v3.26.1
FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2025
Investments, All Other Investments [Abstract]  
FINANCIAL INSTRUMENTS

 

25. FINANCIAL INSTRUMENTS

 

A summary of the Company’s financial instruments classified as fair value through profit or loss and their classification in the fair value hierarchy is as follows:

 

                     
    Level in
Fair Value
Hierarchy
    December 31,
2025
    December 31,
2024
 
    $     $     $  
Financial Assets:                      
Warrant Asset   Level 2       5,103,272       4,855,795  
                       
Financial Liabilities:                      
Derivative liability   Level 2       137,041       12,504,180  

 

The fair value of the Warrant Asset and derivative liability (conversion feature related to convertible debentures) for the year ended December 31, 2024 was derived using the Black-Scholes option pricing model using observable inputs and therefore represent a Level 2 measurement. The fair value of the derivative liability (Western Alliance Credit interest rate swap) for the year ended December 31, 2025 is determined by using a discounted cash flow model that takes into account observable inputs such as interest rate curves, forward curves, and the Company’s counterparty risk. Refer to Notes 7 and 16 for key inputs into the Black-Scholes option pricing model and movements in the account balances.