Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Values of Financial Instruments

13.FAIR VALUES OF FINANCIAL INSTRUMENTS

Fair value measurement

(a)Financial instruments not measured at fair value

Except as disclosed below, the carrying value of the financial assets and liabilities where the measurement basis is other than fair value approximate their fair values due to the immediate or short-term nature of these instruments considering there have been no significant changes in credit and market interest rates since the original date. Cash and cash equivalents, receivables, accounts payable and royalty obligations are measured at amortized cost.

(b)Measurement of fair value

The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified in the lowest level of the hierarchy for which a significant input has been considered in measuring fair value. The fair value hierarchy establishes three levels to classify the significance of inputs to valuation techniques used in making fair value measurements of all financial assets and liabilities. At March 31, 2025 and December 31, 2024, there were no financial assets and financial liabilities measured and recognized at fair value on a non-recurring basis subsequent to initial recognition.

The following table identifies the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy. The carrying value is equal to the fair value at each date reported.

		Fair Value at
	Category	March 31, 2025		December 31, 2024
Financial assets
Investment in GT1 (Note 3)	Level 1	$	316	$	537
Investment in Ascend Elements (Note 3) 1	Level 3		1,880		3,615
		$	2,196	$	4,152

1As Ascend Elements is a private company, there is no observable market data to use, which results in this equity investment being classified as without readily determinable fair value. The fair value was based on a review of Ascend Elements’ business development, financings and trends in the share prices of other companies in the same industry sector.

The Company has, where appropriate, estimated the fair value of financial instruments for which the amortized cost carrying value may be significantly different than the fair value. As of March 31, 2025 and December 31, 2024, this includes the royalty obligation. At March 31, 2025, the carrying value of the royalty obligation was $20,825 and the estimated fair value was $16,248. At December 31, 2024, the carrying value of the royalty obligation was $20,715 and the estimated fair value was $15,563. The estimated fair value involved Level 3 inputs and was determined using a discounted cash flow with a discount rate of 11.8% at March 31, 2025 (December 31, 2024 – 12.3%).

During the three months ended March 31, 2024, a loss on change in fair value of $180 associated with a previous fair-valued liability was recognized in the condensed consolidated interim statements of loss. This liability was derecognized on October 15, 2024.