  | – |  |  |  | 3 |  |  |  | (232 | ) |  |  | 63 |
Loss on Revaluation of Equity Investment in YFE (c) |  |  | (2,930 | ) |  |  | (461 | ) |  |  | (10,348 | ) |  |  | (1,342 | )
Realized Loss on Marketable Securities Investments (d) |  |  | (9 | ) |  |  | (148 | ) |  |  | (37 | ) |  |  | (505 | )
Gain (Loss) on Foreign Exchange (e) |  |  | (279 | ) |  |  | 999 |  |  |  | 2,101 |  |  |  | 19 |
Loss on Debt Settlement (f) |  |  | (268 | ) |  |  | – |  |  |  | (1,212 | ) |  |  | – |
Interest Income (g) |  |  | 5 |  |  |  | 40 |  |  |  | 71 |  |  |  | 135 |
Finance Lease Interest Expense (h) |  |  | (6 | ) |  |  | (20 | ) |  |  | (17 | ) |  |  | (74 | )
Gain on Lease Modification (i) |  |  | – |  |  |  | – |  |  |  | 4 |  |  |  | – |
Other (j) |  |  | 25 |  |  |  | 189 |  |  |  | (63 | ) |  |  | 723 |
Other Income (Expense), net |  | $ | (3,462 | ) |  | $ | 602 |  |  | $ | (9,733 | ) |  | $ | (981 | )
Three Months and Nine Months Ended September 30, 2025
| (a) | Interest Expense during the three and nine months ended September 30, 2025 was $0.2 million and $0.5 million, respectively, primarily due to interest incurred on production facilities.
| (b) | The Loss on Revaluation of Warrants during the nine months ended September 30, 2025 consists of $0.7 million Loss recorded at remeasurement offset by a $0.4 million fair value gain in the period ended March 31, 2025 of the outstanding 7,894,736 Series A warrants and 7,894,736 Series B warrants. These Warrants were classified as a liability in the period ended March 31, 2025 and a change in their Fair Value resulted in a recorded gain due to a decrease of expiration period. In the period ended June 2025, warrants were reclassified to equity.
| (c) | As accounted for under the fair value option, the Company recognized losses in its Equity Investment in YFE of $2.9 million and $10.3 million during the three and nine months ended September 30, 2025, respectively. The losses were primarily driven by decreases in YFE’s stock price as of the current reporting period when compared to the prior reporting period, and resulted in a revaluation loss of $1.0 million and $8.6 million during the three and nine months ended September 30, 2025, respectively. Additionally, during the three months ended September 30, 2025, the Company recorded a $1.5 million loss on the sale of a portion of the investment and a $0.3 million loss on the share exchange transaction. This excludes the impact of foreign currency recorded separately.
| (d) | The Realized Loss on Marketable Securities Investments of $8,983 and $36,674 recorded during the three and nine months ended September 30, 2025, respectively, is related to the Loss of on sale of marketable securities prior to the maturity date.
| (e) | The Gain on Foreign Exchange during the nine months ended September 30, 2025 primarily related to the revaluation of the YFE investment, resulting in a gain of $1.8 million, due to the depreciation of the U.S. dollar against the Euro relative to prior periods. The remaining balance of $0.3 million represents the remeasurement of foreign currency transactions of the Company’s non-U.S. subsidiary that remained outstanding as of the condensed consolidated balance sheet date. The Loss on Foreign Exchange during the three months ended September 30, 2025 of $0.3 million is related to the remeasurement of foreign currency transactions of the Company’s non-U.S. subsidiary that remained outstanding as of the condensed consolidated balance sheet date.
| (f) | The Loss on Debt Settlement recorded during the nine months ended September 30, 2025 includes a loss of $0.9 million related to the loan settlement agreement with YFE finalized in April 2025 and a loss of $0.3 million arising from the Section 3(a)(10) transaction completed during the period. The Loss on Debt Settlement of $0.3 million recorded during the three months ended September 30, 2025 is related to the Section 3(a)(10) transaction completed during the period.
| (g) | Interest Income during the three and nine months ended September 30, 2025 and 2024 primarily consisted of income from investments in marketable securities, net of premium amortization expense, as well as other transactions, including interest income related to ERTC receivable and interest income related to the Shareholder Loan. Each of these sources was individually immaterial.
| (h) | The Finance Lease Interest Expense represents the interest portion of the finance lease obligations for equipment purchased under an equipment lease line.
| (i) | On April 1, 2025, a subsidiary, Beacon Communications Group, Ltd (“Beacon Communications”), executed a rent reassignment agreement relinquishing one floor of its office space in Toronto to a new tenant who assumed the lease obligation for that floor. This transaction resulted in a gain of $4,253 on lease modification recorded during the period ended September 30, 2025.
| (j) | During the nine months ended September 30, 2025, a net loss of $0.1 million was recognized in connection with the reversal of previously accrued other income related to ERTC claims. Other income had initially been recorded based on anticipated recoveries from submitted claims. Recent legislative developments reduced the expected recoverable amounts, resulting in a partial reversal of the accrued other income. The amount also included approximately $75,568 of other income, primarily consisting of late fees from select clients on payment plans and credit card rewards. For the three months ended September 30, 2025, other income primarily related to such late fees totaled $22,323.
Three Months and Nine Months Ended September 30, 2024
| (a) | Interest Expense during the three and nine months ended September 30, 2024 was $0.2 million and $0.6 million, respectively, primarily due to interest incurred on production facilities and bank indebtedness.
| (b) | The Gain on Revaluation of Warrants recorded during the three and nine months ended September 30, 2024 was related to the remeasurement of 89,286 outstanding liability warrants which expired in March 2025.
| (c) | As the investment in YFE is accounted for under the fair value option, the Company recognized a loss on revaluation of its equity investment in YFE of approximately $0.5 million and $1.3 million for the three and nine months ended September 30, 2024, respectively. The loss reflected decreases in YFE’s stock price during the current reporting periods compared to the respective prior reporting periods. The impact of foreign currency translation is excluded and presented separately.
| (d) | The Realized Loss on Marketable Securities Investments during the three and nine months ended September 30, 2024 reflected the loss that was not recovered from the investments due to selling securities prior to maturity.
| (e) | The Gain on Foreign Exchange during the three and nine months ended September 30, 2024 was primarily related to the revaluation of the YFE investment, resulting in a gain of $0.8 million and $0.2 million, respectively, due to the EURO fluctuation to USD, as compared to the prior reporting period. The remaining balance was related to remeasurements of transactions made in foreign currencies that are outstanding as of the condensed consolidated balance sheet date.
| (f) | No loss on settlement of debt was recorded during the three and nine months ended September 30, 2024.
| (g) | Interest Income during the three and nine months ended September 30, 2024 primarily consisted of interest income, net of premium amortization expense, recorded for the investments in marketable securities.
| (h) | The Finance Lease Interest Expense during the three and nine months ended September 30, 2024 represented the interest portion of the finance lease obligations for equipment purchased under an equipment lease line.
| (i) | No gain or loss on lease modification was recorded during the three and nine months ended September 30, 2024.
| (j) | Other Income during the three and nine months ended September 30, 2024 was primarily related to late fees from select clients on a payment plan.

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