0001104659-26-036846 | 10-K | XBRL Viewer | Terrestrial Energy INC DE

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Income Taxes - Significant components of the deferred tax assets and liabilities (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Deferred tax assets:
R&D expenses	$ 3,485,406	$ 3,380,350
Net operating loss carryforwards	17,547,661	13,401,755
Tax credit carryforwards	2,445,772	3,133,678
Operating lease liabilities	498,400	239,253
Stock based compensation	502,016
R&D intangible tax pool section 174	622,270
Other	93,988	73,668
Total gross deferred tax assets	25,195,513	20,228,704
Valuation allowance	(24,640,726)	(19,821,008)
Total deferred tax assets, net of valuation allowance	554,787	407,696
Deferred tax liabilities
Property and equipment	(94,585)	(60,460)
Intangible assets	(27,892)	(96,660)
Right of use assets	(432,310)	(176,333)
Convertible debt		(740,196)
Total gross deferred tax liabilities	$ (554,787)	(1,073,649)
Net deferred tax liabilities		$ (665,953)

Stock-Based Compensation - Restricted stock unit (Details) - RSU - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Number
Granted	1,232,794
Outstanding, end of year	1,232,794
Weighted Average Grant - Date Fair Value
Granted	$ 10.56
Outstanding, end of year	$ 10.56
Stock-based compensation expense	$ 1,780,594	$ 0
Unrecognized RSU expense	$ 11,258,886
Weighted-average period	1 year 4 months 24 days

Government Grants

12 Months Ended

Dec. 31, 2025

Government Grants

Government Grants

10. Government Grants

On September 2, 2020, the Ministry of Innovation, Science and Economic Development Canada (“ISED”) agreed to provide the Company with a conditionally repayable contribution of up to $20,000,000 CAD (“Contribution Agreement”) through the Strategic Innovation Fund (“SIF”) to fund eligible expenditures incurred from April 1, 2019 through December 31, 2021 related to the development of the Company’s patented IMSR reactor (“the “SIF Project”).

The contribution is repayable annually at 3.00% of Gross Business Revenues (“GBR”), as defined in the Contribution Agreement, for a period of 25 years beginning at the start of the Company’s second fiscal year following completion of the SIF Project, or until total repayments reach up to 1.75 times the actual amount received from ISED, whichever occurs first. Repayments are calculated based on GBR earned during the Canadian government fiscal year (April 1 to March 31) and are due no later than April 30 following the end of the applicable government fiscal year. If no GBR is earned in a given government fiscal year, no repayment is required for that period. The repayment period expires on the later of April 30, 2048, or the date of the final repayment.

The Company recognized the benefit of the contribution as government grant income in other income on a systematic basis as the related eligible expenditures were incurred (see Note 2, Significant Accounting Policies). Future repayments are contingent on the generation of GBR, and management is not able to reasonably estimate the timing or amount of such repayments as of December 31, 2025. Accordingly, no liability has been recognized for contingent future repayments beyond amounts accrued for repayments triggered by revenues earned to date.

As of December 31, 2025, the Company has received total contributions of $14,925,373. The Company has recorded $0 and $10,274 as a repayment accrual as of December 31, 2025 and 2024, respectively, which is included in accounts payable and accrued expenses on the consolidated balance sheets.

Net Loss Per Share of Common Share - Potentially dilutive securities excluded from the calculation (Details) - shares	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Potentially dilutive securities excluded from the calculation
Total	49,200,097	26,711,074
Employee Stock Option
Potentially dilutive securities excluded from the calculation
Total	17,691,184	18,951,539
RSUs
Potentially dilutive securities excluded from the calculation
Total	1,232,794
Warrants (public and private)
Potentially dilutive securities excluded from the calculation
Total	30,276,119	7,759,535

Subsequent Events

12 Months Ended

Dec. 31, 2025

Subsequent Events

Subsequent Events

19. Subsequent Events

The Company evaluated subsequent events from December 31, 2025 through March 30, 2026, the issuance date of these consolidated financial statements, for events requiring recognition or disclosure in the consolidated financial statements as of and for the year ended December 31, 2025.

On March 3, 2026, the Company received a demand letter from a former employee of one of the Company’s subsidiaries over his efforts to exercise certain stock option agreements. Specifically, the dispute centers on whether this former employee has or is willing to address certain potential tax obligations in order to allow the option exercise to be affected. The demand letter seeks enforcement of the option agreements, but no litigation has commenced.

The Company is currently evaluating the matter in consultation with legal counsel. Based on the information available as of the issuance date of these consolidated financial statements, the Company has not recorded a liability related to this matter as it has not concluded that a loss is probable.

The ultimate outcome of this matter is uncertain and, if the outcome was unfavorable to the Company, could have a material effect on the Company’s financial position, results of operations, or cash flows in a future period.

Leases (Tables)

12 Months Ended

Dec. 31, 2025

Leases

Components of lease cost


		Year ended
		December 31,
		2025	2024
Operating lease cost		296,466	218,886
Finance lease cost		148,537	62,453
Total lease cost		445,003	281,339


		Year ended
		December 31,
		2025			2024
Weighted-average remaining lease term (in years)			4.28			5.00
Weighted-average discount rate			4.22	%		4.38	%
Cash paid for amounts included in the measurement of operating lease liabilities		$	328,496		$	218,886

Reconciliation of the future undiscounted cash flows of operating leases to the operating lease liabilities

The following table reconciles the future undiscounted cash flows of operating leases to the operating and finance lease liabilities recorded on the consolidated balance sheet as of December 31, 2025:


		Operating			Finance
Period range		leases			leases
0 – 1 years		$	458,502		$	37,831
1 – 2 years			511,596			37,831
2 – 3 years			521,179			12,153
3 – 4 years			530,970			8,999
4 – 5 years			148,235			—
Total undiscounted lease payments			2,170,482			96,814
Less: imputed interest			(186,587)			(7,473)
Total lease liabilities			1,983,895			89,341
Less current portion			(383,223)			(33,362)
Noncurrent portion		$	1,600,672		$	55,979

Reconciliation of the future undiscounted cash flows of operating leases to the financing lease liabilities


		Operating			Finance
Period range		leases			leases
0 – 1 years		$	458,502		$	37,831
1 – 2 years			511,596			37,831
2 – 3 years			521,179			12,153
3 – 4 years			530,970			8,999
4 – 5 years			148,235			—
Total undiscounted lease payments			2,170,482			96,814
Less: imputed interest			(186,587)			(7,473)
Total lease liabilities			1,983,895			89,341
Less current portion			(383,223)			(33,362)
Noncurrent portion		$	1,600,672		$	55,979

Convertible Notes and Convertible Notes - Related Parties - 2024 Bridge Round Offering (Details) - 2024 Bridge Round Offering $ in Millions	9 Months Ended
	Dec. 31, 2024 USD ($) Y $ / shares item
Convertible Notes and Convertible Notes - Related Parties
Number of warrants per unit \| item	10
Exercise price of warrants exercisable	$ 2.24
Principal amount per unit	$ 1,000
Interest rate (in percentage)	8.00%
Warrants and Rights Outstanding, Valuation Technique [Extensible Enumeration]	us-gaap:BlackScholesMertonModelMember
Stock price
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input	1.16
Exercise (Strike) price
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input	2.24
Time to maturity (years)
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input \| Y	4.1
Annualized risk-free rate
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input	0.043
Annualized volatility
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input	0.63
Automatic conversion upon SPAC merger
Convertible Notes and Convertible Notes - Related Parties
Conversion price, percentage on issue price	75.00%
Threshold days after the lock up expiration	21 days
Floor price	$ 5
Threshold issuance of common and preferred shares \| $	$ 50.0
Automatic conversion upon attaining threshold equity or equity linked financing
Convertible Notes and Convertible Notes - Related Parties
Conversion price, percentage on issue price	75.00%
Automatic conversion upon initial public offering
Convertible Notes and Convertible Notes - Related Parties
Conversion price, percentage on issue price	75.00%

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Property and Equipment, Net

12 Months Ended

Dec. 31, 2025

Property and Equipment, Net

Property and Equipment, Net

5. Property and Equipment, Net

The components of property and equipment, net were as follows:


	December 31,
	2025		2024
Computer equipment	$	738,809	$	1,548,538
Computer software		1,199,373		5,123,755
Equipment		22,869		4,827
Furniture and fixtures		3,233		163,756
Leasehold improvements		140,881		687,024
Total		2,105,165		7,527,900
Less: Accumulated depreciation and amortization		(1,270,370)		(6,757,352)
Total	$	834,795	$	770,548

Depreciation and amortization expense on property and equipment for the years ended December 31, 2025 and 2024 was $1,012,872 and $1,206,215, respectively.

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Prepaid Expenses and Other Current Assets
Sales tax receivable	$ 92,547	$ 82,924
Government grants receivable		45,991
Prepaid software costs	490,907	15,462
Prepaid insurance	1,007,243
Other prepaid expenses	178,567	125,714
Total	$ 1,769,264	$ 270,091

Stock-Based Compensation - Summary of stock option transactions and the number of stock options outstanding (Details) - $ / shares	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Number
Outstanding, beginning of year	19,018,593	18,249,971
Granted	1,167,819	768,622
Exercised	(67,054)
Forfeited	(2,428,174)
Outstanding, end of year	17,691,184	19,018,593
Less: Options not vested	(2,339,259)	(2,154,905)
Exercisable at year end	15,351,925	16,863,688
Weighted Average Exercise Price
Outstanding, beginning of year	$ 1.01	$ 1
Granted	4.83	2.24
Exercised	0.09
Forfeited	1.47
Outstanding, end of year	1.34	1.01
Less: Options not vested	4.18	2.17
Exercisable at year end	$ 0.89	$ 0.49

Reverse Recapitalization

12 Months Ended

Dec. 31, 2025

Reverse Recapitalization

Reverse Recapitalization

3. Reverse Recapitalization

On the Closing Date, HCM II consummated the transactions set forth by the Business Combination Agreement dated March 26, 2025 with TEDI and Merger Sub. Upon closing, Merger Sub merged with and into TEDI, with TEDI surviving as a wholly owned subsidiary of the Company. The Transactions were accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting:

●

TEDI is treated as the accounting acquirer.

