GEBRF 20-F
Greenbriar Sustainable Living Inc. (GEBRF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
OR
For the fiscal year ended
OR
For the transition period from _______________ to _______________
OR
Date of event requiring this shell company report _______________
Commission file number _________________________
(Exact name of Registrant specified in its charter)
Not Applicable
(Translation of Registrant's name into English)
British Columbia,
(Jurisdiction of incorporation or organization)
(Address of principal executive offices)
(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered |
| Not Applicable | Not Applicable | Not Applicable |
Securities registered or to be registered pursuant to Section 12(g) of the Act.
Common Shares, without par value
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
None
(Title of Class)
Number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of business of the period covered by the annual report.
Not Applicable
Indicate by check mark if the Registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act.
Yes ☐
If this report is an annual or transition report, indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Yes ☐
Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "accelerated filer," "large accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
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Large Accelerated Filer ☐ |
Accelerated Filer ☐ |
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Emerging Growth Company |
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
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Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
| U.S. GAAP ☐ |
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Other ☐ |
| by the International Accounting Standards Board ☒ |
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Item 17 ☐ Item 18 ☐
If this is an annual report, indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b 2 of the Exchange Act):
Yes ☐ No
TABLE OF CONTENTS
Page
GENERAL MATTERS
In this Annual Report on Form 20-F (this "Annual Report"), all references to "Greenbriar" are to Greenbriar Sustainable Living Inc., and all references to the "Company", "our", "us" or "we" refer to Greenbriar Sustainable Living Inc. and its consolidated subsidiaries, unless the context clearly requires otherwise.
We report under International Financial Reporting Standards, as issued by the International Accounting Standards Board ("IFRS"). None of our financial statements were prepared in accordance with generally accepted accounting principles in the United States.
We use the Canadian dollar as our reporting currency. All references to "C$" and "$" are to Canadian dollars and references to "US$" are to United States dollars. On April 29, 2026, the daily average exchange rate for the conversion of Canadian dollars into U.S. dollars as reported by the Bank of Canada was C$1.00 = US$0.7309. See also Item 3, "Key Information" for more detailed currency and conversion information.
FORWARD LOOKING STATEMENTS
This Annual Report contains statements that constitute "forward-looking statements". Any statements that are not statements of historical facts may be deemed to be forward-looking statements. These statements appear in a number of different places in this Annual Report and, in some cases, can be identified by words such as "anticipates", "estimates", "projects", "expects", "contemplates", "intends", "believes", "plans", "may", "will" or their negatives or other comparable words, although not all forward-looking statements contain these identifying words. Forward-looking statements in this Annual Report may include, but are not limited to, statements and/or information related to: strategy, future operations, revenues, earnings, projected costs, expected production capacity, expectations regarding demand and acceptance of our products, trends in the market in which we operate, plans and objectives of management.
Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions made in light of our experience and our perception of trends, current conditions and expected developments, as well as other factors that we believe to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumption and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the Company's ability to build Sage Ranch and the Montalva Solar Project, and to begin production deliveries within certain timelines; the Company's labor costs and material costs remaining consistent with the Company's current expectations; there being no material variations in the current regulatory environment; and the Company's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Such risks are discussed in Item 3.D "Risk Factors". In particular, without limiting the generality of the foregoing disclosure, the statements contained in Item 4.B. - "Business Overview", Item 5 - "Operating and Financial Review and Prospects" and Item 11 - "Quantitative and Qualitative Disclosures About Market Risk" are inherently subject to a variety of risks and uncertainties that could cause actual results, performance or achievements to differ significantly. Such risks, uncertainties and other factors include but are not limited to:
Although management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. These cautionary remarks expressly qualify, in their entirety, all forward-looking statements attributable to our Company or persons acting on our Company's behalf. We do not undertake to update any forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements, except as, and to the extent required by, applicable securities laws. You should carefully review the cautionary statements and risk factors contained in this Annual Report and other documents that the Company may file from time to time with the securities regulators.
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PART I
ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
A. Directors and Senior Management
Not applicable.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE
Not applicable.
ITEM 3. KEY INFORMATION
A. [Reserved]
B. Capitalization and Indebtedness
Not applicable.
C. Reasons for the offer and use of proceeds
Not applicable.
D. Risk Factors
An investment in our shares carries a significant degree of risk. You should carefully consider the following risks, as well as the other information contained in this Annual Report, including our financial statements and related notes included elsewhere in this Annual Report, before you decide to purchase our shares. Any one of these risks and uncertainties has the potential to cause material adverse effects on our business, prospects, financial condition and operating results which could cause actual results to differ materially from any forward-looking statements expressed by us and a significant decrease in the value of our common shares. Refer to "Forward-Looking Statements".
We may not be successful in preventing the material adverse effects that any of the following risks and uncertainties may cause. These potential risks and uncertainties may not be a complete list of the risks and uncertainties facing us. There may be additional risks and uncertainties that we are presently unaware of, or presently consider immaterial, that may become material in the future and have a material adverse effect on us. You could lose all or a significant portion of your investment due to any of these risks and uncertainties.
Risks Related to the Business of the Company
We must successfully develop our real estate and solar projects before we can earn revenue. None of these have any operating history and may not perform as expected.
Our Sage Ranch real estate project and our Montalva Solar Project are all in the early stages of development. None of the projects has any significant infrastructure constructed. If we are unable to complete construction of the projects, we will not be able to realize any revenues from these developments. These projects have no operating history. The ability of such projects to perform as expected will also be subject to risks inherent in newly constructed generation and transmission projects, including, but not limited to, equipment performance below the Corporation's expectations, unexpected component failures and product defects, and generation and transmission system failures and outages, as well as risks inherent in the marketing and sale of housing. The failure of some or all of the projects to perform as expected could have a material adverse effect on the Corporation's business, results of operations, financial condition and cash flows.
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We may not be able to pay Captiva Verde Wellness Corp. monthly installments as contemplated by the settlement to our joint venture agreement with them, and as a consequence Captiva Verde Wellness Corp. will continue to have a further net profits interest in and to the Sage Ranch project.
We have agreed to settle our joint venture with Captiva Verde Wellness Corp. in relation to our Sage Ranch real estate project, pursuant to which we will pay Captiva Verde Wellness Corp. the outstanding $5,591,588 in expenditures that Captiva Verde Wellness Corp. has spent on the Sage Ranch real estate project in 48 equal monthly installments of $116,491 starting on July 1, 2024, with the last payment on June 1, 2028. Once the amount has been repaid, Captiva Verde Wellness Corp. will no longer have any further net profits interest in and to the Sage Ranch project. If we are unable to meet this ongoing obligation, Captiva Verde Wellness Corp. will continue to have a further net profits interest in and to the Sage Ranch project.
We will need additional capital for future operations and if we are not able to secure any required capital, we may be forced to curtail or discontinue our operations.
Although we expect that our existing funds, together with anticipated upcoming financings, will be sufficient to sustain our operations for the next 12 months, we cannot provide any assurance that we will not require additional financing during that period to provide working capital. Moreover, it is possible that costs associated with operating our business will exceed our projections. If adequate funds are not available on acceptable terms, we may be unable to develop or enhance our products and services, take advantage of future opportunities or respond to competitive pressures, any of which could have a material adverse effect on our business, financial condition and operating results, or we may be forced to curtail or cease our operations.
The Company's development and construction activities are subject to material risks, including expenditures for projects that may prove not to be viable, construction cost overruns and delays, or other factors.
Material delays or cost overruns could be incurred by the Company and its development and construction projects as a result of vendor or contractor non-performance, technical issues with the interconnection utility, disputes with landowners or other parties, severe weather and other causes.
The Company's construction activities relating to its projects - in particular, those related to utility and power generation - utilize a variety of products and materials. The cost to the Company of such products and materials may be impacted by a number of factors beyond the Company's control, including their general availability and the impact of tariffs and duties imposed by various governmental authorities. There is generally no such recovery mechanism available for such costs. The financial condition and results of operations of the Company may be impacted as a result.
The Company's development of the Montalva Solar Project are subject to material risks, including certain estimates about the strength and consistency of the solar radiance at its location, and other factors, that are beyond the Company's control.
The Company's plans include the development and construction of the Montalva Solar Project, a proposed solar and battery photovoltaic renewable solar electricity generating facility to be located in Puerto Rico. The Company's assessment of the feasibility, revenues and profitability of the Montalva Solar Project depends upon estimates regarding the strength and consistency of the solar radiance and other factors which are beyond the Company's control. If weather patterns change or actual data proves to be materially different than estimates, the amount of electricity to be generated by the facility, and resulting revenues and profitability, may differ significantly from expected amounts.
The Company's development of the Montalva Solar Project has not been approved by the regulatory agencies of Puerto Rico, and there is no assurance that such approval can be obtained on terms acceptable to the Company, or at all.
Under the terms of its Master Renewable Power Purchasing and Operating Agreement ("PPOA"), dated December 20, 2011, and amended on March 16, 2012 (the "Master Agreement"), with Puerto Rico Electric Power Authority ("PREPA") through its Company's wholly owned subsidiary, PBJL Energy Corporation ("PBJL"), the Company filed its 100 MW AC Montalva Solar Project with PREPA ("Montalva" or the "Montalva Project") on September 5, 2013, requesting an interconnection evaluation and issuance of the project specific PPOA for Montalva included and agreed in the Master Agreement. After numerous delays by PREPA and failed attempts by the Company requesting the interconnection evaluation and issuance of a project specific PPOA for Montalva, the Company filed a Notice of Default under the Master Agreement with PREPA on September 24, 2014. PREPA responded to the Notice of Default on November 3, 2014, taking the position that it had other PPOAs issued that would exceed its system renewable capacity and could not accept any additional renewable projects and further had met its obligations under the Master Agreement. It's the Company's position that the Master Agreement is a specific performance agreement and not an option agreement at PREPA's discretion and that PREPA is liable for damages. On May 15, 2015, the Company, filed a legal action against PREPA in the courts of Puerto Rico in order to protect and enforce its rights under the Master Agreement.
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On May 19, 2020, the Company announced that it has reached an agreement with PREPA on a 25-year 80 MW PPOA for the development, construction, and operation of the Montalva Project, as a Legacy Project with preferential rights. On May 28, 2020, the Governing Board of PREPA approved the contract and on August 7, 2020, the Puerto Rico Energy Bureau of the Puerto Rico Public Service Regulatory Board ("PREB") also approved the contract. Unfortunately, the federal Financial and Oversight Board of Puerto Rico ("FOMB") limited its approval to just two projects and the Montalva contract, along with the other Legacy Projects, was not approved pending a competitive future RFP to be conducted for selecting future renewable energy projects as ordered by FOMB. As a result, the Company's claims for damages and lawsuit continued to apply.
On October 3, 2023, the Company announced that further to many years of litigation with the PREPA in both the Commonwealth and US Federal Courts, plus litigation in front of PREB, both parties executed a pro forma settlement agreement beneficial to both parties. The settlement agreement provides for, among other things: (i) PBJL withdrawing its US $951 Million claim against PREPA and its claims at PREB; (ii) energy pricing that is less than or similar to the RFP Public Tranche contracts in accordance with certain caps; (iii) providing energy storage of 36 MW; (iv) using the Montalva PPOA previously approved by PREPA and PREB in 2020 as the base document for final PPOA agreement; (v) PBJL covering the PREPA sided costs of transmission interconnection and upgrades; and (vi) using a project size of 80 MW. The settlement agreement provides the basis of a final settlement PPOA to be drafted and agreed between the parties. A final settlement PPOA with improved commercial terms was drafted and submitted to PREPA on July 2, 2024, for its concurrence before submission to PREB for its approval and then to FOMB. Following review by PREPA, PREPA formally submitted a finalized settlement PPOA with updated commercial terms consistent with the PREPA pricing target in the Tranche 4 RFP to the PREPA Governing Board on November 18, 2024. On April 4, 2025, PREPA filed an Informative Motion with PREB stating its Governing Board had rejected PBJL's proposed revisions, reapproving instead the original Settlement Agreement under its exact terms and conditions. On April 26, 2025, PREB formally approved the settlement as originally filed as final, binding and enforceable, but withheld final approval pending finalization of the PPOA and submission of the final PPOA to PREB for its final approval before submission to FOMB for its approval.
Subsequently, on October 1, 2025, PREPA issued a Notification to Submit Proposals ("RFP") for renewable energy projects in accordance with an executive order issued by the governor of Puerto Rico and Resolution and Order issued by PREB restricted to only those project that had participated in any of the prior RFP Tranches or that had ongoing negotiations on renewable energy contracts with PREPA. This RFP was initiated based on the urgency of the expiring Investment Tax Credits ("ITC") as set forth in the OBBB bill passed by Congress and signed by the president in July 2025. The pricing of energy from renewable energy projects is highly dependent on the availability of ITC and will be substantially higher once the tax credits expire. Montalva qualified for such RFP and on October 14, 2025, submitted a proposal for Montalva with greater solar capacity and larger battery storage than its settlement agreement. On November 13, 2025, PREPA submitted the proposals received, totaling eight projects, together with evaluation criteria to PREB for their review. PREB stated it would conclude its review and recommendations by December 13, 2025. Such an award for Montalva would result in greater returns for the Company than those offered by the settlement agreement and would be fast-tracked once approved in order to meet certain ITC deadlines. To date, PREB has approved three of the eight projects and has reserved the right to approve others. As time is of the essence, on March 16, 2026, the Company filed an Urgent Motion for Relief with PREB requesting PREB to order PREPA to enter into negotiations with the Company on its filing. However, there are no guarantees that such an award would become available for Montalva, and the Company would then continue to proceed with Montalva under its settlement agreement.
As PBJL is awaiting a final decision in the RFP, it is currently in the process of finalizing a settlement PPOA for resubmission to PREPA based on the original settlement commercial terms and the smaller project. The technical work on interconnection with LUMA Energy, who is the power company responsible for power distribution and power transmission in the Commonwealth of Puerto Rico, will happen under the PPOA after PREB and FOMB approval. A previous interconnection study and evaluation performed by Sargent & Lundy Engineers, under the direction of PREPA, established the availability of 80 MW of transmission capacity available for Montalva. The Company anticipates moving forward with the development of the Montalva Solar Project as soon as practicable once a settlement, or alternate, PPOA has been finalized with PREPA and submitted to PREB and FOMB for their approval. Under the current deadline for qualifying for ITC tax credits, Montalva must be operational by December 31, 2027, in order to qualify for the currently available ITC rates. There is no guarantee that FOMB will approve, or is under any obligation to approve, the final PPOA agreed with PREPA and PREB.
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In connection with our planned Montalva Solar Project, we have entered into three land lease option agreements in Puerto Rico, the respective terms of which have been extended to December 31, 2026. If the development of the Montalva Solar Project is delayed beyond that date, and we are not successful in negotiating further extensions, we would be required to identify and lease an alternative site. If we are unable to do so, we would be prevented from proceeding with the Montalva Solar Project.
In connection with the planned Montalva Solar Project, the company currently has three separate land lease option agreements covering four parcels for the construction and operation of Montalva. These parcels are located in the Municipality of Lajas. The parcels are contiguous to each other providing approximately 600 acres of land for the Montalva project. Upon execution of the options, these land leases provide for a term of twenty-five years, and such leases may be extended for up to four additional consecutive periods of five years each, at the Company's option, for the purposes of the Company developing the Montalva Project. The lease option agreements are in effect until December 31, 2026. If the development of the Montalva Solar Project is delayed beyond that date, and we are not successful in negotiating further extensions of the lease option agreements on terms that are acceptable to us, we would have to identify an alternative site suitable for the Montalva Solar Project. There is no assurance that we would be able to identify an alternative site, or that we would be able to lease any site that we do identify on terms that are acceptable to us. In either case, we would be prevented from proceeding with the Montalva Solar Project.
The Company and its planned projects, operations and personnel will be exposed to the effects of severe weather, natural disasters, diseases, and other catastrophic and force majeure events beyond the Company's control, as well as those that may be caused by climate change, and such events could result in a material adverse effect on the Company.
The Company's planned real estate development and renewable energy projects and operations will be exposed to potential interruption and damage, and partial or full loss, resulting from environmental disasters, seismic activity, equipment failures and the like. There can be no assurance that in the event of an earthquake, hurricane, tornado, fire, flood, ice storm, tsunami, typhoon, terrorist attack, cyber-attack, act of war or other natural, manmade or technical catastrophe, all or some parts of the Company's planned projects and infrastructure systems will not be disrupted. In particular, the occurrence of a significant event which disrupts the ability of the Company's planned power generation assets to produce or sell power for an extended period could have a material negative impact on the Company's business. The Company's real estate and renewable energy assets could be exposed to effects of severe weather conditions, natural and man-made disasters and potentially other catastrophic events. The occurrence of such an event may not release the Company from performing its obligations pursuant to agreements with third parties.
An outbreak of infectious disease, a pandemic, or a similar public health threat, or a fear of any of the foregoing, could adversely impact the Company by causing operating, supply chain and project development delays and disruptions, labour shortages and shutdowns (including as a result of government regulation and prevention measures), and increased costs to the Company.
Climate change is predicted to lead to increased frequency and intensity of weather events and related impacts such as storms, wildfires, flooding and storm surge. Extreme weather events create a risk of physical damage to the Company's real estate and renewable energy assets. High winds can damage structures, and cause widespread damage to transmission and distribution infrastructure. Increased frequency and severity of weather events increases the likelihood that the duration of power outages and fuel supply disruptions could increase.
The potential impacts of climate change, such as rising sea levels and larger storm surges from more intense hurricanes, can combine to produce greater damage to power generation and other facilities located in coastal areas, such as our Montalva Solar Project. Although the project is planned to be constructed, operated and maintained to minimize such damage, there can be no assurance these measures will fully mitigate the risk.
Climate change is also characterized by increases in global air temperatures. Increased air temperatures could also result in decreased efficiencies over time of both generation and transmission facilities.
These and other operating events and conditions could result in service and operational disruptions and may reduce our revenues, increase costs or both, and may materially affect our business, results of operations, financial position, valuation and cash flows, particularly if a situation is not resolved in a timely manner or the financial impacts of restoration are not alleviated through insurance policies or regulated rate recovery.
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Energy generated by the Montalva Solar Project, if completed, will be sold under a long-term power purchase agreement which will be subject to a number of conditions, the failure by the Company to comply with which could result in termination of the agreement. Any such termination could have a material adverse effect on the Company's results of operations and financial position.
Energy generated by the Montalva Solar Project, if completed, will be sold under a long-term power purchase agreement. This agreement contains customary terms including: the amount paid for energy from the project over the term of the agreement (which rate can be materially higher than prevailing market rates) and a requirement for the project to comply with technical standards and to achieve commercial operation within time frames prescribed by the contract. A failure to achieve satisfactory construction progress and/or the occurrence of any permitting or other unanticipated delays at a project could result in a failure to comply with the applicable agreement requirements within the specified time frames. Remedies for failure to comply with material provisions of the agreement generally include, among other things, the potential termination of the agreement by the non-defaulting party. Any such termination could have a material adverse effect on the Company's results of operations and financial position.
Our ability to develop our real estate and renewable energy projects depends on our ability to raise the necessary capital.
Our continued access to capital, through equity financing, project financing, credit facilities or other arrangements with acceptable terms is necessary for the development of our Sage Ranch real estate project and our Montalva Solar Project. Our attempts to secure the necessary capital may not be on favorable terms, or successful at all. In addition, debt financing, if available, may involve restrictive covenants. Our ability to arrange for financing on favorable terms, and the costs of such financing, are dependent on numerous factors, including general economic and capital market conditions, investor confidence, the continued success of current projects, the credit quality of the project being financed and the continued existence of tax laws which are conducive to raising capital. Our inability to raise capital, including on favourable terms, could have a material adverse effect on our growth prospects and financial condition.
Any additional equity financing that we may be required to obtain will be dilutive to our shareholders.
If we are unable to secure capital for our projects through credit facilities or other arrangements, we may have to finance our projects using equity financing which would have a dilutive effect on our Common Shares. We also anticipate that we may need to raise equity financing in the future to provide working capital. Any additional equity financing may be dilutive to shareholders. If additional funds are raised through the issuance of equity securities, the percentage ownership of our shareholders will be reduced, or shareholders may experience additional dilution in net book value per share.
Our Montalva Solar Project will be at financing risk if the project fails to satisfy tax incentive requirements or to meet third-party financing requirements.
The Company expects that it will rely on financing from third party tax equity investors to partially finance the construction of the Montalva Solar Project, the participation of which depends upon qualification of the project for U.S. tax incentives and satisfaction of the investors' investment criteria. These investors typically provide funding upon commercial operation of the facilities in which they invest. Should the Montalva Solar Project fail to meet the conditions required for tax equity funding, returns from the facility expected by such investors may be adversely impacted and the investors may decline to continue financing the project.
Financial leverage and restrictive covenants contained in agreements to which we might become a party may restrict our future indebtedness and limit future business dealings.
We expect that any project financing entered into for the development of our Sage Ranch real estate project and our Montalva Solar Project, will make us subject to contractual restrictions governing our future indebtedness. The degree to which we and our subsidiaries are leveraged could have important consequences to shareholders, including: (i) our ability to obtain additional financing for working capital, capital expenditures, acquisitions or other project developments may be limited; (ii) a significant portion of our future cash flows from operations may be dedicated to the payment of the principal of and interest on this indebtedness, thereby reducing funds available for future operations; and (iii) we may be more vulnerable to economic downturns and be limited in their ability to withstand competitive pressures. We expect to be made subject to operating and financial restrictions through covenants in customary loan and security agreements. These restrictions would usually prohibit or limit our, or our subsidiaries', ability to, among other things, incur additional debt, provide guarantee for indebtedness, create liens, dispose of assets, liquidate, dissolve, amalgamate, consolidate or effect any corporate or capital reorganization, make distributions or pay dividends, issue any equity interests and create subsidiaries. These restrictions may limit our and our subsidiaries' ability to obtain additional financing, withstand downturns in our business and take advantage of business opportunities. If we or a subsidiary defaults in respect of its obligations under any of the loan agreements, including without limitation servicing existing indebtedness, or to refinance any such indebtedness, lenders may be entitled to demand repayment and enforce their security against certain projects or other assets.
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The Company's planned power generation facilities, utility systems and other assets involve a variety of risks customary to the power and utilities sector which, if they materialize, could disrupt or adversely affect its business, results of operations, financial position and cash flows.
The Company's ability to safely and reliably operate, maintain, construct and decommission (as applicable) its planned power generation facilities, utility systems and other assets involve a variety of risks customary to the power and utilities sector, many of which are beyond the Company's control, including those that arise from:
• casualty or other significant events such as fires, explosions, security breaches or drinking water contamination;
• commodity supply and transmission constraints or interruptions;
• workplace and public safety events;
• loss of key personnel;
• labour disputes;
• employee performance/workforce effectiveness;
• improper or erroneous acts of employees;
• demand (including seasonality);
• loss of key customers;
• reduction in the price received for services;
• reliance on transmission systems and facilities operated by third parties;
• land use rights/access;
• critical equipment breakdown or failure;
• lower-than-expected levels of efficiency or operational performance;
• acts by third parties, including cyber-attacks, criminal acts, vandalism, war and acts of terrorism;
• projects with a limited operating history;
• opposition by external stakeholders, including local groups, communities and landowners;
• commodity price fluctuations;
• lower prices for alternative fuel sources; and
• the Company's reliance on subsidiaries.
These and other operating events and conditions could result in service and operational disruptions and may reduce the Company's revenues, increase costs or both, and may materially affect its business, results of operations, financial position, valuation and cash flows, particularly if a situation is not resolved in a timely manner or the financial impacts of restoration are not alleviated through insurance policies or regulated rate recovery.
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It is costly to construct solar power facilities and bring them into commercial production.
Before the sale of any power can occur, we must construct all the necessary infrastructure to produce power, including a power plan, battery storage system and a transmission line. Considerable construction and administrative costs will need to be incurred before any revenue from power sales is received. To fund expenditures of this magnitude, we will need to seek additional financing and sources of capital. There can be no assurance that additional capital can be found and, even if found, the Company may still have to substantially reduce its interest in the project if the amount of additional capital proves to be inadequate.
It is costly to construct and sell residential real estate developments.
Before the sale of any home at Sage Ranch, we must construct all the necessary infrastructure, including streets, traffic signals, dry and wet utilities, sewer and drainage, and then construct homes after buyers are identified. Considerable construction and administrative costs will need to be incurred before any revenue from home sales is received. To fund expenditures of this magnitude, we may need to seek additional financing and sources of capital. There can be no assurance that additional capital can be found.
The Company is dependent on its operating subsidiaries.
The Company is a holding company with no business operations of its own or material assets other than the shares of its subsidiaries. Accordingly, all of its operations are conducted by indirect subsidiaries. As a holding company, the Company requires dividends and other payments from its subsidiaries to meet cash requirements. While the Company anticipates that its subsidiaries will have sufficient cash flow to enable such subsidiaries to pay dividends or otherwise distribute cash, the terms of loan and security agreements may contain restrictions on the ability of subsidiaries to pay dividends and otherwise transfer cash or other assets in certain circumstances. As such, a decline in the business, financial condition, cash flows or results of operation of any of the Company's subsidiaries may result in restrictions on such subsidiaries' ability to pay dividends or otherwise distribute cash.
Housing prices are subject to fluctuations that are beyond the Company's control.
The market price for housing can be volatile. If the price should drop significantly, the economic prospects of the Company's Sage Ranch real estate project could be significantly reduced. If the cost of constructing each home exceeds the price the market can support, then the construction of new homes will have to cease and be resumed if the market price exceeds the construction costs.
Environmental and other regulatory requirements may add costs and uncertainty.
The Company's existing and planned operations require licenses and permits from various governmental authorities, and such operations are and will be subject to laws and regulations governing development, taxes, labor standards, occupational health, waste disposal, toxic substances, land use, environmental protection, project safety and other matters. The Company can experience increased costs, and delays in production and other schedules, as a result of the need to comply with applicable laws, regulations, licenses and permits. There is no assurance that all approvals or required licenses and permits will be obtained. Failure to comply with applicable laws, regulations, licensing or permitting requirements may result in enforcement actions, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. The Company may be required to compensate those suffering loss or damage by reason of its activities, and may have civil or criminal fines or penalties imposed upon it for violations of applicable laws or regulations.
Applicable laws and regulations, including environmental requirements and licensing and permitting processes, may require public disclosure and consultation. It is possible that a legal protest could be triggered through one of these requirements or processes that could delay, or require the suspension of the development of our real estate or renewable energy projects, or the operation of our renewable energy projects, and increase the Company's costs.
No assurance can be given that new laws and regulations will not be enacted or that existing laws and regulations will not be applied in a manner that could limit or curtail the Company's development or operation of our planned projects. Amendments to current laws, regulations, licenses and permits governing operations, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in capital expenditures or production costs, or reduction in levels of production.
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There can be no assurance that existing permits will be renewed or that new permits required to advance or operate our planned projects will be granted.
The Company's operations are required to maintain permits issued by governments and agencies that govern overall facility construction or operations. If the Company is unable to renew existing permits or obtain new permits, then there may be adverse effects, such as loss of revenue and/or capital expenditures to enable long-term operations, potentially under different operating profiles.
The Company's officers and directors may have conflicts of interest arising out of their relationships with other companies.
Several of the Company's directors and officers serve (or may agree to serve) as directors or officers of other companies, or have significant shareholdings in other companies. To the extent that such other companies may participate in ventures in which the Company participates, the directors and officers may have a conflict of interest in negotiating and concluding terms respecting the extent of such participation, or in resolving disputes that may arise between the Company and the other companies. Although our officers and directors are subject to certain fiduciary duties to our Company under applicable corporate law, they will not necessarily be required to give the Company consideration with respect to every opportunity of which they may become aware. Although the Company is not aware of any specific conflicts of interest involving any of its directors or officers at the present time (other than the involvement of Messrs. Ciachurski, Balic and Boyd in Captiva Verde Wellness Corp., as discussed below), there is a possibility that our directors and/or officers may be in a position of conflict in the future.
Our chief executive officer, our chief financial officer and two directors also serve as executive officers and directors of Captiva Verde Wellness Corp., which is a party to a former joint venture with our Company that has recently been settled in relation to the Sage Ranch Real Estate Project, and one of our directors also serves as a director of that company, which could adversely affect their respective abilities to act impartially and in the best interests of our Company should a dispute arise between the Company and Captiva Verde Wellness Corp.
Captiva Verde Wellness Corp. ("Captiva") is considered a related party as the Chief Executive Officer of the Company, Jeffrey Ciachurski, is also the chairman of Captiva, Anthony Balic the Chief Financial Officer of the Company is also the Chief Financial Officer of Captiva, Mike Boyd being a director of both companies and Brian Conlan who is a Board member of the Company is the Chief Executive Officer of Captiva. Captiva, is a Canadian public company listed on the Canadian Securities Exchange which is party to a former joint venture with our Company that has recently been settled in relation to the Sage Ranch Real Estate Project, As part of the settlement of the joint venture, we will pay Captiva Verde Wellness Corp. the outstanding $5,591,588 in expenditures that Captiva Verde Wellness Corp. has spent on the Sage Ranch real estate project in 48 equal monthly installments of $116,491 starting on July 1, 2024, with the last payment on June 1, 2028. During the year ended December 31, 2024, $1,000,000 of the payable was settled for issuance of 2,197,802 common shares of the Company. On March 13, 2026, the Company issued 1,250,000 common shares to settle $625,000 of the JV Settlement obligation with Captiva. Once the remaining amount has been repaid, Captiva Verde Wellness Corp. will no longer have any further net profits interest in and to the Sage Ranch project. In accordance with applicable corporate laws, the directors and officers of the Company are required to act honestly, in good faith and in the best interests of the Company. In addition, a director is required to abstain from voting in respect of any matter in which the director has a conflict of interest, after disclosing such interest. Given their involvement with Captiva Verde Wellness Corp., Messrs. Ciachurski, Balic, Conlan and Boyd, may not be in a position to act impartially and in the sole best interests of the Company if a dispute were to arise between the Company and Captiva Verde Wellness Corp., whether in connection with the ongoing payments to Captiva Verde Wellness Corp. as part of the settlement of the joint venture or otherwise. In addition, the Company's ability to resolve any such dispute could be adversely affected if any of Messrs. Ciachurski, Balic, Conlan or Boyd were required to abstain from negotiations between the parties or in any Company management or board decision-making in relation thereto.
Insurance policies may be insufficient to cover losses.
As protection against operating hazards, the Company intends to maintain insurance coverage against some, but not all, potential losses. The Company may not fully insure against all risks associated with its business either because such insurance is not available or because the cost of such coverage is considered prohibitive. The occurrence of an event that is not covered, or not fully covered, by insurance could have a material adverse effect on the Company's financial
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Security breaches, criminal activity, theft, terrorist attacks, cyber-attacks and other threats or incidents relating to the Company's information security could directly or indirectly interfere with the Company's operations, could expose the Company or its customers or employees to risk of loss, and could expose the Company to liability, regulatory penalties, reputational damage and other harm to its business.
The Company relies upon information technology networks, systems and devices to process, transmit and store electronic information, and to manage and support a variety of business processes and activities. The Company also uses information technology systems to record, process and summarize financial information and results of operations for internal reporting purposes and to comply with financial reporting, legal and tax requirements. The Company's technology networks, systems and devices collect and store sensitive data, including system operating information, proprietary business information belonging to the Company and third parties, as well as personal information belonging to the Company's customers and employees.
