INVESTMENTS

6 Months Ended

Jun. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS

6. INVESTMENTS

The Company’s investments at June 30, 2025 and December 31, 2024 consisted of the following:

	June 30, 2025		December 31, 2024
Investments, at cost:
Lygos Inc., simple agreement for future equity (“SAFE”) agreement	$	1,000,000	$	1,000,000
Trio Opportunity Corp., 97,000 non-voting Class B shares		970,000		970,000
Investment, equity method:
Florida-based LLC		1,540,041		1,454,381
Total	$	3,510,041	$	3,424,381

In January 2019, the Company invested in a Florida based LLC that is engaged in international sales of fertilizer additives. According to the operating agreement, the Company had a 50% interest in the profit and loss of the Florida based LLC but did not have control. In August 2024, the Company sold a 30.1% interest in the Florida based LLC to a third party for consideration of $2,000,000. In addition, the Company entered into a subsequent agreement for the sale of its remaining 19.9% interest over the next five years for an additional $4,000,000. Starting in 2025, the Company will sell a further 3.98% per year upon receipt of that year’s $800,000 payment. At June 30, 2025, the Company continues to account for this investment using the equity investment as it exercises significant influence.

A summary of the activity associated with the Company’s investment in the Florida based LLC during the six months ended June 30, 2025 and the year ended December 31, 2024 is follows:

Balance, December 31, 2023 – 50% interest		4,063,960
Company’s proportionate share of earnings		244,857
Distribution received		(510,710	)
Basis of 30.1% of interest sold		(2,343,726	)
Balance, December 31, 2024 – 19.9% interest	$	1,454,381
Company’s proportionate share of earnings		85,660
Balance, June 30, 2025 – 19.9% interest	$	1,540,041

Summarized profit and loss information related to the Florida based LLC is as follows:

	Six months ended June 30, 2025		Six months ended June 30, 2024
Net sales	$	7,042,739	$	7,159,499
Gross profit	$	2,016,745	$	2,044,578
Net income	$	430,453	$	595,329

During the three months ended June 30, 2025, the Company had sales of $2,072,180 (2024 – $2,512,681) to the Florida based LLC and during the six months ended June 30, 2025, the Company had sales of $3,928,575 (2024 - $4,812,619) to the Florida based LLC, of which $1,978,433 is included within accounts receivable as at June 30, 2025 (December 31, 2024 - $1,866,645).