●

The transaction is equivalent to the issuance of shares by TEDI for the net monetary assets of the Company, accompanied by a recapitalization.

●

No goodwill or other intangible assets were recorded. The net assets of the Company were recorded at historical cost.

HCM II did not meet the definition of a “business” pursuant to ASC 805-10-55, Business Combinations (“ASC 805”), and thus, for accounting purposes, the Business Combination was accounted for as a reverse recapitalization, within the scope of ASC 805. The net assets of HCM II were stated at historical cost, with no goodwill or other intangible assets recorded. There was no excess of the fair value of shares issued to HCM II over the fair value of HCM II’s identifiable net assets acquired.

Accordingly the consolidated financial statements prior to the Closing Date represent those of TEDI, while the equity structure (i.e., number and type of shares outstanding) reflects the legal capital structure of the Company after the Business Combination, retroactively adjusted to reflect the Exchange Ratio of 44.7029 as of the earliest presented period, in this case, January 1, 2024.

Upon closing of the Business Combination:

●

An aggregate of 48,028,812 shares of common stock were issued to TEDI securityholders, including holders of convertible notes.

●

Preferred shares of TEDI converted into common stock pursuant to the terms of TEDI’s governing documents.

●

TEDI’s convertible notes were converted into common stock in accordance with their contractual terms.

●

Outstanding options, warrants, and restricted stock units of TEDI were assumed and converted into comparable awards exercisable for or settled in common stock based on the Exchange Ratio.

●

In connection with the shareholder vote approving the Business Combination, 7,390 public shares were redeemed for approximately $77,890.

PIPE Financing

Concurrently with the closing of the Business Combination, the Company consummated a private placement (the “PIPE”) pursuant to which it issued 5,000,000 shares of common stock at $10.00 per share, resulting in gross proceeds of $50.0 million.

The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows for the year ended December 31, 2025:




Cash-trust and cash, net of redemptions	$	243,066,977
Add: proceeds from issuance of shares from PIPE investors		49,500,000
Less: transaction costs and professional fees, paid		(22,305,729)
Net proceeds from the Business Combination	$	270,261,248

The following table provides a reconciliation of the common and exchangeable shares as of December 31, 2025:



TEDI existing shares at closing date:
Preferred Series A shares			200,592
Common shares			784,831
Total TEDI shares at closing date			985,423
Total TEDI shares at closing date - recasted			44,051,295
Conversion of convertible notes to common shares			3,977,517
Issuance of shares to PIPE investors			5,000,000
Issuance of shares to HCM II			28,742,610
Total recapitalized common shares at December 31, 2025			81,771,422

TEDI existing exchangeable shares at closing date:
Preferred exchangeable shares			6,200
Common exchangeable shares			530,924
Total TEDI exchangeable shares at closing date			537,124
Total TEDI exchangeable shares at closing date - recasted			24,011,017

Conversion of preferred exchangeable shares to exchangeable shares			277,158
Conversion of common exchangeable shares to exchangeable shares			23,733,859
Total recapitalized exchangeable shares at December 31, 2025			24,011,017

The below table represents the amount of the Company’s transaction expenses included in the financial statements for the year ended December 31, 2025:



		December 31, 2025
Professional fees	$	14,324,981
Legal expenses		7,980,748
Total transaction costs	$	22,305,729

Income Taxes - Components of income tax expense (benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Current:
Federal		$ 35,088
State	$ 700
Foreign	1,849	1,278
Total current income tax	2,549	36,366
Deferred:
Federal	15,401	(15,401)
Total deferred tax	15,401	(15,401)
Total income tax expense	$ 17,950	$ 20,965

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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+ Details

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Cash flows from operating activities
Net loss	$ (28,016,641)	$ (11,485,410)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,161,704	1,256,391
Loss on extinguishment of debt		1,183,289
Amortization of debt discount	2,137,984	802,573
Stock-based compensation	3,103,702	670,243
Unrealized foreign currency transaction gain	(807,193)	(812,849)
Noncash lease expense	471,362	152,086
Deferred income taxes	15,401	(15,401)
Changes in operating assets and liabilities
Accounts receivable		19,163
Prepaid expenses and other current assets	(1,750,631)	166,315
Accounts payable and accrued expenses	5,366,309	(196,299)
Operating lease payments	(328,510)	(133,454)
Net cash used in operating activities	(16,472,912)	(8,202,934)
Cash flows from investing activities
Purchases of intangible assets	(86,150)	(54,404)
Purchases of property and equipment	(1,055,307)	(607,866)
Purchase of short-term investments	(199,496,832)
Net cash used in investing activities	(200,638,289)	(662,270)
Cash flows from financing activities
Proceeds from Series A-1 preferred shares issuance	25,797,201
Proceeds from the exercise of stock options for common shares	136
Proceeds from warrant exercise for common shares	4,500,000
Proceeds from issuance of shares to PIPE investors	49,500,000
Proceeds from merger financing	243,066,977
Payment of merger and recapitalization related transaction costs	(22,305,729)
Proceeds from related party advances		100,000
Repayment of finance lease liabilities	(149,138)	(58,732)
Net cash provided by financing activities	311,394,447	7,254,268
Effect of exchange rate changes on cash and cash equivalents	(140,650)	32,201
Increase (decrease) in cash and cash equivalents during the year	94,142,596	(1,578,735)
Cash and cash equivalents, beginning of year	3,021,795	4,600,530
Cash and cash equivalents, end of year	97,164,391	3,021,795
Supplemental cash flow information
Interest paid		514,431
Supplemental noncash investing and financing activities
Conversion of convertible notes to common shares	29,787,900
Initial recognition of finance leases	42,590
Recognition of warrants in connection with convertible notes, net of tax	2,594,531	2,006,982
Related party debt extinguishment		202,204
Acquisition of non-controlling interest		534,611
Nonrelated party
Changes in operating assets and liabilities
Accrued interest	1,847,554	152,571
Cash flows from financing activities
Proceeds from issuance of convertible notes	9,335,000	6,563,000
Related party
Changes in operating assets and liabilities
Accrued interest	326,047	37,848
Cash flows from financing activities
Proceeds from issuance of convertible notes	$ 1,650,000	$ 650,000

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2025

Stock-Based Compensation

Summary of stock option transactions and the number of stock options outstanding


		December 31, 2025					December 31, 2024
				Weighted					Weighted
				Average					Average
		Number		Exercise Price			Number		Exercise Price
Outstanding, beginning of year		19,018,593		$	1.01		18,249,971		$	1.00
Granted		1,167,819			4.83		768,622			2.24
Exercised		(67,054)			0.09		—			—
Forfeited		(2,428,174)			1.47		—			—
Outstanding, end of year		17,691,184			1.34		19,018,593			1.01
Less: Options not vested		(2,339,259)			4.18		(2,154,905)			2.17
Exercisable at year end		15,351,925		$	0.89		16,863,688		$	0.49

Summary of assumptions for estimation of fair value of option granted


		2025			2024
Risk-free interest rate			4.56	%		3.87	%
Exercise price		$	4.83		$	2.24
Share price		$	3.99		$	1.16
Expected life of options			3 Years			3 Years
Annualized volatility			86.0	%		63.0	%

Summary of restricted stock unit transactions and number of RSUs


	December 31, 2025
			Weighted
			Average
	Number		Grant-Date Fair Value
Outstanding, beginning of year	—		$	—
Granted	1,232,794			10.56
Vested	—			—
Forfeited/Expired	—			—
Outstanding, end of year	1,232,794		$	10.56

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2025

Property and Equipment, Net

Schedule of components of property and equipment, net


	December 31,
	2025		2024
Computer equipment	$	738,809	$	1,548,538
Computer software		1,199,373		5,123,755
Equipment		22,869		4,827
Furniture and fixtures		3,233		163,756
Leasehold improvements		140,881		687,024
Total		2,105,165		7,527,900
Less: Accumulated depreciation and amortization		(1,270,370)		(6,757,352)
Total	$	834,795	$	770,548

Convertible Notes and Convertible Notes - Related Parties - Roll forward of Convertible Notes and Convertible Notes-Related Party (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Convertible Notes and Convertible Notes - Related Parties
Loss on extinguishment of debt		$ 1,183,289
Nonrelated party
Convertible Notes and Convertible Notes - Related Parties
Balance at beginning	$ 13,708,832
Balance at end		13,708,832
Related party
Convertible Notes and Convertible Notes - Related Parties
Balance at beginning	2,371,994
Balance at end		2,371,994
Convertible notes \| Nonrelated party
Convertible Notes and Convertible Notes - Related Parties
Balance at beginning	13,708,832	7,918,528
Proceeds	9,335,000	6,563,000
Loss on extinguishment of debt		1,183,289
Recognition of debt discount	(2,323,073)	(2,173,509)
Foreign currency translation adjustment		(369,323)
Amortization of debt discount	1,698,368	586,847
Conversion of convertible notes to common shares, exclusive of accrued interest converted	(22,419,127)
Balance at end		13,708,832
Convertible notes \| Related party
Convertible Notes and Convertible Notes - Related Parties
Balance at beginning	2,371,994	2,032,017
Proceeds	1,650,000	650,000
Loss on extinguishment of debt		202,204
Recognition of debt discount	(271,458)	(514,827)
Foreign currency translation adjustment		(130,898)
Amortization of debt discount	439,616	133,498
Conversion of convertible notes to common shares, exclusive of accrued interest converted	$ (4,190,152)
Balance at end		$ 2,371,994