The Company's or its third-party vendor's information systems and information technology networks, devices and infrastructure may be vulnerable to damage, disruptions or shutdowns due to attacks by hackers or breaches due to employee error or malfeasance, disruptions during software or hardware upgrades, telecommunication failures, theft, natural disasters or other similar events. In addition, certain sensitive information and data may be stored by the Company in physical files and records on its premises or transmitted to the Company verbally, subjecting such information and data to a risk of loss, theft and misuse. The occurrence of any of these events could impact the reliability of the Company's planned power generation facilities and planned utility distribution systems; could expose the Company, its customers or its employees to a risk of loss or misuse of information; and could result in legal claims or proceedings, liability or regulatory penalties against the Company, damage the Company's reputation or otherwise harm the Company's business.
The Company cannot accurately assess the probability that a security breach may occur or accurately quantify the potential impact of such an event. The Company can provide no assurance that it will be able to identify and remedy all cybersecurity, physical security or system vulnerabilities or that unauthorized access or errors will be identified and remedied.
The loss of key personnel, the inability to engage and retain qualified officers, and labor disruptions could adversely affect the Company's business, financial position and results of operations.
The Company's operations depend on the continued efforts of its officers. Engaging and retaining key personnel and maintaining the ability to attract new personnel are important to the Company's operational and financial performance. The Company cannot guarantee that any member of its management or any one of its key personnel will continue to serve in any capacity for any particular period of time or that any leadership transitions will be successful.
Certain events or conditions, such as an aging workforce, epidemic, pandemic or similar public health emergency, mismatch of skill set or complement to future needs, or unavailability of contract resources may lead to operating challenges, labor disruption and increased costs. The challenges the Company might face as a result of such risks include a lack of resources, losses to its knowledge base and the time required to develop new workers' skills. In any such case, costs, including costs for contractors to replace personnel, productivity costs and safety costs may rise. If the Company is unable to successfully attract and retain an appropriately qualified workforce, its financial position or results of operations could be negatively affected.
The maintenance of a productive and efficient labor environment without disruptions cannot be assured. In the event of a strike, work stoppage or other form of labor disruption, the Company would be responsible for procuring replacement labor and could experience disruptions in its operations and incur additional expense.
There is a risk that our leases will not be renewed.
The Company does not own all of the land on which its projects are located. Such projects generally are, and future projects may be, located on land occupied under long-term easements, leases and rights of way. We generally expect that our leases will be renewed. However, if we are not granted renewal rights, or if our leases are renewed subject to conditions which impose additional costs, or impose additional restrictions such as setting a price ceiling for energy sales, our profitability and operational activity could be adversely impacted. Our use and enjoyment of real property rights for our planned renewable energy facilities may be adversely affected by the rights of lienholders and leaseholders that are superior to those of the grantors of those real property rights to us.
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The Company may experience critical equipment breakdown or failure, which could have a material adverse effect on the Company's financial condition, results of operations, liquidity, reputation and ability to make distributions
The Company's planned facilities will be subject to the risk of critical equipment breakdown or failure and lower-than-expected levels of efficiency or operational performance due to the deterioration of assets from use or age, latent defect and design or operator error, among other things. These and other operating events and conditions could result in service disruptions and, to the extent that a facility's equipment requires longer than forecasted down times for maintenance and repair, or suffers disruptions of power generation, distribution or transmission for other reasons, the Company's business, operating results, financial condition or prospects could be adversely affected. In addition, a portion of the Company's infrastructure will be located in remote areas, which may make access to perform maintenance and repairs difficult if such assets become damaged.
Disruption in the Company's supply chain may have a material adverse effect on the Company's business, results of operation, financial condition and cash flows.
The Company's ability to operate effectively is in part dependent upon timely access to equipment, materials and service suppliers. Loss of key equipment, materials and service suppliers, and the reputational and financial risk exposures of key vendors, could affect the Company's operations and execution and profitability of capital projects. Manufacturing and delivery delays could adversely affect its projects, including (a) causing a delay in completion of a project, or (b) adversely impacting the availability of tax equity or other financing.
Challenges to the Company's tax positions, and changes in applicable tax laws, could materially and adversely affect returns to the Company's shareholders.
The Company conducts business and files tax returns in several different tax jurisdictions. The Company regularly assesses its tax positions, as well as the likely outcomes of its tax positions, with the benefit of such advice from its professional tax advisers as management deems appropriate. However, any tax authority could take a position on tax treatment that is contrary to the Company's expectations, which could result in additional tax liabilities. In addition, changes in tax laws or regulations could negatively impact the Company's effective tax rate and results of operations.
The Company makes certain judgments, estimates and assumptions that affect amounts reported in its consolidated financial statements, which, if not accurate, may adversely affect its financial results.
In preparation of the Company's consolidated financial statements, management is required to make significant judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, net earnings (if any) and related disclosures. Although management believes that the amounts reported in its consolidated financial statements are reasonable, some uncertainty is inherent in these judgments, estimates and assumptions. If any material amounts so reported are determined to be inaccurate due to errors in judgment, estimates or assumptions, this could have a material adverse effect on the Company's financial results.
The Company's operations are and will be subject to numerous health and safety laws and regulations that could adversely affect its business, financial condition and results of operations.
The operation of the Company's planned facilities will require adherence to safety standards imposed by regulatory bodies. These laws and regulations will require the Company to obtain approvals and maintain permits, undergo environmental impact assessments and review processes and implement environmental, health and safety programs and procedures to control risks associated with the siting, construction, operation and decommissioning of real estate and renewable energy projects. Failure to develop its projects or, in the case of the Company's renewable energy projects, to operate the facilities, in strict compliance with these regulatory standards may expose the Company to claims and administrative sanctions.
Health and safety laws, regulations and permit requirements may change or become more stringent. Any such changes could require the Company to incur materially higher costs than the Company has incurred to date or that it expects to incur in the future. The Company's costs of complying with current and future health and safety laws, regulations and permit requirements, and any liabilities, fines or other sanctions resulting from violations of them, could adversely affect its business, financial condition and results of operations.
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The Company has a single customer for its Montalva Solar Project. The loss of that customer or the failure to secure new power purchase agreements or renew existing agreements could material adversely impact the Company.
All of the proposed output of the Montalva Solar Project is to be sold under a long-term power purchase agreement with a single purchaser obligated to purchase all of the output of the facility. The termination or expiry of that purchase agreement, unless replaced or renewed on equally favourable terms, would adversely affect the Company's results of operations and cash flows and increase the Company's exposure to risks of price fluctuations in the wholesale power market. If, for any reason, the purchaser of our power is unable or unwilling to fulfill their contractual obligations under the power purchase agreement, or if they refuse to accept delivery of power, our assets, liabilities, business, financial condition, results of operations and cash flow could be materially and adversely affected. External events, such as a severe economic downturn, could impair the ability of our customer to pay for electricity received.
The development and completion of the Montalva Solar Project will require the engagement of a third-party engineering, procurement and construction company that the Company will have to rely on to meet the construction timeline and milestones required by the project lenders.
The Company will hire a third-party engineering, procurement and construction ("EPC") company to build and complete the Montalva Solar Project. It is customary that such EPC companies post financial security in the form of cashable letters of credit to mitigate financial risk in the event the EPC company of record cannot complete the project in accordance with the construction timeline and milestones required by the project lenders, and it is determined that the EPC company must be replaced with another EPC company. There is no assurance that any such financial security would be adequate to fully mitigate this risk, or that it would be sufficient to facilitate the replacement of the defaulting EPC company with a suitable successor.
The development and completion of the Sage Ranch real estate project will require the engagement of a general contractor company that the Company will have to rely on to meet the construction timeline and milestones required by the project lenders.
The Company will hire a third-party general contractor ("GC") company to build and complete the Sage Ranch real estate project. It is customary that such GC companies post financial security in the form of cashable letters of credit to mitigate financial risk in the event the GC company of record cannot complete the project in accordance with the construction timeline and milestones required by the project lenders, and it is determined that the GC company must be replaced with another GC company. There is no assurance that any such financial security would be adequate to fully mitigate this risk, or that it would be sufficient to facilitate the replacement of the defaulting GC company with a suitable successor.
Risks Related to Financing
Our ability to finance our operations is subject to various risks, including the state of the capital markets.
We expect to finance the development and construction of our existing real estate and renewable energy projects, future acquisitions and other capital expenditures with debt, possible future issuances of equity, capital recycling, and, once we achieve revenues, cash generated from our operations. Our ability to obtain debt or equity financing to fund our existing operations and future growth is dependent on, among other factors, the overall state of the capital markets (as well as local market conditions, particularly in the case of non-recourse financings), operating performance of our assets, future electricity market prices, the level of future interest rates, lenders' and investors' assessment of our credit risk, and investor appetite for investments in real estate projects and renewable energy and infrastructure assets in general. To the extent that external sources of capital become limited or unavailable or available on onerous terms, our ability to make necessary capital investments to construct new or maintain existing facilities will be impaired, and as a result, our business, financial condition, results of operations and prospects may be materially and adversely affected.
Current global financial conditions have been subject to increased volatility.
Current global financial conditions have been subject to increased volatility. If these increased levels of volatility and market turmoil continue, the Company's ability to obtain equity or debt financing in the future and, if obtained, on terms reasonably acceptable to it, and its operations, could be adversely impacted. In addition, the trading price of the Company's Common Shares could be adversely affected.
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Risks Related to our Common Shares
If the share price of the Company's Common Shares fluctuates, investors could lose a significant part of their investment.
In recent years, the stock market has experienced significant price and volume fluctuations. This volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to the operating performance of these companies. The market price of the Company's Common Shares could similarly be subject to wide fluctuations in response to a number of factors, most of which the Company cannot control, including:
• changes in securities analysts' recommendations and their estimates of the Company's financial performance;
• the public's reaction to the Company's press releases, announcements and filings with securities regulatory authorities, and those of its competitors;
• changes in market valuations of similar companies;
• investor perception of the Company's industry or prospects;
• additions or departures of key personnel;
• commencement of or involvement in litigation;
• changes in environmental and other governmental regulations;
• announcements by the Company or its competitors of strategic alliances, significant contracts, new technologies, acquisitions, commercial relationships, joint ventures or capital commitments;
• variations in the Company's quarterly results of operations or cash flows or those of other companies;
• operating results failing to meet the expectations of securities analysts or investors;
• future issuances and sales of the Common Shares of the Company; and
• changes in general conditions in the domestic and worldwide economies, financial markets or the mining industry.
The impact of any of these risks and other factors beyond the Company's control could cause the market price of the Common Shares to decline significantly. In particular, the market price for the Common Shares may be influenced by variations in electricity prices. This may cause the price of the Common Shares to fluctuate with these underlying commodity prices, which are highly volatile.
As a foreign private issuer, the Company is subject to different U.S. securities laws and rules than a domestic U.S. issuer, which may limit the information publicly available to shareholders.
The Company is a "foreign private issuer," as such term is defined in Rule 405 under the United States Securities Act of 1933, as amended, and Rule 3b-4 under the United States Securities Exchange Act of 1934, as amended (the "U.S. Exchange Act"), and will be permitted to prepare its financial statements (including those contained in its annual reports filed under the U.S. Exchange Act on Form 20-F or, if available, on Form 40-F) in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board. The Company's financial statements therefore may not be comparable to financial statements of U.S. domestic companies, which are required to be prepared in accordance with United States generally accepted accounting principles. In addition, the Company will not be required to file quarterly reports on Form 10-Q or current reports on Form 8-K that a U.S. domestic issuer would file with the United States Securities and Exchange Commission (the "SEC"), although the Company will be required to file or furnish to the SEC the continuous disclosure documents that it is required to file in Canada under Canadian securities laws.
Furthermore, the Company's officers, directors, and principal shareholders will be exempt from the reporting and "short swing" profit recovery provisions of Section 16 of the U.S. Exchange Act. Therefore, the Company's shareholders may not know on as timely a basis when the Company's officers, directors and principal shareholders purchase or sell shares, as the reporting deadlines under the corresponding Canadian insider reporting requirements are longer.
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As a foreign private issuer, the Company will also be exempt from the rules and regulations under the U.S. Exchange Act related to the furnishing and content of proxy statements. The Company will also be exempt from Regulation FD, which prohibits issuers from making selective disclosures of material non-public information. While the Company will comply with the corresponding requirements relating to proxy statements and disclosure of material non-public information under Canadian securities laws, these requirements differ from those under the U.S. Exchange Act and Regulation FD, and shareholders should not expect to receive the same information at the same time as such information is provided by U.S. domestic companies.
As an "emerging growth company" under applicable law, we will be subject to lessened disclosure requirements. Such reduced disclosure may make our common shares less attractive to investors.
We are an "emerging growth company" as defined in the SEC's rules and regulations, and we will remain an emerging growth company until the earlier of: (1) the last day of the fiscal year (a) following the fifth anniversary of the date of the first sale of our common equity securities pursuant to an effective registration statement under the U.S. Securities Act, (b) in which we have total annual gross revenue of at least US$1.235 billion or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common shares that is held by non-affiliates exceeds US$700 million as of the prior June 30th; and (2) the date on which we have issued more than US$1.0 billion in non-convertible debt during the prior three-year period. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:
• not being required to comply with the auditor attestation requirements under Section 404 of the Sarbanes-Oxley Act in the assessment of our company's internal control over financial reporting;
• not being required to comply with any requirement that has or may be adopted by the Public Company Accounting Oversight Board (PCAOB) regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements; and
Because of these lessened regulatory requirements, our shareholders would be left without information or rights available to shareholders of more mature companies. If some investors find our Common Shares less attractive as a result, there may be a less active trading market for such securities and their market prices may be more volatile.
We will continue to incur increased costs as a result of operating as a U.S. public company, and our management will be required to continue to devote substantial time to compliance initiatives.
As a U.S. public company, and particularly after we are no longer an emerging growth company, we will incur significant legal, accounting and other expenses that we did not incur prior to the registration of our common shares as a class under section 12(g) of the Exchange Act. In addition, the Sarbanes-Oxley Act of 2002, and rules subsequently implemented by the SEC have imposed various requirements on public companies, including establishment and maintenance of effective disclosure and financial controls and corporate governance practices. Our management and other personnel will need to continue to devote a substantial amount of time to these compliance initiatives. Moreover, these rules and regulations have increased our legal and financial compliance costs and have made some activities more time-consuming and costly.
Pursuant to Section 404, we are required to furnish a report by our management on our internal control over financial reporting. However, while we remain an emerging growth company, we will not be required to include an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. To comply with Section 404, we must document and evaluate our internal control over financial reporting, which is both costly and challenging. In this regard, we will need to continue to dedicate internal resources, potentially engage outside consultants and adopt a detailed work plan to assess and document the adequacy of internal control over financial reporting, continue steps to improve control processes as appropriate, validate through testing that controls are functioning as documented and implement a continuous reporting and improvement process for internal control over financial reporting. Despite our efforts, there is a risk we will not be able to conclude within the prescribed timeframe that our internal control over financial reporting is effective as required by Section 404. This could result in an adverse reaction in the financial markets due to a loss of confidence in the reliability of our financial statements.
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The issuance of additional equity securities may negatively impact the trading price of Common Shares.
The Company may issue equity securities to finance its activities in the future. In addition, outstanding options or warrants to purchase the Common Shares may be exercised, resulting in the issuance of additional Common Shares. The issuance of additional equity securities or a perception that such an issuance may occur could have a negative impact on the trading price of the Common Shares.
ITEM 4. INFORMATION ON THE COMPANY
A. History and development of the Company
We were incorporated on April 2, 2009, under the laws of the Province of British Columbia, Canada pursuant to the Business Corporations Act (British Columbia) under the name "Greenbriar Capital Corp." Effective on November 15, 2023, we changed our name to "Greenbriar Sustainable Living Inc."
Our head office is located at, and our principal address is, 632 Foster Avenue Coquitlam, British Columbia, Canada V3J 2L7. Our registered and records office is located at Suite 1500 - 1055 West Georgia Street, Vancouver, BC V6E 4N7.
On September 18, 2009, we completed our initial public offering and our Common Shares were listed on the TSX Venture Exchange (the "TSXV"). We were initially listed as a "Capital Pool Company" (or "CPC") under the policies of the TSXV - that is, a newly-created company with no assets, other than cash, and no established business plan, and listed on the TSXV with the purpose of identifying and evaluating assets or businesses which, if acquired by means of a "Qualifying Transaction" (as defined in TSXV policies), would qualify the CPC for listing as a regular Tier 1 Issuer or Tier 2 Issuer on the TSXV. (Tier 1 is the TSXV's premier tier and is reserved for the TSXV's most advanced listed companies with the most significant financial resources.)
Our principal activity is the acquisition, development, operation and possible sale of commercial, residential, industrial, and renewable energy related real estate and energy projects in North America.
Our most advanced development project is Sage Ranch, a 995-home entry level housing project, located on 138 acres of residential real estate located in Tehachapi, California, USA. As discussed in more detail below under the heading "Sage Ranch Sustainable Real Estate Development," our arm's length acquisition on September 27, 2011 of the vacant land which now comprises Sage Ranch was approved by the TSXV on October 6, 2011 as our Qualifying Transaction, and qualified us for regular listing on the TSXV as a Tier 2 real estate issuer.
We are also pursuing our Montalva Solar Project, a proposed solar and battery photovoltaic renewable generating facility, to be located in municipalities of Guanica and Lajas, Puerto Rico. However, as described in more detail below, the project has experienced delays and has been subject to ongoing disputes.
Under the terms of its Master Renewable Power Purchasing and Operating Agreement ("PPOA"), dated December 20, 2011, and amended on March 16, 2012 (the "Master Agreement"), with Puerto Rico Electric Power Authority ("PREPA") through its Company's wholly owned subsidiary, PBJL Energy Corporation ("PBJL"), the Company filed its 100 MW AC Montalva Solar Project with PREPA ("Montalva" or the "Montalva Project") on September 5, 2013, requesting an interconnection evaluation and issuance of the project specific PPOA for Montalva included and agreed in the Master Agreement. After numerous delays by PREPA and failed attempts by the Company requesting the interconnection evaluation and issuance of a project specific PPOA for Montalva, the Company filed a Notice of Default under the Master Agreement with PREPA on September 24, 2014. PREPA responded to the Notice of Default on November 3, 2014, taking the position that it had other PPOAs issued that would exceed its system renewable capacity and could not accept any additional renewable projects and further had met its obligations under the Master Agreement. It's the Company's position that the Master Agreement is a specific performance agreement and not an option agreement at PREPA's discretion and that PREPA is liable for damages. On May 15, 2015, the Company, filed a legal action against PREPA in the courts of Puerto Rico in order to protect and enforce its rights under the Master Agreement.
On May 19, 2020, the Company announced that it has reached an agreement with PREPA on a 25-year 80 MW PPOA for the development, construction, and operation of the Montalva Project, as a Legacy Project with preferential rights. On May 28, 2020, the Governing Board of PREPA approved the contract and on August 7, 2020, the Puerto Rico Energy Bureau of the Puerto Rico Public Service Regulatory Board ("PREB") also approved the contract. Unfortunately, the federal Financial and Oversight Board of Puerto Rico ("FOMB") limited its approval to just two projects and the Montalva contract, along with the other Legacy Projects, was not approved pending a competitive future RFP to be conducted for selecting future renewable energy projects as ordered by FOMB. As a result, the Company's claims for damages and lawsuit continued to apply.
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On October 3, 2023, the Company announced that further to many years of litigation with the PREPA in both the Commonwealth and US Federal Courts, plus litigation in front of PREB, both parties executed a pro forma settlement agreement beneficial to both parties. The settlement agreement provides for, among other things: (i) PBJL withdrawing its US $951 Million claim against PREPA and its claims at PREB; (ii) energy pricing that is less than or similar to the RFP Public Tranche contracts in accordance with certain caps; (iii) providing energy storage of 36 MW; (iv) using the Montalva PPOA previously approved by PREPA and PREB in 2020 as the base document for final PPOA agreement; (v) PBJL covering the PREPA sided costs of transmission interconnection and upgrades; and (vi) using a project size of 80 MW. The settlement agreement provides the basis of a final settlement PPOA to be drafted and agreed between the parties. A final settlement PPOA with improved commercial terms was drafted and submitted to PREPA on July 2, 2024, for its concurrence before submission to PREB for its approval and then to FOMB. Following review by PREPA, PREPA formally submitted a finalized settlement PPOA with updated commercial terms consistent with the PREPA pricing target in the Tranche 4 RFP to the PREPA Governing Board on November 18, 2024. On April 4, 2025, PREPA filed an Informative Motion with PREB stating its Governing Board had rejected PBJL's proposed revisions, reapproving instead the original Settlement Agreement under its exact terms and conditions. On April 26, 2025, PREB formally approved the settlement as originally filed as final, binding and enforceable, but withheld final approval pending finalization of the PPOA and submission of the final PPOA to PREB for its final approval before submission to FOMB for its approval.
Subsequently, on October 1, 2025, PREPA issued a Notification to Submit Proposals ("RFP") for renewable energy projects in accordance with an executive order issued by the governor of Puerto Rico and Resolution and Order issued by PREB restricted to only those project that had participated in any of the prior RFP Tranches or that had ongoing negotiations on renewable energy contracts with PREPA. This RFP was initiated based on the urgency of the expiring Investment Tax Credits ("ITC") as set forth in the OBBB bill passed by Congress and signed by the president in July 2025. The pricing of energy from renewable energy projects is highly dependent on the availability of ITC and will be substantially higher once the tax credits expire. Montalva qualified for such RFP and on October 14, 2025, submitted a proposal for Montalva with greater solar capacity and larger battery storage than its settlement agreement. On November 13, 2025, PREPA submitted the proposals received, totaling eight projects, together with evaluation criteria to PREB for their review. PREB stated it would conclude its review and recommendations by December 13, 2025. Such an award for Montalva would result in greater returns for the Company than those offered by the settlement agreement and would be fast-tracked once approved in order to meet certain ITC deadlines. To date, PREB has approved three of the eight projects and has reserved the right to approve others. As time is of the essence, on March 16, 2026, the Company filed an Urgent Motion for Relief with PREB requesting PREB to order PREPA to enter into negotiations with the Company on its filing. However, there are no guarantees that such an award would become available for Montalva, and the Company would then continue to proceed with Montalva under its settlement agreement.
As PBJL is awaiting a final decision in the RFP, it is currently in the process of finalizing a settlement PPOA for resubmission to PREPA based on the original settlement commercial terms and the smaller project. The technical work on interconnection with LUMA Energy, who is the power company responsible for power distribution and power transmission in the Commonwealth of Puerto Rico, will happen under the PPOA after PREB and FOMB approval. A previous interconnection study and evaluation performed by Sargent & Lundy Engineers, under the direction of PREPA, established the availability of 80 MW of transmission capacity available for Montalva. The Company anticipates moving forward with the development of the Montalva Solar Project as soon as practicable once a settlement, or alternate, PPOA has been finalized with PREPA and submitted to PREB and FOMB for their approval. Under the current deadline for qualifying for ITC tax credits, Montalva must be operational by December 31, 2027, in order to qualify for the currently available ITC rates. The Company anticipates moving forward with the development of the Montalva Solar Project as soon as practicable once the settlement PPOA, or alternate PPOA, is approved by PREPA, PREB and FOMB. There is no guarantee that FOMB will approve, or is under any obligation to approve, the final PPOA agreed with PREPA and PREB.
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The following table summarizes the current status of our Sage Ranch sustainable real estate project and the Montalva Solar Project:
|
Project |
Current Status |
Next Steps |
|
Sustainable Real Estate Development Project - California |
||
|
Sage Ranch Sustainable Real Estate Project |
|
|
|
Renewable Energy - Puerto Rico |
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| Montalva Solar Project |
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Additional information related to us is available on SEDAR+ at www.sedarplus.ca and www.greenbriarliving.com. We do not incorporate the contents of our website or of sedarplus.ca into this Annual Report. Information on our website does not constitute part of this Annual Report. In addition, the SEC maintains an internet site that contains periodic reports, proxy and information statements (which are furnished to the SEC on Form 6-K, as we are not subject to SEC proxy solicitation rules), and other information regarding issuers that file electronically with the SEC which can be viewed as www.sec.gov.
B. General Description of Business
The Company's business focus is the acquisition, permitting, zoning, management, development, construction and sale of commercial, industrial and sustainable residential real estate; plus the development, financing, construction and operation of renewable energy facilities in North America. Greenbriar is listed as a Tier 2 Issuer on the TSXV under the symbol "GRB".
Sage Ranch Real Estate Project
On September 27, 2011 the Company acquired real property in Tehachapi, California, USA as its Qualifying Transaction under the policies of the TSXV. The purchase price for the property was US $1,040,000 for an aggregate of 161 acres of which 133 acres comprised Sage Ranch, with an approval to be divided into 689 lots on 133 acres. The Company expanded this holding by 5 acres to 138 acres, and received final City Council approval on September 12, 2021 to build 995 homes. On November 26, 2019, we acquired the additional 5-acres from the County Government, for a total of 138 acres (collectively, the "Property"), in consideration for the transfer of the non-Sage Ranch parcel of 28 acres. The Property is held by the Company through its indirect, wholly-owned subsidiary, Greenbriar Capital (U.S.) LLC.
On October 1, 2017, the Company entered into an agreement with Captiva Verde Wellness Corp. ("Captiva") - then known as Captiva Verde Land Corp. - to sell a 50% undivided interest in the Property. Captiva is a Canadian public company whose common shares are listed for trading on the Canadian Securities Exchange under the symbol "PWR"; its common shares are also quoted on the OTC Pink Market under the symbol "CPIVF. The CEO of the Company, Jeffrey Ciachurski, is also the CEO of Captiva and the CFO of the Company Anthony Balic, is also the CFO of Captiva and Michael Boyd, a director of the Company, is also a director of the Captiva. On October 6, 2018, the Company completed the agreement and received 10,687,500 common shares of Captiva and $112,500 in a one-year interest-free promissory note (which has been paid) for total consideration of $1,181,250. On August 10, 2020, the Company modified its agreement with Captiva into a joint venture whereby the Company retained sole title to the Property and Captiva would fund all development expenditures for a 50% net profits interest.
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On March 30, 2022, the Company executed a US$40,000,000 mandate agreement with Voya Investment Management (Voya IM), LLC ("Voya"), the asset management business of Voya Financial, Inc., which has been amended from time to time with the latest amendment entered into on November 25, 2025, for a senior secured construction loan for the construction of the 995 home Sage Ranch sustainable master planned community project in Tehachapi in Southern California. Voya will receive a bonus of 2 million (3-year) warrants at $1.25 per share at closing, or the same amount plus a US$1,000,000 cash break-up fee if we chose another lender. On April 2, 2024, Voya furnished a letter to the Company that does not constitute a commitment to lend but sets forth certain indicative terms and conditions upon which Voya will use commercially reasonable efforts to structure and provide the proposed financing.
On June 22, 2023 and amended on August 21, 2023, the Company entered into an agreement with Captiva whereby the Company will pay Captiva the outstanding $5,591,588 in 48 equal monthly installments of $116,491 starting on July 1, 2024, with the last payment on June 1, 2028. Once the amount has been repaid, Captiva will no longer have any further net profits interest in and to the Sage Ranch project. During the year ended December 31, 2024, the Company settled $1,000,000 of the Captiva payable in exchange for the issuance of 2,197,802. On March 13, 2026, the Company issued 1,250,000 common shares to settle $625,000 of the JV Settlement obligation with Captiva.
Project Overview
Sage Ranch is being developed on the Property as a sustainable entry-level residential real estate development, and is the Company's most advanced development project. It is to be constructed under a Final Master Development Plan that emphasizes a responsible sustainable approach to the planned community. The following table summarizes the proposed features of Sage Ranch:
| Maximum total number of housing units | 995 |
| Proposed home construction | Mixture of single-family homes, townhomes, cottage homes and apartments |
| Average building size | Single family homes (between 1,650 and 2,500 square feet) Townhomes (between 1,250 and 1,550 square feet) Cottage homes (between 950 and 1,150 square feet) Apartments (2 stories; apartments between 780 and 1,280 square feet) |
| Land area | 138 acres |
| Total square footage of buildings | Approximately 1,600,000 square feet |
| Average density | 7.2 homes per acre |
The Property is located between the parallel arterial roads of Valley Boulevard and Pinon Street near Downtown Tehachapi. The site is within a half mile from the Tehachapi City Hall and central Tehachapi, and in close proximity to the historic downtown including many shops, restaurants, and public spaces in the general downtown district. The Property is also immediately adjacent to Tehachapi High School, Middle School and Elementary School. It is commonly considered as Urban Infill (new development that is sited on vacant or undeveloped land within an existing community) and located within the T4 Transect Neighborhood General zone as identified in the city zoning code. The T4 zone "is applied to Tehachapi's general neighborhood areas to provide for a variety of single-family and multifamily housing choices in a small-town neighborhood setting.
Tehachapi is located in the Tehachapi Valley within Kern County on the edge of the Mojave Desert and the Tehachapi Mountains, approximately 35 miles east-southeast of Bakersfield, California and within 20 miles from Los Angeles County. The location of the Property is identified in the map below:
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Project Status
Sage Ranch is located in an area zoned for residential development. The Company has obtained approvals under the City of Tehachapi's Planned Development Zone requirements to accommodate the Sage Ranch's varied density and product types.
Planned Development Zoning requires a variety of approvals from the City Council. We received approval of our Preliminary Development Plan from the Planning Commission in February 11, 2019. In connection with approving the Preliminary Development Plan, the City Council unanimously approved the general project concept and intensity of land uses, subject to formal conditions of development.
We received City Council approval of our Final Master Development Plan, 995 home Tract Map and our Final Environmental Impact Report on September 12, 2021.
We have filed a Precise Development Plan ("Precise Plan") for the first phase of the development. A Precise Plan will be required for each of the project phases and approvals are expected to be granted assuming each Precise Plan is consistent with the previously-approved Final Master Development Plan. Approval of the Phase I Precise Plan was obtained on November 13, 2023, with the result that we may now apply for all the permits needed for construction to begin. On June 18, 2024, a Sacramento court issued a ruling in the case of Tehachapi Cummings County Water District V. City of Tehachapi (the "City"), which has not yet taken effect. The ruling stated that the City's analysis of the Company's Environmental Impact Report ("EIR") was inadequate and upon resolution of the final cause of action, a writ will be issued voiding the certification of the EIR and any related project approvals. The City and the Company have already started work to comply with the mandates of the proposed writ. Phase 1 construction is anticipated to begin shortly after the Company has obtained such permits, subject to any revisions made by the City to the Final EIR.
The Sage Ranch Project, as approved by City Council, requires no less than 446 gross acre-feet of water pumping rights. Based on historical information published by the City, the City currently has a surplus availability of 770 acre-feet of water. As of the date of this report, the Company owns or has access to an aggregate of 282 acre-feet of water rights to supply the Sage Ranch Project. The Company's adjudicated deeded water rights is equal to 76 acre-feet (or 26.9% of the aggregate 282 acre-feet available to the Company).
