Business Strategy and Operations - The company operates across three strategic domains: Offset Portfolio, Project Investment and Acquisitions, and Project Development and Management, focusing on environmental asset generation[21][22][24]. - The company maintains a diversified portfolio of environmental assets, including I-RECs and carbon sequestration credits, to support corporations and governments in offsetting emissions[21]. - The company aims to capitalize on the growing demand for I-RECs, having recently gained approval to the Evident Registry, which enhances its portfolio of renewable energy attributes[46]. - The company’s business model includes a direct investment model and a project management model, allowing for flexible financing alternatives in carbon credit generation[41]. - The company plans to leverage technology-based solutions to generate carbon credits, targeting the 80% of reductions needed to meet global net zero goals[35]. - The company’s revenue streams will diversify by monetizing both carbon offsets and energy attribute certificates, positioning it as a key player in the environmental asset market[47]. Financial Management and Capital Structure - The company’s functional currency changed from CAD$ to US$ effective August 1, 2024, aligning with its future focus and the completion of the De-SPAC transaction[32]. - The Company has adopted a digital asset treasury strategy to invest in tokenized real-world assets (RWAs), funded by proceeds from the Helena Convertible Notes[83]. - 75% of the net proceeds from the sale of Helena Convertible Notes will be used to purchase Bitcoin, Ethereum, Solana, or other utility-based digital assets[85]. - The Company has allocated $6,405,000 for the acquisition of initial digital assets, with $5.125 million already deployed equally between Bitcoin and Solana as of October 27, 2025[88]. - The Company currently holds 22.228945 BTC and 12,173.21335671 SOL, representing approximately 40% of the original funding transfer[88]. - The Company intends to allocate the remaining 20% of the proceeds from the Initial Convertible Note towards purchasing DevvE shortly after completing BTC and SOL purchases[88]. - As of July 31, 2025, the Company had cash of $3,446,111 to settle current liabilities of $11,847,575 due within twelve months[356]. - The Company has no specific timeline for subsequent tranches of Helena Convertible Notes but believes a second tranche within six months is possible[91]. Project Development and Partnerships - The company emphasizes investments that provide measurable social and environmental impact alongside attractive financial returns, focusing on projects with co-benefits[48][49]. - The company anticipates that most of its projects will have additional social, environmental, and economic co-benefits, aiming for long-term cash flow growth through carbon credit monetization[50]. - The company plans to invest in a wide range of carbon credit-generating projects, including renewable energy generation and waste handling, with project costs typically under $150,000 each[51][52]. - The company aims to retain approximately 25% of the carbon credit stream generated from projects it manages on behalf of other entities[52]. - A Project Assessment Tool has been developed to systematically evaluate potential project opportunities, focusing on commercial, technical, financial, and legal aspects[53]. - The company has entered into a strategic partnership with Devvio, agreeing to purchase $1 million in DevvE tokens in 2025 and $1.27 million in each of 2026 and 2027[54]. - The company has engaged leading offset developers to maximize revenue potential while minimizing risk through internationally recognized carbon credit methodologies[59]. - The company plans to utilize Xpansiv's trading platform, which has processed over one billion environmental credits, to enhance liquidity for its carbon credit portfolio[62]. - The company is developing an EV charging project targeting operators in North America, with expected revenue starting in 2026[63]. - A Contribution and Exchange Agreement with Crestmont Investments LLC has been established, providing access to 2,000,000 units of carbon sequestration assets[64]. - The company has entered into a carbon-management agreement with Energy Efficient Technologies, expanding its pipeline of efficiency-based environmental assets[66]. Digital Asset Strategy - The Company has a digital asset strategy involving the potential sale of up to $300 million in senior secured convertible notes to enhance liquidity and sustainability exposure[82]. - The digital assets are custodied with BitGo, which holds over $90 billion in assets for more than 3,900 institutional clients[89]. - The Company expects to generate value from its digital asset holdings through long-term appreciation and blockchain-native revenue streams such as staking[87]. - The Company has identified Bitcoin, Solana, and DevvE as initial digital assets for acquisition based on their maturity and institutional adoption[86]. Regulatory and Compliance - The Company does not believe inflation significantly impacted its operational results for any periods presented in its financial statements[358]. - The Company aims to maintain financial strength and protect its ability to meet ongoing liabilities while maximizing long-term shareholder returns[359]. - There were no changes to the Company's approach to capital management during the period, and it is not subject to externally imposed capital requirements[360]. - The Inflation Reduction Act of 2022 imposes a 1% excise tax on stock repurchases by U.S. corporations, applicable to repurchases occurring after December 31, 2022[361]. - The Company is evaluating its options regarding the payment of the excise tax obligation, which could incur additional interest and penalties if unpaid[363]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain reporting exemptions[365]. - A material weakness in internal control over financial reporting has been identified, which could lead to misstatements in financial statements[370]. - The Company is taking steps to remediate the material weakness by hiring skilled finance personnel and implementing appropriate controls[372]. - In August 2025, the Company issued 300,000 shares for gross proceeds of $756,607, with a portion used to repay convertible debt[373]. - The Company amended its strategic partnership agreement with Devvio, committing to purchase DevvE tokens totaling $1,000,000 in 2025 and $1,270,000 in 2026 and 2027[376].
Focus Impact Acquisition (FIAC) - 2025 Q4 - Annual Report