Stockholders' Equity (Deficit) (Details)		10 Months Ended	12 Months Ended
Stockholders' Equity (Deficit) (Details)	Oct. 28, 2025 shares	Oct. 28, 2025 shares	Dec. 31, 2025 Vote $ / shares $ / shares shares	Dec. 31, 2024 $ / shares shares
Preferred Stock
Preferred stock, number of shares authorized			1,000,000
Preferred shares, par value (in dollars per share) \| $ / shares			$ 0.0001
Preferred stock, shares issued			0	6,154,342
Preferred stock, shares outstanding			0	6,154,342
Additional preferred stock issued		2,812,708
Conversion of preferred stock into common stock (in shares)	8,967,050
Common Stock
Common stock, number of shares authorized			500,000,000	500,000,000
Common shares, par value (in dollars per share) \| $ / shares			$ 0.0001	$ 0.0001
Common Stock, Number of Votes Per Share \| Vote			1
Common stock, shares issued			81,771,422	39,159,901
Common stock, shares outstanding			81,771,422	39,159,901
Common Stock Warrants
Common stock warrants, Outstanding			30,276,119	7,759,535
Common stock warrants, Exercise price \| $ / shares			$ 8.24	$ 2.24
Number of shares retrained for repurchase			6,124,297
Exchangeable shares, share outstanding			24,011,017	24,011,017
Common exchangeable shares, shares outstanding				23,733,859
Preferred exchangeable shares, shares outstanding				277,158
Exchangeable shares conversion ratio			1
Number of shares exchanged during the period			0	0
Minimum
Common Stock Warrants
Purchase price per share \| $ / shares			$ 1.12
Maximum
Common Stock Warrants
Purchase price per share \| $ / shares			$ 2.24

Significant Accounting Policies - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2025 USD ($) segment shares	Dec. 31, 2024 USD ($)
Significant Accounting Policies
Number of share to be converted on vesting of each RSU \| shares	1
Advertising costs \| $	$ 0.1	$ 0.2
Research and development tax credits \| $	$ 0.0	$ 0.2
Number of operating segments \| segment	1
Number of reportable segments \| segment	1

Leases - Narratives (Details) - USD ($)	12 Months Ended
Leases - Narratives (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Leases
Option to extend	true
Maximum Lease extension term	1 year
Right-of-use assets obtained in exchange for operating lease liabilities	$ 970,279	$ 144,978

Reverse Recapitalization - Reconciliation of Business Combination to Cash Flows (Details)	12 Months Ended
	Dec. 31, 2025 USD ($)
Reverse Recapitalization
Cash-trust and cash, net of redemptions	$ 242,000,000
Add: proceeds from issuance of shares from PIPE investors	49,500,000
HCM II Acquisition Corp \| Terrestrial Energy Development, Inc
Reverse Recapitalization
Cash-trust and cash, net of redemptions	243,066,977
Add: proceeds from issuance of shares from PIPE investors	49,500,000
Less: transaction costs and professional fees, paid	(22,305,729)
Net proceeds from the Business Combination	$ 270,261,248

Convertible Notes and Convertible Notes - Related Parties (Tables)

12 Months Ended

Dec. 31, 2025

Convertible Notes and Convertible Notes - Related Parties

Schedule of roll forward of convertible notes and convertible notes - related party


					Convertible
		Convertible			Notes – Related
		Notes			Party
Balance at January 1, 2024		$	7,918,528		$	2,032,017
Bridge Round Offering proceeds			6,563,000			650,000
Loss on extinguishment of debt			1,183,289			202,204
Recognition of debt discount			(2,173,509)			(514,827)
Foreign currency translation adjustment			(369,323)			(130,898)
Amortization of debt discount			586,847			133,498
Balance at December 31, 2024			13,708,832			2,371,994
February 2025 Offering proceeds			9,335,000			1,650,000
Recognition of debt discount			(2,323,073)			(271,458)
Amortization of debt discount			1,698,368			439,616
Conversion of convertible notes to common shares, exclusive of accrued interest converted			(22,419,127)			(4,190,152)
Balance at December 31, 2025		$	—		$	—

2024 Bridge Round Offering

Convertible Notes and Convertible Notes - Related Parties

Summary of inputs used in valuation techniques for warrants issued with convertible notes


		2024 Bridge
		Round Offering
Stock price		$	1.16
Exercise (Strike) price		$	2.24
Time to maturity (years)			4.1
Annualized risk-free rate			4.3	%
Annualized volatility			63.0	%

February 2025 Offering

Convertible Notes and Convertible Notes - Related Parties

Summary of inputs used in valuation techniques for warrants issued with convertible notes


		February 2025
		Bridge Round
		Offering
Stock price		$	1.45
Exercise (Strike) price		$	2.24
Time to maturity (years)			3.4
Annualized risk-free rate			4.2	%
Annualized volatility			51.3	%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477314/942-235-S99-2

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
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-Name Accounting Standards Codification
-Section S50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-4

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
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-URI https://asc.fasb.org/1943274/2147482949/835-30-55-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
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-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
-Section 55
-Paragraph 69C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69C

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69E

Reference 12: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69F

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1D

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Publisher FASB
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Section 50
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-Publisher FASB
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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Publisher FASB
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Reference 30: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
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-Name Accounting Standards Codification
-Section 45
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 31: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482900/835-30-50-1

+ Details

Related Party Balances and Transactions (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of related party transactions


		2025			2024
Professional fees and expenses paid to companies controlled by officers included in general and administrative		$	249,323		$	442,110
Research and development expenses paid to companies controlled by officers included in general and administrative		$	—		$	42,212
Accounts payable due to related parties		$	—		$	9,010

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2025	Mar. 25, 2026	Jun. 30, 2025
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2025
Document Period End Date	Dec. 31, 2025
Document Transition Report	false
Entity File Number	001-42252
Entity Registrant Name	TERRESTRIAL ENERGY INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	98-1785406
Entity Address, Address Line One	2730 W. Tyvola Road
Entity Address, Adress Line Two	Suite 100
Entity Address, City or Town	Charlotte
Entity Address State Or Province	NC
Entity Address, Postal Zip Code	28217
City Area Code	646
Local Phone Number	687-8212
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 191,475,000
Entity Common Stock, Shares Outstanding		105,935,266
Documents Incorporated by Reference [Text Block]	Portions of the registrant’s Proxy Statement to be filed within 120 days after the end of the fiscal year ended December 31, 2025 in connection with the registrant’s 2026 annual general meeting of shareholders are incorporated by reference into Part III of this Form 10-K.
Auditor Name	UHY LLP
Auditor Location	Melville, New York
Auditor Firm ID	1195
Entity Central Index Key	0002019804
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	IMSR
Security Exchange Name	NASDAQ
Redeemable Warrants
Document Information [Line Items]
Title of 12(b) Security	Redeemable Warrants, each whole warrant exercisable for one Common Stock at a price of $11.50 per share
Trading Symbol	IMSRW
Security Exchange Name	NASDAQ

Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($)

Total Terrestrial Energy Inc. Stockholders' Equity (Deficit)

Previously Reported

Total Terrestrial Energy Inc. Stockholders' Equity (Deficit)

Cash issuance

Total Terrestrial Energy Inc. Stockholders' Equity (Deficit)

PIPE Financing

Total Terrestrial Energy Inc. Stockholders' Equity (Deficit)

Preferred Shares

Previously Reported

^[1]

Preferred Shares

Retrospective application of recapitalization

^[1]

Common Shares

Previously Reported

^[1]

Common Shares

Retrospective application of recapitalization

^[1]

Common Shares

Cash issuance

Common Shares

PIPE Financing

Common Shares

Preferred Exchangeable Shares

Previously Reported

^[1]

Preferred Exchangeable Shares

Retrospective application of recapitalization

^[1]

Common Exchangeable Shares

Previously Reported

^[1]

Common Exchangeable Shares

Retrospective application of recapitalization

^[1]

Exchangeable Shares

Retrospective application of recapitalization

Exchangeable Shares

Additional Paid-In-Capital

Previously Reported

Additional Paid-In-Capital

Retrospective application of recapitalization

Additional Paid-In-Capital

Cash issuance

Additional Paid-In-Capital

PIPE Financing

Additional Paid-In-Capital

Accumulated Other Comprehensive Income (Loss)

Previously Reported

Accumulated Other Comprehensive Income (Loss)

Accumulated Deficit

Previously Reported

Accumulated Deficit

Attributable to Non-Controlling Interest

Previously Reported

Attributable to Non-Controlling Interest

Previously Reported

Cash issuance

PIPE Financing

Total

Beginning balance at Dec. 31, 2023

$ (5,410,299)

$ 138

$ (138)

$ 675

$ 2,959

$ 3,634

^[1]

$ 6

$ (6)

$ 531

$ (531)

$ 2,401

$ 79,769,519

$ (4,685)

$ 79,764,834

$ (58,336)

$ (85,122,832)

$ 534,611

$ (4,875,688)

Beginning balance (in shares) at Dec. 31, 2023

137,672

(137,672)

675,281

35,666,101

36,341,382

^[1]

6,200

(6,200)

530,924

(530,924)

24,011,017

Consolidated Statements of Changes in Stockholders' Equity (Deficit)

Stock-based compensation

670,243

Acquisition of non-controlling interest

534,611

$ 282

^[1]

534,329

$ (534,611)

Acquisition of non-controlling interest (in shares)

^[1]

2,818,520

Issuance of warrants in connection with convertible notes, net of tax

2,006,982

Loss on extinguishment of debt from related parties

(202,204)

Currency translation adjustments

395,525

Net loss

(11,485,410)

Ending balance at Dec. 31, 2024

(13,490,552)

$ 3,916

^[1]

$ 2,401

82,774,184

337,189

(96,608,242)

(13,490,552)

Ending balance (in shares) at Dec. 31, 2024

39,159,901

^[1]

24,011,017

Consolidated Statements of Changes in Stockholders' Equity (Deficit)

Stock-based compensation

3,103,702

Issuance of shares

$ 25,797,201

$ 49,500,000

$ 282

^[1]

$ 500

^[1]

$ 25,796,919

$ 49,499,500

$ 25,797,201

$ 49,500,000

Issuance of shares (in shares)

^[1]

2,812,708

5,000,000

Issuance of warrants in connection with convertible notes, net of tax

2,594,531

Shares issued upon exercise of warrants

4,500,000

$ 201

^[1]

4,499,799

4,500,000

Shares issued upon exercise of warrants (in shares)

^[1]

2,011,632

Shares issued upon exercise of options

136

$ 7

^[1]

129

$ 136

Shares issued upon exercise of options (in shares)

67,054

^[1]

67,054

Merger financing

243,066,977

$ 2,874

^[1]

243,064,103

$ 243,066,977

Merger financing (in shares)

^[1]

28,742,610

Transaction costs

(22,305,729)

Conversion of convertible notes to Common Shares

29,787,900

$ 397

^[1]

29,787,503

29,787,900

Conversion of convertible notes to Common Shares (in shares)

^[1]

3,977,517

Currency translation adjustments

(260,731)

Change in unrealized gains on short term investments

1,129,448

Net loss

(28,016,641)

Ending balance at Dec. 31, 2025

$ 295,406,242

$ 8,177

^[1]

$ 2,401

$ 418,814,641

$ 1,205,906

$ (124,624,883)

$ 295,406,242

Ending balance (in shares) at Dec. 31, 2025

81,771,422

^[1]

24,011,017

[1]	Share amounts have been retroactively restated to give effect to the Business Combination.