During the year ended December 31, 2023, the Company entered into the Original Water Rights Agreement with Ronnie Strasser, an arm's length party, to purchase up to 115 acre-feet of water rights in the Tehachapi-Cummings County Water District (the "Water Rights") at an aggregate price of US$3,364,964 (or US$29,260.56 per acre-foot) plus a non-refundable reservation fee of US$1,010,000 (the "Original Reservation Fee"). On August 30, 2024, the Company entered into the Water Rights Amendment Agreement, pursuant to which the purchase price was increased to an aggregate price of US$3,400,000 (or US$29,565.22 per acre-foot) plus the Original Reservation Fee, subject to the expiry of such option on December 31, 2024. The option was not exercised and expired on December 31, 2024. On April 25, 2025, the Company entered into an arrangement with Ronnie Strasser to buy 115 acre-feet of adjudicated and deeded water rights for USD $1,250,000, which expires on April 25, 2027. If the purchase is not made within 120 days, the amount will escalate by $62,500 (late payment fee) and then another $62,500 for each additional 90 days thereafter until the expiry date or the agreement is mutually terminated. If the water is not purchased, the Company would owe any late payment fees accrued.
During the year ended December 31, 2023, the Company agreed to terms of an arrangement with Paul Morris, Independent Head of Sales for Sage Ranch, whereby the Company obtained an option to acquire an additional 76 acre-feet of water rights for consideration equal to US$1.077 million.
During the year ended December 31, 2022, the Company acquired 76 acre-feet of water rights for the Sage Ranch Project by way of a debt settlement agreement with TS Media LLC, an arm's length party. Pursuant to such settlement agreement, the debt of US$1,000,000 was settled in exchange of 925,926 units of the Company. Each unit consists of one common share plus one whole share purchase warrant. Each warrant is exercisable to acquire one common share at an exercise price of $1.46 until December 13, 2025.
We are planning to complete Sage Ranch in six phases over a period of approximately four to seven years at the rate of between 144 to 250 homes per year.
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Market Orientation
The Sage Ranch Final Master Development Plan provides for 995 total dwelling units at an overall gross density of 7.2 Homes/Acre. Eight different housing prototypes will be offered for sale ranging from 5,500 square foot single-family lots with 1,650 to 2,500 square foot homes to double story apartmentsat 780 square feet. The diversity of housing options within the community is expected to appeal to a broader demographic and broader spectrum income groups.
Design Elements
Sage Ranch is designed with a focus on "Complete Streets" running full length North/South and East/West to connected streets throughout the community versus the standard post-war suburban "within the fence" subdivision having non-contiguous streets and cul-de-sacs which can force a neighbor to travel half a mile by car to get to another home only 100 feet away on an opposing street. This allows multiple access points to traffic in all directions and smooth flow of traffic that do not rely on single access points which can create congestion. In addition, with the project being adjacent to the High School, Middle School, and Elementary School, the ability to be within a three block walk to all amenities offer a urban low carbon footprint living environment to a semi-rural mountain valley setting.
All streets are planned with curb-separated sidewalks and tree lined parkways adjacent to the roads. The intent is to create a strong street/tree character allowing abundant shade conditions. The vast majority of garages will be accessed through enhanced alley conditions, allowing architecture to front the streets with parallel guest parking directly in front of homes. Other special features will include a central theme road that ends in both directions from Valley Blvd and Pinon Street to a central park.
Parks and community amenities are part of the development. Community, neighborhood and pocket parks is proposed, including an approximate 4 acre sized central park located in the development. A community building is proposed to allow gathering functions with kitchen, meeting room and bathrooms.
Homes are all two-story maximum heights and approximately 10-15% of the homes will be one story. The architectural character for Sage Ranch will emphasize a regional and local vernacular. Basic tenants of the architecture will be oriented to front porch and entry court design, architecture fronting the streets, alley access garages, and special front elevations. All homes in the community have a majority of direct access two car garages, with a small percentage of one-car garages. Primary building materials will be wood, stone and stucco, with dominant porch front elevations and entry courtyards. Roof materials will likely be composition tile and asphalt, with some standing seam metal roofing.
Responsible Sustainable Approach
In compliance with new State of California policies, all homes will have solar roof panels and include energy savings devices, systems controls, and efficiency components. Water consumption will be reduced for parks and open space areas with reclaimed water connections to nearby non-potable water systems. Low flow irrigation technologies and drought tolerant landscaping will be promoted. Local materials will be sourced, with reclaimed materials promoted. Trash recycling will be included as a community standard with separate bins and receptacles. The intention is to create a community with an emphasis on conservation and sustainability with lower power, energy and water consumption.
Marketing and Sales
The Company has pre-marketed Sage Ranch to potential buyers. Once final development approvals are received, the Company will enter into purchase contracts with buyers and construction will commence only after a purchase agreement has been executed. We will apply for approval from the California Department of Real Estate to accept non-refundable deposits once all development approvals are acquired.
Under an Initial Master Sales and Marketing Agreement dated July 11, 2020, the Company has retained Paul Morris of Keller Williams Forward Living as Independent Head of Sales for Sage Ranch, to market and sell each housing unit in Sage Ranch, at prices and commissions yet to be determined. The target market for the homes sales are the entire region of Kern County and the parallel Antelope Valley of Los Angeles Country.
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Construction
We have preliminarily retained Richard Philips Construction as our general contractor to build Sage Ranch under a verbal agreement. In due course, we will convert this to a definitive agreement.
Kern County and the Antelope Valley
Kern County is located in California. As of the 2010 census, the population as 839,631. Its county seat is Bakersfield. The following map shows the location of Kern County in California and the adjacent Antelope Valley.
Kern County comprises the Bakersfield, California, Metropolitan statistical area. The county spans the southern end of the Central Valley. Covering 8,161.42 square miles (21,138.0 km2), it ranges west to the southern slope of the Coast Ranges, and east beyond the southern slope of the eastern Sierra Nevada into the Mojave Desert, at the city of Ridgecrest. Its northernmost city is Delano, and its southern reach extends just beyond Lebec to Grapevine, and the northern extremity of the parallel Antelope Valley.
The county's economy is heavily linked to agriculture and to petroleum extraction. There is also a strong aviation, space, and military presence, such as Edwards Air Force Base, the China Lake Naval Air Weapons Station, and the Mojave Air and Space Port. The county is one of the fastest-growing areas in the United States in terms of population.
Sage Ranch is a 40-minute drive from 1,000,000 people who live in Greater Bakersfield and Antelope Valley and a 90 minute drive from 25,000,000 people of Greater Metropolitan Los Angeles.
The principal regulator of the Sage Ranch project is the City of Tehachapi.
Competition
There are no similar projects like Sage Ranch within a 50-mile radius of the project.
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Montalva Solar Project
Overview
The Montalva Solar Farm Project (the "Montalva Solar Project") is a proposed solar and battery photovoltaic ("PV") renewable solar electricity generating facility, to be located in the municipalities of Guanica and Lajas, Puerto Rico. At full buildout, the Montalva Solar Project will be an innovative (very high direct current (DC) to alternating current (AC) ratio) 395 megawatt (MW) DC and 165 MW AC PV station covering approximately 1,800 cuerdas (1,747 acres). The station will include a battery energy storage facility for up to six hours of evening and nighttime energy delivery as well as a separate battery energy storage system to support the minimum technical requirement of the system operator.
The Company plan calls for the Montalva Solar Project to be built in multiple phases, with the initial phase being for 80 MW AC. Upon completion of the initial phase, the station is expected to be capable of producing approximately 280,000,000 kilowatt hours of energy per year - enough power for at least 30,000 homes. The Company expect that commercial operations could commence a few weeks after completion of the construction of the facility.
Initial construction, consisting of site preparation, roadbuilding and foundations, was originally expected to be completed by Dec. 31, 2020, with completion of the first phase station originally scheduled for early 2022. However, as discussed in more detail below, this project has experienced delays and has been the subject of litigation.
As currently planned, the initial phase of the Montalva Solar Project would be developed under a Settlement Agreement reached with PREB on October 3, 2023, and would be based on the PPOA between the Company and PREPA dated July 20, 2020. The PPOA has a 25-year term that would start on the commencement of commercial operations, with options to extend the agreement by mutual agreement for two additional five-year terms (for a total term of up to 35 years). The agreement additionally provides for increases in the power generating capacity by mutual agreement of the parties. The PPOA has been subject to litigation, and a settlement agreement with regards to the litigation has been entered into and is subject to approval of PREPA, PREB and the FOMB, as further described in Item 4A above. The following table summarizes the key terms of the PPOA:
| Subject | PPOA Provision |
| Term | 25 years with two five-year renewal periods |
| Initial Interconnectivity Capacity | 80 MW with 36 MW battery energy storage to meet MTRs. |
| Energy Tariff or Contract Rate | Deliveries above 115% of initial installed capacity at 80% of base price |
| Requirement for Minimum Deliveries | Penalties if production falls below 85% of the expected annual deliveries |
| Reductions in Deliveries | PREPA may curtail deliveries in emergencies or as a result of system operating problems and up to 40 hours per year without penalty. |
| Guaranteed Final Notice to Proceed Date | 365 days from the effective date |
| Guaranteed Commercial Operation Date | Within 30 months of the final notice to proceed date |
| Green Credits | Conveyed to PREPA with no additional charge under the Energy Tariff |
Currently, Puerto Rico relies heavily on imported fossil fuels to generate electricity. In accordance with the Puerto Rico Energy Public Policy Act enacted in 2019, Puerto Rico's Renewable Portfolio Standard (the "RPS") mandates that Puerto Rico source 40% of its electricity from renewables by 2025, 60% by 2040, and 100% by 2050. On August 24, 2020, the PREB issued a Resolution and Order approving a modified Integrated Resources Plan (the "IRP") for PREPA that, among other things, calls on PREPA to create a renewables procurement plan to obtain, by 2025, at least 3,500 MW of solar resources (inclusive of rooftop solar) and at least 1,360 MW of storage resources (inclusive of distributed storage). In addition, PREPA is relying on renewable generation to meet EPA requirements for the reduction of emissions of mercury, sulfur dioxide and greenhouse gases from its aging fossil-fueled electricity generating fleet.
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Project Location
Location of the Montalvo Solar Project in Puerto Rico
Project Team
Greenbriar's project team members are experienced in the development, engineering, financing, construction and operation of large and highly successful renewable energy facilities, performing all aspects of land acquisition, project development, permitting, engineering, procurement, financing, operations and administration:
• Jeffrey Ciachurski, Greenbriar's CEO, is the former principal executive officer of Western Wind Energy Corp., which was acquired and merged with Brookfield Renewable Energy Partners in March 2013 under a $420 million acquisition by Brookfield. Western Wind Energy developed, financed, owned and operated the 120 MW Windstar Wind Energy project in Tehachapi, California, and other solar and wind operating assets in Arizona and California. Western Wind Energy was also involved in the development of the Yabucoa Solar Project in Puerto Rico where $55 Million of equipment was purchased for Yabucoa.
• Clifford Webb, the president of Greenbriar, was formerly the Chief Engineer for the California Energy Commission and Division Chief of the Engineering and Environmental Division and was later directly involved in approving and awarding 2,500 MW of solar and wind contracts as a Director of Renewable Energy Procurement at Southern California Edison Company. He managed the development, permitting, engineering design and construction of the 355 MW Solar Luz SEGS plants constructed in the California, which was the world's largest solar facility at the time and for many years.
• In the past three years, the management team and certain advisors to the Company have built or been involved in the financing of 54 new solar, wind and geothermal facilities with other companies.
• Greenbriar's executive and finance team have either directly participated in, or been involved, along with other companies in the financing and the construction of over 50,000 MW of solar and wind facilities since 2003, totaling approximately $180 billion.
History of Development and Project Overview
In May 2013 the Company acquired a 100% interest in and to PBJL Energy Company, ("PBJL") a Puerto Rican Company that owns a 100 MW solar energy Master Power Purchase and Operation Agreement (the "Master PPOA") with the Puerto Rico Electric Power Authority ("PREPA") dated December 20, 2011, as amended. The consideration for the 100% interest was USD $1,100,000 cash to two arm's length individuals for 66.6% of the shares of PBJL and a commitment to pay USD $500,000 cash to the spouse of a director who transferred the remaining 33.4% on the same date in 2013.
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In September and December 2013, the Company, acting through its subsidiary Greenbriar Capital (US) LLC, entered into four land lease option agreements in Puerto Rico (as amended, the "Montalva Lease Option Agreements"). The Montalva Lease Option Agreements are for two sites located in close proximity that can be developed as a single project of 100MW AC or five projects of 20MW AC. Since entering into the Montalva Lease Option Agreements, the Company has negotiated extensions of the terms of the agreements several times. The option agreements covering the four lease options expired on December 30, 2025, and three of the option agreements have been extended to December 31, 2026. All three option agreements comprising the Montalva Lease Option Agreements provide for a lease term of twenty-five years from the date of execution and may be extended for up to four additional consecutive periods of five-years each, at the Company's option.
Under the terms of the Master PPOA, the Company filed its proposal for the 100 MW AC Montalva Solar Project ("Montalva") with PREPA on September 5, 2013, requesting an interconnection evaluation and the issuance of a project specific PPOAfor the project. After delays by PREPA, and in the face of PREPA's failure to respond to the Company's numerous requests for the outstanding interconnection evaluation and the issuance of a project-specific PPOA for the Montalva Solar Project, the Company filed a Notice of Default under the Master PPOA with PREPA on September 24, 2014. PREPA responded to the Notice of Default on November 3, 2014, taking the position that it had other PPOAs issued that would exceed its system renewable capacity and could not accept any additional renewable projects, and, further, that it had met its obligations under the Master PPOA.
On May 15, 2015, the Company filed a legal action against PREPA in the courts of Puerto Rico in order to protect and enforce its rights under the Master Agreement and for monetary damages of US$210 million. This was followed by the filing in May 2018 of a US Federal RICO lawsuit against PREPA for US $951 Million. This filing was suspended as a result of PREPA approving the form of settlement contract on July 20, 2020.
On April 25, 2018, the United States Financial Management and Oversight Board designated the (100 MW) Montalva Solar Project as a Critical Project and approved to proceed to the next stage of the approval process. This process was later suspended by FOMB.
In response to a request from PREPA in February 2019, the Company met with PREPA representatives and re-opened negotiations with the view to moving forward with the Montalva Solar Project. In response to a request from PREPA to treat Montalva as a Legacy Project, PBJL submitted a formal proposal to PREPA in May 2019 offering up to 165 MW AC with a larger footprint for the Montalva Solar Project. However, due to transmission constraints identified by PREPA's consultants, the Montalva Solar Project is currently configured to deliver as a first phase 80 MW AC at the point of interconnection.
On May 19, 2020, the Company announced that it has reached an agreement with PREPA on a 25-year 80 MW PPOA for the development, construction, and operation of the Montalva Project, as a Legacy Project with preferential rights. On May 28, 2020, the Governing Board of PREPA approved the contract and on August 7, 2020, the Puerto Rico Energy Bureau of the Puerto Rico Public Service Regulatory Board ("PREB") also unanimous approved the contract. Unfortunately, the federal Financial and Oversight Board of Puerto Rico ("FOMB") limited its approval to just two projects and the Montalva contract, along with the other Legacy Projects, was not approved pending a competitive future RFP to be conducted for selecting future renewable energy projects as ordered by FOMB. As a result, the Company's claims for damages and lawsuit continued to apply.
On October 3, 2023, the Company announced that further to many years of litigation with the PREPA in both the Commonwealth and US Federal Courts, plus litigation in front of PREB, both parties executed a pro forma settlement agreement beneficial to both parties. The settlement agreement provides for, among other things: (i) PBJL withdrawing its US $951 Million claim against PREPA and its claims at PREB; (ii) energy pricing that is less than or similar to the RFP Public Tranche contracts in accordance with certain caps; (iii) providing energy storage of 36 MW; (iv) using the Montalva PPOA previously approved by PREPA and PREB in 2020 as the base document for final PPOA agreement; (v) PBJL covering the PREPA sided costs of transmission interconnection and upgrades; and (vi) using a project size of 80 MW. The settlement agreement provides the basis of a final settlement PPOA to be drafted and agreed between the parties. A final settlement PPOA with improved commercial terms was drafted and submitted to PREPA on July 2, 2024, for its concurrence before submission to PREB for its approval and then to FOMB. Following review by PREPA, PREPA formally submitted a finalized settlement PPOA with updated commercial terms consistent with the PREPA pricing target in the Tranche 4 RFP to the PREPA Governing Board on November 18, 2024. On April 4, 2025, PREPA filed an Informative Motion with PREB stating its Governing Board had rejected PBJL's proposed revisions, reapproving instead the original Settlement Agreement under its exact terms and conditions. On April 26, 2025, PREB formally approved the settlement as originally filed as final, binding and enforceable, but withheld final approval pending finalization of the PPOA and submission of the final PPOA to PREB for its final approval before submission to FOMB for its approval.
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Subsequently, on October 1, 2025, PREPA issued a Notification to Submit Proposals ("RFP") for renewable energy projects in accordance with an executive order issued by the governor of Puerto Rico and Resolution and Order issued by PREB restricted to only those project that had participated in any of the prior RFP Tranches or that had ongoing negotiations on renewable energy contracts with PREPA. This RFP was initiated based on the urgency of the expiring Investment Tax Credits ("ITC") as set forth in the OBBB bill passed by Congress and signed by the president in July 2025. The pricing of energy from renewable energy projects is highly dependent on the availability of ITC and will be substantially higher once the tax credits expire. Montalva qualified for such RFP and on October 14, 2025, submitted a proposal for Montalva with greater solar capacity and a large BESS not included in its settlement agreement. On November 13, 2025, PREPA submitted the proposals received, totaling eight projects, together with evaluation criteria to PREB for their review. PREB stated it would conclude its review and recommendations by December 13, 2025. Such an award for Montalva would result in greater returns for the Company than those offered by the settlement agreement and would be fast-tracked once approved in order to meet certain ITC deadlines. To date, PREB has approved three of the eight projects and has reserved the right to approve others. As time is of the essence, on March 16, 2026, the Company filed an Urgent Motion for Relief with PREB requesting PREB to order PREPA to enter into negotiations with the Company on its filing. However, there are no guarantees that such an award would become available for Montalva, and the Company would then continue to proceed with Montalva under its settlement agreement.
As PBJL is awaiting a final decision in the RFP, it is currently in the process of finalizing a settlement PPOA for resubmission to PREPA based on the original settlement commercial terms and the smaller project. The technical work on interconnection with LUMA Energy, who is the power company responsible for power distribution and power transmission in the Commonwealth of Puerto Rico, will happen under the PPOA after PREB and FOMB approval. A previous interconnection study and evaluation performed by Sargent & Lundy Engineers, under the direction of PREPA, established the availability of 80 MW of transmission capacity available for Montalva. The Company anticipates moving forward with the development of the Montalva Solar Project as soon as practicable once a settlement PPOA has been finalized with PREPA and submitted to PREB and FOMB for their approval. Under the current deadline for qualifying for ITC tax credits, Montalva must be operational by December 31, 2027, in order to receive the currently available ITC rates.
The Site
Located in southwest Puerto Rico in the Municipalities of Guanica and Lajas adjacent to State Highway 116, the Montalva Solar Project will be located approximately four miles west of the city of Guanica and three miles west of the city of Ensenada. Approximately half of the site is in the Municipality of Guanica and half in the Municipality of Lajas straddling both sides of the dividing line between the municipalities. The lands comprising the Montalva Solar Project are a relatively flat coastal plain setting without wetlands or active streams are currently used primarily for cattle grazing. There is no active agricultural due to a lack of suitable water.
The Montalva Solar Project is located in an area having among the highest solar irradiance and annual solar insolation in Puerto Rico and is located in an area generally protected from hurricanes by the interior mountains and the counter clockwise rotation of hurricanes making Montalva a superior location for development. It is likewise in a location of low annual cloud cover and rainfall.
An existing 115 kV PREPA transmission line also traverses the project site. The site for the Montalva Solar Project is also approximately 18 miles from the Costa Sur 230 kV transmission lines and control center in Guayanilla making for a reliable and minimum transmission losses to the load centers in San Juan.
The Montalva Solar Project is being developed on adjacent parcels of land totaling approximately 1,800 cuerdas (1,747 acres) that are covered by the Montalva and Laja Option Agreements. The site consists of three segments being:
• a segment located in the Municipality of Guanica just east of the dividing line separating the Municipalities of Guanica and Lajas, consisting of approximately 555 cuerdas,
• a segment located in the Municipality of Lajas adjacent to and west of the segment above and just west of the dividing line separating the Municipalities of Guanica and Lajas, consisting of approximately 720 cuerdas, and
• a segment located in the Municipality of Lajas adjacent to and north of the segment above in the Municipality of Lajas, consisting of approximately 524 cuerdas.
As described above, since entering into the Montalva and Lajas Option Agreements, the Company has negotiated extensions of the terms of the agreements several times. The three option agreements located in Lajas totalling approximately 600 acres and enough to construct the project under the settlement agreement have been extended to December 31, 2026.
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The results of site geotechnical investigations, completed with in situ borings by consultants retained by the Company, indicated that the site has excellent soils condition for foundations and supports and discovered no bedrock that would impede installation of supports for the panel racking structure. Based on the geotechnical investigation and site boring, the Company's consultant also concluded low probability of liquefaction during earthquake events making the site a secure location for critical infrastructure.
Design of the Facility
The Montalva Solar Project is being designed as a fixed-tilt solar field using state-of-the-art commercially available PV panels rated at approximately 600-650 watts DC at 1500 volts and high efficiency.. In addition to the solar panels and racking support system, the project is being designed incorporating commercially available equipment consisting of inverters, step-up transformers, combiner boxes, DC & AC cabling, collector substation, switchgear, circuit protection devices, substation transformer, interconnection switchyard and associated equipment. The commercially available equipment will be made subject to performance guarantees and long-term warranties for the electrical design and delivery of grid quality power to the PREPA electrical system.
Preliminary optimization of project output has indicated a 2.00 DC to AC ratio resulting in an initial phase project size of 160 MW DC at 80 MW AC and up to 395 MW DC for full buildout of the 165 MW AC capacity, together with planned expansion to 100% nameplate (being the intended full-load output of the power facility - 395 MW DC and 165 MW AC) battery storage, in order to meet the demands of PREPA depending on the availability of transmission capacity and electrical system load flows. The initial phase design includes a battery energy storage system sized at 45% of nameplate in order to meet all of PREPA's minimum technical standards for frequency and ramp rate control for stability of the electrical grid due to intermittent generation of the solar field.
The initial design of the facility is expected to deliver 280,000,000 KW hours per year. Any unused DC capacity not used in the initial phase will be reserved for future buildout in order to incorporate 100 % nameplate on-site battery storage technology as such technology becomes cost effective, thereby maintaining the Montalva Solar Project at full rated output into the evening and nighttime hours after the solar system generation has decreased due to fading sunlight all with no increase required in available transmission capacity.
The Montalva Solar Project will connect to the existing 115 kV PREPA transmission line that traverses the site to feed power to the Puerto Rican electrical grid. The interconnection point will be an on-site tap or sectionalizer to be designed and constructed by PBJL. The Montalva Solar Project's close (18 miles) access to the Costa Sur 230 kV transmission lines and control center in Guayanilla will provide an opportunity for increased transmission capacity for the project over other locations and has the opportunity to provide superior reliability while minimizing transmission losses to load centers in San Juan. In addition, as part of the Montalva Solar Project, PBJL as an option may replace the 7.38-mile segment of the 115 kV transmission line that runs from the project site to the San German Substation. The new segment is intended to improve previous transmission line instability, increase regional reliability and provide microgird connectivity in the event of natural disasters and loss of outside generation to the area.
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With land available, the project can also be expanded to provide more peak output to PREPA when planned upgrades to the transmission system are made available and can accept higher capacity output from Montalva up to its planned 165 MW AC design. The PPOA has no limitations on the solar field size or size of the battery energy storage system. A distinct benefit of the Montalva is the efficient use of the transmission system.
Designing Montalva with high DC/AC ratios not only provides for excess energy during peak times for battery storage, but allows maximum use of the available transmission capacity during daylight hours than at lower ratios by quickly ramping to maximum rated output earlier in the day and maintaining the maximum rated output for longer periods after the peak of daytime solar irradiance has been reached. This allows for maximum throughput of kilowatt ("kW") per hour production for each kW of transmission capacity available. Solar panel output degradation due to clouds, low solar irradiance angles, temperature, soiled panels and natural degradation is also minimized and offset at higher DC/AC ratios for longer-term maximum generation providing less generation swings to the PREPA electrical system.
The design can deliver more than nameplate capacity during daytime hours when transmission capacity is available than lower DC/AC ratings. When not deliverable due to the transmission and interconnection constraints or contractual limitations, any excess capacity is either clipped by the inverter or can be stored in batteries if available for later delivery. Furthermore, adding PV modules (which are relatively cost-effective) to feed a specific sized inverter above a project's rated peak AC nameplate capacity can result in bringing the inverter up to its best efficiency earlier in the day and to the inverter's full capacity for longer periods of time as well as excess generation above the transmission capacity rating to charge battery storage systems if available for later delivery of the excess generation. Adding modules also offsets the effects and impacts of panel soiling, low solar irradiance angles as the sun passes overhead, passing clouds, reduced output due to temperature effects and degradation as the modules age. Having the facility at maximum output for longer periods of time with excess capacity to offset degradation more than offset the higher cost of the panels, and the power losses due to clipping, when they occur, can be diverted to battery storage if available. The optimum solution with high DC/AC ratios is to store the excess for later delivery when transmission capacity is available.
A recently completed engineering design of the project site has indicated that, for the initial phase of 80 MW AC and battery storage, 42 solar array blocks of 650-watt panels rated at 3.875 MW DC for each block can be constructed on the two site segments south of Highway 116 for a total of 162.75 MW DC. The two site segments can be later expanded for a total of 70 solar arrays and a total of 271.25 MW DC. Preliminary design of the site segment north of Highway 116 can support 38 solar array blocks of 3.875 MW DC for an additional 124.00 MW DC.
Having three multiple sites over a mile apart center to center provides greater reliability of generation due to separation and offer improved reliability as compared to smaller projects due to the time lapse for clouds to move over the site or to totally cover the site. With leased land available, extra panels will be added to absorb initial generation losses at peak output and will provide more hours of rated generation to PREPA for ease of generation dispatch of PREPA's on-line generation fleet thereby optimizing plant load factors and minimizing the need for auxiliary services backup generation.
Permitting
PBJL has conducted extensive environmental, cultural and archaeological studies and surveys of the project sites and prepared an Environmental Impact Statement (EIS) delineating the environmental setting, the existing socioeconomic setting and the potential construction and operational impacts of a total project size of 395 MW DC and 165 MW AC. The EIS likewise incorporated mitigation measures to compensate for impacts to flora and fauna and from activities associated with construction and operation of Montalva.
In addition to the environmental surveys conducted and the EIS prepared, PBJL has completed ALTA (American Land Title Association) surveys of both sites and has conducted a preliminary geotechnical investigation together with site borings.
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Capital Costs and Financing
Greenbriar has a dedicated team that has been developing the Montalva Solar Project since 2012. A total of $6.3 million has been invested in developing the Montalva Solar Project through December 31, 2025, not including corporate management and overhead costs in excess of $1.0 million.
Project costs including financing costs, development fees, completion fees, O&M (operation and maintenance) reserves, spare parts and working capital will result in a total project cost of approximately $200 million. Final project costs will be dependent on the final cost of PV panels, batteries. Inverters and other major equipment at the exact date of purchase and the construction costs. The project cost estimate is based on prior hard bids and current estimates. The Company expects that it will raise capital for the Montalva Solar Project from the following traditional financing sources: project equity, corporate equity, tax equity, mezzanine capital, institutional debt, and bank debt. No determination has been made on the final form of financing. The following table is illustrative of the type of financing being considered:
• Senior Lender Term Loan $135,000,000
• Tax Equity Investor $ 40,000,000
• Mezzanine Capital $ 10,000,000
• Non-tax Cash Equity $ 15,000,000
• Total Project Cost $200,000,000
Principal ownership of Montalva will remain with Greenbriar and will be operated by Greenbriar or its direct subsidaries.
The Montalva Projects' principal regulator is the PREB. It is the designated regulator to resolve any conflicts between the project and PREPA.
Plan of Operations
Sage Ranch Real Estate Project
The Sage Ranch real estate project is our most advanced development project, and is being managed by Mr. Jeffrey Ciachurski, our chief executive officer. As described above, a Precise Plan will be required for each of the project phases and approvals are expected to be granted assuming each Precise Plan is consistent with the previously-approved Final Master Development Plan.
Phase 1 is planned to comprise 144 residential units (consisting of a mix of single-family homes, townhomes, cottage homes and apartments covering a total of 227,858 square feet, or "SF"). Approval of the Phase I Precise Plan was obtained on November 14, 2023, with the result that we may now apply for all the permits needed for construction to begin. On June 18, 2024, a Sacramento court issued a ruling in the case of Tehachapi Cummings County Water District V. City of Tehachapi (the "City"), which has not yet taken effect. The ruling stated that the City's analysis of the Company's Environmental Impact Report ("EIR") was inadequate and upon resolution of the final cause of action, a writ will be issued voiding the certification of the EIR and any related project approvals. The City and the Company have already started work to comply with the mandates of the proposed writ. Phase 1 construction is anticipated to begin shortly after the Company has obtained such permits, subject to any revisions made by the City to the Final EIR. Grading, storm, sewer and water permits for Phase 1 are anticipated to be received by December 31, 2025. We expect that a further two to three months will be required for the approval of permits for home construction.
The following table outlines the anticipated timeline for each of the six phases of development of the Sage Ranch real estate project:
| Activity | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 |
| Pre-Construction and Permitting | ►►►► | |||||
| Phase 1 (227,868 SF and 144 units) | ►►►► | |||||
| Phase 2a and 2b (325,756 SF and 196 units) | ►►►► | |||||
| Phase 3 (300,266 SF and 142 units) | ►►►► | |||||
| Phase 4a (206,050 SF and 204 units) | ►►►► | |||||
| Phase 4b and 5 (365,533 SF and 183 units) | ►►►► | |||||
| Phase 6a and 6b (174,300 SF and 126 units) | ►►►► |
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As described above, we are party to a joint venture with Captiva in relation to our Sage Ranch real estate project, pursuant to which Captiva had agreed to fund all development expenditures for a 50% net profits interest. We have agreed to settle our joint venture with Captiva, pursuant to which we will pay Captiva the outstanding $5,591,588 in expenditures that Captiva has spent on the Sage Ranch real estate project in 48 equal monthly installments of $116,491 starting on July 1, 2024, with the last payment on June 1, 2028. Once the amount has been repaid, Captiva will no longer have any further net profits interest in and to the Sage Ranch project. During the year ended December 31, 2024, $1,000,000 of the payable was settled for issuance of 2,197,802 common shares of the Company. On March 13, 2026, the Company issued 1,250,000 common shares to settle $625,000 of the JV Settlement obligation with Captiva. If we are unable to meet this ongoing obligation, Captiva will continue to have a further net profits interest in and to the Sage Ranch project.
Assuming that the development of the Sage Ranch real estate project is advanced in accordance with the anticipated timeline summarized above, we expect that the first sales of units will take place during the year ending December 31, 2026. We do not expect to earn any revenues from the project before then.
