FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Financial instruments measured at fair value on a recurring basis

The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022, by level within the fair value hierarchy:

	September 30, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Stanley Brothers USA Holdings Purchase Option	$	—	$	—	$	2,332	$	2,332
Debt interest rate conversion feature	—		—		778		778
Total financial assets	$	—	$	—	$	3,110	$	3,110
Investment in unconsolidated entity:	$	—	$	—	$	11,100	$	11,100
Financial liabilities:
Debt conversion option	$	—	$	7,407	$	—	$	7,407

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Financial assets:
Stanley Brothers USA Holdings Purchase Option	$	—	$	—	$	2,300	$	2,300
Debt interest rate conversion feature	—		—		1,320		1,320
Total financial assets	$	—	$	—	$	3,620	$	3,620
Financial liabilities:
Debt conversion option	$	—	$	12,995	$	—	$	12,995

Measurement Inputs

The following additional assumptions are used in the model:

	September 30,
	2023
Expected term (years)	6.52
Volatility	70.0%
Risk-free interest rate	4.6%
Expected dividend yield	—%
Discount for lack of marketability	20.0%

The following additional assumptions are used in the model:

	September 30,	December 31,
	2023	2022
Stated interest rate	5.0%	5.0%
Adjusted interest rate	1.5%	1.5%
Implied debt yield	12.1%	8.6%
Federal regulation probability	various	15.0%
Year of event	various	2025

The following table provides the assumption regarding Level 2 fair value measurements inputs at their measurement dates:

	September 30,	December 31,
	2023	2022
Expected volatility	87.4%	86.7%
Expected term (years)	6.1	6.9
Risk-free interest rate	4.6%	4.0%
Expected dividend yield	—%	—%
Value of underlying share	C$0.49	C$0.73
Exercise price	C$2.00	C$2.00

The following additional assumptions are used in the model of the SBH Purchase Option:

	September 30,	December 31,
	2023	2022
Expected volatility	120.0%	115.0%
Expected term (years)	2.4	2.7
Risk-free interest rate	4.9%	4.3%
Weighted average cost of capital	45.9%	40.0%