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2025

Prepaid Expenses and Other Current Assets

Schedule of prepaid expenses and other current assets


	December 31,
	2025		2024
Sales tax receivable	$	92,547	$	82,924
Government grants receivable		—		45,991
Prepaid software costs		490,907		15,462
Prepaid insurance		1,007,243		—
Other prepaid expenses		178,567		125,714
Total	$	1,769,264	$	270,091

Segment Information - Long-lived assets (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 3,420,488	$ 2,039,718
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	1,231,273	14,853
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 2,189,215	$ 2,024,865

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2025

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

4. Prepaid Expenses and Other Current Assets

The components of prepaid expenses and other current assets were as follows:


	December 31,
	2025		2024
Sales tax receivable	$	92,547	$	82,924
Government grants receivable		—		45,991
Prepaid software costs		490,907		15,462
Prepaid insurance		1,007,243		—
Other prepaid expenses		178,567		125,714
Total	$	1,769,264	$	270,091

Significant Accounting Policies - Property and Equipment, Net (Details)	Dec. 31, 2025
Computer equipment \| Minimum
Property and Equipment, Net
Useful Life	2 years
Computer equipment \| Maximum
Property and Equipment, Net
Useful Life	4 years
Computer software \| Minimum
Property and Equipment, Net
Useful Life	1 year
Computer software \| Maximum
Property and Equipment, Net
Useful Life	3 years
Equipment
Property and Equipment, Net
Useful Life	5 years
Furniture and fixtures
Property and Equipment, Net
Useful Life	5 years

Segment Information

12 Months Ended

Dec. 31, 2025

Segment Information

Segment Information

17. Segment Information

ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance.

The Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer in accordance with ASC 280-10-50-5, who reviews the assets, operating results, and financial metrics for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that there is only one reportable segment.

The CODM assesses performance for the single segment and decides how to allocate resources based on net income or loss that also is reported on the consolidated statement of operations as net income or loss. The measure of segment assets is reported on the consolidated balance sheet as total assets when evaluating the Company’s performance and making key decisions regarding resource allocation the CODM reviews several key metrics, which include the following:


		For the year ended
		December 31,
		2025			2024
Research and development costs		$	9,767,996		$	5,176,932
General and administrative expenses			14,266,775			4,168,576
Other significant non-cash items:
Depreciation and amortization			1,161,704			1,256,391
Total Operating Expenses			25,196,475			10,601,899
Revenue			—			248,357
Total other (expense) income			(2,802,216)			(1,110,903)
Income tax expense			(17,950)			(20,965)
Net loss		$	(28,016,641)		$	(11,485,410)

As the Company has not earned significant revenue yet, the key measures of segment profit or loss reviewed by the Company’s CODM are research and development costs and general and administrative expenses to monitor, manage and forecast cash to ensure enough capital is available for working capital needs. The CODM also reviews research and development costs and general and administrative costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.

The geographic location of long-lived assets is as follows:


		December 31,
		2025			2024
United States		$	1,231,273		$	14,853
Canada			2,189,215			2,024,865
Total		$	3,420,488		$	2,039,718

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 11: http://fasb.org/us-gaap/role/ref/otherTransitionRef
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Reference 12: http://www.xbrl.org/2003/role/exampleRef
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Reference 13: http://www.xbrl.org/2003/role/exampleRef
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Reference 15: http://www.xbrl.org/2003/role/exampleRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Property and Equipment, Net (Details) - USD ($)	12 Months Ended
Property and Equipment, Net (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Property and Equipment, Net
Total	$ 2,105,165	$ 7,527,900
Less: Accumulated depreciation and amortization	(1,270,370)	(6,757,352)
Total	834,795	770,548
Depreciation and amortization	1,012,872	1,206,215
Computer equipment
Property and Equipment, Net
Total	738,809	1,548,538
Computer software
Property and Equipment, Net
Total	1,199,373	5,123,755
Equipment
Property and Equipment, Net
Total	22,869	4,827
Furniture and fixtures
Property and Equipment, Net
Total	3,233	163,756
Leasehold improvements
Property and Equipment, Net
Total	$ 140,881	$ 687,024

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
Cybersecurity Risk Management and Strategy Disclosure	Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	Cybersecurity Risk Management and Compliance We have established comprehensive frameworks and processes to manage material risks from cybersecurity threats, including the identification, assessment, and mitigation of existing cybersecurity risks, as well as continuous monitoring for emerging risks that could impact our operations. Our approach is aligned with industry-leading frameworks such as the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework and is intended to guide our cybersecurity practices. However, this alignment does not imply that we meet any specific standards, specifications, or regulatory requirements, rather, we use NIST as a foundational guide for our initiative plan. Our cybersecurity and physical security controls are implemented through a robust set of policies and procedures designed for the planning, execution, management, assessment, innovation, and continuous improvement of security measures. This includes a multi-layered network security architecture, regular security assessments, and penetration testing to proactively identify and address vulnerabilities. We have implemented critical security technologies, such as firewalls, Intrusion Detection and Prevention Systems (“IDPS”), and Endpoint Detection and Response (“EDR”) solutions. Additionally, we conduct periodic vulnerability assessments and simulated cyberattack exercises to identify, mitigate, and remediate weaknesses within our IT infrastructure. Our technology environment includes enterprise business systems and specialized analytical and technical software environments used for engineering and design activities. To safeguard these systems, we utilize security measures such as role-based access controls, multi-factor authentication for privileged accounts, encryption of sensitive data in transit and at rest, secure configuration standards, endpoint detection and response tools, and periodic cybersecurity awareness training for employees. We also maintain processes designed to identify and manage cybersecurity risks associated with third-party service providers that may have access to our systems or data, including security due diligence for critical vendors and contractual data protection and breach notification requirements where appropriate.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	We have established comprehensive frameworks and processes to manage material risks from cybersecurity threats, including the identification, assessment, and mitigation of existing cybersecurity risks, as well as continuous monitoring for emerging risks that could impact our operations.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	Governance and Oversight Oversight of enterprise risk, including cybersecurity risk, is the responsibility of the Company’s Chief Executive Officer (“CEO”), Chief Technology Officer (“CTO”), Chief Operating Officer (“COO”), and Chief Financial Officer (“CFO”). These executives oversee the Company’s cybersecurity priorities and risk management activities, including policies, procedures, and monitoring processes designed to safeguard the Company’s information assets and technology systems. Delegated members of this leadership team are responsible for cybersecurity risk monitoring, threat detection, and incident reporting to the Audit Committee of the Company’s Board of Directors, as well as reviews and evaluates the processes utilized by management to identify and assess the material internal and external risks that may affect our business. The Audit Committee receives updates regarding cybersecurity risks and incidents, as appropriate, as part of its oversight of enterprise risk management. The Chief Operating Officer is responsible for cybersecurity strategy and implementation, including risk assessment, mitigation, and incident response, while the Chief Financial Officer is responsible for coordinating regulatory reporting related to cybersecurity matters. Key individuals involved in overseeing and executing our cybersecurity strategy include: · Chief Executive Officer - more than 20 years of finance and investment management experience across a broad range of industries and markets. Prior to joining the Company, he held senior leadership roles at Man Global Strategies, the strategic investment division of Man Group Plc, where he led strategic investments in North America and served on the firm’s Investment Committee. He began his career as a derivatives structurer and trader at Credit Suisse Financial Products. · Chief Technology Officer - globally recognized expert in molten salt reactor (“MSR”) technologies with extensive experience in the development of advanced nuclear power systems. He founded Ottawa Valley Research Associates Ltd. to advance MSR technologies and has contributed to numerous patents, academic publications, and international industry forums focused on advanced reactor development. · Chief Financial Officer - over 25 years of financial leadership experience serving as an executive and officer at large public and private companies. He has extensive experience in financial planning, public company reporting and financing, budgeting and forecasting, systems implementation, mergers and acquisitions, and regulatory compliance. Mr. Thrasher is a Certified Public Accountant and began his career in public accounting at Ernst & Young. · Chief Operating Officer - over 44 years of experience in the energy sector, including more than 20 years in the nuclear industry. He has extensive experience in major project execution, operational leadership, supply chain management, and engagement with clients, suppliers, and regulators. Prior to joining the Company, he held senior leadership roles at Siemens Canada and Ontario Hydro / Ontario Power Generation. · IT Director – over 20 years of IT leadership and management experience in various facets of the IT environment including risk and change and cybersecurity. He has overseen system implementations, IT infrastructure and network management, and related risk and change process improvements. These individuals have played a central role in ensuring our transition to public company status, collaborating with both internal and external IT specialists to meet strictest compliance standards in alignment with applicable regulatory frameworks, including NIST, the Canadian Nuclear Safety Commission (“CNSC”), the U.S. Nuclear Regulatory Commission (“NRC”), the Department of Energy (“DOE”), the Federal Bureau of Investigation (“FBI”), and the Canadian Centre for Cyber Security (“CCCS”). Cyber Risk Management Strategy and Execution The executive management team is directly responsible for the execution of our cyber risk management strategy and the implementation of the controls designed to protect the Company's operational infrastructure. This includes both ongoing oversight of security initiatives and the application of continuous improvement measures to ensure the integrity, confidentiality, and availability of our systems. Potential cybersecurity threats are identified and analyzed through the Company’s ongoing monitoring of its technology environment, including security monitoring activities, centralized logging, and threat detection processes supported by internal personnel and external cybersecurity service providers. The COO and CFO, in consultation with the Company’s General Counsel where appropriate, assess the materiality of cybersecurity incidents and determine any required public disclosure in accordance with applicable securities laws. Currently, we are not aware of any risks from cybersecurity threats or cybersecurity incidents that have materially affected or are reasonably likely to materially affect the Company.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	The Audit Committee
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	Delegated members of this leadership team are responsible for cybersecurity risk monitoring, threat detection, and incident reporting to the Audit Committee of the Company’s Board of Directors, as well as reviews and evaluates the processes utilized by management to identify and assess the material internal and external risks that may affect our business.
Cybersecurity Risk Role of Management [Text Block]	Oversight of enterprise risk, including cybersecurity risk, is the responsibility of the Company’s Chief Executive Officer (“CEO”), Chief Technology Officer (“CTO”), Chief Operating Officer (“COO”), and Chief Financial Officer (“CFO”). These executives oversee the Company’s cybersecurity priorities and risk management activities, including policies, procedures, and monitoring processes designed to safeguard the Company’s information assets and technology systems. Delegated members of this leadership team are responsible for cybersecurity risk monitoring, threat detection, and incident reporting to the Audit Committee of the Company’s Board of Directors, as well as reviews and evaluates the processes utilized by management to identify and assess the material internal and external risks that may affect our business. The Chief Operating Officer is responsible for cybersecurity strategy and implementation, including risk assessment, mitigation, and incident response, while the Chief Financial Officer is responsible for coordinating regulatory reporting related to cybersecurity matters. These individuals have played a central role in ensuring our transition to public company status, collaborating with both internal and external IT specialists to meet strictest compliance standards in alignment with applicable regulatory frameworks, including NIST, the Canadian Nuclear Safety Commission (“CNSC”), the U.S. Nuclear Regulatory Commission (“NRC”), the Department of Energy (“DOE”), the Federal Bureau of Investigation (“FBI”), and the Canadian Centre for Cyber Security (“CCCS”).
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	Company’s Chief Executive Officer (“CEO”), Chief Technology Officer (“CTO”), Chief Operating Officer (“COO”), and Chief Financial Officer (“CFO”)
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	· Chief Executive Officer - more than 20 years of finance and investment management experience across a broad range of industries and markets. Prior to joining the Company, he held senior leadership roles at Man Global Strategies, the strategic investment division of Man Group Plc, where he led strategic investments in North America and served on the firm’s Investment Committee. He began his career as a derivatives structurer and trader at Credit Suisse Financial Products. · Chief Technology Officer - globally recognized expert in molten salt reactor (“MSR”) technologies with extensive experience in the development of advanced nuclear power systems. He founded Ottawa Valley Research Associates Ltd. to advance MSR technologies and has contributed to numerous patents, academic publications, and international industry forums focused on advanced reactor development. · Chief Financial Officer - over 25 years of financial leadership experience serving as an executive and officer at large public and private companies. He has extensive experience in financial planning, public company reporting and financing, budgeting and forecasting, systems implementation, mergers and acquisitions, and regulatory compliance. Mr. Thrasher is a Certified Public Accountant and began his career in public accounting at Ernst & Young. · Chief Operating Officer - over 44 years of experience in the energy sector, including more than 20 years in the nuclear industry. He has extensive experience in major project execution, operational leadership, supply chain management, and engagement with clients, suppliers, and regulators. Prior to joining the Company, he held senior leadership roles at Siemens Canada and Ontario Hydro / Ontario Power Generation. · IT Director – over 20 years of IT leadership and management experience in various facets of the IT environment including risk and change and cybersecurity. He has overseen system implementations, IT infrastructure and network management, and related risk and change process improvements.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	The COO and CFO, in consultation with the Company’s General Counsel where appropriate, assess the materiality of cybersecurity incidents and determine any required public disclosure in accordance with applicable securities laws.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