Montalva Solar Project
As described above, the initial phase of the Montalva Solar Project would be developed under a revised 80 MW AC Power Purchase and Operating Agreement and settlement agreement between the Company and PREPA dated October 3, 2023. The settlement agreement provides for, among other things: (i) PBJL withdrawing its US $951 Million claim against PREPA and its claims at PREB; (ii) energy pricing that is less than or similar to the RFP Public Tranche contracts in accordance with certain caps; (iii) providing energy storage of 36 MW; (iv) using the Montalva PPOA previously approved by PREPA and PREB in 2020 as the base document for final PPOA agreement; (v) PBJL covering the PREPA sided costs of transmission interconnection and upgrades; and (vi) using a project size of 80 MW. The settlement agreement provides the basis of a final settlement PPOA to be drafted and agreed between the parties. A final settlement PPOA with improved commercial terms was drafted and submitted to PREPA on July 2, 2024, for its concurrence before submission to PREB for its approval and then to FOMB. Following review by PREPA, PREPA formally submitted a finalized settlement PPOA with updated commercial terms consistent with the PREPA pricing target in the Tranche 4 RFP to the PREPA Governing Board on November 18, 2024. On April 4, 2025, PREPA filed an Informative Motion with PREB stating its Governing Board had rejected PBJL's proposed revisions, reapproving instead the original Settlement Agreement under its exact terms and conditions. On April 26, 2025, PREB formally approved the settlement as originally filed as binding and enforceable, but withheld final approval pending finalization of the PPOA and submission of the final PPOA to PREB for its final approval before submission to FOMB for its approval. A previous interconnection study and evaluation performed by Sargent & Lundy Engineers, under the direction of PREPA, established the availability of 80 MW of transmission capacity available for Montalva. The Company anticipates moving forward with the development of the Montalva Solar Project as soon as practicable once the settlement PPOA is approved by PREPA, PREB and FOMB.
The timing for the resolution of the outstanding issues remains unclear, and there are no assurances that final FOMB approval can be obtained on terms acceptable to us, or at all. Mr. Clifford Webb, our Company's president has primary carriage of this matter.
Legal Proceedings
We are not involved in, or aware of, any legal or administrative proceedings contemplated or threatened by any governmental authority or any other party that is likely to have a material adverse effect on our business. As of the date of this Annual Report, no director, officer or affiliate is a party adverse to us in any legal proceeding or has an adverse interest to us in any legal proceeding, other than as noted above.
C. Organizational structure
We have five subsidiaries: Greenbriar Capital Holdco Inc., a Delaware company; 2587344 Ontario Inc., an Ontario company; Greenbriar Capital (U.S.) LLC, a Delaware company; AG Solar One, LLC, a Delaware company; and PBJL Energy Corporation, a Puerto Rican company. We own 100% of the voting and dispositive control over all of our subsidiaries.
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D. Property, plant and equipment
Sage Ranch
The Property underpinning the Sage Ranch Practice consists of a total of 143 acres of currently vacant land in Tehachapi, California, located between the parallel arterial roads of Valley Boulevard and Pinon Street near Downtown Tehachapi. The site is within a half mile from the Tehachapi City Hall and central Tehachapi, and in close proximity to the historic downtown including many shops, restaurants, and public spaces in the general downtown district.
On October 1, 2017, the Company entered into an agreement with Captiva to sell a 50% undivided interest in the Property. The Chief Executive Officer of the Company, Jeffrey Ciachurski, is also the Chief Executive Officer of Captiva. On October 6, 2018, the Company completed the agreement and received 10,687,500 common shares of Captiva and $112,500 in a one-year interest-free promissory note (which has been paid) for total consideration of $1,181,250. On August 10, 2020, the Company modified its agreement with Captiva into a joint venture whereby the Company retained sole title to the Property and Captiva would fund all development expenditures for a 50% net profits interest.
On June 22, 2023, the Company entered into an agreement with Captiva which was amended on August 21, 2023, whereby the Company will pay Captiva $5,591,588, which represents the amount that Captiva has invested into Sage Ranch, in 48 equal monthly installments of $116,491 starting on July 1, 2024, with the last payment on June 1, 2028. During the year ended December 31, 2024, the Company settled $1,000,000 of the Captiva payable by issuing 2,197,802 common shares of the Company. Subsequent to the amount being repaid, Captiva will no longer have any further net profits interest in and to the Sage Ranch Project.
Sage Ranch is being developed on the Property as a sustainable entry-level residential real estate development. It is to be constructed under a Final Master Development Plan that emphasizes a responsible sustainable approach to the planned community. We received final City Council approval on September 12, 2021 to build 995 homes.
The Company is planning to complete Sage Ranch in six phases over a period of approximately six years at the rate of between 142 to 204 homes per year. As described above under the heading "Sage Ranch Real Estate Project - Project Status," a Precise Plan will be required for each of the project phases and approvals are expected to be granted assuming each Precise Plan is consistent with the previously-approved Final Master Development Plan. Phase 1 is planned to comprise 144 residential units (consisting of a mix of single-family homes, townhomes, cottage homes and apartments covering a total of 227,858 SF). Approval of the Phase I Precise Plan was obtained on November 14, 2023. On June 18, 2024, a Sacramento court issued a ruling in the case of Tehachapi Cummings County Water District V. City of Tehachapi (the "City"), which has not yet taken effect. The ruling stated that the City's analysis of the Company's Environmental Impact Report ("EIR") was inadequate and upon resolution of the final cause of action, a writ will be issued voiding the certification of the EIR and any related project approvals. The City and the Company have already started work to comply with the mandates of the proposed writ. Phase 1 construction is anticipated to begin shortly after the Company has obtained such permits, subject to any revisions made by the City to the Final EIR.
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Montalva Solar Project
The Montalva Solar Project is being developed on adjacent parcels of land totaling approximately 1,800 cuerdas (1,747 acres) that are covered by the Montalva and Laja Option Agreements. The site consists of three segments being:
• a segment located in the Municipality of Guanica just east of the dividing line separating the Municipalities of Guanica and Lajas, consisting of approximately 555 cuerdas,
• a segment located in the Municipality of Lajas adjacent to and west of the segment above and just west of the dividing line separating the Municipalities of Guanica and Lajas, consisting of approximately 720 cuerdas, and
• a segment located in the Municipality of Lajas adjacent to and north of the segment above in the Municipality of Lajas, consisting of approximately 524 cuerdas.
AS DESCRIBED ABOVE, SINCE ENTERING INTO THE MONTALVA AND LAJAS OPTION AGREEMENTS, THE COMPANY HAS NEGOTIATED EXTENSIONS OF THE TERMS OF THE AGREEMENTS SEVERAL TIMES. RECENTLY, THE LAJAS OPTION AGREEMENTS HAVE BEEN EXTENDED TO DECEMBER 31, 2026. THIS IS ENOUGH LAND TO CONSTRUCT AND OPERATE MONTALVA UNDER THE TERMS OF THE SETTLEMENT AGREEMENT. THE OPTION AGREEMENTS PROVIDE FOR A LEASE TERM OF TWENTY-FIVE YEARS FROM THE DATE OF EXECUTION AND MAY BE EXTENDED FOR UP TO FOUR ADDITIONAL CONSECUTIVE PERIODS OF FIVE-YEARS EACH, AT THE COMPANY'S OPTION
ITEM 4A. UNRESOLVED STAFF COMMENTS
Not applicable.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
General
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our audited financial statements as at and for the fiscal years ended December 31, 2025, 2024 and 2023, together with the notes thereto. Our financial statements included in this Annual Report were prepared in accordance with IFRS.
The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. On an on-going basis we review our estimates and assumptions. The estimates were based on historical experience and other assumptions that we believe to be reasonable under the circumstances. Actual results are likely to differ from those estimates or other forward-looking statements under different assumptions or conditions, but we do not believe such differences will materially affect our financial position or results of operations. Our actual results may differ materially as a result of many factors, including those set forth under the headings entitled "Forward-Looking Statements" and "Risk Factors" herein.
Critical accounting policies, the policies we believe are most important to the presentation of our financial statements and require the most difficult, subjective and complex judgments, are outlined below under the heading "Critical Accounting Policies and Estimates", and have not changed significantly since our founding.
Overview
We were incorporated on April 2, 2009, under the laws of the Province of British Columbia, Canada, and our principal activity is the acquisition, permitting, re-zoning, management, development possible sale of commercial, residential, industrial, and renewable energy related real estate and energy projects in North America. On November 15, 2023, we changed our name to "Greenbriar Sustainable Living Inc." Our head office is located at, and our principal address is, 632 Foster Avenue Coquitlam, British Columbia V3J 2L7.
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Additional information related us is available on SEDAR+ at www.sedarplus.ca and www.greenbriarliving.com. We do not incorporate the contents of our website or of sedarplus.ca into this Annual Report. Information on our website does not constitute part of this Annual Report.
To date, the Company has no history of earning revenues. If the Company is unable to raise any additional funds to undertake planned development, it could have a material adverse effect on its financial condition and cause significant doubt about the Company's ability to continue as a going concern. In the past, the Company has been successful in obtaining financing, although there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms advantageous to the Company.
A. Operating Results
Results of Operations for the Year ended December 31, 2025 as Compared to the Year Ended December 31, 2024 and to the Year Ended December 31, 2023
The Company recorded a net loss of $1,525,965 for the year ended December 31, 2025, compared to a net loss of $5,135,576 for the year ended December 31, 2024 and a net loss of $2,813,835 for the year ended December 31, 2023. Loss per share (basic and diluted) was $(0.04) in 2025, compared to $(0.15) in 2024 and $(0.08) in 2023. The year-over-year reduction in net loss reflects both lower general and administrative expenses and a net improvement in other income and expenses, as discussed below.
General and administrative expenses
Total general and administrative expenses decreased to $1,920,285 in 2025 from $2,084,404 in 2024 and $2,932,596 in 2023. The principal drivers of the year-over-year changes were:
• Consulting and management fees of $868,385 (2024: $806,557; 2023: $620,682). The modest increase relative to 2024 is the result of an increase in the USD to CAD fx rate as a significant portion of consulting fees are in USD.
• General and administrative costs of $293,410 (2024: $310,018; 2023: $493,930), decreased over the years reflecting continued cost cutting implemented by the Company.
• Marketing and donations of $nil (2024: $14,883; 2023: $61,614), reflecting the absence of marketing activity in the current year.
• Professional fees of $521,568 (2024: $618,412; 2023: $580,180). The decrease from 2024 reflects lower legal fees and audit fees from the prior year which resulted from the restatement in 2024.
• Share-based payment expense of $236,922 (2024: $334,534; 2023: $1,176,190). The year-over-year decrease is a non-cash item and reflects fewer stock options granted during the year.
Other expenses and income, net
Other expenses and income were income of $394,320 in 2025, compared to an expense of $3,051,172 in 2024 and income of $118,761 in 2023. The principal movements in 2025 compared to 2024 and 2023 were:
• A foreign exchange gain of $557,477 (2024: loss of $651,807; 2023: gain of $133,468), reflecting the impact of changes in exchange rate on the Company's foreign-currency-denominated monetary items.
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• An unrealized gain on marketable securities of $1,341,000 (2024: loss of $30,510; 2023: $nil), reflecting the mark-to-market increase in the fair value of the Company's investment in Green Matters shares based on the price of the most recent financing.
• A fair value gain on the derivative liability of $845,203 (2024: gain of $86,001; 2023: gain of $117,648), reflecting the remeasurement of the embedded derivative on the Company's convertible debt instrument at year-end.
• Interest expense and bank charges of $977,605 (2024: $688,130; 2023: $97,570). The increase reflects the increased amount of interest-bearing promissory notes received during the current year.
• Accretion expense on convertible debt of $509,607 (2024: $434,341; 2023: $112,465) and accretion on the joint venture settlement obligation of $459,408 (2024: $552,928; 2023: $185,587). These are non-cash items reflecting the unwinding of the discount on the respective instruments.
• A loss on shares for debt settlement of $402,740, reflecting the difference between the fair value of common shares and warrants issued and the carrying value of the debt settled during the current year.
• The Company did not record a loss on share settlement of the joint venture settlement obligation in 2025 (2024: $538,461) and did not record a loss on modification of the joint venture settlement obligation in 2025 (2024: $246,168).
The Company recorded a cumulative translation loss of $918,282 in 2025, compared to a cumulative translation gain of $1,438,316 in 2024 and a loss of $380,197 in 2023. The cumulative translation adjustment reflects the translation of the financial statements of the Company's foreign subsidiaries and equity-accounted investments from their respective functional currencies into the Canadian dollar presentation currency.
| Year ended December 31, 2025 |
Year ended December 31, 2024 |
Year ended December 31, 2023 |
|||||||
| $ | $ | $ | |||||||
| Consulting and management fees | (868,385 | ) | (806,557 | ) | (620,682 | ) | |||
| General and administrative | (293,410 | ) | (310,018 | ) | (493,930 | ) | |||
| Marketing and donations | - | (14,883 | ) | (61,614 | ) | ||||
| Professional Fees | (521,568 | ) | (618,412 | ) | (580,180 | ) | |||
| Share-based payment expense | (236,922 | ) | (334,534 | ) | (1,176,190 | ) | |||
| (1,920,285 | ) | (2,084,404 | ) | (2,932,596 | ) | ||||
| Foreign exchange (loss) gain | 557,477 | (651,807 | ) | 134,068 | |||||
| Accretion expense on convertible debt | (509,607 | ) | (434,341 | ) | (112,465 | ) | |||
| Accretion on joint venture settlement obligation | (459,408 | ) | (552,928 | ) | (185,587 | ) | |||
| Interest expense and bank chares | (977,605 | ) | (688,130 | ) | (97,570 | ) | |||
| Unrealized gain (loss) on marketable securities | 1,341,000 | (30,510 | ) | - | |||||
| Loss on modification of joint venture settlement obligation | - | (246,168 | ) | - | |||||
| Gain on settlement of accounts payable and accrued liabilities | - | 5,172 | 321,115 |
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| Year ended December 31, 2025 |
Year ended December 31, 2024 |
Year ended December 31, 2023 |
|||||||
| Loss on shares for debt settlement | (402,740 | ) | - | - | |||||
| Interest income | - | - | 29,333 | ||||||
| Loss on share settlement of joint venture settlement obligation | - | (538,461 | ) | - | |||||
| Transaction costs expensed on convertible debt | - | - | (87,781 | ) | |||||
| Fair value adjustment on derivative liability | 845,203 | 86,001 | 117,648 | ||||||
| Loss | (1,525,965 | ) | (5,135,576 | ) | (2,813,835 | ) | |||
| Other comprehensive gain (loss) | (918,282 | ) | 1,438,316 | (380,197 | ) | ||||
| Net loss and comprehensive loss | (2,444,247 | ) | (3,697,260 | ) | (3,194,032 | ) | |||
| Basic/Diluted (loss) income per share | (0.04 | ) | (0.15 | ) | (0.08 | ) | |||
B. Liquidity and Capital Resources
| Consolidated Statement of Financial Position | |||||||||
| Year ended December 31, 2025 |
Year ended December 31, 2024 |
Year ended December 31, 2023 |
|||||||
| $ | $ | $ | |||||||
| Cash and cash equivalents | 57,539 | (54,227 | ) | 47,098 | |||||
| Current Assets | 3,223,102 | 1,793,683 | 2,550,909 | ||||||
| Total Assets | 21,554,750 | 20,263,844 | 18,113,760 | ||||||
| Current Liabilities | 15,978,134 | 12,637,275 | 9,029,429 | ||||||
| Total Liabilities | 17,738,987 | 16,175,698 | 13,112,699 | ||||||
The Company had a cash balance of $57,539 as of December 31, 2025. Cash outflow from operating activities was $0.3 million, lower compared to outflow of $1.2 million in 2024 and outflow of $2.2 million in 2023, due to change in working capital items (e.g. increase in accounts payables), net of corporate expenses.
Cash inflow from financing activities in the current year ended December 31, 2025, was $1.3 million which is the result of the Company receiving net additional loans of $1.1 million, net of $183,500 in payments on the Captiva JV settlement obligation, and $300,000 in private placement proceeds.
Cash outflow from investing activities in the current year ended December 31, 2025, was $0.8 million as the Company capitalized the costs related to Sage Ranch and Montalva.
The Company has no history of generative revenue and has been dependent upon raising funds through issuances of debt or equity. Development of the Company's projects will require significant additional capital. The Company does not anticipate generating sufficient revenue to continue ongoing operations until Phase 1 of the Sage Ranch Project is complete. The Company has engaged Voya pursuant to the Mandate Agreement to provided up to US$40 million for the purposes of construction and development of the Sage Ranch Project; however, there is not guarantee that such financing will be completed. See "Financing Arrangements". The Company's ability to continue as a going concern is dependent on the Company's ability to raise funds.
C. Research and Development, Patents and Licenses, etc.
The company does not conduct any research or development and holds no patents or licenses.
D. Trend Information
Potential Impact of the COVID-19 Pandemic
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In March 2020, the World Health Organization declared the outbreak of a novel strain of coronavirus ("COVID-19") and resulted in governments worldwide enacting emergency measures to combat its spread. These measures, which included the implementation of travel restrictions, quarantine periods and physical distancing requirements, affected economies and disrupted business operations for the Company and its suppliers.
On May 5, 2023, the World Health Organization ended the global COVID-19 emergency. However, there is ongoing uncertainty regarding new and potential variants and continued global spread. The extent to which COVID-19 may impact the Company's business, including its operations, market for its securities and its financial condition, will depend on future developments which are highly uncertain and cannot be predicted at this time. The Company will continue to monitor and assess the impact of COVID-19 on its operations.
E. Critical Accounting Estimates
The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments and estimates and form assumptions that affect the reporting amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.
On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, revenue, and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively.
We did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Areas that often require significant management estimates and judgment are as follows:
Key areas of judgment
Functional currency
The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which each operates. The Company's functional and local currency is the Canadian dollar. The functional currency of the Company's subsidiaries is the US dollar. The determination of functional currency may require certain judgments to determent the primary economic environment. The Company reconsiders the functional currency used when there is a change in events and conditions which determined the primary economic environment.
Assets' carrying values and impairment charges
In determining carrying values and impairment charges the Company looks at recoverable amounts, defined as the higher of value in use or fair value less cost to sell in the case of assets, and at objective evidence that identifies significant or prolonged decline of fair value on financial assets indicating impairment. These determinations and their individual assumptions require that management make a decision based on the best available information at each reporting period.
Going concern of operations
These consolidated financial statements do not give effect to adjustments, if any, that would be necessary should the Company be unable to continue as a going concern. If the going concern assumption was not used, then the adjustments required to report the Company's assets and liabilities on a liquidation basis could be material to these financial statements.
Marketable securities
The determination of the fair value requires significant judgement by the Company, on the date of purchase, and at each reporting date thereafter, consistent with fair value accounting guidance in accordance with IFRS 13, Fair Value Measurement.
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Tax
Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable earnings will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable earnings together with future tax planning strategies.
Key sources of estimation uncertainty
Share-based payments
Amounts recorded for share-based payments are subject to the inputs used in the Black-Scholes option pricing model, including estimates such as volatility, forfeiture, dividend yield and expected option life.
Convertible debentures
Convertible debentures are separated into their liability and equity components on the statement of financial position. The liability component is initially recognized at fair value, calculated as the net present value of the liability, using estimated interest rates based upon non-convertible debentures issued by comparable issuers, and accounted for at amortized cost using the effective interest rate method.
Derivative Liability
The Company measures the fair value of the derivative by reference to the fair value on the convertible debenture issuance date with an estimated life ending on the convertible debenture maturity date and revalues them at each reporting date. In determining the fair value for the derivative liability, the Company used the Geometric Brownain motion model with the following assumptions: annualized volatility rate; market price of shares at the reporting date; risk-free interest rate; the remaining expected life of the embedded derivatives and an exchange rate at the reporting date. Changes to these estimates could result in the fair value of the derivative liability being less than or greater than the amount recorded.
Joint venture settlement obligation
The liability is initially recognized at fair value, calculated as the net present value of the liability, using estimated interest rates based upon debt issued by comparable issuers, and accounted for at amortized cost using the effective interest rate method.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A. Directors and Senior Management
| Name, Province/State and Country of Residence | Age | Position | Director/Officer Since | |||
| Jeffrey J. Ciachurski, Arizona, USA | 65 | Chief Executive Officer and Director | April 2, 2009 | |||
| Clifford M. Webb(1)(2)(3) , California, U.S. | 79 | President and Director | February 18, 2013 | |||
| Anthony Balic, British Columbia, Canada | 42 | Chief Financial Officer and Corporate Secretary | January 28, 2020 | |||
| Daniel Kunz, Idaho, U.S. | 72 | Director and Chairman of the Board | October 30, 2013 | |||
| J. Michael Boyd(1)(2)(3), Arizona, U.S. | 71 | Director | September 8, 2011 | |||
| William Sutherland(1)(2)(3), Ontario, Canada | 72 | Director | August 21, 2017 | |||
| Brian Conlan , Florida, U.S. | 44 | Director | December 4, 2025 |
______________________________
Notes
(1) Member of the Audit Committee
(2) Member of the Compensation Committee
(3) Member of the Corporate Governance Committee
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Business Experience
The following summarizes the occupation and business experience during the past five years or more for our directors and executive officers as of the date of this Annual Report:
Jeffrey J. Ciachurski, Chief Executive Officer and Director
Mr. Ciachurski launched Greenbriar after a 11-year career as founder, CEO and Director of Western Wind Energy Corp, where he built a vertically integrated, renewable energy owner and operator which was then sold to Brookfield Renewable Energy Partners for $420 million in March 2013. Mr. Ciachurski established the operating and development assets in California, Arizona, and the Commonwealth of Puerto Rico and financially led and built over 165 MW of solar and wind production and 360 MW of advanced staged assets all wholly owned by the company. Mr. Ciachurski is currently the CEO and Director of the Company and spends approximately 70 percent of his working time with the Company, at a minimum of 40 hours per week. Mr. Ciachurski is also the CEO and Director of Captiva Verde Wellness Corp., but spends a lesser amount of time in that capacity. Captiva is an infrastructure company focused on the ownership of wellness infrastructure, pharmaceutical buildings, processing facilities and sustainable real estate. Mr. Ciachurski has been a director of Captiva since 2017. Mr. Ciachurski is also privately involved in real estate, sustainable technologies, and financial media as a private investor.
Clifford M. Webb, President and Director
Mr. Webb devotes a minimum of 40 hours per week to the Company. He is an experienced executive and engineering management professional with over 45 years of professional engineering experience and over 35 years of experience in utility-scale renewable energy. Mr. Webb has held executive positions at various renewable energy companies engaged in solar, wind, biomass, cogeneration and geothermal energy. Mr. Webb worked with utility-scale solar generation as Executive Vice President of Luz Development and Finance where Mr. Webb was directly responsible for the development, permitting and construction oversight of the Luz SEGS units, a large solar generating facility with over 300 MW of installed capacity. In addition, Mr. Webb has extensive utility experience both with Southern California Edison Company where he developed and managed its renewable energy procurement program and as a project developer negotiating utility power purchase and transmission interconnection agreements. Mr. Webb is also a former Division Chief of the Engineering and Environmental Siting Division of the California Energy Commission and was a nuclear advisor to Governor Jerry Brown including working directly with the Governor and representing the State of California at hearings before the Nuclear Regulatory Commission. Mr. Webb has a Bachelor of Science degree in Mechanical Engineering from University of California at Berkeley, various graduate studies in engineering at the University of Houston and Colorado State University and is a Registered Professional Engineer.
Anthony Balic, Chief Financial Officer and Secretary
Mr. Anthony Balic spends a minimum of 20 hours per week with the Company. Mr. Balic is Principal of Katuni Capital Corp., a private company providing corporate finance, accounting and capital advisory services to private and public companies and has worked in a range of senior roles during the past 15 years. He is the current CFO of Goldgroup Mining Inc. Fidelity Minerals Corp. and Lions Bay Capital Inc. Mr. Balic has also been the CFO of Captiva Verde Wellness Corp. since 2017.
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Daniel Kunz, Chairman of the Board and Director
Mr. Daniel Kunz MBA, B.Sc. Eng. has more than 35 years of experience in areas of engineering, management, accounting, finance and operations. In 2014, Mr. Kunz founded and is currently managing member of Daniel Kunz & Associates, LLC an engineering services company in natural resources. He was Director, President and COO of Ivanhoe Mines Ltd. In 1998, Mr. Kunz led Ivanhoe into Mongolia where, in 2001 he was part of the team that discovered Oyu Tolgoi, one of the largest copper-gold deposits in the world. Mr. Kunz is founder, and from 2004 until April 2013 was President, CEO and Director, of U.S. Geothermal Inc., a renewable energy company acquired by Ormat Technologies in 2018 for an enterprise value of US$200 million. U.S. Geothermal Inc. developed, owns and operates 50 MW of base load power from three geothermal power plants. In 1993 as president, CEO and director, Mr. Kunz led the IPO of MK Gold Company on the NASDAQ, a gold company he co-founded with worldwide gold mining operations and production of some 200,000 ounces of gold per year from the mines it owned and operated. For 17 years, Mr. Kunz worked for and ultimately served as a senior executive of Morrison Knudsen Corp (now AECOM), including Vice President & Controller. Mr. Kunz is currently the CEO and Chairman of Prime Metals Corporation, a precious metals company. Mr. Kunz has been a director of Prime Metals since 2019.
In 1995, Mr. Kunz was named a Distinguished Alumni from the University of Montana Tech (formerly the Montana College of Mineral Science and Technology) and was a member of the advisory board for the Engineering Department at the University of Montana Tech. He currently serves on the board of directors of several public companies involved in natural resource development.
J. Michael Boyd, Director
Before joining Greenbriar Sustainable Living Inc., Mr. Boyd held the position of Executive Vice President of Development for Western Wind Energy Corp., until the company was purchased by Brookfield Renewable Energy Partners. He assisted Western Wind Energy in acquiring, leasing and zoning real estate suitable for the development of wind and solar farms in Arizona and California. In addition, Mr. Boyd served on the company's Board of Directors. Prior to joining Western Wind, he served as an elected member of the Central Arizona Water Conservation District, a large water utility in the state of Arizona and its biggest electrical consumer. Prior to that, Mr Boyd served two terms on the Pima County (Arizona) Board of Supervisors. Mr. Boyd has also been a director of Captiva Verde Wellness Corp. since 2017. Mr. Boyd graduated from UCLA.
William Sutherland, Director
Mr. William Sutherland was Vice President & Senior Managing Director at Manulife Financial where he headed the firm's Project Finance & Infrastructure Team. He and his team at Manulife have been leading arrangers and providers of debt and equity financing to the independent power sector for over 18 years. He is a seasoned corporate banker with over 37 years of business development, relationship management and corporate and project finance experience. Bill started as an analyst within The Bank of Nova Scotia's International Corporate Finance Group in 1980 where he focused on project finance. He later created and led project and corporate finance teams at Chase Manhattan Bank, Mitsubishi Bank and Deutsche Bank where he specialized in financing projects and mergers and acquisitions within the mining and metals, forestry, oil & gas, pipeline and power sectors. In 1998, Bill acted as a consultant to Barrick Gold Company as Barrick explored the possibilities of creating a mine finance business in competition with the major commercial banks. Bill joined Clarica Life Insurance Company in 1998 where he created and headed a project finance team dedicated to financing power and infrastructure projects in Canada. Following its success in the Canadian market, the group broadened its focus and became a pioneering and leading arranger and provider of financing to the Canadian and U.S. wind power industries. The team moved to Manulife in 2002 and since that time expanded its leadership role within the Canadian independent power and U.S. renewable power markets. Bill is a Professional Engineer (AEPO) and holds a BSc. (Mechanical Engineering) and MBA from Queen's University, Kingston.
Brian Conlan
Brian is the President and co-founder of AHP Strategies, a US government contractor specializing in aerospace and maritime environments, as well as the co-founder and partner of ASNF Holdings, LLC, a leading investment firm in both residential and commercial real estate. In addition to his businesses, Brian served in a variety of roles in the United States Department of Defense and US State Department, respectively, retiring as a Commander after 20 years of full-time service. Beginning his career as a Navy Pilot, Brian served as an Aide-de-camp, Nuclear Aircraft Carrier Navigator, and subsequently as Acting Executive Officer of the nuclear aircraft carrier, USS John C. Stennis. Later in his career, he transitioned into unmanned systems and served as the Commanding Officer of VUP-19, the US Navy's first Unmanned Aircraft squadron where he commanded operations for a USD $13 billion capital program, leading 700 active, reserve, and civilian personnel operating simultaneously from locations in the Middle East, Asia, and the US. Brian founded the Joint Unmanned Interagency Collaboration Enterprise in 2021, and was selected as an Unmanned Systems Advisor to senior Pentagon staff, including Deputy, US Special Operations Command and NATO. Brian is a graduate of the College of William and Mary and the US Air Force Air Command and Staff College.
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Family Relationships
There are no family relationships among any of our directors and executive officers.
Term of Office
Each director of our company is to serve for a term of one year ending on the date of the subsequent annual meeting of stockholders following the annual meeting at which such director was elected. Notwithstanding the foregoing, each director is to serve until his successor is elected and qualified or until his death, resignation or removal. Our Board of Directors appoints our officers and each officer is to serve until his successor is appointed and qualified or until his or her death, resignation or removal.
Involvement in Certain Legal Proceedings
During the past ten years, none of our directors or executive officers have been the subject of the following events:
1. a petition under the Federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any Company or business association of which he was an executive officer at or within two years before the time of such filing;
2. convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);
3. the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities:
(a) acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;
(b) engaging in any type of business practice; or
(c) engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws;
4. the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph 3(a) in the preceding paragraph or to be associated with persons engaged in any such activity;
5. was found by a court of competent jurisdiction in a civil action or by the SEC to have violated any Federal or State securities law, and the judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended, or vacated;
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6. was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;
7. was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:
(a) any Federal or State securities or commodities law or regulation;
(b) any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or
(c) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
8. was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
Director Independence
Our Board of Directors has determined that the following directors are "independent" as such directors do not have a direct or indirect material relationship with our Company. A material relationship is a relationship which could, in the view of our Board of Directors, be reasonably expected to interfere with the exercise of a director's independent judgment.
• J. Michael Boyd;
• Brian Conlan
• Daniel Kunz; and
• William Sutherland.
Code of Business Conduct and Ethics
The Board adopted a formal written Code of Business Conduct and Ethics on May 10, 2022. In recruiting new board members, the Board considers only persons with a demonstrated record of ethical business conduct.
B. Compensation
Compensation Discussion and Analysis
This section sets out the objectives of our Company's executive compensation arrangements, our Company's executive compensation philosophy and the application of this philosophy to our Company's executive compensation arrangements. It also provides an analysis of the compensation design, and the decisions that the Board of Directors will make in fiscal 2026 with respect to its Named Executive Officers (as herein defined).
The Board is responsible for determining all forms of compensation, including long-term incentives in the form of stock options to be granted to directors, officers, and consultants of the Company. The Board is also responsible for reviewing recommendations from the Compensation Committee for compensation of the Chief Executive Officer and other officers of the Company, to ensure such arrangements reflect the responsibilities and risks associated with each position. When determining the compensation of its officers, the Compensation Committee will consider: (i) recruiting and retaining officers critical to the success of the Company and the enhancement of shareholder value; (ii) providing fair and competitive compensation; (iii) balancing the interests of management and the Company's shareholders; and (iv) rewarding performance, both on an individual basis and with respect to operations in general. Greenbriar's compensation program currently relies heavily on the granting of stock options and performance bonuses.
