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INVESTMENT IN NONCONSOLIDATED AFFILIATE (Tables)
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Investment In Nonconsolidated Affiliate    
SCHEDULE OF FAIR VALUE CONVERSION  

Fair value of the conversion feature as of the Securities Exchange closing and for December 31, 2023:

 

Fair value of the conversion feature  April 5, 2023   December 31, 2023 
Expected volatility (%)   78.20%   135.70%
Risk-free interest rate (%)   4.34%   5.08%
Expected dividend yield   0.0%   0.0%
Contractual term (years) (*)   1    0.25 
Conversion price (Canadian dollars)    (US$0.04) C$0.054     (US$0.04) C$0.054 
Underlying share price (Canadian dollars)    (US$0.04) C$0.05     (US$0.01) C$0.01 
Fair value (U.S. dollars)  $272,000   $900 

 

(*)As of December 31, 2023 the Company estimated that the probability that the Debenture would be converted following 12 months is minimal.
SCHEDULE OF EQUITY INVESTMENT

The following tables present Plantify’s summarized financial information.

 

  

Nine months ended 

September 30, 2024

  

Three months ended

September 30, 2024

 
         
Revenue   357,000    25,000 
Gross loss   (186,000)   (63,000)
Net loss   (1,920,000)   (367,000)

  

April 5, 2023

Through

December

31, 2023

 
     
Revenue   455,000 
Gross loss   (73,000)
Net loss   

(1,839,000

)

 

 
 		  
 

As of

December 31, 2023

  
 
     
Current assets   

551,000

 
Noncurrent assets   

1,766,000

 
Current liabilities   

2,187,000

 
Stakeholders deficit   

(643,000

)
SCHEDULE OF FAIR VALUE CONVERSION

Fair value of the conversion feature as of December 31, 2023:

 

Fair value of the conversion feature  December 31, 2023 
Expected volatility (%)   135.70%
Risk-free interest rate (%)   5.08%
Expected dividend yield   0.0%
Contractual term (years) (*)   0.25 
Conversion price (Canadian dollars)   (US$0.04) C$0.054 
Underlying share price (Canadian dollars)   (US$0.01) C$0.01 
Fair value (U.S. dollars)  $900 

 

As of September 30, 2024, the Company estimated the value of the conversion feature as 0.

 

The Company estimated the fair value of the Debenture and Credit Facility as of September 30, 2024, using the Option Pricing Method (“OPM”) with the assistance of a third party appraiser. The OPM framework involves making assumptions for the equity value, expected time to liquidity, volatility and risk-free rate and is utilized to allocate value to the various classes of securities and loans of Plantify, including the Company’s Debenture and Credit Facility. The equity fair value was calculated based on Plantify’s quotes in active market as of September 30, 2024. The assumptions used to perform the calculations are detailed below:

 

Fair value of the conversion feature  September 30, 2024 
Expected volatility (%)   106.6%
Risk-free interest rate (%)   3.0%
Expected dividend yield   0.0%
Contractual term (years)   1.5 
Plantify’s fair value (U.S. dollars)  $1,427,000