Significant Accounting Policies - Long lived and Intangible Asset (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Significant Accounting Policies
Useful life	20 years
Impairment loss of long lived assets	$ 0	$ 0

Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2025

Accounts Payable and Accrued Expenses

Accounts Payable and Accrued Expenses

8. Accounts Payable and Accrued Expenses

The components of accounts payable and accrued expenses were as follows:


		December 31,
		2025		2024
Trade payables		$	4,478,088	$	366,321
Accrued salaries and benefits			87,360		54,569
Accrued contractor expense			92,593		47,956
Government grant repayment accrual			—		10,274
Other accrued expenses			842,905		269,747
Total		$	5,500,946	$	748,867

Income Taxes - Unrecognized tax benefits (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Income Taxes
Unrecognized tax benefits	$ 0	$ 0
Accrued net interest and penalties	$ 0	$ 0

Stock-Based Compensation - Valuation assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Stock-Based Compensation
Risk-free interest rate	4.56%	3.87%
Exercise price	$ 4.83	$ 2.24
Share price	$ 3.99	$ 1.16
Expected life of options	3 years	3 years
Annualized volatility	86.00%	63.00%
Expected dividend yield	0.00%

Convertible Notes and Convertible Notes - Related Parties

12 Months Ended

Dec. 31, 2025

Convertible Notes and Convertible Notes - Related Parties

Convertible Notes and Convertible Notes - Related Parties

11. Convertible Notes and Convertible Notes — Related Parties

2024 Bridge Round Offering

From April 2024 through December 2024, the Company entered into subscription and exchange agreements for an offering of units with various investors, including related parties (the “Bridge Round Offering”). Each unit was comprised of (i) a convertible note and (ii) ten warrants expiring July 31, 2028 to buy common stock of the Company at $2.24 exercisable in cash or by cashless exercise based on the market price of shares in the specified manner.

Each convertible note was a secured convertible note of the Company in the principal amount of $1,000 per unit due July 31, 2026 with a principal amount of $1,000 bearing interest at 8%. The convertible notes (including unpaid interest) were automatically convertible prior to maturity into (i) (a) the shares of the surviving entity following a SPAC (Special Purpose Acquisition Company) merger at a conversion price equal to 75% of the issue price of the securities issued by such surviving entity and (b) certain limited rights to the issue of additional surviving entity securities 21 days after the expiry of the lock ups associated with the SPAC merger transaction to compensate for any price evolution in the trading price of such securities below the issue price down to $5.00; (ii) the Company’s common or preferred stock in the case of a $50.0 million issuance of common or preferred stock (excluding units or monies raised in connection with a SPAC merger) at a conversion price equal to 75% of the issue price of such securities, or (iii) the same class of shares of the Company issued in connection with an IPO shares at a conversion price equal to 75% of the price of such shares immediately post IPO.

The Company’s obligations under the convertible notes, are secured in favor of each convertible note holder by a guaranty made by the Company and a security interest in all present and after acquired personal property and assets of the Company. The convertible notes include a prohibition on the Company granting liens or security interests on its assets outside the ordinary course of business.

Additionally, the Company entered into exchange agreements with each of the previously outstanding Convertible Note holders whereby the holders received similar rights as investors in the Bridge Round Offering. The Company evaluated the exchange agreement and determined it was not required to be accounted for as a Troubled Debt Restructuring under ASC 470-60 as no concession was granted to the Company. The Company then evaluated the exchange under ASC 470-50, Debt — Modifications and Extinguishment.

The 2024 Bridge Round Convertible Notes are required to be accounted for as an ASC 480-10 liability as a result of the Variable Share Settlement provisions. The warrants issued in the Bridge Round Offering (the “Bridge Warrants”) qualified as permanent equity under ASC 815-40; therefore, the Bridge Warrants were recognized within paid-in capital and measured at relative fair value. When estimating the fair value of the Bridge Warrants, the Company has followed the guidance in ASC 820 Fair Value Measurement.

The value of the Bridge Warrants was based on Black-Scholes pricing model based on the following inputs:


		2024 Bridge
		Round Offering
Stock price		$	1.16
Exercise (Strike) price		$	2.24
Time to maturity (years)			4.1
Annualized risk-free rate			4.3	%
Annualized volatility			63.0	%

February 2025 Bridge Round Offering

During February 2025 the Company entered into subscription and exchange agreements for an offering of units with various investors, including related parties (the “February 2025 Offering”) providing for proceeds of $11.0 million. Each unit was comprised of (i) a convertible note and (ii) ten warrants expiring July 31, 2028 to buy common stock of the Company at $2.24 exercisable in cash or by cashless exercise based on the market price of shares in the specified manner.

Each convertible note was a secured convertible note of the Company in the principal amount of $1,000 per unit due July 31, 2026 with a principal amount of $1,000 bearing interest at 8%. The convertible notes (including unpaid interest) were automatically convertible prior to maturity into (i) (a) the shares of the surviving entity following a Special Purpose Acquisition Company (“SPAC”) merger at a conversion price equal to 75% of the issue price of the securities issued by such surviving entity and (b) certain limited rights to the issue of additional surviving entity securities 21 days after the expiry of the lock ups associated with the SPAC merger transaction to compensate for any price evolution in the trading price of such securities below the issue price down to $5.00; (ii) the Company’s common or preferred stock in the case of a $50.0 million issuance of common or preferred stock (excluding units or monies raised in connection with a SPAC merger) at a conversion price equal to 75% of the issue price of such securities, or (iii) same class of shares of the Company issued in connection with IPO shares at a conversion price equal to 75% of the price of such shares immediately post IPO.