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The long-term incentive program is intended to align the interests of the Named Executive Officers (as defined below), directors, consultants and employees with those of Greenbriar's shareholders over the longer term and to provide a retention incentive for each Named Executive Officer. This component of the compensation package consists of grants of options to purchase common shares. Numerous factors are taken into consideration by the Board in determining grants of options, including: a review of the previous grants (including value both at the current share prices and potential future prices), the remaining time to expiry, overall corporate performance, share price performance, the business environment and the role and performance of the individual in question.
Summary Compensation Table
The following table sets forth all compensation paid, payable, awarded, granted, given or otherwise provided, directly or indirectly, by Greenbriar or its subsidiaries, to each of the executive officers set out below (each, a "Named Executive Officer") and director of Greenbriar, in any capacity, including, for greater certainty, all plan and non‐plan compensation, direct or indirect pay, remuneration, economic or financial award, reward, benefit, gift or perquisite paid, payable, awarded, granted, given or otherwise provided to the Named Executive Officer or a director of Greenbriar for services provided and for services to be provided, directly or indirectly, to Greenbriar or its subsidiaries in the two most recently completed financial years ended December 31, 2025 and December 31, 2024.
| Executive Officer and Principal Position |
Year | Salary, consulting fee, retainer or commission ($) |
Bonus ($) | Committee or meeting fees ($) |
Value of perquisites ($) |
Value of all other compensation ($) |
Total Compensation ($) |
||||||||
| Jeffrey J. Ciachurski | 2025 | $350,163 | Nil | Nil | Nil | Nil | $350,163 | ||||||||
| Chief Executive Officer and Director | 2024 | $341,146 | Nil | Nil | Nil | Nil | $341,146 | ||||||||
| Clifford M. Webb | 2025 | $223,603 | Nil | Nil | Nil | Nil | $223,603 | ||||||||
| President and Director | 2024 | $181,773 | Nil | Nil | Nil | Nil | $181,773 | ||||||||
| Anthony Balic | 2025 | $177,000 | Nil | Nil | Nil | Nil | $177,000 | ||||||||
| Chief Financial Officer | 2024 | $132,000 | Nil | Nil | Nil | Nil | $132,000 |
Stock Options and Other Compensation Securities
There were no compensation securities granted to the Named Executive Officers and directors during the year ended December 31, 2025:
Executive Compensation Agreements
Pursuant to a consulting agreement dated July 1, 2014, the President of Greenbriar, Clifford M. Webb, agreed to lead all the wind and solar development in obtaining permitting, environmental compliance and raising of capital to construct Greenbriar's renewable energy facilities for an annual fee of US $120,000. The agreement was amended on October 18, 2016 to provide for an annual fee of US $60,000. In addition to the annual fee, Greenbriar agreed to reimburse all reasonable expenses incurred related to office expenses, daily travel per diem, mileage expense and health and life insurance premium expense. The agreement also provided for a bonus of US $250,000 in recognition of the President's unpaid work in support of Greenbriar's projects since March 2013 which was awarded to the President during the year ended December 31, 2014. The bonus will be paid from available funds upon Greenbriar closing certain development milestones allowing for an equity raise of at least US$2,000,000 or the sale of any Greenbriar assets or project rights including the Tehachapi project, whichever occurs first. The President will also be paid a US$1,950,000 development completion bonus at the time the Montalva Solar Project completes all key milestones necessary for Greenbriar to obtain project financing for the Montalva Solar Project.
Stock Option Plan and Stock Options
Greenbriar's amended and restated Stock Option Plan, dated for reference September 14, 2012 (the "Stock Option Plan"), was most recently amended on May 16, 2022 to reflect certain amendments to the Policies of the TSXV, and last approved by Greenbriar's shareholders at the annual general meeting held on June 21, 2024. The purpose of the Stock Option Plan is to encourage ownership of the common shares of Greenbriar by persons ("Eligible Persons") who are directors, senior officers and Employees of, as well as Consultants and employees of management companies providing services to, Greenbriar. Given the competitive environment in which Greenbriar operates its business, the Stock Option Plan will assist it to attract and retain valued directors, senior officers, Employees, Consultants and employees of management companies.
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The aggregate number of Greenbriar's common shares reserved for issuance under the Stock Option Plan is a maximum of 10% of the issued and outstanding share capital at the date of grant. If any options granted under the Stock Option Plan expire or terminate for any reason without having been exercised in full, the unpurchased shares will again be available under the Stock Option Plan. As the Stock Option Plan is a "rolling plan", the policies of the Exchange provide that Greenbriar must seek shareholder approval of the Stock Option Plan annually. "Consultant", "Employee", "Eligible Person", "Investor Relations Activities" and "Discounted Market Price" all have the same definition as in the Policies of the TSXV.
The following summary is a brief description of the Stock Option Plan and is qualified in its entirety by the full text of the Stock Option Plan:
1. The maximum number of shares that may be issued upon the exercise of stock options previously granted and those granted under the Stock Option Plan will be a maximum of 10% of the issued and outstanding common shares at the time of the grant.
2. Stock options can be issued to persons who are directors, senior officers, Employees, advisory board members and Consultants of, or employees of management companies providing services to, Greenbriar.
3. The minimum exercise price of a stock option cannot be less than the Discounted Market Price of Greenbriar's common shares.
4. The number of options granted to any one individual may not exceed 5% of the outstanding listed shares in any 12 month period, unless Greenbriar obtains disinterested shareholder approval.
5. The number of options granted to any one Consultant may not exceed 2% of Greenbriar's outstanding listed shares in any 12 month period.
6. The number of options granted to any Employee conducting Investor Relations Activities in any 12 month period may not exceed 2% of Greenbriar's outstanding listed shares in any 12 month period.
7. All options granted under the Stock Option Plan may not have an expiry date exceeding ten years from the date on which the Board grants the option.
8. If the optionee is a director, senior officer, Employee, Consultant or management company employee and ceases to be (other than by reason of death) an Eligible Person, then the option granted shall expire within a reasonable period of time, as determined by the Board, following the date that the option holder ceases to be an Eligible Person, subject to the terms and conditions set out in the Stock Option Plan.
9. If an optionee ceases to be an Eligible Person by reason of death, an optionee's heirs or administrators shall have until the earlier of:
(a) one year from the death of the option holder; and
(b) the expiry date of the options
in which to exercise any portion of options outstanding at the time of death of the optionee.
10. The Stock Option Plan will be administered by Greenbriar's Board who will have the full authority and sole discretion to grant options under the Stock Option Plan to any Eligible Person, including themselves.
11. The options are non-assignable and non-transferable.
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12. Greenbriar shall have the authority to deduct and withhold, or require the Optionee to remit to Greenbriar, the amount of any taxes or other required source deductions which Greenbriar is required by law or regulation of any governmental authority whatsoever to remit in connection with any issuance of shares upon the exercise of options.
13. The Board may from time to time, subject to regulatory approval, amend or revise the terms of the Stock Option Plan.
Pension Disclosure
Greenbriar does not have any pension, defined benefit, defined contribution or deferred compensation plan in place.
Securities Authorized For Issuance Under Equity Compensation Plans
The only equity compensation plans which Greenbriar currently has in place is the Stock Option Plan which was approved by Greenbriar's shareholders on July 7, 2025; The following table sets forth, as at December 31, 2025, the equity compensation plans pursuant to which equity securities of the Company may be issued:
| Plan Category | Number of securities covered by awards granted(1) (a) |
Weighted-average exercise price of outstanding options ($) (b) |
Number of securities remaining available for future issuance under equity compensation plans(2) (c) |
||||
| Equity compensation plans approved by securityholders | 3,637,000 | $0.85 | 448,109 | ||||
| Equity compensation plans not approved by securityholders | N/A | N/A | N/A | ||||
| Total | 3,637,000 | $0.85 | 448,109 |
Notes
(1) A total of 3,637,000 options are outstanding which have been granted pursuant to Greenbriar's Stock Option Plan.
(2) Greenbriar currently has a "rolling" Stock Option Plan. The aggregate number of common shares reserved for issuance is a maximum of 10% of the issued and outstanding share capital of Greenbriar as at the date of grant.
C. Board Practices
Board of Directors
The Articles of the Company provide that the number of directors is set at:
(a) subject to paragraphs (b) and (c), the number of directors that is equal to the number of our first directors;
(b) if we are a public company, the greater of three and the number most recently elected by ordinary resolution (whether or not previous notice of the resolution was given); and
(c) if we are not a public company, the number most recently elected by ordinary resolution (whether or not previous notice of the resolution was given).
Our Board of Directors currently consists of six directors. Our directors are elected annually at each annual meeting of our Company's shareholders. The Board of Directors assesses potential Board candidates to fill perceived needs on the Board of Directors for required skills, expertise, independence and other factors.
Our Board of Directors is responsible for appointing our Company's officers.
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Board of Director Committees
At this time the Company has the following committees:
• the Audit and Finance Committee (the "Audit Committee"), consisting of Clifford M. Webb, J. Michael Boyd and William Sutherland, of whom Mr. Boyd and Mr. Sutherland are independent.
• the Corporate Governance Committee, consisting of Clifford M. Webb, J. Michael Boyd and William Sutherland, of whom Mr. Boyd and Mr. Sutherland are independent.
• the Compensation Committee, consisting of Clifford M. Webb, J. Michael Boyd and William Sutherland, of whom Mr. Boyd and Mr. Sutherland are independent.
Audit Committee
The Audit Committee assists the Board in fulfilling its financial oversight responsibilities by reviewing the financial reporting process, the system of internal controls and the audit process. The Audit Committee's responsibilities include:
• Reviewing the annual audited financial statements to satisfy itself that they are presented in accordance with applicable generally accepted accounting principles ("GAAP") and report thereon to the Board and recommend to the Board whether or not same should be approved prior to their being filed with the appropriate regulatory authorities. The Committee shall also review the interim financial statements;
• With respect to the annual audited financial statements, discussing significant issues regarding accounting principles, practices, and judgments of management with management and the external auditors and having meetings with the Company's auditors without management present, as and when the Committee deems it appropriate to do so. The Committee shall satisfy itself that the information contained in the annual audited financial statements is not significantly erroneous, misleading or incomplete and that the audit function has been effectively carried out;
• Reviewing any internal control reports prepared by management and the evaluation of such report by the external auditors, together with management's response;
• Reviewing and satisfying itself that adequate procedures are in place for the review of the Company's public disclosure of financial information extracted or derived from the Company's financial statements, management's discussion and analysis and interim earnings press releases, and periodically assess the adequacy of these procedures;
• Review management's discussion and analysis relating to annual and interim financial statements and any other public disclosure documents, including interim earnings press releases, that are required to be reviewed by the Committee under any applicable laws, before the Company publicly discloses this information;
• Inquire of management and the external auditors about significant financial risks or exposures, both internal and external, to which the Company may be subject, and assess the steps management has taken to minimize such risks;
• Review the post-audit or management letter containing the recommendations of the external auditors and management's response and subsequent follow-up to any identified weaknesses; and
• Establish procedures for:
o the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters; and
o the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters.
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Corporate Governance Committee
The Corporate Governance Committee is responsible for the development and supervision of Greenbriar's approach to corporate governance issues. The Corporate Governance Committee assists the Board in developing corporate governance guidelines, including the constitution and independence of the Board, and makes recommendations to the Board with respect to corporate governance practices.
Compensation Committee
The Board is responsible for determining all forms of compensation, including long-term incentives in the form of stock options to be granted to directors, officers, and consultants of the Company. The Board is also responsible for reviewing recommendations from the Compensation Committee for compensation of the Chief Executive Officer and other officers of the Company, to ensure such arrangements reflect the responsibilities and risks associated with each position. When determining the compensation of its officers, the Compensation Committee will consider: (i) recruiting and retaining officers critical to the success of the Company and the enhancement of shareholder value; (ii) providing fair and competitive compensation; (iii) balancing the interests of management and the Company's shareholders; and (iv) rewarding performance, both on an individual basis and with respect to operations in general.
The Company has established a Real Estate Advisory Board. The members of the board are Mr. Tommy Sullivan (Chairman) and Mr. Paul Morris. The Real Estate Advisory Board has been established to industry advice and best practises, as well as mentoring and business referrals. The board meets by phone several times a week and there is no compensation paid.
D. Employees
We have no full-time or part-time employees, as of December 31, 2025. However, Mr. Jeffrey Ciachurski, Mr. Clifford Webb and Mr. Anthony Balic serve as the Company's chief executive officer, president and chief financial officer, respectively. Each provide their respective services under consulting agreements.
E. Share Ownership
Shares
The shareholdings of our officers and directors are set out in Item 7 below.
Options
The following table sets forth details for all stock options held by our officers and directors as at April 30, 2026:
| Name and Position | Type of compensation security |
Number of compensation securities, number of underlying securities and percentage of class |
Date of issue or grant (m/d/y) |
Issue, conversion or exercise price ($) |
Closing price of security or underlying security on date of grant ($) |
Expiry date (m/d/y) |
|||||||
| Daniel Kunz | Stock Options | 200,000 | 11/15/2023 | $1.10 | $1.10 | 11/15/2028 | |||||||
| Director | |||||||||||||
| Anthony Balic | Stock Options | 200,000 | 11/15/2023 | $1.10 | $1.10 | 11/15/2028 | |||||||
| Chief Financial Officer | |||||||||||||
| William Sutherland | Stock Options | 200,000 | 11/15/2023 | $1.10 | $1.10 | 11/15/2028 | |||||||
| Director | |||||||||||||
| Clifford M. Webb | Stock Options | 200,000 | 11/15/2023 | $1.10 | $1.10 | 11/15/2028 | |||||||
| President and Director | |||||||||||||
| J. Michael Boyd | Stock Options | 200,000 | 11/15/2023 | $1.10 | $1.10 | 11/15/2028 | |||||||
| Director |
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| Name and Position | Type of compensation security |
Number of compensation securities, number of underlying securities and percentage of class |
Date of issue or grant (m/d/y) |
Issue, conversion or exercise price ($) |
Closing price of security or underlying security on date of grant ($) |
Expiry date (m/d/y) |
|||||||
| Jeffrey J. Ciachurski | Stock Options | 137,000 | 11/15/2023 | $1.10 | $1.10 | 11/15/2028 | |||||||
| Chief Executive Officer and Director |
Warrants
As of April 30, 2026, there are no Warrants, exercisable into common shares of the Company, held by our officers and directors.
F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation
Not applicable.
ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A. Major Shareholders
Security Ownership of Certain Beneficial Owners and Management
The following table sets forth certain information regarding the beneficial ownership of our common share as of April 30, 2026, by (a) each stockholder who is known to us to own beneficially 5% or more of our outstanding common share; (b) all directors; (c) our executive officers, and (d) all executive officers and directors as a group. Except as otherwise indicated, all persons listed below have (i) sole voting power and investment power with respect to their common shares, except to the extent that authority is shared by spouses under applicable law, and (ii) record and beneficial ownership with respect to their common shares.
| Name | Common Shares of the Company Beneficially Owned (1) |
Percentage of Common Shares Beneficially Owned (2) |
||||
| Directors and Executive Officers: | ||||||
| Jeffrey J. Ciachurski(3), Chief Executive Officer and Director | 4,416,130 | 10.20% | ||||
| J. Michael Boyd(4), Director | 274,936 | 0.64% | ||||
| Daniel Kunz(5), Director | 701,900 | 1.62% | ||||
| Clifford Webb(6), President and a director | 2,416,039 | 5.58% | ||||
| William Sutherland (7), a director | 616,400 | 1.42% | ||||
| Anthony Balic(8), Chief Financial Officer and Corporate Secretary | 350,000 | 0.81% | ||||
| Brian Conlan(9), Director | 901,015 | 2.08% | ||||
| Directors and Executive Officers as a Group (Seven Persons) | 9,676,420 | 22.36% | ||||
| Other 5% or more Shareholders: | ||||||
| N/A | - | - |
______________________________
Notes
(1) Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or common shares: (i) voting power, which includes the power to vote, or to direct the voting of common shares; and (ii) investment power, which includes the power to dispose or direct the disposition of common shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the common shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person's actual ownership or voting power with respect to the number of common shares actually outstanding on April 30, 2026.
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(2) The percentage is calculated based on 43,274,983 common shares that were outstanding as of April 30, 2026.
(3) Shares beneficially owned consists of (i) 2,563,830 Common Shares held directly by Mr. Ciachurski, (ii) 1,715,300 Common Shares held of record by Mr. Ciachurski's wife and (iii) stock options to purchase 137,000 Common Shares which have vested.
(4) Shares beneficially owned consists of (i) 74,936 Common Shares held directly by Mr. Boyd and (ii) stock options to purchase 200,000 Common Shares which have vested.
(5) Shares beneficially owned consists of (i) 501,900 Common Shares held directly by Mr. Kunz, and (ii) stock options to purchase 200,000 Common Shares which have vested.
(6) Shares beneficially owned consists of (i) 2,216,039 Common Shares held directly by Mr. Webb, and (ii) stock options to purchase 200,000 Common Shares which have vested.
(7) Shares beneficially owned consists of (i) 345,000 Common Shares held directly by Mr. Sutherland, (ii) 71,400 held by a corporation controlled by Mr. Sutherland and (ii) stock options to purchase 200,000 Common Shares which have vested.
(8) Shares beneficially owned consists of 150,000 Common Shares held directly by Mr. Balic and (ii) stock options to purchase 200,000 Common Shares which have vested.
(9) Shares beneficially owned consists of (i) 901,015 Common Shares held directly by Mr. Conlan.
The information as to shares beneficially owned, not being within our knowledge, has been furnished by the officers and directors.
As at April 30, 2026 there were 30 holders of record of our common shares.
Transfer Agent
Our shares of common stock are recorded in registered form on the books of our transfer agent, Computershare Investor Services Inc., located at 3rd Floor, 510 Burrard Street, Vancouver, British Columbia Canada V6C 3B9.
B. Related Party Transactions
As at April 30, 2026, the Company had $2,841,519 (December 31, 2025 - $2,334,268; December 31, 2024 - $2,164,732; December 31, 2023 - $1,778,306) in accounts payable and accrued liabilities to related parties. During the year ended December 31, 2025, related party loans and promissory notes totaled $1,896,541 (December 31, 2024 - USD $190,300, December 31, 2023 - USD $190,300)
During the year ended December 31, 2024, the Company received a USD$285,000 (CAD $399,818) promissory that bears interest at 12% per annum, is unsecured and is repayable up to September 30, 2025. The promissory note is past due and payable on demand. Interest on the promissory note was $26,894 (December 31, 2024 - $4,862). During the year ended December 31, 2025, the ownership of the USD $285,000 loan was transferred to the CEO of the Company through a private transaction.
During the year ended December 31, 2024, the Company entered into a loan agreement for USD $350,000 ($476,563). The loan bears interest at 12% per annum, is unsecured and is repayable on or before December 31, 2025. During the year ended December 31, 2025, interest on the promissory note was $61,606 (December 31, 2024 - $28,332). During the year ended December 31, 2025, the ownership of the USD $350,000 loan was transferred to the CEO of the Company through a private transaction.
Clifford M. Webb
Consulting Agreement
On July 1, 2014, the Company entered into a consulting contract with Clifford M. Webb, a Director and the President of the Company. The agreement provides for an annual fee of US $120,000 in which the President will lead all the wind and solar development in obtaining permitting, environmental compliance and raising of capital to construct the renewable energy facilities. In addition, the Company agrees to reimburse all reasonable expense incurred related to office expenses, daily travel per diem, mileage expense and health and life insurance premium expense. Further, upon the Company closing certain development milestones allowing for an equity raise of at least US $2 Million or the sale of any Company assets or project rights including the Tehachapi land whichever comes first, the agreement provides for a one-time payment of US $250,000 in recognition of the President's unpaid work in support of the Company's projects since March 2013. Lastly, the President will be paid a US$3 Million development completion bonus at the time the Montalva Solar Project completes all key milestones necessary for the Company to obtain project financing for the Montalva Solar Project.
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On October 15, 2016, the President entered into an amended compensation agreement with the Company. Under this new agreement, the President agreed to settle all unpaid fees and late penalties with a US$168,750 loan at interest of 8% per annum compounded semi-annually. His base fee will be reduced to US$5,000 per month until such time as a PPOA for a project has been executed with PREPA or other such milestone has occurred as determined by the board. The fee will then be reverted back to US$10,000 per month. Further the development completion award for the Montalva solar project will be reduced to US$1.95 million from the initial US$3 million.
During the year ended December 31, 2025, the President of the Company charged the Company $223,603 (December 31, 2024 - $181,733, December 31, 2023 -$179,514) related to services.
Anthony Balic
During the year ended December 31, 2025, a Company controlled by Anthony Balic, the Company's CFO, charged the Company $177,000 (2024 - $132,000, 2023 - $140,429) related to services.
Jeff Ciachurski
During the year ended December 31, 2025, the Chief Executive Officer of the Company charged the Company $350,163 (2024 - $341,146, 2023 - $337,448) related to services.
Captiva Verde Wellness Corp.
As at December 31, 2024, the Company had a receivable of $nil (December 31, 2023) from Captiva, which accrued interest at the rate of 8% per annum for a term of 24 months. The promissory note matured on April 20, 2024. Under the terms of the note, additional advances may be extended subject to the same terms and conditions. As at December 31, 2025, interest income of $nil (December 31, 2024 - $nil). During the year ended December 31, 2024, the Company and Captiva agreed to net the Company's receivable of $206,947 from Captiva against the joint venture settlement obligation.
On June 22, 2023, and amended on August 21, 2023, the Company entered into the Original Settlement Agreement whereby the Company will repay Captiva the amount funded by Captiva under the Option and Joint Venture Agreement (equal to $5,591,588) in 48 equal monthly installments of $116,491 starting on July 1, 2024, with the last payment on June 1, 2028. On December 30, 2024, the Company settled $1,000,000 of the settlement obligation in exchange for the issuance of 2,197,802 common shares of the Company and recorded loss of $538,461 on settlement in the statement of loss and comprehensive loss. Subsequent to the remaining amount owing under the Original Settlement Agreement, as amended by the Settlement Amending Agreements, being repaid, Captiva will no longer have any further net profits interest, or any other interest, in and to the Sage Ranch Project. During the year ended December 31, 2025, the Company has made payments of $183,500 (2024 - $220,500) related to this obligation in addition to $nil (2024 - $206,947) receivable which was netted against the obligation. On March 13, 2026,, the Company issued 1,250,000 common shares to settle $625,000 of the JV Settlement obligation with Captiva
C. Interests of Experts and Counsel
Not Applicable.
ITEM 8. FINANCIAL INFORMATION
A. Consolidated Statements and Other Financial Information
Financial Statements
Our audited consolidated financial statements as at December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023 are attached hereto and found immediately following the text of this Annual Report, beginning on page F-1. The financial statements of the Company have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board and are included under Item 18 of this Annual Report. The financial statements including related notes are accompanied by the report of the Company's independent registered public accounting firm, Davidson & Company LLP.
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Legal Proceedings
As of the date of this Annual Report, in the opinion of our management, we are not currently a party to any litigation or legal proceedings which are material, either individually or in the aggregate, and, to our knowledge, no legal proceedings of a material nature involving us currently are contemplated by any individuals, entities or governmental authorities.
Dividends
We have not paid any dividends on our common shares since incorporation of the Company. Our management anticipates that we will retain all future earnings and other cash resources for the future operation and development of our business. We do not intend to declare or pay any cash dividends in the foreseeable future. Payment of any future dividends will be at the Board of Directors' discretion, subject to applicable law, after taking into account many factors including our operating results, financial condition and current and anticipated cash needs.
B. Significant Changes
We have not experienced any significant changes since the date of the financial statements included with this Annual Report except as disclosed in this Annual Report.
ITEM 9. THE OFFER AND LISTING DETAILS
A. Offer and Listing Details
Our Common Shares are listed for trading on the TSXV under the trading symbol "GRB".
As of the date of this Annual Report, our authorized capital consisted of an unlimited number of Common Shares without par value. Our issued and outstanding Common Shares are fully paid. We have no other authorized class of equity securities.
Our Common Shares are in registered form and the transfer of our Common Shares is managed by our transfer agent, Computershare Investor Services Inc., 510 Burrard Street, 3rd Floor, Vancouver, British Columbia, V6C 3B9 (Tel: (604) 661-9400). Our transfer agent in the United States is expected to be Computershare Trust Company, N.A., Canton, MA.
For additional details regarding our Common Shares, see Item 10.A, "Share Capital".
B. Plan of Distribution
Not applicable.
C. Markets
See Item 9.A "Offer and Listing Details". Our common shares trade on the TSXV under the symbol "GRB" and our CUSIP number is 39364R. Our common shares also trade on the OTC Pink Market under the symbol "GEBRF".
D. Selling Shareholders
Not applicable.
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E. Dilution
Not applicable.
F. Expenses of the Issue
Not applicable.
ITEM 10. ADDITIONAL INFORMATION
A. Share Capital
Not applicable.
B. Memorandum and Articles of Association
The following is a summary of our Notice of Articles and Articles. You should read those documents for a complete understanding of the rights and limitations set out therein. Our Company number, as assigned by the British Columbia Registry Services, is BC0849070.
Remuneration of Directors
Our directors are entitled to the remuneration, if any, for acting as directors as the directors may from time to time determine. If the directors so decide, the remuneration of the directors will be determined by the shareholders. That remuneration may be in addition to any salary or other remuneration paid to a director in such director's capacity as an officer or employee of ours.
Number of Directors
According to Article 13.1 of our Articles, the number of directors, excluding additional directors appointed under Article 14.8 is set at:
(a) subject to paragraphs (b) and (c), the number of directors that is equal to the number of our first directors;
(b) if we are a public company, the greater of three and the most recently set of (i) the number of directors set by ordinary resolution (whether or not previous notice of the resolution was given); and (ii) the number of directors set under Article 14.4; and
(c) if we are not a public company, the number most recently set of: (i) the number of directors set by ordinary resolution (whether or not previous notice of the resolution was given); and (ii) the number of directors set under Article 14.4.
Directors
Our directors are elected annually at each annual meeting of our Company's shareholders. Article 14.8 provides that the Board of Directors may, between annual general meetings or unanimous resolutions contemplated by Article 10.2, appoint one or more additional directors to serve until the next annual meeting, but the number of additional directors must not at any time exceed:
(a) one-third of the number of first directors, if, at the time of the appointments, one or more of the first directors have not yet completed their first term of office; or
(b) in any other case, one-third of the number of the current directors who were elected or appointed as directors under Article 14.8.
Our Articles provide that our directors may from time to time, on behalf of our Company, without shareholder approval:
• create one or more classes or series of shares or, if none of the shares of a class or series of shares are allotted or issued, eliminate that class or series of shares;
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• increase, reduce or eliminate the maximum number of shares that we are authorized to issue out of any class or series of shares or establish a maximum number of shares that we are authorized to issue out of any class or series of shares for which no maximum is established;
• if we are authorized to issue shares of a class of shares with par value;
• decrease the par value of those shares;
• if none of the shares of that class of shares are allotted or issued, increase the par value of those shares;
• subdivide all or any of its unissued or fully paid issued shares with par value into shares of smaller par value;
• consolidate all or any of its unissued or fully paid issued shares with par value into share of larger par value;
• subdivide all or any of its unissued or fully paid issued shares without par value;
• change all or any of its unissued or fully paid issued shares with par value into shares without par value or all or any of its unissued shares without par value into shares with par value;
• alter the identifying name of any of its shares;
• consolidate all or any of its unissued or fully paid issued shares without par value;
• otherwise alter it shares or authorized share structure when required or permitted to do so by the Business Corporations Act (British Columbia);
• borrow money in the manner and amount, on the security, from the sources and on the terms and conditions that they consider appropriate;
• issue bonds, debentures and other debt obligations either outright or as security for any liability or obligation of the Company or any other person, and at any discount or premium and on such terms as they consider appropriate;
• guarantee the repayment of money by any other person or the performance of any obligation of any other person; and
• mortgage or charge, whether by way of specific or floating charge, or give other security on the whole or any part of the present and future assets and undertaking of the Company.
Our Articles also provide that we may by resolution of the directors authorize an alteration to our Notice of Articles in order to change our name.
Our Articles provide that the directors may meet together for the conduct of business, adjourn and otherwise regulate their meetings as they think fit, and meetings of the Board of Directors held at regular intervals may be held at the place and at the time that the Board of Directors may by resolution from time to time determine. Questions arising at any meeting of directors are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the meeting does not have a second or casting vote. A director may participate in a meeting of the directors or of any committee of the directors in person, or by telephone or other communications medium, if all directors participating in the meeting are able to communicate with each other. A director may participate in a meeting of the directors or of any committee of the directors by a communication medium other than telephone if all directors participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other and if all directors who wish to participate in the meeting agree to such participation. A director who participates in a meeting in a manner contemplated by such provisions of our Articles is deemed for all purposes of the Business Corporations Act (British Columbia) and our Articles to be present at the meeting and to have agreed to participate in that manner.
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Our Articles provide that the quorum necessary for the transaction of the business of the directors may be set by the directors and, if not so set, is deemed to be set at two directors or, if the number of directors is set at one, is deemed to be set at one director and that director may constitute a meeting.
Our Articles do not set out a mandatory retirement age for our directors. Our directors are not required to own securities of our Company to serve as directors.
Potential Conflicts of Interest - Fiduciary Duties
As disclosed under the heading "Risk Factors - The Company's officers and Directors may have conflicts of interest out of their relationships with other companies":
(a) several of the Company's directors and officers serve (or may agree to serve) as directors or officers of other companies, or have significant shareholdings in other companies;
(b) to the extent that such other companies may participate in ventures in which the Company participates, the directors and officers may have a conflict of interest in negotiating and concluding terms respecting the extent of such participation; and
(c) in particular: (i) Jeffrey Ciachurski, our Company's chief executive officer, is also the chair of the Board of Captiva, which is party to a settlement agreement in respect of its joint venture with our Company in relation to the Sage Ranch Real Estate Project discussed elsewhere in this annual report; (ii) our Company's chief financial officer, Anthony Balic, also serves as the chief financial officer of Captiva; (iii) Michael Boyd serves as a director of both companies; and (iv) Brian Conlan, a Board member of the Company is the Chief Executive Officer of Captiva.
Although the Company is not aware of any specific conflicts of interest involving any of its directors or officers at the present time (other than the involvement of Messrs. Ciachurski, Balic, Conlan and Boyd in Captiva), there is a possibility that our directors and/or officers may be in a position of conflict of interest in the future. Our Articles and By-laws do not expressly address this possibility. However, as a general principle under British Columbia corporate law, our directors and officers are under fiduciary obligations to our Company, and section 142(1) of the Business Corporations Act (British Columbia) requires that every director and officer of our Company, in exercising his or her powers and discharging his or her duties, shall:
(a) act honestly and in good faith with a view to the best interests of our Company; and
(b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
In addition, under section 147 of the Business Corporations Act (British Columbia), a director or officer of our Company who
(a) is a party to a material contract or material transaction, or a proposed material contract or proposed material transaction, with our Company, or
(b) is a director or an officer of, or has a material interest in, any entity that is a party to a material contract or material transaction, or a proposed material contract or proposed material transaction, with our Company,
must, on a timely basis, disclose in writing to our Company, or request to have entered in the minutes of meetings of directors, the nature and extent of his or her "disclosable interest" in the contract or transaction. If the material contract or material transaction is one that, in the ordinary course of our Company's business, would not require approval by our directors or our shareholders, the interested director or interested officer must nevertheless disclose in writing to our Company, or request to have entered in the minutes of a meeting of our directors, the nature and extent of his or her disclosable interest forthwith after he or she becomes aware of the contract or transaction.
