Distribution of Assets to CVR Trust |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Transfers and Servicing [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Distribution of Assets to CVR Trust | Note 6. Distribution of Assets to CVR Trust
As discussed above, the Company distributed a significant portion of its legacy assets to the CVR Trust in connection with the creation of CVRs for the benefit of the Company’s stockholders as of August 8, 2025. The CVR Trust is a Delaware statutory trust. The Management Committee of the CVR Trust will manage the liquidation and monetization of the CVR Trust’s assets, whether such assets are held directly by the CVR Trust or indirectly through the CVR Trust’s wholly-owned subsidiary, FG CVR SpinCo, LLC, a Delaware limited liability company (the “SpinCo”). The CVR Trust is the sole member and manager of SpinCo.
Management evaluated whether the Company is required to consolidate the CVR Trustunder ASC 810. Management concluded that although the CVR Trust qualifies as a variable interest entity (“VIE”) pursuant to ASC 810, the Company is not the primary beneficiary as the Company does not hold a variable interest and does not possess both (1) power over significant activities and (2) exposure to potentially significant benefits or losses. Accordingly, consolidation is not required.
The transferred assets included: (i) all interests in STS, (ii) the preferred shares of Saltire Capital Ltd. (“Saltire”) plus all accumulated dividends, (iii) all shares or other interests in FG Merchant Partners, (iv) all interests in Firefly Systems Inc., (v) all interests in GreenFirst Forest Products Ltd., (vi) all interests in FG Communities Inc., (vii) all interests in Craveworthy Brands, (viii) all interests in FG Merger II Corp., (ix) all interests in Aldel Financial II Inc., (x) all interests in Greenland Exploration Limited, (xi) all interests in Argo Holdings, (xii) all interests in Think Markets, (xiii) all interests in Pivotal Capital, (xiv) all interests in B-Scada Inc. and (xv) all current cash and cash equivalents of the Company as of the establishment of the CVR Trust. The following table summarizes the book values of the assets transferred to the CVR Trust (in thousands):
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