The February 2025 Offering convertible notes are required to be accounted for as an ASC 480-10 liability as a result of the Variable Share Settlement provisions. The warrants qualified as permanent equity under ASC 815-40; therefore, the warrants were recognized within paid-in capital and measured at relative fair value. When estimating the fair value of the warrants, the Company has followed the guidance in ASC 820 Fair Value Measurement.

The fair value of the warrants issued with the February 2025 Offering was based on Black-Scholes pricing model based on the following inputs:


		February 2025
		Bridge Round
		Offering
Stock price		$	1.45
Exercise (Strike) price		$	2.24
Time to maturity (years)			3.4
Annualized risk-free rate			4.2	%
Annualized volatility			51.3	%

Each convertible note that was outstanding immediately prior to the Effective Time of the close was cancelled and automatically converted pursuant to its terms, and the holder thereof became entitled to receive, a number of shares of common stock equal to (A) the outstanding amount of such convertible note, including any accrued and unpaid interest, divided by (B) $7.91 (seventy-five percent (75%) of the redemption price).

Rollforward of Convertible Notes and Convertible Notes-Related Party


					Convertible
		Convertible			Notes – Related
		Notes			Party
Balance at January 1, 2024		$	7,918,528		$	2,032,017
Bridge Round Offering proceeds			6,563,000			650,000
Loss on extinguishment of debt			1,183,289			202,204
Recognition of debt discount			(2,173,509)			(514,827)
Foreign currency translation adjustment			(369,323)			(130,898)
Amortization of debt discount			586,847			133,498
Balance at December 31, 2024			13,708,832			2,371,994
February 2025 Offering proceeds			9,335,000			1,650,000
Recognition of debt discount			(2,323,073)			(271,458)
Amortization of debt discount			1,698,368			439,616
Conversion of convertible notes to common shares, exclusive of accrued interest converted			(22,419,127)			(4,190,152)
Balance at December 31, 2025		$	—		$	—

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

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+ Details

Pay vs Performance Disclosure - USD ($)	12 Months Ended
Pay vs Performance Disclosure - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Pay vs Performance Disclosure
Net Income (Loss)	$ (28,016,641)	$ (11,485,410)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Intangible Assets, Net

12 Months Ended

Dec. 31, 2025

Intangible Assets, Net

Intangible Assets, Net

6. Intangible Assets, Net

The components of intangible assets, net were as follows:


	Useful life	December 31,
		2025		2024
Intellectual property rights	20 years	$	22,800	$	21,718
Patents and trademarks	20 years		991,930		865,682
Total			1,014,730		887,400
Less: Accumulated amortization			(306,981)		(270,428)
Total		$	707,749	$	616,972

Amortization expense relating to the intangible assets for the years ended December 31, 2025 and 2024 was $25,254 and $50,176, respectively.

Estimated future amortization of intangibles is as follows:


Year ending December 31,		Amount
2026		$	43,417
2027			43,417
2028			43,417
2029			43,417
2030			43,417
Thereafter			490,664
		$	707,749

Significant Accounting Policies - Variable Interest Entities (Details) - TEUSA	Dec. 23, 2024	Dec. 22, 2024
Significant Accounting Policies
Ownership percentage	100.00%
Ownership percentage by noncontrolling owners		29.90%
SWH
Significant Accounting Policies
Ownership percentage		70.10%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Accounts Payable and Accrued Expenses (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Accounts Payable and Accrued Expenses
Trade payables	$ 4,478,088	$ 366,321
Accrued salaries and benefits	87,360	54,569
Accrued contractor expense	92,593	47,956
Government grant repayment accrual		10,274
Other accrued expenses	842,905	269,747
Total	$ 5,500,946	$ 748,867

Consolidated Balance Sheets - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Current assets
Cash and cash equivalents	$ 97,164,391	$ 3,021,795
Short-Term Investments	200,626,281
Prepaid expenses and other current assets	1,769,264	270,091
Total current assets	299,559,936	3,291,886
Property and equipment, net	834,795	770,548
Intangible assets, net	707,749	616,972
Right-of-use assets	1,814,333	622,450
Other assets	63,611	29,748
Total Assets	302,980,424	5,331,604
Current liabilities
Accounts payable and accrued expenses	5,500,946	748,867
Operating lease liabilities, current	383,223	114,507
Finance lease liabilities, current	33,362	140,796
Related party advance (Note 12)		100,000
Total current liabilities	5,917,531	1,104,170
Operating lease liabilities, noncurrent	1,600,672	598,493
Finance lease liabilities, noncurrent	55,979	49,044
Deferred tax liabilities, net		665,953
Total liabilities	7,574,182	18,822,156
Commitments and Contingencies (Note 18)
Stockholders' Equity (Deficit)
Common shares, $0.0001 par value; 500,000,000 authorized shares; 81,771,422 and 39,159,901 shares issued and outstanding as of December 31, 2025 and 2024, respectively	8,177	3,916
Exchangeable shares, $0.0001 par value; 24,011,017 shares issued and outstanding as of December 31, 2025 and December 31, 2024	2,401	2,401
Additional paid-in-capital	418,814,641	82,774,184
Accumulated deficit	(124,624,883)	(96,608,242)
Accumulated other comprehensive income	1,205,906	337,189
Total stockholders' equity (deficit)	295,406,242	(13,490,552)
Total liabilities and stockholders' equity (deficit)	$ 302,980,424	5,331,604
Nonrelated party
Current liabilities
Convertible notes, net of debt discount		13,708,832
Accrued interest on convertible notes		266,554
Related party
Current liabilities
Convertible notes, net of debt discount		2,371,994
Accrued interest on convertible notes		$ 57,116

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2025

Intangible Assets, Net

Schedule of intangible assets


	Useful life	December 31,
		2025		2024
Intellectual property rights	20 years	$	22,800	$	21,718
Patents and trademarks	20 years		991,930		865,682
Total			1,014,730		887,400
Less: Accumulated amortization			(306,981)		(270,428)
Total		$	707,749	$	616,972

Schedule of estimated future amortization of intangibles


Year ending December 31,		Amount
2026		$	43,417
2027			43,417
2028			43,417
2029			43,417
2030			43,417
Thereafter			490,664
		$	707,749

Segment Information (Details)	12 Months Ended
Segment Information (Details)	Dec. 31, 2025 USD ($) segment	Dec. 31, 2024 USD ($)
Segment Information
Number of operating segments \| segment	1
Number of reportable segments \| segment	1
Research and development costs	$ 9,767,996	$ 5,176,932
General and administrative expenses	14,266,775	4,168,576
Depreciation and amortization	1,161,704	1,256,391
Total Operating Expenses	25,196,475	10,601,899
Revenue		248,357
Income tax expense	(17,950)	(20,965)
Net loss	(28,016,641)	(11,485,410)
Single reportable segment
Segment Information
Research and development costs	9,767,996	5,176,932
General and administrative expenses	14,266,775	4,168,576
Depreciation and amortization	1,161,704	1,256,391
Total Operating Expenses	25,196,475	10,601,899
Revenue		248,357
Total other (expense) income	(2,802,216)	(1,110,903)
Income tax expense	(17,950)	(20,965)
Net loss	$ (28,016,641)	$ (11,485,410)

Reverse Recapitalization (Details)		2 Months Ended	12 Months Ended
Reverse Recapitalization (Details)	Oct. 28, 2025 USD ($) $ / shares shares	Dec. 31, 2025 USD ($) shares	Dec. 31, 2025 USD ($)	Dec. 31, 2024 USD ($)
Reverse Recapitalization
Intangible assets recorded		$ 707,749	$ 707,749	$ 616,972
Gross proceeds			$ 50,000,000
Terrestrial Energy Development, Inc
Reverse Recapitalization
Issuance of shares (in shares) \| shares		5,000,000
Terrestrial Energy Development, Inc \| HCM II Acquisition Corp
Reverse Recapitalization
Intangible assets recorded	$ 0
Goodwill	$ 0
Exchange ratio	44.7029
Issuance of shares (in shares) \| shares	48,028,812
Number of public shares redeemed \| shares	7,390
Value of public shares redeemed	$ 77,890
Terrestrial Energy Development, Inc \| PIPE Financing \| HCM II Acquisition Corp
Reverse Recapitalization
Issuance of shares (in shares) \| shares	5,000,000
Price per share \| $ / shares	$ 10
Gross proceeds	$ 50,000,000

Intangible Assets, Net (Details) - USD ($)	12 Months Ended
Intangible Assets, Net (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Intangible Assets, Net
Useful life	20 years
Intangible assets gross	$ 1,014,730	$ 887,400
Less: Accumulated amortization	(306,981)	(270,428)
Total	707,749	616,972
Amortization expense	$ 25,254	$ 50,176
Intellectual property rights
Intangible Assets, Net
Useful life	20 years	20 years
Intangible assets gross	$ 22,800	$ 21,718
Patents and trademarks
Intangible Assets, Net
Useful life	20 years	20 years
Intangible assets gross	$ 991,930	$ 865,682

- Definition

The aggregate expense charged against earnings to allocate the cost of intangible assets (nonphysical assets not used in production) in a systematic and rational manner to the periods expected to benefit from such assets.