Generally, under section 140 of the Business Corporations Act (British Columbia), a director must abstain from voting on any resolution to approve an existing or proposed contract or transaction involving our Company in which he or she is interested, or in which a company of which he or she is a director or officer is interested, unless all the directors have a disclosable interest in that contract or transaction, in which case any or all of those directors may vote on such resolution. A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter and who is present at the meeting of directors at which the contract or transaction is considered for approval may be counted in the quorum at the meeting whether or not the director votes on any or all of the resolutions considered at the meeting.
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Under section 147 of the Business Corporations Act (British Columbia), if a material contract or material transaction is entered into between our Company and one or more of our directors or officers, or between our Company and another entity of which any of our directors or officers is a director or officer or in which any of our directors or officers has a material interest:
(a) the contract is neither void nor voidable by reason only of that relationship, or by reason only that a director with an interest in the contract or transaction was present at or was counted to determine the presence of a quorum at a meeting of directors or committee of directors that authorized the contract or transaction, and
(b) a director or officer or former director or officer of our Company to whom a profit accrues as a result of the making of the contract or transaction is not liable to account to our Company for that profit by reason only of holding office as a director or officer of our Company,
if the director or officer disclosed his or her interest in accordance with section 147 of the Business Corporations Act (British Columbia), and the contract or transaction was not only approved by our directors or our shareholders but was also reasonable and fair to our Company at the time it was approved. Further, even if the foregoing conditions of section 147 of the Business Corporations Act (British Columbia) are not met, section 147 of the Business Corporations Act (British Columbia) provides that a director or officer acting honestly and in good faith is not accountable to our Company or to our shareholders for any profit realized from a material contract or material transaction for which disclosure is required under section 147 of the Business Corporations Act (British Columbia), and the material contract or material transaction is not void or voidable by reason only of the interest of the director or officer in the material contract or material transaction, if:
(a) the material contract or material transaction is approved or confirmed by special resolution at a meeting of our shareholders,
(b) disclosure of the interest was made to the shareholders in a manner sufficient to indicate its nature before the material contract or material transaction was approved or confirmed, and
(c) the material contract or material transaction was reasonable and fair to our Company when it was approved or confirmed.
Section 150 of the Business Corporations Act (British Columbia) provides that if a director or an officer of a corporation fails to comply with section 147 of that Act, the Supreme Court of British Columbia may, on application of the corporation or any of its shareholders, set aside the material contract or material transaction on any terms that it thinks fit, or require the director or officer to account to the corporation for any profit or gain realized on it, or both.
Pursuant to our Articles, a director or senior officer who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter is liable to account to the Company for any profit that accrues to the director or senior officer under or as a result of the contract or transaction only if and to the extent provided in the Business Corporations Act (British Columbia).
One example of a conflict of interest that could potentially arise is where one of our directors or officers finds himself or herself in a position where he or she might benefit from a contract or business opportunity which could be obtained for our Company. Such corporate opportunities potentially could be usurped by the director or officer directly, or diverted to another entity of which he or she is a director or officer or in which he or she is otherwise interested. A number of Canadian court decisions have addressed these kinds of situations, and have established the principle that the fiduciary duties owed by directors and senior officers to their corporations prohibit them from personally usurping or diverting to another entity any maturing business opportunity which the corporation is actively pursuing. A director or senior officer cannot escape his or her fiduciary duties in this regard simply by resigning his or her positions with the corporation, where the resignation can be reasonably seen to have been prompted by his or her wish to pursue the corporate opportunity personally or on behalf of another entity. Further, the courts have held that a director or senior officer who breaches his or her fiduciary duties by usurping or diverting a corporate opportunity must account for their profit even if a third party had refused to deal with the corporation, or that the corporation itself could not have profited from the opportunity.
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In light of the foregoing principles and statutory provisions, each of our directors and officers is expected to comply with the disclosure and abstention requirements of section 147 of the Business Corporations Act (British Columbia) if he or she becomes aware of any material contract or material transaction, or a proposed material contract or proposed material transaction, involving our Company in which:
(a) he or she is interested, or
(b) in which an entity of which he or she is a director or an officer, or in which he or she has a material interest, is interested.
Further, if any of our directors or officers becomes aware of any contract or business opportunity that he or she reasonably believes would be of benefit to our Company, he or she is expected to bring that contract or opportunity to the attention of our board of directors for consideration, and, if applicable, to (i) give notice that if the board resolves not to pursue it then he or she may wish to do so in his or her own capacity or to bring it before another entity with which he or she is associated, and (ii) if he or she is a director of our Company, abstain from voting on the proposal. If any director or officer improperly usurps or diverts a corporate opportunity, the Company reserves the right to seek such remedies as it deems appropriate.
Authorized Capital
Our Notice of Articles provide that our authorized capital consists of an unlimited number of common shares, without par value.
Shareholder Meetings
Our Articles provide that the directors may, whenever they think fit, call a meeting of shareholders. A meeting of the Company may be held at a location outside British Columbia if that location is: (i) approved by resolution of the directors before the meeting is held; or (ii) approved in writing by the Registrar of Companies before the meeting is held. The Company must send notice of the date, time and location of any meeting of shareholders, in the manner provided in our Articles, or in such other manner, if any, as may be prescribed by ordinary resolution, to each shareholder entitled to attend the meeting, to each director and to the auditor of the Company, unless the Articles provide, at least the following number of days before the meeting: (i) if and for so long as the Company is a public company, 21 days; or (ii) otherwise, 10 days.
The directors may set a date as the record date for the purpose of determining shareholders entitled to notice of any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the Business Corporations Act, by more than four months. The record date must not precede the date on which the meeting is held by fewer than: (i) if for so long as the Company is a public company, 21 days; or (ii) otherwise, 10 days. The directors may set a date as the record date for the purpose of determining shareholders entitled to vote at any meeting of shareholders. The record date must not precede the date on which the meeting is to held by more than two months or, in the case of a general meeting requisitioned by shareholders under the Business Corporations Act, by more than four months. If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.
Subject to special rights and restrictions attached to the shares of any class or series of shares, the quorum for the transaction of business at a meeting of shareholders is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 5% of the issued shares entitled to be voted at the meeting. If there is only one shareholder entitled to vote at a meeting of shareholders: (i) the quorum is one person who is, or who represents by proxy, that shareholder, and (ii) that shareholder, present in person or by proxy, may constitute the meeting. The directors, the president (if any), the secretary (if any), the assistant secretary (if any), any lawyer for the Company, the auditor of the Company and any other persons invited by the directors are entitled to attend any meeting of shareholders, but if any of those persons does attend a meeting of shareholders, that person is not to be counted in the quorum and is not entitled to vote at the meeting unless that person is a shareholder or proxy holder entitled to vote at the meeting.
Pursuant to Article 11.24 of our Articles, a shareholder or proxy holder who is entitled to participate in, including vote at, a meeting of shareholders may do so in person, or by telephone or other communications medium, if all shareholders and proxy holders participating in the meeting are able to communicate with each other; provided, however, that nothing in Article 11.24 shall obligate the Company to take any action or provide any facility to permit or facilitate the use of any communications medium at a meeting of shareholders. If one or more shareholders or proxy holders participate in a meeting of shareholders in a manner contemplated by Article 11.24: (i) each such shareholder or proxy holder shall be deemed to be present at the meeting; and (ii) the meeting shall be deemed to be held at the location specified in the notice of meeting.
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Limitations on Rights of Non-Canadians
Our Company is incorporated pursuant to the laws of the Province of British Columbia, Canada. There is no law or governmental decree or regulation in Canada that restricts the export or import of capital, or affects the remittance of dividends, interest or other payments to a non-resident holder of common shares, other than withholding tax requirements. Any such remittances to United States residents are generally subject to withholding tax, however, no such remittances are likely in the foreseeable future. See "Canadian Federal Income Tax Considerations for United States Residents" below.
There is no limitation imposed by Canadian law or by our Articles or other constituent documents of our Company on the right of a non-resident to hold or vote common shares of our Company. However, the Investment Canada Act (Canada) (the "Investment Act") has rules regarding certain acquisitions of shares by non-Canadians, along with other requirements under that legislation.
The following discussion summarizes the principal features of the Investment Act for a non-Canadian (as defined under the Investment Act) who proposes to acquire common shares of our Company. The discussion is general only; it is not a substitute for independent legal advice from an investor's own advisor; and it does not anticipate statutory or regulatory amendments.
The Investment Act is a federal statute of broad application regulating the establishment and acquisition of Canadian businesses by non-Canadians, including individuals, governments or agencies thereof, corporations, partnerships, trusts or joint ventures (each an "entity"). Investments by non-Canadians to acquire control over existing Canadian businesses or to establish new ones are either reviewable or notifiable under the Investment Act. If an investment by a non-Canadian to acquire control over an existing Canadian business is reviewable under the Investment Act, the Investment Act generally prohibits implementation of the investment unless, after review, the Minister of Innovation, Science and Industry (the "Minister") is satisfied that the investment is likely to be of net benefit to Canada.
A non-Canadian would acquire control of our Company for the purposes of the Investment Act through the acquisition of common shares if the non-Canadian acquired a majority of the voting interests in our Company.
Further, the acquisition of less than a majority but one-third or more of the voting interests in our Company by a non-Canadian would be presumed to be an acquisition of control of our Company unless it could be established that, on the acquisition, our Company was not controlled in fact by the acquirer through the ownership of such voting interests.
For a direct acquisition that would result in an acquisition of control of our Company, subject to the exception for "WTO investors" that are controlled by persons who are nationals or permanent residents of World Trade Organization ("WTO") member nations, a proposed investment generally would be reviewable where the value of the acquired assets is $5 million or more.
For a proposed indirect acquisition by an investor other than a so-called "WTO investor" that would result in an acquisition of control of our Company through the acquisition of a non-Canadian parent entity, the investment generally would be reviewable where the value of the assets of the entity carrying on the Canadian business, and of all other entities in Canada, the control of which is acquired, directly or indirectly, is $50 million or more.
In the case of a direct acquisition by a WTO investor that is not a state-owned enterprise, the threshold is significantly higher. An investment in common shares of our Company by a WTO investor that is not a state-owned enterprise would be reviewable only if it was an investment to acquire control of the Company and the enterprise value of the assets of the Company was equal to or greater than a specified amount, which is published by the Minister after its determination for any particular year. For 2025, this amount is $1.386 billion (unless the investor is controlled by persons who are nationals or permanent residents of countries that are party to one of a list of certain free trade agreements, in which case the amount is $2.079 billion for 2025); each year, both thresholds are adjusted by a GDP (Gross Domestic Product) based index.
The higher WTO threshold for direct investments and the exemption for indirect investments do not apply where the relevant Canadian business is carrying on a "cultural business". The acquisition of a Canadian business that is a cultural business is subject to lower review thresholds under the Investment Act because of the perceived sensitivity of the cultural sector.
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If the Minister has reasonable grounds to believe that an investment by a non-Canadian "could be injurious to national security", the Minister may send the non-Canadian a notice indicating that an order for review of the investment may be made. The review of an investment on the grounds of national security may occur whether or not an investment is otherwise subject to review on the basis of net benefit to Canada or otherwise subject to notification under the Investment Act.
Certain transactions, except those to which the national security provisions of the Investment Act may apply, relating to common shares of our Company are exempt from the Investment Act, including:
(a) the acquisition of our common shares by a person in the ordinary course of that person's business as a trader or dealer in securities;
(b) the acquisition of control of our Company in connection with the realization of security granted for a loan or other financial assistance and not for a purpose related to the provisions of the Investment Act, if the acquisition is subject to approval under the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act or the Trust and Loan Companies Act; and
(c) the acquisition of control of our Company by reason of an amalgamation, merger, consolidation or corporate reorganization following which the ultimate direct or indirect control in fact of our Company, through the ownership of voting interests, remains unchanged.
C. Material Contracts
Except for contracts entered into in the ordinary course of business, the following are our only material agreements (the "Material Contracts"):
• Option and Joint Venture Agreement dated August 10, 2020 between Greenbriar Capital (U.S.) LLC ("Greenbriar U.S."), as optionor, and Captiva, as optionee, whereby Captiva has been granted an option to earn a 50% net profits interest in the Property comprising the Sage Ranch Project in Tehachapi, California. Pursuant to the Option and Joint Venture Agreement, Captiva agreed to: (a) pay the sum of C$2,250,000 to Greenbriar U.S.; and (b) fully fund the permitting and development of the Property. Five percent of the amount payable by Captiva to Greenbriar U.S. under the Option and Joint Venture Agreement was originally evidenced by a one-year interest-free promissory note, which has been paid; the balance was paid by the issuance by Captiva to Greenbriar U.S. of 10,687,500 fully-paid and non-assessable common shares in the capital of Captiva.
• On June 22, 2023 and amended on August 21, 2023, the Company entered into an agreement with Captiva whereby the Company will pay Captiva the outstanding $5,591,588 in 48 equal monthly installments of $116,491 starting on July 1, 2024, with the last payment on June 1, 2028. Once the amount has been repaid, Captiva will no longer have any further net profits interest in and to the Sage Ranch Project.
D. Exchange Controls
We are incorporated pursuant to the laws of the Province of British Columbia, Canada. There is no law or governmental decree or regulation in Canada that restricts the export or import of capital, or affects the remittance of dividends, interest or other payments to a non-resident holder of common shares, other than withholding tax requirements. Any such remittances to United States residents are generally subject to withholding tax, however no such remittances are likely in the foreseeable future. See "Certain Canadian Federal Income Tax Information for United States Residents" below.
There is no limitation imposed by Canadian law or by the charter or other constituent documents of our Company on the right of a non-resident to hold or vote common shares of our Company. However, as discussed above in Item 10.B, "Memorandum and Articles of Association," under the heading "Limitations on Rights of Non-Canadians," the Investment Act has rules regarding certain acquisitions of shares by non-residents, along with other requirements under that legislation.
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E. Taxation
Certain Canadian Federal Income Tax Considerations for United States Residents
The following is a summary of certain Canadian federal income tax considerations generally applicable to the holding and disposition of our securities acquired by a holder who, at all relevant times, (a) for the purposes of the Income Tax Act (Canada) (the "Tax Act") (i) is not resident, or deemed to be resident, in Canada, (ii) deals at arm's length with us and underwriters that we have recently used, and is not affiliated with us or the underwriters that we have recently used, (iii) holds our common shares as capital property, (iv) does not use or hold the common shares in the course of carrying on, or otherwise in connection with, a business carried on or deemed to be carried on in Canada and (v) is not a "registered non-resident insurer" or "authorized foreign bank" (each as defined in the Tax Act), or other holder of special status, and (b) for the purposes of the Canada-U.S. Tax Convention (the "Tax Treaty"), is a resident of the United States, has never been a resident of Canada, does not have and has not had, at any time, a permanent establishment or fixed base in Canada, and who otherwise qualifies for the full benefits of the Tax Treaty. Holders who meet all the criteria in clauses (a) and (b) above are referred to herein as "U.S. Holders", and this summary only addresses such U.S. Holders.
This summary does not deal with special situations, such as the particular circumstances of traders or dealers, tax exempt entities, insurers or financial institutions, or other holders of special status or in special circumstances. Such holders, and all other holders who do not meet the criteria in clauses (a) and (b) above, should consult their own tax advisors.
This summary is based on the current provisions of the Tax Act, the regulations thereunder in force at the date hereof (the "Regulations"), the current provisions of the Tax Treaty, and our understanding of the administrative and assessing practices of the Canada Revenue Agency published in writing prior to the date hereof. This summary takes into account all specific proposals to amend the Tax Act and Regulations publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date hereof (the "Proposed Amendments") and assumes that such Proposed Amendments will be enacted in the form proposed. However, such Proposed Amendments might not be enacted in the form proposed, or at all. This summary does not otherwise take into account or anticipate any changes in law or administrative or assessing practices, whether by legislative, governmental or judicial decision or action, nor does it take into account tax laws of any province or territory of Canada or of any other jurisdiction outside Canada, which may differ significantly from those discussed in this summary.
For the purposes of the Tax Act, all amounts relating to the acquisition, holding or disposition of our securities must generally be expressed in Canadian dollars. Amounts denominated in United States currency generally must be converted into Canadian dollars using the rate of exchange that is acceptable to the Canada Revenue Agency.
This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular U.S. Holder, and no representation with respect to the Canadian federal income tax consequences to any particular U.S. Holder or prospective U.S. Holder is made. This summary is not exhaustive of all Canadian federal income tax considerations. Accordingly, all prospective purchasers (including U.S. Holders as defined above) should consult with their own tax advisors for advice with respect to their own particular circumstances.
Withholding Tax on Dividends
Amounts paid or credited or deemed to be paid or credited as, on account or in lieu of payment of, or in satisfaction of, dividends on our common shares to a U.S. Holder will be subject to Canadian withholding tax. Under the Tax Treaty, the rate of Canadian withholding tax on dividends paid or credited by us to a U.S. Holder that beneficially owns such dividends and substantiates eligibility for the benefits of the Tax Treaty is generally 15% (unless the beneficial owner is a company that owns at least 10% of our voting stock at that time, in which case the rate of Canadian withholding tax is generally reduced to 5%)
Dispositions
A U.S. Holder will not be subject to tax under the Tax Act on a capital gain realized on a disposition or deemed disposition of a security, unless the security is "taxable Canadian property" to the U.S. Holder for purposes of the Tax Act and the U.S. Holder is not entitled to relief under the Tax Treaty.
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Generally, the common shares will not constitute "taxable Canadian property" to a U.S. Holder at a particular time unless, at any time during the 60 month period immediately preceding the disposition, more than 50% of the fair market value of such security was derived, directly or indirectly, from one or any combination of: (i) real or immovable property situated in Canada, (ii) "Canadian resource properties" (as defined in the Tax Act), (iii) "timber resource properties" (as defined in the Tax Act), and (iv) options in respect of, or interests in, or for civil law rights in, property described in any of the foregoing whether or not the property exists. Notwithstanding the foregoing, in certain other circumstances set out in the Tax Act, common shares could also be deemed to be "taxable Canadian property".
Provided that the common shares are listed on a "designated stock exchange" as defined in the Tax Act (which includes the TSXV) at the time of disposition, the common shares generally will not constitute "taxable Canadian property" of a U.S. Holder at that time unless, at any time during the 60 month period immediately preceding the disposition, the following two conditions are met concurrently: (i) the U.S. Holder, persons with whom the U.S. Holder did not deal at arm's length, partnerships in which the U.S. Holder or such non-arm's length person holds a membership interest (either directly or indirectly through one or more partnerships), or the U.S. Holder together with all such persons, owned 25% or more of the issued shares of any class or series of shares of our company; and (ii) more than 50% of the fair market value of the shares of the company was derived directly or indirectly from one or any combination of real or immovable property situated in Canada, Canadian resource properties (as defined in the Tax Act), timber resource properties (as defined in the Tax Act) or options in respect of, or interests in, or for civil law rights in, property described in any of the foregoing whether or not the property exists. Notwithstanding the foregoing, in certain other circumstances set out in the Tax Act, common shares could also be deemed to be "taxable Canadian property".
U.S. Holders who may hold common shares as "taxable Canadian property" should consult their own tax advisors with respect to the application of Canadian capital gains taxation, any potential relief under the Tax Treaty, and special compliance procedures under the Tax Act, none of which is described in this summary.
F. Dividends and Paying Agents
Not applicable.
G. Statements by Experts
Not applicable.
H. Documents on Display
Upon the effectiveness of this filing, we will be subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and we will thereafter file reports and other information with the SEC. You may read and copy any of our reports and other information at, and obtain copies upon payment of prescribed fees from, the Public Reference Room maintained by the SEC at 100 F Street, N.E., 450 Fifth Street, N.W., Room 1024, Washington, DC 20549. In addition, the SEC maintains a web site that contains reports and other information regarding registrants that file electronically with the SEC at HTTP://www.sec.gov. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
The documents concerning our Company referred to in this Annual Report may be viewed at our principal executive offices, 6323 Foster Avenue, Coquitlam, British Columbia, Canada V3J 2L7 (Telephone: (604) 608-9572), during normal business hours. Copies of our financial statements and other continuous disclosure documents required under the Securities Act (British Columbia) are available for viewing on SEDAR+ at www.sedarplus.ca. All of the documents referred to are in English.
I. Subsidiary Information
See Item 4.C, "Organizational Structure", for the Company's active subsidiaries as at the date of this Annual Report.
J. Annual Report to Security Holders
Under Canadian continuous disclosure requirements, we are required to file annually on SEDAR+ within 120 days following the end of each fiscal year, Management's Discussion and Analysis in respect of such fiscal year on Form 51-102F1 (the "MD&A"), the audited annual financial statements (the "Annual Financial Statements") prescribed by Section 4.1 of National Instrument 51-102 - Continuous Disclosure Obligations (as adopted by the Canadian Securities Administrators), and officer certifications on Form 52-109V1 (collectively with the MD&A and Annual Financial Statements, the "Annual Filings") executed by, respectively, our Chief Executive Officer and our Chief Financial Officer. If we do not elect to file our annual report on Form 20-F as an alternate form of MD&A for the relevant fiscal year, or if any Canadian Securities Administrator objects to the filing of our annual report on Form 20-F as an alternate form of MD&A, we will be required to provide the Annual Filings to the holders of our common shares in response to the requirements of Form 6-K. In such circumstances, we will submit the Annual Filings to such security holders in electronic format in accordance with the EDGAR Filer Manual.
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ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors approves and monitors the risk management processes, inclusive of controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows:
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rates through the interest earned on cash balances, deposits, convertible debentures and loans; however, management does not believe this exposure is significant as most items are at fixed interest rates.
Credit Risk
The Company is exposed to credit risk through its cash, which is held in large Canadian financial institutions with high credit rating, other receivables and the loan receivable. The Company believes the credit risk is insignificant for the cash and other receivables and moderate for the loan receivable with Captiva. The Company's exposure is limited to amounts reported within the statement of financial position.
Liquidity Risk
Liquidity is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure. In order to meet its financial obligations, the Company will need to generate cash flow from the sale or otherwise disposition of property or raise additional funds. The following table summarizes the remaining contractual maturities of the Company's financial liabilities and operating commitments:
| At December 31, 2025 | Less than 1 year | Between 1 and 2 years |
Over 2 years | Total | ||||||||
| Accounts payable and accrued liabilities | $ | 5,706,049 | $ | - | $ | - | $ | 5,706,049 | ||||
| Loan payables and promissory notes | 3,726,817 | - | - | 3,726,817 | ||||||||
| Joint venture settlement obligation | 1,883,795 | 1,397,897 | 362,956 | 3,644,648 | ||||||||
| Convertible debenture | 4,516,351 | - | - | 4,516,351 | ||||||||
| Convertible debenture derivative | 145,122 | - | - | 145,122 | ||||||||
| $ | 15,978,134 | $ | 1,397,897 | $ | 362,956 | $ | 17,738,987 |
| At December 31, 2024 | Less than 1 year | Between 1 and 2 years |
Over 2 years | Total | ||||||||
| Overdraft | $ | 54,227 | $ | - | $ | - | $ | 54,227 | ||||
| Accounts payable and accrued liabilities | 4,986,099 | - | - | 4,986,099 | ||||||||
| Loan payables and promissory notes | 2,563,145 | - | - | 2,563,145 | ||||||||
| Joint venture settlement obligation | 669,449 | 1,397,897 | 1,301,394 | 3,368,740 | ||||||||
| Convertible debenture | - | - | 4,177,684 | 4,177,684 | ||||||||
| Convertible debenture derivative | - | 1,025,803 | - | 1,025,803 | ||||||||
| $ | 8,272,920 | $ | 2,423,700 | $ | 5,479,078 | $ | 16,175,698 |
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| At December 31, 2023 | Within one year | Over 1 year | Total | ||||||
| Accounts payable and accrued liabilities | $ | 3,822,969 | $ | - | $ | 3,822,969 | |||
| Loan payables and promissory notes | 781,322 | - | 781,322 | ||||||
| Joint venture settlement obligation | 698,950 | 3,298,141 | 3,997,091 | ||||||
| Convertible debenture | - | 3,483,890 | 3,483,890 | ||||||
| Convertible debenture derivative | - | 1,027,427 | 1,027,427 | ||||||
| $ | 5,303,241 | $ | 7,809,458 | $ | 13,112,699 |
Foreign Exchange Risk
The Company operates in Canada and the United States and is exposed to foreign exchange risk arising from transactions denominated in foreign currencies.
The operating results and the financial position of the Company are reported in Canadian dollars. Fluctuations of the operating currencies in relation to the Canadian dollar will have an impact upon the reported results of the Company and may also affect the value of the Company's assets and liabilities.
The Company's financial assets and liabilities as at December 31, 2025 are denominated in Canadian Dollars and United States Dollars and are set out in the following table:
| Financial Assets | Canadian Dollars | U.S. Dollars | Total | ||||
| $ | $ | $ | |||||
| Cash | 90 | 57,449 | 57,539 | ||||
| Other receivables | 2,988 | - | 2,988 | ||||
| Marketable securities | 3,096,000 | - | 3,096,000 | ||||
| 3,099,078 | 57,449 | 3,156,527 | |||||
| Financial Liabilities | |||||||
| Other financial liabilities | |||||||
| Accounts payable and accrued liabilities | (1,021,229) | (4,684,820) | (5,706,049) | ||||
| Loan payable and promissory notes | (1,238,748) | (2,488,069) | (3,726,817) | ||||
| Joint venture settlement obligation | (3,644,648) | - | (3,644,648) | ||||
| Convertible debenture | (900,294) | (3,616,057) | (4,516,351) | ||||
| Convertible debenture derivative | - | (145,122) | (145,122) | ||||
| Net Financial Liabilities | (3,705,841) | (10,876,619) | (14,582,460) |
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The Company's financial assets and liabilities as at December 31, 2024 are denominated in Canadian Dollars and United States Dollars and are set out in the following table:
| Financial Assets | Canadian Dollars | U.S. Dollars | Total | ||||
| $ | $ | $ | |||||
| Other receivables | 7,747 | - | 7,747 | ||||
| Marketable securities | - | 1,755,000 | 1,755,000 | ||||
| 7,747 | 1,755,000 | 1,762,747 | |||||
| Financial Liabilities | |||||||
| Other financial liabilities | |||||||
| Overdraft | 1,855 | (56,082) | (54,227) | ||||
| Accounts payable and accrued liabilities | (1,173,407) | (3,812,692) | (4,986,099) | ||||
| Loan payable and promissory notes | (580,000) | (1,983,145) | (2,563,145) | ||||
| Joint venture settlement obligation | (3,368,740) | - | (3,368,740) | ||||
| Convertible debenture | (839,132) | (3,338,552) | (4,177,684) | ||||
| Convertible debenture derivative | - | (1,025,803) | (1,025,803) | ||||
| Net Financial Liabilities | (5,951,677) | (8,461,274) | (14,412,951) |
The Company's financial assets and liabilities as at December 31, 2023 are denominated in Canadian Dollars and United States Dollars and are set out in the following table:
| Financial Assets | Canadian Dollars | U.S. Dollars | Total | ||||
| $ | $ | $ | |||||
| Cash | 14,936 | 32,162 | 47,098 | ||||
| Other receivables | 3,476 | - | 3,476 | ||||
| Related company loan receivable | 206,947 | - | 206,947 | ||||
| Marketable securities | - | 1,785,510 | 1,785,510 | ||||
| 225,359 | 1,817,672 | 2,043,031 | |||||
| Financial Liabilities | |||||||
| Other financial liabilities | |||||||
| Accounts payable and accrued liabilities | (285,915) | (3,537,054) | (3,822,969) | ||||
| Loan payable | (30,000) | (751,322) | (781,322) | ||||
| Joint venture settlement obligation | (3,997,091) | - | (3,997,091) | ||||
| Convertible debenture | (785,129) | (2,698,761) | (3,483,890) | ||||
| Convertible debenture derivative | - | (1,027,427) | (1,027,427) | ||||
| Net Financial Liabilities | (4,872,776) | (6,196,892) | (11,069,668) | ||||
Classification of Financial Instruments
The Company examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks.
The following tables summarize the valuation of the Company's financial assets and liabilities reported at fair value by the fair value hierarchy levels:
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| December 31, 2025 |
December 31, 2024 |
December 31, 2023 |
|||||||
| Financial Assets | Fair Value Hierarchy Level |
Fair Value $ | Fair Value $ | Fair Value $ | |||||
| Fair value through profit and loss ("FVTPL") | |||||||||
| Cash | Level 1 | 57,539 | - | 47,098 | |||||
| Marketable securities - Private | Level 2 | 3,096,000 | 1,755,000 | 1,785,510 | |||||
| Financial Liabilities | |||||||||
| Other financial liabilities | |||||||||
| Overdraft | Level 1 | - | 54,227 | - | |||||
| Convertible debenture derivative | Level 3 | 145,122 | 1,025,803 | 1,027,427 |
Fair value
Financial instruments measured at fair value are grouped into Level 1 to 3 based on the degree to which fair value is observable:
• Level 1 - quoted prices in active markets for identical securities
• Level 2 - significant observable inputs other than quoted prices included in Level 1
• Level 3 - significant unobservable inputs
The Company did not move any instruments between levels of the fair value hierarchy in 2025 or during the years ended December 31, 2024 and December 31, 2023.
Convertible debenture derivative is considered to be a Level 3 classification as certain inputs are not based on observable market data.
The Company's financial instruments include cash, marketable securities, other receivables, related party loan receivable, accounts payables and accrued liabilities, loan payable and promissory notes, joint venture settlement obligation, convertible debentures and convertible debenture derivatives. The carrying values of other receivables, and accounts payables and accrued liabilities and loan payable and promissory notes approximate their fair values due to their relatively short periods to maturity.
The fair value of the marketable securities is based on recent transaction prices.
ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
Not applicable.
PART II
ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
There have not been any defaults with respect to dividends, arrearages or delinquencies since incorporation of the Company on April 2, 2009.
ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
Not applicable.
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ITEM 15. CONTROLS AND PROCEDURES
A. Disclosure Controls and Procedures
Disclosure controls and procedures are defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act to mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
As of the end of the period covered by this report, as required by Rule 13a-15 under the Exchange Act, our management carried out an evaluation, under the supervision of our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the Company's disclosure controls and procedures. Based upon that evaluation, our CEO and CFO concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were effective in providing reasonable assurance that the information required to be disclosed by the Company in reports that we file or submit to the SEC under the Exchange Act is:
• recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and
• accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.
It should be noted that while our CEO and CFO believe that the Company's disclosure controls and procedures provide a reasonable level of assurance that they are effective, they do not expect that the Company's disclosure controls and procedures or internal control over financial reporting will prevent all errors and fraud. A control system, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system will be met.
