Quantitative and Qualitative Disclosures About Market Risk
−Removed: The Company’s financial assets include cash and cash equivalents, accounts receivables, notes receivable, investments in unconsolidated entities, an SBH purchase option, and other derivative assets.
+Added: The Company’s financial assets include cash and cash equivalents, accounts receivables, notes receivable, investments in unconsolidated entities, and derivative assets.
Financial liabilities include accounts payable and accrued and other current liabilities, cultivation liabilities, notes payable, lease obligations, convertible debenture, and derivative liability.
10 unchanged sentences
The Company’s derivative liabilities are subject to a level 2 valuation.
−Removed: The Company’s SBH purchase option, other derivative assets, and investment in unconsolidated entity are subject to a level 3 valuation.
+Added: The Company’s SBH purchase option (which expired unexercised on February 26, 2026), other derivative assets, and investment in unconsolidated entity are subject to a level 3 valuation.
The basis of the valuation of the derivative financial assets and liabilities, as well as the investment in an unconsolidated entity, are fair value.
6 unchanged sentences
The Company remeasures the debenture and the derivatives associated with the debenture at each balance sheet date using the CAD to USD exchange rate as of that balance sheet date.
−Removed: The Company recognizes the resulting foreign currency gain or loss within the statement of operation during the period.
+Added: The Company recognizes the resulting foreign currency gain or loss within the consolidated statement of operations during the period.
See additional discussion of foreign currency translation related to the convertible debenture within note Note 8 - "Debt" in the consolidated financial statements.
2 unchanged sentences
Financial assets and financial liabilities with variable interest rates expose the Company to cash flow interest rate risk.
−Removed: The Company does not have any debt instruments outstanding with variable interest rates at December 31, 2024 and December 31, 2023 (see note Note 8 - "Debt" in the consolidated financial statements).
+Added: The Company does not have any debt instruments outstanding with variable interest rates at December 31, 2025 and 2024 (see note Note 8 - "Debt" in the consolidated financial statements).
Changes in market interest rates cause the fair value of long-term debt with fixed interest rates to fluctuate;
7 unchanged sentences
The Company manages liquidity risk by evaluating working capital and forecasting long-term financial liabilities, as well as forecasting cash inflows and outflows from business operations.
−Removed: The Company’s cash and cash equivalents balances at December 31, 2024, and December 31, 2023, were $22,618 and $47,820, respectively.
−Removed: Net working capital at December 31, 2024, and December 31, 2023, was $31,046 and $54,526, respectively.
+Added: The Company’s cash and cash equivalents balances at December 31, 2025, and 2024, were $8,035 and $22,618, respectively.
+Added: Net working capital at December 31, 2025, and 2024, was $21,700 and $31,046, respectively.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.