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+ Details

Reverse Recapitalization (Tables)

12 Months Ended

Dec. 31, 2025

Reverse Recapitalization

Schedule of reconciliation of business combination to statement of cash flows

The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows for the year ended December 31, 2025:




Cash-trust and cash, net of redemptions	$	243,066,977
Add: proceeds from issuance of shares from PIPE investors		49,500,000
Less: transaction costs and professional fees, paid		(22,305,729)
Net proceeds from the Business Combination	$	270,261,248

Schedule of reconciliation of common and exchangeable shares



TEDI existing shares at closing date:
Preferred Series A shares			200,592
Common shares			784,831
Total TEDI shares at closing date			985,423
Total TEDI shares at closing date - recasted			44,051,295
Conversion of convertible notes to common shares			3,977,517
Issuance of shares to PIPE investors			5,000,000
Issuance of shares to HCM II			28,742,610
Total recapitalized common shares at December 31, 2025			81,771,422

TEDI existing exchangeable shares at closing date:
Preferred exchangeable shares			6,200
Common exchangeable shares			530,924
Total TEDI exchangeable shares at closing date			537,124
Total TEDI exchangeable shares at closing date - recasted			24,011,017

Conversion of preferred exchangeable shares to exchangeable shares			277,158
Conversion of common exchangeable shares to exchangeable shares			23,733,859
Total recapitalized exchangeable shares at December 31, 2025			24,011,017

Schedule of transaction expenses



		December 31, 2025
Professional fees	$	14,324,981
Legal expenses		7,980,748
Total transaction costs	$	22,305,729

Stock-Based Compensation

12 Months Ended

Dec. 31, 2025

Stock-Based Compensation

Stock-Based Compensation

15. Stock-Based Compensation

In 2014, the Company adopted the amended and restated Terrestrial Energy Inc. 2014 Stock Options Plan A (the “2014 Plan”). In connection with the Company’s redomestication to Delaware, outstanding awards under the 2014 Plan were assumed by the Terrestrial Energy Delaware Inc. 2024 Stock Option Plan, which was most recently amended and restated in October 2024, as the Terrestrial Energy Inc. Second Amended and Restated 2024 Stock Option Plan. In October 2025, the Company adopted the 2025 Equity Incentive Plan, effective immediately prior to the closing of the Business Combination (the “Current Plan”). As of December 31, 2025, the Current Plan authorizes the Company to award equity awards resulting in the issuance of up to 38,741,269 shares of common stock. The Current Plan provides for grants of incentive stock options, non-qualified stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and other awards to employees, non-employee directors, consultants and advisors of the Company. The Current Plan is designed to promote the interests of the Company using equity investment interests to attract, motivate, and retain individuals. The Current Plan is administered by the Board of Directors. The Board determines the type, number, vesting requirements and other features and conditions of such awards. Generally, stock options granted from the Current Plan have a contractual term of twenty years from the date of the grant and vest over one to three years.

Stock option transactions and the number of stock options outstanding are summarized as follows:


		December 31, 2025					December 31, 2024
				Weighted					Weighted
				Average					Average
		Number		Exercise Price			Number		Exercise Price
Outstanding, beginning of year		19,018,593		$	1.01		18,249,971		$	1.00
Granted		1,167,819			4.83		768,622			2.24
Exercised		(67,054)			0.09		—			—
Forfeited		(2,428,174)			1.47		—			—
Outstanding, end of year		17,691,184			1.34		19,018,593			1.01
Less: Options not vested		(2,339,259)			4.18		(2,154,905)			2.17
Exercisable at year end		15,351,925		$	0.89		16,863,688		$	0.49

The Company recorded stock-based compensation expense for options of $1,323,108 and $670,243 for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, total compensation expense related to awards not yet recognized (except those with performance conditions that are not yet probable) was $2.0 million which is expected to be recognized over a weighted average period of 1.7 years.

The Company used the Black-Scholes option-pricing model to estimate the fair value of the options granted at the grant date using the following data and assumptions:


		2025			2024
Risk-free interest rate			4.56	%		3.87	%
Exercise price		$	4.83		$	2.24
Share price		$	3.99		$	1.16
Expected life of options			3 Years			3 Years
Annualized volatility			86.0	%		63.0	%

As there is insufficient historical share price data of the Company from which to estimate future share price volatility, the Company has estimated expected share price volatility based on the historical share price volatility of comparable entities. The expected life of the share options is based on the expectation that investors will exercise their rights as certain Company milestones are met as well as review of comparable companies. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company has not paid and does not anticipate paying cash dividends on shares of common stock; therefore, the expected dividend yield is assumed to be zero.

Restricted stock unit transactions and the number of RSUs outstanding are summarized as follows:


	December 31, 2025
			Weighted
			Average
	Number		Grant-Date Fair Value
Outstanding, beginning of year	—		$	—
Granted	1,232,794			10.56
Vested	—			—
Forfeited/Expired	—			—
Outstanding, end of year	1,232,794		$	10.56

The Company recorded stock-based compensation expense for RSU awards of $1,780,594 and $0 for the years ended December 31, 2025 and 2024, respectively

The total unrecognized RSU expense as of December 31, 2025 was $11,258,886 with a weighted-average period over which it is to be recognized of 1.4 years.

Stock-Based Compensation (Details)	12 Months Ended
Stock-Based Compensation (Details)	Dec. 31, 2025 shares
Stock-Based Compensation
Number of shares authorized	38,741,269
Stock option term (in years)	20 years
Minimum
Stock-Based Compensation
Stock option vesting period (in years)	1 year
Maximum
Stock-Based Compensation
Stock option vesting period (in years)	3 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Leases - Components of lease cost (Details) - USD ($)	12 Months Ended
Leases - Components of lease cost (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Leases
Operating lease cost	$ 296,466	$ 218,886
Finance lease cost	148,537	62,453
Total lease cost	$ 445,003	$ 281,339
Operating leases, Weighted-average remaining lease term (in years)	4 years 3 months 10 days	5 years
Operating leases, Weighted-average discount rate	4.22%	4.38%
Operating leases, cash paid for amounts included in the measurement of operating lease liabilities	$ 328,496	$ 218,886

Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2025

Significant Accounting Policies

Schedule of useful life of property plant and equipment


Computer equipment		2 – 4 years
Computer software		1 – 3 years
Equipment		5 years
Furniture and fixtures		5 years

Leases - Reconciliation of the future undiscounted cash flows of operating leases to the operating and finance lease liabilities (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Operating leases
0 - 1 years	$ 458,502
1 - 2 years	511,596
2 - 3 years	521,179
3 - 4 years	530,970
4 - 5 years	148,235
Total undiscounted lease payments	2,170,482
Less: imputed interest	(186,587)
Total lease liabilities	1,983,895
Less current portion	(383,223)	$ (114,507)
Noncurrent portion	1,600,672	598,493
Finance leases
0 - 1 years	37,831
1 - 2 years	37,831
2 - 3 years	12,153
3 - 4 years	8,999
Total undiscounted lease payments	96,814
Less: imputed interest	(7,473)
Total lease liabilities	89,341
Less current portion	(33,362)	(140,796)
Noncurrent portion	$ 55,979	$ 49,044

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2025

Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and are the consolidated financial statements of the Company and its subsidiaries, each of which are controlled, and are based on the financial position and results of operations of the Company as a standalone company. Intercompany balances and transactions between consolidated entities have been eliminated.

Emerging Growth Company Status

Emerging Growth Company Status

The Company is expected to be an emerging growth company, as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as to those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. As a result, these consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions made when accounting for items and matters such as, but not limited to, revenue recognition, determination of deferred income for government assistance, VIE determination, useful life of property and equipment and intangible assets, fair value of stock options granted, recognition of deferred income tax assets, determination of incremental borrowing rate used to measure lease liabilities, warrants, embedded derivatives in convertible notes, and estimates related to accounting for the merger and reverse recapitalization, are reasonable based on information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements, as well as amounts reported on the statements of operations during the periods presented. Actual results could differ from those estimates.

Variable Interest Entities

Variable Interest Entities

The Company determines at the inception of each arrangement whether an entity in which the Company holds an investment or in which the Company has other variable interests is considered a variable interest entity (“VIE”). The Company consolidates VIEs when it is the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (1) has the power to make decisions that most significantly affect the economic performance of the VIE and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE.

In 2014, the Company agreed to establish Terrestrial Energy USA, Inc. (“TEUSA”), a Delaware corporation, which was initially majority owned by SWH Capital LLC (“SWH”), an entity owned and controlled by the Chief Executive Officer of the Company, with the minority interest owned by the Company. TEUSA’s purpose was to be an independent entity to commercialize IMSR technology for U.S. market deployment with the support of the U.S. Federal and State governments. The Company and TEUSA had several officers and directors in common. Under mutual licensing agreements between the companies, the Company would receive revenue royalties in the event that the technology was successfully commercialized in the U.S. The Company concluded that the TEUSA was a Variable Interest Entity as defined by ASC 810.

On December 23, 2024, the Company entered into an agreement and plan of merger providing for the merger of TEUSA (the “TEUSA Merger”) into a wholly owned subsidiary of the Company. Immediately prior to the TEUSA Merger, TEUSA was 70.1% owned by SWH and 29.9% owned by the Company. The effect of the TEUSA Merger is that the Company owns 100% of TEUSA as of December 23, 2024. In accordance with ASC 810, as the Company maintained controlling financial interest, the acquisition of the noncontrolling interest was accounted for as an equity transaction, consistent with ASC 810-10-45-23.

Foreign Currency

Foreign Currency

The Company’s reporting currency is the United States dollar (“USD”). The functional currency of each subsidiary is determined by the currency of the primary economic environment in which the entity operates. The functional currency of TEON is the Canadian dollar (“CAD”), that of Terrestrial Energy Limited, a company incorporated under the laws of England and Wales, the Pound Sterling and that of Terrestrial Energy USA, Inc., the USD. Assets and liabilities of the operating subsidiaries are translated at the spot rate in effect at the applicable reporting date. Revenues and expenses of the operating subsidiaries are translated at the average exchange rates in effect during the applicable period. The resulting foreign currency translation adjustment is recorded as Accumulated other comprehensive income (loss), which is reflected as a separate component of Stockholders’ Equity (Deficit). The functional currency is translated into U.S. dollars for balance sheet accounts using currency exchange rates in effect as of the balance sheet date, and for revenue and expense accounts using a weighted-average exchange rate during the fiscal year. The transactions in foreign currency (that is a different currency than the functional currency of the entity) are converted at the exchange rate prevailing to the date of the transaction. The assets and liabilities denominated in foreign currencies are evaluated in the current period on the date of the closing or at the opening rate, when applicable. The translation adjustments are deferred as a separate component of equity in “Accumulated other comprehensive income (loss)”. Gains or losses resulting from transactions denominated in foreign currencies and intercompany debt that is not of a long-term investment nature are included in foreign exchange gain (loss) in the consolidated statements of operations and comprehensive loss.