B. Management's Annual Report On Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Exchange Act Rules 13a-15(f) and 15d-15(f) define this as a process designed by, or under the supervision of, the Company's principal executive and principal financial officers and effected by the Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the Company; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that may have a material effect on the financial statements.
Under the supervision and with the participation of our CEO and CFO, our management assessed the effectiveness of our internal control over financial reporting as at December 31, 2025. In making this assessment, our management used the criteria, established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon this assessment, our management concluded that our internal control over financial reporting was effective as at December 31, 2025.
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C. Attestation Report of the Registered Public Accounting Firm
This Annual Report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report is not subject to attestation by the Company's registered public accounting firm pursuant to rules of the SEC that permit the Company to provide only the management's report in this Annual Report.
D. Changes in Internal Control Over Financial Reporting
During the period ended December 31, 2025, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT
Our audit and finance committee (the "Audit Committee") consists of three of our directors, J. Michael Boyd, William Sutherland and Clifford M. Webb. Mr. Boyd currently serves as Chair of the Audit Committee.
Our Board of Directors has determined that Mr. Sutherland is an "Audit Committee Financial Expert" using the criteria prescribed by Item 16A of Form 20-F under the Exchange Act, and is also an "independent" director using the definition of audit committee member independence contained in the NASDAQ Marketplace Rules.
ITEM 16B. CODE OF ETHICS
The Board of Directors has recently adopted a Code of Business Conduct and Ethics (the "Code of Ethics") that applies to all of our employees and officers, including our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics meets the requirements for a "code of ethics" within the meaning of that term in Item 16B of Form 20-F. A copy of our Code of Ethics will be provided to any person without charge upon request. All requests for a copy of our Code of Ethics should be directed in writing to the attention of Jeffrey Ciachurski, CEO, at 632 Foster Avenue, Coquitlam, British Columbia, Canada, V3J 2L7, or by email at [email protected].
ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The following table sets forth information regarding the amount billed and accrued to us by Davidson & Company LLP for the fiscal years ended December 31, 2025 and 2024:
| Year Ended December 31 | ||||||
| 2025 | 2024 | |||||
| Audit Fees: | $ | 100,000 | $ | 125,000 | ||
| Audit Related Fees: | - | 6,000 | ||||
| Tax Fees: | Nil | Nil | ||||
| Total: | $ | 100,000 | $ | 131,000 | ||
Audit Fees
This category includes the aggregate fees billed by our independent auditor for the audit of our annual financial statements, reviews of interim financial statements that are provided in connection with statutory and regulatory filings or engagements.
Audit Related Fees
This category includes the aggregate fees billed in each of the last two fiscal years for assurance and related services by our independent auditor that are reasonably related to the performance of the audits or reviews of the financial statements and are not reported above under "Audit Fees", and generally consist of fees for other engagements under professional auditing standards, accounting and reporting consultations.
- 68 -
Tax Fees
This category includes the aggregate fees billed in each of the last two fiscal years for professional services rendered by our independent auditor for tax compliance, tax planning and tax advice.
Policy on Pre-Approval by Audit Committee of Services Performed by Independent Auditors
The policy of our Audit Committee is to pre-approve all audit and permissible non-audit services to be performed by our independent auditors during the fiscal year.
ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
Not applicable.
ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
Not applicable.
ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
Not applicable.
ITEM 16G. CORPORATE GOVERNANCE
Not applicable.
ITEM 16H. MINE SAFETY DISCLOSURE
Not applicable.
ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
ITEM 16J. INSIDER TRADING POLICIES
ITEM 16K. CYBERSECURITY
As an early stage company, we have limited operations and our business activity to date has been identifying and permitting real estate and renewable energy projects, and have
Due to the early stage of development of our projects, we believe have limited exposure to cyber threats other than emails and project data storage. Financial transactions are enabled through well-established financial institutions and accounting and
- 69 -
PART III
ITEM 17. FINANCIAL STATEMENTS
Not applicable.
ITEM 18. FINANCIAL STATEMENTS
Our consolidated financial statements are stated in Canadian dollars and are prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board. The following financial statements, as required under this Item 18, are attached hereto and found immediately following the text of this Annual Report.
• Audited consolidated statements of financial position of the Company as at December 31, 2025 and 2024 and the audited consolidated statements of loss and comprehensive loss, changes in shareholders' equity, and cash flows for the years ended December 31, 2025, 2024 and 2023, and notes to the audited consolidated financial statements, including a summary of significant accounting policies.
ITEM 19. EXHIBITS
Exhibits Required by Form 20-F
The following exhibits are filed as part of this Annual Report on Form 20-F:
- 70 -
| 4.5 | Settlement Agreement dated June 22, 2023, between Greenbriar Capital (U.S.) LLC and Captiva Verde Wellness Corp. in respect of the Sage Ranch Real Estate Project* |
| 4.6 | Amended Settlement Agreement dated August 21, 2023, between Greenbriar Capital (U.S.) LLC and Captiva Verde Wellness Corp. in respect of the Sage Ranch Real Estate Project* |
| 8.1 | List of Subsidiaries |
| 11.1 | Code of Business Conduct and Ethics* |
| 12.1 | Section 302(a) Certification of CEO* |
| 12.2 | Section 302(a) Certification of CFO* |
| 13.1 | Section 906 Certifications of CEO and CFO** |
| 15.1 | Stock Option Plan dated for reference September 14, 2012, as amended and restated May 16, 2022* |
| 15.2 | Audit Committee Charter(2) |
| 101.INS |
Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH | |
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document* |
|
| 101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document* |
| 101.LAB | |
| 101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document* |
| 104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
| * | Filed herewith |
| ** | Furnished herewith |
| (1) | Certain portions of this exhibit have been redacted as they are both not material and are of the type of information that the registrant treats as private or confidential. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the SEC upon its request. |
| (2) | Filed as an exhibit to our registration statement on Form 20-F, as filed with the SEC on January 28, 2022, and incorporated herein by reference. |
| (3) | Filed as an exhibit to our registration statement on Form 20-F/A (Amendment No. 2), as filed with the SEC on May 10, 2022, and incorporated herein by reference. |
- 71 -
SIGNATURES
The Registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.
| GREENBRIAR SUSTAINABLE LIVING INC. | ||
| Dated: April 30, 2026 | By: | /s/ Jeff Ciachurski |
| Jeff Ciachurski Chief Executive Officer |
||
- 72 -
Greenbriar Sustainable Living Inc.
Consolidated Financial Statements
Years Ended December 31, 2025, 2024 and 2023
(amounts expressed in Canadian dollars, except where indicated)
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Directors of
Greenbriar Sustainable Living Inc.
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statements of financial position of Greenbriar Sustainable Living Inc. (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of loss and comprehensive loss, changes in shareholders' equity, and cash flows for the years ended December 31, 2025, 2024, and 2023 and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years ended December 31, 2025, 2024, and 2023 in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).
Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company had a loss of $1,525,965 for the year ended December 31, 2025. As at December 31, 2025, the Company had an accumulated deficit of $38,129,404 and a working capital deficiency of $12,755,032. To date, the Company has no history of earning revenues. These events and conditions indicate that a material uncertainty exists that raises substantial doubt on the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion.
| DAVIDSON & COMPANY LLP | 1200 - 609 Granville Street PO BOX 10372, Pacific Centre Vancouver, BC V7Y 1G6 |
604 687 0947 davidson-co.com |
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Company's auditor since 2019.
/s/
| Chartered Professional Accountants |
|
April 30, 2026
|
PCAOB ID# |
| Greenbriar Sustainable Living Inc. Consolidated Statements of Financial Position For the years ended December 31, 2025 and 2024 (amounts expressed in Canadian dollars, except where indicated |
| Note | As at December 31, 2025 |
As at December 31, 2024 |
|||||
| Assets | |||||||
| Current assets | |||||||
| Cash | $ | $ | |||||
| Deposits and prepaid expenses - short term | |||||||
| Other receivables | |||||||
| Marketable securities | 6 | ||||||
| Non-current assets | |||||||
| Deposits and prepaid expenses - long term | |||||||
| Sage Ranch | 5 | ||||||
| Power project acquisition and development costs | 7 | ||||||
| Total assets | $ | $ | |||||
| Liabilities | |||||||
| Current liabilities | |||||||
| Overdraft | |||||||
| Accounts payable and accrued liabilities | 8 | ||||||
| Loans payable and promissory notes | 9 | ||||||
| Joint venture settlement obligation | 11 | ||||||
| Convertible debentures | 10 | ||||||
| Convertible debenture derivative | 10 | ||||||
| Non-current liabilities | |||||||
| Joint venture settlement obligation | 11 | ||||||
| Convertible debenture | 10 | ||||||
| Total liabilities | |||||||
| Shareholders' equity | |||||||
| Share capital | 12 | ||||||
| Reserves | 12 | ||||||
| Accumulated other comprehensive income | |||||||
| Deficit | ( |
) | ( |
) | |||
| Total shareholders' equity | |||||||
| Total liabilities and shareholders' equity | $ | $ |
Nature of operations and going concern (note 1)
Commitments and contingencies (note 17)
Subsequent events (note 19)
Approved by the Board of Directors
| ”Jeff Ciachurski” Director | ”Cliff Webb” Director |
The accompanying notes are an integral part of these consolidated financial statements.
| Greenbriar Sustainable Living Inc. Consolidated Statements of Loss and Comprehensive Loss For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Notes | 2025 | 2024 | 2023 | |||||||
| General and administration expenses | ||||||||||
| Consulting and management fees | 16 | $ | ( |
) | $ | ( |
) | $ | ( |
) |
| General and administrative | ( |
) | ( |
) | ( |
) | ||||
| Marketing and donations | ( |
) | ( |
) | ||||||
| Professional fees | ( |
) | ( |
) | ( |
) | ||||
| Share-based payment expense | 12 | ( |
) | ( |
) | ( |
) | |||
| ( |
) | ( |
) | ( |
) | |||||
| Other (expenses) income, net | ||||||||||
| Foreign exchange gain (loss) | ( |
) | ||||||||
| Accretion expense on convertible debt | 10 | ( |
) | ( |
) | ( |
) | |||
| Accretion on joint venture settlement obligation | 11 | ( |
) | ( |
) | ( |
) | |||
| Interest expense and bank charges | ( |
) | ( |
) | ( |
) | ||||
| Unrealized gain(loss) and foreign exchange on marketable securities | 6 | ( |
) | |||||||
| Loss on modification of joint venture settlement obligation | 11 | ( |
) | |||||||
| Gain on settlement of accounts payable and accrued liabilities | 8 | |||||||||
| Interest income | ||||||||||
| Loss on shares for debt settlement | 12 | ( |
) | |||||||
| Loss on share settlement of joint venture settlement obligation | 11 | ( |
) | |||||||
| Transaction costs expensed on convertible debentures | ( |
) | ||||||||
| Fair value adjustment on derivative liability | 10 | |||||||||
| Loss | ( |
) | ( |
) | ( |
) | ||||
| Other comprehensive income (loss | ||||||||||
| Cumulative translation adjustment income (loss) | ( |
) | ( |
) | ||||||
| Total comprehensive loss | $ | ( |
) | $ | ( |
) | $ | ( |
) | |
| Loss per share-basic and diluted | $ | ( |
) | $ | ( |
) | $ | ( |
) | |
| Weighted average shares outstanding-basic and diluted | ||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
| Greenbriar Sustainable Living Inc. Consolidated Statements of Changes in Shareholders’ Equity For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Notes | Shares |
Share capital |
Option reserves |
Warrants reserves |
Convertible debenture reserves |
Accumulated other comprehensive income |
Deficit | Total Shareholders' Equity |
|||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Loss for the year | - | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||||
| Cumulative translation adjustment | - | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||
| Share-based payment expense | 12 | - | - | - | - | - | - | ||||||||||||||||||
| Units for debt settlements | 12 | - | - | - | - | ||||||||||||||||||||
| Private placement | 12 | - | - | - | - | ||||||||||||||||||||
| Share issuance costs | 12 | - | ( |
) | - | - | - | - | - | ( |
) | ||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Loss for the year | - | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||||
| Options exercised | 12 | ( |
) | - | - | - | - | ||||||||||||||||||
| Warrants exercised | 12 | - | ( |
) | - | - | - | ||||||||||||||||||
| Shares issued on partial settlement of joint venture settlement obligation | 12 | - | - | - | - | - | |||||||||||||||||||
| Share-based payment expense | 12 | - | - | - | - | - | - | ||||||||||||||||||
| Cumulative translation adjustment | - | - | - | - | - | - | |||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | $ | $ | ( |
) | $ |
The accompanying notes are an integral part of these consolidated financial statements.
| Greenbriar Sustainable Living Inc. Consolidated Statements of Changes in Shareholders’ Equity For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Notes | Shares |
Share capital |
Option reserves |
Warrants reserves |
Convertible debenture reserves |
Accumulated other comprehensive income |
Deficit | Total Shareholders' Equity |
|||||||||||||||||
| Balance at December 31, 2022 | $ | $ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Loss for the year | - | - | - | - | - | - | ( |
) | ( |
) | |||||||||||||||
| Private placement | 13 | - | - | - | - | ||||||||||||||||||||
| Share issuance costs | 13 | ( |
) | - | - | - | - | - | ( |
) | |||||||||||||||
| Options exercised | 13 | ( |
) | - | - | - | - | ||||||||||||||||||
| Warrants exercised | 13 | - | ( |
) | - | - | - | ||||||||||||||||||
| Share-based payment expense | 13 | - | - | - | - | - | - | ||||||||||||||||||
| Cumulative translation adjustment | - | - | - | - | - | ( |
) | - | ( |
) | |||||||||||||||
| Reserves - equity portion (convertible) | 11 | - | - | - | - | - | - | ||||||||||||||||||
| Convertible debenture bonus warrants | 11 | - | - | - | - | - | - | ||||||||||||||||||
| Balance at December 31, 2023 | $ | $ | $ | $ | $ | $ | ( |
) | $ |
The accompanying notes are an integral part of these consolidated financial statements.
| Greenbriar Sustainable Living Inc. Consolidated Statements of Cash Flows For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Notes | 2025 | 2024 | 2023 | |||||||
| Cash used from operating activities | ||||||||||
| Loss for the year | $ | ( |
) | $ | ( |
) | $ | ( |
) | |
| Items not affecting cash | ||||||||||
| Unrealized foreign exchange (gain) loss | ( |
) | ( |
) | ||||||
| Gain on settlement of account payable and accrued liabilities | 8 | ( |
) | ( |
) | |||||
| Loss on shares for debt settlement | 12 | |||||||||
| Share-based payment expense | 12 | |||||||||
| Accrued interest income | ( |
) | ||||||||
| Unrealized (gain) loss and foreign exchange on marketable securities | 6 | ( |
) | |||||||
| Loss on share settlement of joint venture settlement obligation | ||||||||||
| Accretion on convertible debenture | 10 | |||||||||
| Accretion on joint venture settlement obligation | 11 | |||||||||
| Fair value of derivative liability | 10 | ( |
) | ( |
) | ( |
) | |||
| Loss on modification of joint venture settlement obligation | 11 | |||||||||
| Transaction costs expensed on convertible debenture | ||||||||||
| ( |
) | ( |
) | ( |
) | |||||
| Change in non-cash operating working capital | ||||||||||
| Decrease in receivables and prepaid expenses | ||||||||||
| Increase (decrease) in accounts payable and accrued liabilities | ( |
) | ||||||||
| ( |
) | ( |
) | ( |
) | |||||
| Cash flows used in investing activities | ||||||||||
| Sage ranch | 5 | ( |
) | ( |
) | ( |
) | |||
| Power project development and construction costs | 7 | ( |
) | ( |
) | ( |
) | |||
| ( |
) | ( |
) | ( |
) | |||||
| Cash flows used in financing activities | ||||||||||
| Cash repaid on loans | 9 | ( |
) | ( |
) | ( |
) | |||
| Cash received on loans | 9 | |||||||||
| Option exercises | 12 | |||||||||
| Warrant exercises | 12 | |||||||||
| Convertible debt issuance | 10 | |||||||||
| Transaction costs on convertible debt | ( |
) | ||||||||
| Private placement proceeds | 12 | |||||||||
| Share issuance costs | 12 | ( |
) | ( |
) | |||||
| Repayment of joint venture settlement obligation | 11 | ( |
) | ( |
) | |||||
| Effect of foreign exchange on cash | ( |
) | ( |
) | ||||||
| Increase (decrease) in cash | $ | $ | ( |
) | $ | |||||
| Cash - beginning of year | ( |
) | ||||||||
| Cash (overdraft) - end of year | $ | $ | ( |
) | $ |
The accompanying notes are an integral part of these consolidated financial statements.
| Greenbriar Sustainable Living Inc. Consolidated Statements of Cash Flows For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Supplemental cash flow information | 2025 | 2024 | 2023 | ||||||
| $ | $ | $ | |||||||
| Shares issued to reduce accounts payable and loans and promissory notes | |||||||||
| Warrants issued on private placement | |||||||||
|
Warrants issued on shares for debt settlement |
|||||||||
| Bonus warrants issued on convertible debt | |||||||||
| Equity portion of convertible debt | |||||||||
| Recognition of derivative liability | |||||||||
| Accrued investment property through accounts payable | |||||||||
| Accrued power project development costs through accounts payable | |||||||||
| Shares issued to settle joint venture obligation | |||||||||
| Reclass of loan receivable to joint venture settlement obligation | |||||||||
| Reclass of reserve from warrants exercised | |||||||||
| Reclass of reserve from options exercised | |||||||||
| Reclass from AP to loan payable | |||||||||
| Taxes paid |
The accompanying notes are an integral part of these consolidated financial statements.
| Greenbriar Sustainable Living Inc. |
| Notes to the Consolidated Financial Statements |
| For the years ended December 31, 2025, 2024 and 2023 |
| (amounts expressed in Canadian dollars, except where indicated) |
1 Nature of operations and going concern
Greenbriar Sustainable Living Inc. ("Greenbriar" or the "Company") is a developer of entry-level housing, renewable energy, green technology and sustainable investment projects. Greenbriar was incorporated under the British Columbia Business Corporations Act on April 2, 2009 and is a real estate issuer on the TSX Venture Exchange. The Company's registered records office is located at Suite 1500 - 1055 West Georgia Street, Vancouver, BC, V6E 4N7. The Company is listed as a Tier 2 real estate issuer. The Company's shares trade on the exchange under the symbol "GRB".
These consolidated financial statements have been prepared on the basis that the Company is a going concern, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The nature of the Company's primary business is the acquisition, management, development, and possible sale of real estate and renewable energy projects. The Company had a loss of $
Recent global issues, including the ongoing political conflict in other regions have adversely affected workplaces, economies, supply chains, and financial markets globally. It is not possible for the Company to predict the duration or magnitude of the adverse results of these issues and their effects on the Company's business or results of operations this time.
2 Basis of presentation
These consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board effective as at December 31, 2025. The policies set out below were consistently applied to all periods presented.
These consolidated financial statements were authorized for issue by the Board of Directors on April 30, 2026.
These consolidated financial statements have been prepared on the historical cost basis, except for certain financial instruments that are measured at fair value. In addition, the consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information. All information is expressed in Canadian dollars unless otherwise stated and are prepared in accordance with the material accounting policies outlined below.
3 Material accounting policies
Principles of consolidation
Subsidiaries
These consolidated financial statements include the accounts of Greenbriar and its subsidiaries. All intercompany balances, transactions, income and expenses, and profits or losses have been eliminated on consolidation. The Company consolidates where there is ability to exercise control. Control of an investee is defined to exist when the Company is exposed to variable returns from its involvement with the investee and has the ability to affect those returns through the Company's power over the investee. Specifically, the Company controls an investee if and only if, it has all of the following: power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee); exposure, or rights, to variable returns from its involvement with the investee; and the ability to use its power over the investee to affect its returns.
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
Joint Arrangements
A joint arrangement is defined as one over which two or more parties have joint control, which is the contractually agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require unanimous consent of the parties sharing control. There are two types of joint arrangement, joint operations ("JO") and joint ventures ("JV").
A JO is a joint arrangement whereby the parties that have joint control of the arrangement have rights to assets and obligations for the liabilities, relating to the arrangement. The Company has no JO's.
A JV is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Investments in JV's are accounted for using the equity method. On acquisition, an equity method investment is initially recognized at cost. The carrying amount of equity method investments includes goodwill identified on acquisition, net of any accumulated impairment losses. The carrying amount of the investment is adjusted by the Company's share of post-acquisition net income or loss, depreciation, amortization or impairment of the fair value adjustments made at the date of acquisition, dividends, cash contributions and the Company's share of post acquisition movements in Other Comprehensive Income ("OCI").
Associates
An associate is an entity over which the investor has significant influence but not control and that is neither a subsidiary nor an interest in a joint arrangement. Significant influence is presumed to exist where the Company has between
Outlined below is information related to the Company's subsidiaries at December 31, 2025:
| Place of business | Entity type | Economic interest | Method | |
| Greenbriar Capital Holdco Inc. | USA | Subsidiary | Consolidation | |
| Greenbriar Capital (U.S.) LLC | USA | Subsidiary | Consolidation | |
| AG Solar One, LLC | USA | Subsidiary | Consolidation | |
| 2587344 Ontario Inc. | Canada | Subsidiary | Consolidation | |
| Greenbriar Alberta Holdco Inc. | Canada | Subsidiary | Consolidation | |
| PBJL Energy Corporation | Puerto Rico | Subsidiary | Consolidation |
Foreign currency translation
The Company's functional and local currency is the Canadian dollar and its subsidiaries located in the USA and Puerto Rico have a functional currency of the United States dollar and its subsidiaries in Canada have a functional currency of the Canadian dollar.
Transactions and balances
Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss.
Translation of subsidiary results into the presentation currency
The operating results and statements of financial position of the Company's subsidiaries are translated into the presentation currency as follows:
-
Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position;
-
Income and expenses for each statement of loss and comprehensive loss are translated at average exchange rates, unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates; in which case income and expenses are translated at the rate on the dates of the transaction; and
-
All resulting exchange differences are recognized directly in OCI and accumulated in the foreign currency translation reserve.
On consolidation, exchange differences arising from the transaction of the net investment in foreign entities are recognized in a separate component of equity, foreign currency translation reserve. When a foreign operation is sold, such exchange differences are reclassified to profit or loss on disposal.
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
Cash
Cash includes cash on deposit.
Intangible assets
Intangible assets can be acquired by separate purchase, as part of a business combination, by government grant, by exchange of assets and by self-creation.
Intangible assets are classified as those with finite useful lives and those with indefinite useful lives. The carrying amount of an intangible asset with a finite useful life is reduced by depreciation and impairments. Depreciation of intangible assets begins to be calculated when the asset is available for use. The adequacy of the depreciation period and the depreciation method are reviewed at least at each financial year-end. Any adjustments necessary are accounted for as a change in an accounting estimate.
Intangible assets with an indefinite useful life, or those not yet available for use, are tested for impairment at least on the statement of financial position date. These assets are not subject to amortization. The useful life is reassessed to determine whether the assets need not be treated as having finite useful life, and the effect is accounted for as a change in an accounting estimate.
Power project acquisition and development cots
The Company is in the preliminary stage of development with respect to its activities and accordingly follows the practice of capitalizing all costs related to the acquisition, environmental assessment, feasibility studies, security of property rights, financing, and initial construction as part of the intangible asset. The costs will be amortized over the terms of the Power Purchasing Agreement (the "PPA") once the project commences commercial operations. The recoverability of the capitalized costs is dependent on the Company's ability to complete construction of the projects, meet its obligations under various agreements, and complete future operations and dispositions.
Financial instruments - recognition and measurements
(i) Non-derivative financial assets
On initial recognition, financial assets are recognized at fair value and are subsequently classified and measured at: (i) amortized cost; (ii) fair value through other comprehensive income ("FVOCI"); or (iii) fair value through profit or loss ("FVTPL"). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial asset is measured at fair value net of transaction costs that are directly attributable to its acquisition except for financial assets at FVTPL where transaction costs are expensed. All financial assets not classified and measured at amortized cost or FVOCI are classified as FVTPL. On initial recognition of an equity instrument that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment's fair value in other comprehensive income/loss.
The classification determines the method by which the financial assets are carried on the statement of financial position subsequent to inception and how changes in value are recorded. Other receivables are measured at amortized cost with subsequent impairments recognized in profit or loss. Cash and marketable securities are classified as FVTPL.
Impairment
An 'expected credit loss' impairment model applies which requires a loss allowance to be recognized based on expected credit losses. The estimated present value of future cash flows associated with the asset is determined and an impairment loss is recognized for the difference between this amount and the carrying amount as follows: the carrying amount of the asset is reduced to its estimated present value of the future cash flows associated with the asset, discounted at the financial asset's original effective interest rate, either directly or through the use of an allowance account and the resulting loss is recognized in profit or loss for the period.
In a subsequent period, if the amount of the impairment loss related to financial assets measured at amortized cost decreases, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.
(ii) Non-derivative financial liabilities
Financial liabilities, other than derivatives, are initially recognized at fair value less directly attributable transaction costs. Subsequently, financial liabilities are measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and allocating the interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. The Company's accounts payable and accrued liabilities, joint venture settlement obligation, convertible debenture and loans payable and promissory note are measured at amortized cost.
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
Financial liabilities classified as FVTPL include financial liabilities held for trading and financial liabilities designated upon recognition as FVTPL. Fair value changes on these liabilities are recognized in profit or loss. The Company's option liability and convertible debenture derivative are measured at fair value.
(iii) Derivative financial instruments
Derivative financial instruments are initially recognized at fair value and subsequently measured at fair value with changes in fair value recognized in profit or loss. Transaction costs are recognized in profit or loss as incurred.
Investment property held for development - Sage Ranch
An investment property is an immovable property held by the Company to earn rentals or for capital appreciation, or both, rather than for use in the production or supply of goods and services or for administrative purposes, or for sale in the ordinary course of business. Investment properties include income properties, properties under development and land held for future development.
Properties under development are measured at cost. Capitalized costs for land under development and sale includes property taxes, land appraisals, engineering and architect fees, development fees and other general and administrative expenses costs relating to the development of the property. The Company begins capitalizing costs once the property title is obtained until the property is developed to a point of lease or sale. Such capitalized costs also include borrowing costs that are directly attributable to the property concerned. The Company begins capitalizing borrowing costs when it incurs expenditures for the properties in question and when it undertakes activities that are necessary to prepare these properties for their intended use.
An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Prior to its disposal, the carrying value of the investment property is adjusted to reflect its fair value. This adjustment shall be recorded as a fair value gain or loss. Any remaining gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognized.
Impairment of long-lived assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required - when intangible assets are not yet available for use, the Company estimates the asset's recoverable amount.
The recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
An impairment loss is recognized when the carrying amount of an asset, or its cash-generating unit, exceeds its recoverable amount. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets of groups of assets. Impairment losses are recognized in profit or loss.
Taxation
Income tax expense represents the sum of tax currently payable and deferred tax.
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are substantively enacted at the end of each reporting period.
Deferred income tax
Deferred income tax is provided using the liability method on temporary differences, at the end of each reporting period, between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes.
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
Deferred income tax assets and liabilities are recognized for all taxable temporary differences, except:
-
where the deferred income tax assets or liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
-
in respect of taxable or deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, where the timing of the reversal of the temporary differences can be controlled by the parent, investor or venture and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Current and deferred income tax relating to items recognized in OCI or directly in equity is recognized in OCI or in the consolidated statements of changes in equity and not in profit or loss.
Deferred income tax assets and deferred income tax liabilities are offset if, and only if, a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend to either settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered.
Share-based payments
The Company accounts for share-based payment expense using the Black-Scholes option pricing model. Accordingly, the fair value of the options at the date of grant is accrued with a corresponding credit to share-based payment reserves, and charged to earnings over the vesting period. If and when the stock options are exercised, the applicable amounts of equity compensation reserve are transferred to share capital. In situations where equity instruments are issued to non-employees and some or all of the goods or services received by the entity as consideration cannot be specifically identified, they are measured at the fair value of the stock-based compensation. Otherwise, stock-based compensation is measured at the fair value of the goods or services received.
Share capital
Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects.
The Company has adopted a relative fair value method with respect to the measurement of shares and warrants issued as units. Under the relative fair value method, the Company first determines the fair values of the shares and warrants included in the units, then allocates the unit price based on the relative fair value of the instruments included in the unit. The Company considers the fair value of common shares issued in these types of transactions to be determined by the closing quoted bid price on the issuance date. The fair value of the warrants included is determined using the Black-Scholes option pricing model. Any fair value attributed to the warrants is recorded to reserves.
Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) that has arisen as a result of a past event and it is probable that a future outflow of resources will be required to settle the obligation, provided that a reliable estimate can be made of the amount of the obligation.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the obligation. The increase in the provision due to passage of time is recognized as interest expense.
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
Loss per share
Loss per share is calculated based on the weighted average number of shares outstanding during the period. The Company follows the treasury stock method for the calculation of diluted loss per share. Under this method, dilution is calculated based upon the net number of common shares issued should "in-the-money" options and warrants be exercised and the proceeds be used to repurchase common shares at the average market price in the year. Dilution from convertible securities is calculated based on the number of shares to be issued after taking into account the reduction of the related after-tax interest expense.
Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic loss per share except that the weighted average shares outstanding are increased to include additional shares from the assumed exercise of share options and warrants, if dilutive.
Segmented reporting
In identifying its operating segments, management generally follows the Company's activities. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components. The operating results of the segments are reviewed regularly by the Company's Chief Executive Officer (who is considered the chief operating decision maker) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Convertible debentures
The Company has issued convertible debentures which, on conversion, must be satisfied entirely in common shares of the Company. The Company reviews the terms of its convertible debentures to determine whether there are embedded derivatives, including the embedded conversion option that is required to be separated and accounted for as individual derivative financial instrument or equity component. The debenture host contracts are subsequently recorded at amortized cost at each reporting date, using the effective interest method. The embedded derivatives are subsequently recorded at fair value at each reporting date, with changes in fair value recognized in profit (loss). The Company presents its embedded derivative liability and related debenture host contracts as separate instruments on the statement of financial position.
New accounting pronouncements not yet effective
Standards and interpretations issued but not yet effective up to the date of issuance of the financial statements are listed below. This listing of standards and interpretations issued are those that the Company reasonably expects to have an impact on disclosures, financial position or performance when applied at a future date.
IFRS 18 is effective for reporting periods beginning on or after January 1, 2027. It introduces several new requirements that are expected to impact the presentation and disclosure of most, if not all, entities. These include: The requirement to classify all income and expense into specified categories and provide specified totals and subtotals in the statement of profit or loss; enhanced guidance on the aggregation, location and labeling of items across the primary financial statements and the notes; and mandatory disclosures about management-defined performance measures (a subset of alternative performance measures). Management is currently assessing the implications of applying the new standard on the group's consolidated financial statements.
4 Material accounting estimates and judgments
The preparation of these consolidated financial statements in conformity with IFRS requires management to make judgments and estimates and form assumptions that affect the reporting amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.
On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, revenue, and expenses. Management uses historical experience and various other factors it believes to be reasonable under the given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different assumptions and conditions. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively.
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
Key areas of judgment
Functional currency
The functional currency for the Company and its subsidiaries is the currency of the primary economic environment in which each operates. The Company's functional and local currency is the Canadian dollar. The functional currency of the Company's subsidiaries is the US dollar. The determination of functional currency may require certain judgments to determent the primary economic environment. The Company reconsiders the functional currency used when there is a change in events and conditions which determined the primary economic environment.
Assets' carrying values and impairment charges
In determining carrying values and impairment charges the Company looks at recoverable amounts, defined as the higher of value in use or fair value less cost to sell in the case of assets, and at objective evidence that identifies significant or prolonged decline of fair value on financial assets indicating impairment. These determinations and their individual assumptions require that management make a decision based on the best available information at each reporting period.
Going concern of operations
These consolidated financial statements do not give effect to adjustments, if any, that would be necessary should the Company be unable to continue as a going concern. If the going concern assumption was not used, then the adjustments required to report the Company's assets and liabilities on a liquidation basis could be material to these financial statements.
Marketable securities
The determination of the fair value requires significant judgement by the Company, on the date of purchase, and at each reporting date thereafter, consistent with fair value accounting guidance in accordance with IFRS 13, Fair Value Measurement.
Tax
Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable earnings will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable earnings together with future tax planning strategies.
Key sources of estimation uncertainty
Share-based payments
Amounts recorded for share-based payments are subject to the inputs used in the Black-Scholes option pricing model, including estimates such as volatility, forfeiture, dividend yield and expected option life.
Convertible debentures
Convertible debentures are separated into their liability and equity components on the statement of financial position. The liability component is initially recognized at fair value, calculated as the net present value of the liability, using estimated interest rates based upon non-convertible debentures issued by comparable issuers, and accounted for at amortized cost using the effective interest rate method.
Derivative Liability
The Company measures the fair value of the derivative by reference to the fair value on the convertible debenture issuance date with an estimated life ending on the convertible debenture maturity date and revalues them at each reporting date. In determining the fair value for the derivative liability, the Company used the Geometric Brownain motion model with the following assumptions: annualized volatility rate; market price of shares at the reporting date; risk-free interest rate; the remaining expected life of the embedded derivatives and an exchange rate at the reporting date. Changes to these estimates could result in the fair value of the derivative liability being less than or greater than the amount recorded.
Joint venture settlement obligation
The liability is initially recognized at fair value, calculated as the net present value of the liability, using estimated interest rates based upon debt issued by comparable issuers, and accounted for at amortized cost using the effective interest rate method.
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
5 Sage Ranch
| December 31, 2025 | December 31, 2024 | |||||
| Opening balance | $ | $ | ||||
| Land appraisal & related fees | ||||||
| Water Rights | ||||||
| Translation adjustment | ( |
) | ||||
| $ | $ |
On September 27, 2011, the Company acquired property in Tehachapi, California (the "Sage Ranch Project" or "Tehachapi Property") with the intent to develop a residential subdivision. The Company applies the cost model for its investment property and has recorded $ depreciation as the project is still under development.
On October 6, 2018, the Company entered into an agreement to sell a
On August 10, 2020, the Company entered into an option and joint venture agreement (the "Option and Joint Venture Agreement") with Captiva amending the terms of the Sale Agreement.
Pursuant to the terms of the Option and Joint Venture Agreement, Captiva's
1. Captiva paying the Company a cash payment of $
2. Captiva issuing the Company common shares (the "Share Payment") (Captiva satisfied this payment in 2018 through the issuance of
3. Captiva funding the applicable permitting and development costs for the Sage Ranch Project (Captiva was in default on such funding obligations).
Captiva had until the earlier of: (i) August 20, 2025 and (ii) the date the Company receives final approval from the City of Tehachapi (and other required regulatory approval) to build houses on the Tehachapi Property, to exercise the Option.
If Captiva made the payments summarized above by the required time, Captiva would have exercised the Option and automatically acquired a
Captiva was in default of its funding obligations under the Option and Joint Venture Agreement. On June 22, 2023 and amended on August 21, 2023, the Company entered into an agreement with Captiva whereby the Company will repay Captiva the amount funded by Captiva under the Option and Joint Venture Agreement (equal to $
On November 13, 2023, the Sage Ranch Project received Planning Commission approval for the Sage Ranch Precise Development Plan ("PDP"). On June 18, 2024, a Sacramento court issued a ruling in the case of Tehachapi Cummings County Water District V. City of Tehachapi (the "City"), which has not yet taken effect. The ruling stated that the City's analysis of the Company's Environmental Impact Report ("EIR") was inadequate and upon resolution of the final cause of action, a writ will be issued voiding the certification of the EIR and any related project approvals. The City and the Company have already started work to comply with the mandates of the proposed writ.
On April 25, 2025, the Company entered into an agreement to buy 115 acre-feet of adjudicated and deeded water rights for USD $
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
The fair value of the development project as a whole is not possible to reliably estimate as of yet, given the Company has not yet received all necessary permits or begun construction.
6 Marketable securities and investment in associate
| December 31, 2024 Fair value |
FX and Fair Value Adjustment |
December 31, 2025 Fair value |
|||||||
| Green Matters | |||||||||
| Total | $ | $ | $ |
| December 31, 2023 Fair value |
FX and Fair Value Adjustment |
December 31, 2024 Fair value |
|||||||
| Green Matters | ( |
) | |||||||
| Total | $ | $ | ( |
) | $ |
As at December 31, 2025, the Company held
7 Power project acquisition and development costs
| Development Costs | Acquisition Costs | Total | |||||||
| December 31, 2023 | $ | $ | $ | ||||||
| Additions | |||||||||
| Translation adjustment | |||||||||
| December 31, 2024 | |||||||||
| Additions | |||||||||
| Translation adjustment | ( |
) | ( |
) | ( |
) | |||
| December 31, 2025 | $ | $ | $ |
Montalva Project
In April 2013, the Company entered into a 50/50 arrangement to create AG Solar One LLC ("AG Solar") with Alterra Power Corp. ("Alterra") (the "Arrangement"). The Arrangement was created to develop 100 Megawatts ("MW's") of solar generation capacity in Puerto Rico under a Master Renewable Power Purchasing and Operating Agreement ("PPOA"), dated December 20, 2011, and amended on March 16, 2012 (the "Master Agreement"), with Puerto Rico Electric Power Authority ("PREPA") through its wholly owned subsidiary, PBJL Energy Corporation ("PBJL").
On July 12, 2013, the Company signed a Membership Interest Purchase and Sale Agreement ("MIPSA") with Magma Energy (U.S.) Corp. ("Magma"), a subsidiary of Alterra, and amended on October 11, 2013, whereby the Company will purchase from Alterra its
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
Under the terms of the Master Agreement, the Company filed its 100 MW AC Montalva Solar Project with PREPA (“Montalva” or the “Montalva Project”) on September 5, 2013, requesting an interconnection evaluation and issuance of the project specific PPOA for Montalva included and agreed in the Master Agreement. After numerous delays by PREPA and failed attempts by the Company requesting the interconnection evaluation and issuance of a project specific PPOA for Montalva, the Company filed a Notice of Default under the Master Agreement with PREPA on September 24, 2014. PREPA responded to the Notice of Default on November 3, 2014, taking the position that it had other PPOAs issued that would exceed its system renewable capacity and could not accept any additional renewable projects and further had met its obligations under the Master Agreement. It’s the Company’s position that the Master Agreement is a specific performance agreement and not an option agreement at PREPA’s discretion and that PREPA is liable for damages.
On October 3, 2023, the Company announced that further to many years of litigation with the PREPA in both the Commonwealth and US Federal Courts, plus litigation in front of PREB, both parties executed a pro forma settlement agreement ("Settlement Agreement") beneficial to both parties. The settlement agreement provides the basis of a final settlement PPOA to be drafted and agreed between the parties. A final settlement PPOA with improved commercial terms was drafted and submitted to PREPA on July 2, 2024, for its concurrence before submission to PREB for its approval and then to FOMB. Following review by PREPA, PREPA formally submitted a finalized settlement PPOA with updated commercial terms consistent with the PREPA pricing target in the Tranche 4 RFP to the PREPA Governing Board on November 18, 2024. On April 4, 2025, PREPA filed an Informative Motion with PREB stating its Governing Board had rejected PBJL’s proposed revisions, reapproving instead the original Settlement Agreement under its exact terms and conditions. On April 26, 2025, PREB formally approved the settlement as originally filed as final, binding and enforceable, but withheld final approval pending finalization of the PPOA and submission of the final PPOA to PREB for its final approval before submission to FOMB for its approval. The Company anticipates moving forward with the development of the Montalva Solar Project as soon as practicable once a settlement PPOA has been finalized with PREPA and submitted to PREB and FOMB for their approval.
Land Lease Option Agreements
Included in the power project development and construction costs balance for AG Solar are costs related to land lease option payments.
In connection with the planned Montalva Solar Project, the company currently has three separate land lease option agreements covering four parcels for the construction and operation of Montalva. These parcels are located in the Municipality of Lajas. The parcels are contiguous to each other providing approximately 600 acres of land for the Montalva project. Upon execution of the options, these land leases provide for a term of twenty-five years, and such leases may be extended for up to four additional consecutive periods of five years each, at the Company’s option, for the purposes of the Company developing the Montalva Project. The lease option agreements are in effect until December 31, 2026, and will need to be extended if needed, with total payments of US$
8 Accounts payable and accrued liabilities
| December 31, 2025 | December 31, 2024 | |||||
| Accounts payable | $ | $ | ||||
| Accrued liabilities | ||||||
| Accrued interest | ||||||
| Total accounts payable and accrued liabilities | $ | $ |
During the period ended December 31, 2025, the Company recorded a gain on settlement of accounts payable of $
9 Loans payable
| Shareholder loans | December 31, 2025 | December 31, 2024 | ||||
| Principal opening balance | $ | $ | ||||
| Net Addition | ||||||
| Unrealized foreign exchange | ( |
) | ||||
| Principal ending balance | $ | $ |
In September 2014, the Company received two loans from an independent shareholder that bear interest of
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Director loans | December 31, 2025 | December 31, 2024 | ||||
| Principal opening balance | $ | $ | ||||
| Additional loans (repayments) | ||||||
| Unrealized foreign exchange | ( |
) | ||||
| Principal ending balance | $ | $ |
The loans bear interest of between
| Executive loans | December 31, 2025 | December 31, 2024 | ||||
| Principal opening balance | $ | $ | ||||
| Additional loan | ||||||
| Net repayments | ( |
) | ( |
) | ||
| Settled shares for debt | ( |
) | ||||
| Unrealized foreign exchange | ( |
) | ||||
| Principal ending balance | $ | $ |
As at December 31, 2025, the Company had outstanding loans from the CEO and the CEO's spouse of $
As at December 31, 2025, total interest accrued was $
| Promissory note (1) | December 31, 2025 | December 31, 2024 | ||||
| Principal opening balance | $ | $ | ||||
| Additions | ||||||
| Principal ending balance | $ | $ |
During the year ended December 31, 2025, the Company received a loan of $
| Promissory note (2) | December 31, 2025 | December 31, 2024 | ||||
| Principal opening balance | $ | $ | ||||
| Additions | ||||||
| Interest | ||||||
| Unrealized foreign exchange | ( |
) | ||||
| Principal ending balance | $ | $ |
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
During the year ended December 31, 2024, the Company received a USD$
| Promissory note - (3) | December 31, 2025 | December 31, 2024 | ||||
| Principal opening balance | $ | $ | ||||
| Additions | ||||||
| Interest | ||||||
| Repayments | ( |
) | ||||
| Unrealized foreign exchange | ( |
) | ||||
| Principal ending balance | $ | $ |
During the year ended December 31, 2024, the Company entered into a loan agreement for USD $
| Promissory note - (4) | December 31, 2025 | December 31, 2024 | ||||
| Principal opening balance | $ | $ | ||||
| Additions | ||||||
| Interest | ||||||
| Principal ending balance | $ | $ |
During the year ended December 31, 2025, the Company received a $
| Promissory note - (5) | December 31, 2025 | December 31, 2024 | ||||
| Principal opening balance | $ | $ | ||||
| Additions | ||||||
| Interest | ||||||
| Unrealized foreign exchange | ( |
) | ||||
| Principal ending balance | $ | $ |
During the year ended December 31, 2025, the Company entered into a loan agreement for USD $
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Promissory note (6) | December 31, 2025 | December 31, 2024 | ||||
| Opening balance | $ | $ | ||||
| Additions | ||||||
| Settled shares for debt | ( |
) | ||||
| Principal ending balance | $ | $ |
During the year ended December 31, 2025, the Company received $
10 Convertible debenture
On June 30, 2023, the Company issued a $
Based on the discount factor of
| December 31, 2025 | December 31, 2024 | |||||
| Opening balance | $ | $ | ||||
| Accretion | ||||||
| Ending balance, classified as short-term | ||||||
| Ending balance, classified as long-term | $ | $ |
On December 13, 2023, the Company issued a USD$
The Company estimated the fair value of the embedded derivative, representing the conversion option, by reference to a Geometric Brownain motion model. Based on the following key weighted average inputs: annualized volatility of
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Convertible Debenture | December 31, 2025 | December 31, 2024 | ||||
| Opening balance | $ | $ | ||||
| Accretion | ||||||
| Foreign exchange | ( |
) | ||||
| Ending balance, classified as short-term | $ | $ |
| Derivative Liability | December 31, 2025 | December 31, 2024 | ||||
| Opening balance | $ | $ | ||||
| Foreign exchange | ( |
) | ||||
| Fair value adjustment | ( |
) | ( |
) | ||
| Ending balance, classified as short-term | $ | $ |
11 Joint venture settlement obligation
On June 22, 2023 and amended on August 21, 2023, the Company entered into an agreement with Captiva to settle the outstanding joint-venture agreement on Sage Ranch between the Company and Captiva, whereby the Company will pay Captiva $
During the year ended December 31, 2024, the Company settled $
During the year ended December 31, 2025, $
| December 31, 2025 | December 31, 2024 | |||||
| Opening balance | $ | $ | ||||
| Accretion | ||||||
| Reclass from loan receivable | ( |
) | ||||
| Repayment | ( |
) | ( |
) | ||
| Settled on issuance of common shares | ( |
) | ||||
| Loss on modification | ||||||
| Ending balance | $ | $ | ||||
| Classified as current | $ | $ | ||||
| Classified at non-current | $ | $ |
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
12 Share capital and reserves
a. Authorized and outstanding
As at December 31, 2025, the Company had unlimited authorized common shares without par value and
b. Share issuances
Fiscal 2025
- On April 4, 2025, the Company completed a shares for debt transaction and settled $
- On July 18, 2025, the Company completed a share for debt transactions and settled $
- On October 15, 2025, the Company closed a non-brokered private placement and issued
Fiscal 2024
- During the year ended December 31, 2024, the Company issued
- During the year ended December 31, 2024, the Company issued
- During the year ended December 31, 2024, the Company issued
Fiscal 2023
- On May 10, 2023, the Company closed a non-brokered private placement and issued
- On January 11, 2024, the Company closed the USD$
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Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
- During the year,
- During the year,
c. Stock options
The Board of Directors may grant options to purchase shares from time to time, subject to the aggregate number of common shares of the Company issuable under all outstanding stock options of the Company not exceeding 10% of the issued and outstanding common shares of the Company at the time of the grant. The options are exercisable over a period established at the time of issuance to buy shares of the Company for a period not exceeding ten years, at a price not less than the minimum price permitted by the exchange. The vesting schedule for an option, if any, shall be determined by the Board of Directors at the time of issuance.
In addition to the Stock Option Plan, the Company had established a Performance Share Plan dated effective May 6, 2021, in connection with the issue of the Performance Shares under the Sandford Solar Projects Consulting Agreement. Mr. Sandford is the only participant under the Performance Share Plan. It is contemplated that the Company will issue
Fiscal 2025
- On May 8, 2025, the Company granted an aggregate of
- On October 12, 2025, the Company granted an aggregate of
Fiscal 2024
- On May 24, 2024, the Company amended the exercise price and expiry date of stock options to purchase a total of
- On December 31, 2024, the Company amended the exercise price and expiry date of stock options to purchase a total of
- On August 1, 2024, the Company granted an aggregate of
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
- On November 21, 2024, the Company granted an aggregate of
Fiscal 2023
- On February 9, 2023, the Company issued
- On February 9, 2023, the Company issued
- On November 15, 2023, the Company issued
- On November 30, 2023, the Company issued
Total stock options granted during the year ended December 31, 2025, were
A summary of stock option information as at December 31, 2025, 2024 and 2023 is as follows:
| December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||||||||
| Number of shares |
Weighted average exercise price |
Number of shares |
Weighted average exercise price |
Number of shares |
Weighted average exercise price |
|||||||||||||
| Outstanding - beginning of year | $ | $ | $ | |||||||||||||||
| Granted | ||||||||||||||||||
| Exercised | ( |
) | ( |
) | ||||||||||||||
| Expired | ( |
) | ( |
) | ( |
) | ||||||||||||
| Outstanding - end of year | $ | $ | $ | |||||||||||||||
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
The following table discloses the number of options and vested options outstanding as at December 31, 2025:
| Number of options outstanding and exercisable |
Weighted average exercise price |
Weighted average remaining contractual life (years) |
| $ |
|
|
| $ |
|
|
| $ |
|
|
| $ |
|
|
| $ |
|
|
| $ |
|
|
| $ |
|
|
| $ |
|
|
| $ |
|
|
| $ |
|
d. Warrants
Fiscal 2025
- On October 15, 2025, the Company issued
- On July 18, 2025, the Company issued
Fiscal 2024
- On January 11, 2024, the Company issued
Fiscal 2023
- On May 10, 2023, the Company issued
- On June 30, 2023, as part of the terms of the convertible debenture offering, the Company issued
The following table discloses the number of warrants outstanding as at:
| December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||||||||
| Number of shares |
Weighted average exercise price |
Number of shares |
Weighted average exercise price |
Number of shares |
Weighted average exercise price |
|||||||||||||
| Outstanding - beginning of year | $ | $ | $ | |||||||||||||||
| Granted | ||||||||||||||||||
| Exercised | ( |
) | ( |
) | ||||||||||||||
| Expired | ( |
) | ( |
) | ||||||||||||||
| Outstanding - end of year | $ | $ | $ | |||||||||||||||
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| Outstanding warrants | Expiry Date | Exercise price |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
*During the year ended December 31, 2025, the expiry date of these warrants were extended to November 29, 2027.
**During the year ended December 31, 2025 the expiry date of these warrants were extended to March 28, 2027.
e. Convertible debenture reserve
| December 31, 2025 | December 31, 2024 | |||||
| Opening balance | $ | $ | ||||
| Equity reserve related to convertible debenture (note 10) | ||||||
| Ending balance | $ | $ |
On June 30, 2023, the Company issued an $
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
13 Financial instruments
The Company examines the various financial instrument risks to which it is exposed and assesses the impact and likelihood of those risks.
The following tables summarize the valuation of the Company's financial assets and liabilities reported at fair value by the fair value hierarchy levels:
| December 31, 2025 | December 31, 2024 | ||||||
| Fair Value |
Fair value $ |
Fair value $ |
|||||
| Financial assets | |||||||
| Fair value through profit and loss ("FVTPL") | |||||||
| Cash | Level 1 | ||||||
| Marketable securities | Level 2 | ||||||
| Financial liabilities | |||||||
| Other financial liabilities | |||||||
| Overdraft | Level 1 | ||||||
| Convertible debenture derivative | Level 3 |
Fair value
Financial instruments measured at fair value are grouped into Level 1 to 3 based on the degree to which fair value is observable:
Level 1 - quoted prices in active markets for identical securities
Level 2 - significant observable inputs other than quoted prices included in Level 1
Level 3 - significant unobservable inputs.
Convertible debenture derivative are considered to be a Level 3 classification as certain inputs are not based on observable market data. See Note 10 for details on inputs utilized in the valuation.
The Company did not move any instruments between levels of the fair value hierarchy during the year ended December 31, 2025 and 2024.
The Company's financial instruments include cash, marketable securities, other receivables, accounts payable and accrued liabilities, loan payable and promissory notes, joint venture settlement obligation, convertible debentures and convertible debenture derivatives. The carrying values of other receivables, and accounts payable and accrued liabilities and loan payable and promissory notes approximate their fair values due to their relatively short periods to maturity.
The fair value of the marketable securities is based on recent transaction prices.
The fair value of the joint venture settlement obligation and convertible debentures are initially recorded at fair value and are evaluated by the Company based on level 2 inputs such as discounted future interest and principal payments using current market interest rates of instruments using similar terms. These instruments are subsequently measured through amortized cost, with accretion and interest income recognized through the statement of loss and comprehensive loss.
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rates through the interest earned on cash balances, deposits, convertible debentures and loans; however, management does not believe this exposure is significant as most items are at fixed interest rates.
Credit risk
The Company is exposed to credit risk through its cash, which is held in large Canadian financial institutions with high credit ratings, other receivables and the loan receivable. The Company believes the credit risk is insignificant for the cash and other receivables and moderate for the loan receivable with Captiva. The Company's exposure is limited to amounts reported within the statement of financial position.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through the management of its capital structure. In order to meet its financial obligations, the Company will need to generate cash flow from the sale or otherwise disposition of property or raise additional funds. The following table summarizes the remaining contractual maturities of the Company's financial liabilities and operating commitments:
| Less than 1 year | Between 1 and 2 years |
Over 2 years |
Total | |||||||||
| Accounts payable and accrued liabilities | $ | $ | $ | $ | ||||||||
| Loan payables and promissory notes | ||||||||||||
| Joint venture settlement obligation | ||||||||||||
| Convertible debenture | ||||||||||||
| Convertible debenture derivative | ||||||||||||
| Total | $ | $ | $ | $ |
Foreign exchange risk
The Company operates in Canada and the United States and is exposed to foreign exchange risk arising from transactions denominated in foreign currencies.
The operating results and the financial position of the Company are reported in Canadian dollars. Fluctuations of the operating currencies in relation to the Canadian dollar will have an impact upon the reported results of the Company and may also affect the value of the Company's assets and liabilities.
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
The Company's financial assets and liabilities as at December 31, 2025, are denominated in Canadian Dollars and United States Dollars and are set out in the following table:
| Canadian Dollars | US Dollars | Total | |||||||
| Financial assets | |||||||||
| Cash | $ | $ | $ | ||||||
| Other receivables | |||||||||
| Marketable securities | |||||||||
| Financial liabilities | |||||||||
| Accounts payable and accrued liabilities | ( |
) | ( |
) | ( |
) | |||
| Loan payable and promissory notes | ( |
) | ( |
) | ( |
) | |||
| Joint venture settlement obligation | ( |
) | ( |
) | |||||
| Convertible debenture | ( |
) | ( |
) | ( |
) | |||
| Convertible debenture derivative | ( |
) | ( |
) | |||||
| Net financial liabilities | $ | ( |
) | $ | ( |
) | $ | ( |
) |
The Company's financial assets and liabilities as at December 31, 2024 are denominated in Canadian Dollars and United States Dollars and are set out in the following table:
| Canadian Dollars | US Dollars | Total | |||||||
| Financial assets | |||||||||
| Other receivables | $ | $ | $ | ||||||
| Marketable securities | |||||||||
| Financial liabilities | |||||||||
| Overdraft | $ | $ | ( |
) | $ | ( |
) | ||
| Accounts payable and accrued liabilities | ( |
) | ( |
) | ( |
) | |||
| Loan payable and promissory note | ( |
) | ( |
) | ( |
) | |||
| Joint venture settlement obligation | ( |
) | ( |
) | |||||
| Convertible debenture | ( |
) | ( |
) | ( |
) | |||
| Convertible debenture derivative | ( |
) | ( |
) | |||||
| Net financial liabilities | $ | ( |
) | $ | ( |
) | $ | ( |
) |
The Company's reported results will be affected by changes in the US dollar to Canadian dollar exchange rate. As of December 31, 2025, a
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
14 Capital management
The Company's objective when managing capital is to safeguard the Company's ability to continue as a going concern such that it can continue to provide returns for shareholders and benefits for other stakeholders. The primary use of capital will be used for the development of its properties and acquisitions.
The Company considers the items included in convertible debentures, short-term loans and shareholders' equity as capital. The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions, business opportunity and the risk characteristics of the underlying assets. In order to maintain or adjust its capital structure, the Company may issue new shares or return capital to its shareholders. The Company is not exposed to externally imposed capital requirements.
Management reviews its capital management approach on an ongoing basis. During the year ended December 31, 2025, there has been no change in the Company's management of capital policies.
15 Segment disclosures
The Company operations are conducted in three reportable segments: real estate development in the United States ("Real Estate"), solar energy projects in Puerto Rico ("Solar Energy") and corporate headquarters located in Canada ("Corporate"). The Company reports information about its operating segments based on the manner in which the Company's chief decision maker views and evaluates the Company's business.
As the Company capitalizes all directly attributable costs related to its Real Estate and Solar Energy segments in accordance with the accounting policy for investment properties and intangibles assets, all material items of profit and loss are attributable to the Corporate segment.
| As at December 31, 2025 | As at December 31, 2024 | |||||||||||||||||||||||
| Real Estate |
Solar Energy |
Corporate | Total | Real Estate |
Solar Energy |
Corporate | Total | |||||||||||||||||
| Assets | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Net additions to non-current, non-financial assets | ( |
) | ||||||||||||||||||||||
| Total liabilities | ||||||||||||||||||||||||
| Loss | ||||||||||||||||||||||||
| Interest expense | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
| Interest income | ||||||||||||||||||||||||
| Loss | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| As at December 31, 2023 | ||||||||||||
| Real Estate | Solar Energy | Corporate | Total | |||||||||
| Assets | $ | $ | $ | $ | ||||||||
| Total assets | ||||||||||||
| Net additions to non-current, non-financial assets | ( |
) | ||||||||||
| Total liabilities | ||||||||||||
| Loss | ||||||||||||
| Interest expense | ( |
) | ( |
) | ( |
) | ||||||
| Interest income | ||||||||||||
| Loss | ( |
) | ( |
) | ( |
) | ( |
) | ||||
Entity wide disclosures
Information about geographical areas:
| Canada | California | Puerto Rico | Total | |||||||||
| As at December 31, 2025 | ||||||||||||
| Non-current assets | $ | |||||||||||
| As at December 31, 2024 | ||||||||||||
| Non-current assets | $ | $ | $ | $ | ||||||||
| As at December 31, 2023 | ||||||||||||
| Non-current assets (note 2) | $ | $ | $ | $ |
16 Related party transactions
Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly. Key management personnel include officers, directors or companies with common directors of the Company.
The Company incurred the following expenses with key management personnel during the year ended December 31:
| 2025 | 2024 | 2023 | |||||||
| Consulting and management fees | $ | $ | $ | ||||||
| Share-based compensation expense | $ | $ | $ |
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
During the year ended December 31, 2025, the President of the Company charged the Company $
During the year ended December 31, 2025, a Company controlled by the CFO of the Company charged the Company $
During the year ended December 31, 2025, the Chief Executive Officer of the Company charged the Company $
During the year ended December 31, 2025, related party loans and promissory notes totaled $
As at December 31, 2024, the Company had a receivable of $ (December 31, 2023) from Captiva, which accrued interest at the rate of
On June 22, 2023, and amended on August 21, 2023, the Company entered into the Original Settlement Agreement whereby the Company will repay Captiva the amount funded by Captiva under the Option and Joint Venture Agreement (equal to $
During the year ended December 31, 2024, the Company received a USD$
During the year ended December 31, 2024, the Company entered into a loan agreement for USD $
As at December 31, 2025, USD $
As at December 31, 2025, the Company had $
17 Commitments and contingencies
As at December 31, 2025, the Company had the following commitments and contingencies outstanding:
| Within 1 year | Over 1 year | Total | |||||||
| PBJL Share transfer (ii) | $ | $ | $ |
i) The Company entered into three separate land lease options agreements with Jose Arturo Acosta, to lease land in the Municipality of Lajas of Puerto Rico. The Company made initial payments on the execution date of each option agreement and will thereafter make certain payments over the term of the option periods. Subsequent to year end, the Company entered into additional extension agreements extending the option term on all agreements to December 31, 2026, and agreeing to make future payments totalling US$
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
ii) On April 23, 2013,
iii) On March 30, 2022, the Company executed the USD $
iv) Upon the Company closing certain development milestones allowing for an equity raise of at least US $
18 Income taxes
A reconciliation of the (provision) recovery for income taxes is as follows:
| Year ended December 31, | |||||||||
| 2025 | 2024 | 2023 | |||||||
| Loss before income taxes | $ | ( |
) | $ | ( |
) | $ | ( |
) |
| Statutory tax rate | |||||||||
| Recovery of income tax taxes based on combined federal and provincial statutory rates | ( |
) | ( |
) | ( |
) | |||
| Change in statutory, foreign tax, foreign exchange rates and other | ( |
) | |||||||
| Permanent differences | |||||||||
| Share issue cost | ( |
) |
( |
) | |||||
| Adjustment to prior years provision versus statutory tax returns and expiry of non-capital losses | ( |
) | |||||||
| Changes in unrecognized deductible differences | ( |
) |
|||||||
| Total income tax expense (recovery) | $ | $ | $ | ||||||
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
The significant components of the Company's deferred tax assets that have not been included on the consolidated statement of financial position are as follows:
| 2025 | 2024 | 2023 | |||||||
| Deferred tax assets | |||||||||
| Allowable capital losses | $ | $ | $ | ||||||
| Share issue costs | |||||||||
| Marketable securities | |||||||||
| Joint venture settlement obligation | |||||||||
| Convertible debt | |||||||||
| Non-capital and net operating loss carry forward | |||||||||
| Unrecognized deferred tax assets | ( |
) | ( |
) | ( |
) | |||
| Net deferred tax assets |
The significant components of the Company's temporary differences, unused tax credits and unused tax losses that have not been included on the consolidated statement of financial position as deferred tax assets are as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||
| Temporary Differences | $ | Expiry | $ | Expiry | ||||||||
| Share issue costs |
|
|
||||||||||
| Allowable capital losses |
|
|
||||||||||
| Marketable securities |
|
|
||||||||||
| Joint venture settlement obligation |
|
|
||||||||||
| Convertible debt |
|
|
||||||||||
| Non-capital losses available for future periods |
|
|
||||||||||
| Canada |
|
|
||||||||||
| USA |
|
|
||||||||||
| USA |
|
|
||||||||||
|
Greenbriar Sustainable Living Inc. Notes to the Consolidated Financial Statements For the years ended December 31, 2025, 2024 and 2023 (amounts expressed in Canadian dollars, except where indicated) |
| December 31, 2023 | ||||||
| Temporary Differences | $ | Expiry | ||||
| Share issue costs |
|
|||||
| Allowable capital losses |
|
|||||
| Marketable securities |
|
|||||
| Joint venture settlement obligation |
|
|||||
| Convertible debt |
|
|||||
| Non-capital losses available for future periods |
|
|||||
| Canada |
|
|||||
| USA |
|
|||||
| USA |
|
|||||
19 Subsequent events
i) Subsequent to December 31, 2025, the Company issued
ii) Subsequent to December 31, 2025, the Company closed a non-brokered private placement and issued a total of
iii) Subsequent to December 31, 2025, the Company issued
iv) Subsequent to December 31, 2025, the Company issued