Liquidity and Going Concern

Liquidity and Going Concern

Historically, the Company’s primary sources of liquidity have been cash flows from private fundraising offerings from related parties or other investors and other financing activities to fund operations. For the years ended December 31, 2025 and 2024, the Company reported operating losses of $25.2 and $10.4 million, respectively, and negative cash flows from operations of $16.5 and $8.2 million, respectively. As of December 31, 2025, the Company had $97.2 million in cash and cash equivalents and $200.6 million in short-term investments. The Company had net working capital of $293.6 million and an accumulated deficit of $124.6 million.

The Company commenced trading on Nasdaq on October 29, 2025, after completing the business combination with HCM II on October 28, 2025. As outlined further below, after completing the transaction the Company received in excess of $292 million in gross proceeds before expenses, which included $50 million common stock private investment (“PIPE”) and approximately $242 million from HCM II’s trust account following redemptions of less than 1%. Based on this financing, the Company believes that it has sufficient liquidity to support operations for at least the next twelve months following the date of issuance of the consolidated financial statements. This projection is based on the Company’s current expectations regarding future sales, cost structure, cash burn rate and other operating assumptions.

Cash, Cash Equivalents and Short-Term Investments

Cash, Cash Equivalents and Short-Term Investments

Cash equivalents represent short-term, highly liquid investments, which are readily convertible to cash and have maturities of 90 days or less at time of purchase. The Company’s cash and cash equivalents are held with major financial institutions and earn interest at the prevailing rate for business operating accounts.

Short-term investments consist of marketable securities with original maturities greater than three months but less than one year at the time of purchase. These investments may include U.S Treasury securities, government agency securities, commercial paper, and other highly rated debt instruments. Short-term investments are subject to a periodic impairment review. If the Company does not intend to sell and it is not more likely than not that it will be required to sell the investment prior to recovery of its amortized cost basis, it will determine whether a decline in fair value below the amortized cost basis is due to credit-related factors. The credit loss is measured as the amount by which the investment’s amortized cost basis exceeds the estimate of the present value of cash flows expected to be collected, up to the difference between the amortized cost basis and the fair value. Impairment is assessed at the individual investment level. Credit-related impairment is recognized as an allowance in the consolidated balance sheets with a corresponding adjustment to interest and dividend income, in the consolidated statements of operations and comprehensive loss. Any impairment that is not credit-related is recognized in accumulated other comprehensive income in the consolidated balance sheets.

The Company’s short-term investments have been classified and accounted for as available-for-sale. The cost of short-term investments is adjusted for accretion of premiums and amortization of discounts to maturity. Such accretion and amortization, as well as interest and dividends, are included in interest and dividend income. The cost of investments sold is determined using the specific identification method. Unrealized gains and losses on short-term investments classified as available-for-sale are recognized in other comprehensive income on the consolidated statements of comprehensive loss.

Property and Equipment, Net

Property and Equipment, Net

Property and equipment is stated at cost or deemed at cost less accumulated amortization. Property and equipment is amortized monthly over its useful life on a straight-line basis at the following rates:


Computer equipment		2 – 4 years
Computer software		1 – 3 years
Equipment		5 years
Furniture and fixtures		5 years

Leasehold improvements are amortized over the shorter of their useful life or remaining lease term. Expenditures for repairs and maintenance, which do not improve or extend the life of the assets, are expensed as incurred.

Concentration of Credit Risks

Concentration of Credit Risks

The Company’s cash accounts in a financial institution may at times exceed the Federal Depository Insurance coverage of $250,000. No losses have been incurred to date on any deposit balance.

Intangible Assets, Net

Intangible Assets, Net

Intangible assets consist of intellectual property rights and patents and trademarks related to the IMSR technology. Intangible assets acquired separately are measured on initial recognition at cost. Internally generated intangible assets are initially recognized if they meet certain recognition criteria. Development expenditures not satisfying the above criteria, and expenditure on the research phase of internal projects, are expensed as incurred and are included in research and development costs in the consolidated statement of operations and comprehensive loss.

The Company amortizes intangible assets with finite lives over their estimated useful lives of 20 years using a straight-line amortization method, which the Company believes is the best estimate to reflect the pattern in which the economic benefits of the intangible assets are consumed or otherwise realized and reviews them for impairment whenever an impairment indicator exists.

Impairment of Long-lived Assets

Impairment of Long-lived Assets

Management reviews each asset or asset group for impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company measures the recoverability of the assets by comparing the carrying amount of such asset or asset group to the future undiscounted cash flows it expects the asset or asset group to generate. If the Company considers the asset or asset group to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset or asset group exceeds its fair value. No impairment losses were recorded by the Company during the years ended December 31, 2025 and 2024.

Revenue Recognition

Revenue Recognition

The Company determines revenue recognition through the following steps: a) identification of the contract with a customer, b) identification of the performance obligations in the contract, c) determination of the transaction price, d) allocation of the transaction price to the performance obligations in the contract and e) recognition of revenue when the Company satisfies a performance obligation.

The Company carries out engineering services for customers with revenue recognized typically on an over time basis. The Company’s contracts with the customer are to provide a significant service of integrating a complex set of tasks and components into a single deliverable. Consequently, the entire contract is accounted for as one performance obligation. The Company recognizes revenue from engineering services over time using an input method as performance obligations have no alternative use for the Company and the contracts would require payment to be received for the time and effort spent by the Company on progressing the contracts in the event of the customer cancelling the contract prior to completion for any reason other than the Company’s failure to perform its obligations under the contract. Specifically, labor hours incurred are used to measure progress towards complete satisfaction of the service. This is considered a faithful depiction of the transfer of services as the contracts are initially priced on the basis of anticipated hours to complete the projects and, therefore, also represents the amount to which the Company would be entitled based on its performance to date.

The Company defers incremental costs of obtaining a customer contract and amortizes the deferred costs over the period that the related revenue is recognized. The Company had no material incremental costs to obtain customer contracts in any period presented.

The Company intends to disaggregate revenue into categories to provide useful information to the users of the consolidated financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows as the Company’s customer base expands.

Leases

Leases

All leases are accounted for by recognizing a right-of-use asset and a lease liability except for leases with a duration of 12 months or less.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless this is not readily determinable, in which case the Company’s incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.

On initial recognition, the carrying value of the lease liability also includes:

●

amounts expected to be payable under any residual value guarantee;

●

the exercise price of any purchase option granted in favor of the Company if it is reasonably certain to assess that option;

●

any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.

Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

●

lease payments made at or before commencement of the lease;

●

initial direct costs incurred; and

●

the amount of any provision recognized where the Company is contractually required to dismantle, remove or restore the leased asset.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease.

When the Company revises its estimate of the term of any lease, it adjusts the carrying amount of the lease liability to reflect the payments to make over the revised term, which are discounted using a revised discount rate. The carrying value of lease liabilities is similarly revised when the variable element of future lease payments dependent on a rate or index is revised, except the discount rate remains unchanged. In both cases, an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised carrying amount being amortized over the remaining (revised) lease term. If the carrying amount of the right-of-use asset is adjusted to zero, any further reduction is recognized in profit or loss.

Fair Value Measurements

Fair Value Measurements

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels:

●

Level 1: Inputs are quoted prices in active markets for identical assets or liabilities.

●

Level 2: Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.

●

Level 3: Inputs are unobservable for the asset or liability.

The carrying amounts of certain financial instruments, such as cash equivalents, prepaid expenses and other current assets, accounts payable and accrued expenses, approximate fair value due to their relatively short maturities. The Company’s short-term investments are classified as Level 1 (as described in Note 7).

Convertible Notes

Convertible Notes

The Company may enter into convertible notes, certain of which contain, predominantly, fixed rate conversion features, whereby the outstanding principal and accrued interest may be converted by the holder, into common shares at a fixed discount to the market price of the common stock at the time of conversion. The Company’s convertible notes outstanding represent a financial instrument other than an outstanding share that embodies a conditional obligation that the issuer must or may settle by issuing a variable number of its equity shares. The Company records the convertible note liability at its fixed monetary amount by measuring and recording a premium, as applicable, on the convertible notes date in accordance with ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”).

Warrants

Warrants

The Company reviews the terms of warrants to purchase its common stock to determine whether warrants should be classified as liabilities or stockholders’ deficit in its consolidated balance sheets. In order for a warrant to be classified in stockholders’ deficit, the warrant must be (i) indexed to the Company’s equity and (ii) meet the conditions for equity classification.

If a warrant does not meet the conditions for stockholders’ deficit classification, it is carried on the consolidated balance sheets as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in other income (expense) in the consolidated statements of operations and comprehensive loss. If a warrant meets both conditions for equity classification, the warrant is initially recorded, at its relative fair value on the date of issuance, in stockholders’ deficit in the consolidated balance sheets, and the amount initially recorded is not subsequently remeasured at fair value.

Income Taxes

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settles. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that is it more likely than not that some portion of the deferred tax asset will not be realized.

During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. Accounting for income taxes requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if available evidence indicates it is more likely than not that the tax position will be fully sustained upon review by taxing authorities, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount with a greater than 50 percent likelihood of being realized upon ultimate settlement. For tax positions that are 50 percent or less likely of being sustained upon audit, the Company does not recognize any portion of that benefit in the financial statements.

Stock-Based Compensation

Stock-Based Compensation

The Company accounts for stock-based compensation arrangements granted to employees in accordance with ASC 718, “Compensation: Stock Compensation”, by measuring the grant date fair value of the award and recognizing the resulting expense over the period during which the employee is required to perform service in exchange for the award. Equity-based compensation expense is only recognized for awards subject to performance conditions if it is probable that the performance condition will be achieved. The Company accounts for forfeitures when they occur.

The Company uses the Black-Scholes option pricing model to determine the grant date fair value of its stock options granted. This model requires the Company to estimate the expected volatility and the expected term of the stock options, which are highly complex and subjective variables. The Company uses an expected volatility of its stock price during the expected life of the options that is based on the historical performance of the Company’s stock price as well as including an estimate using similar companies. The expected term is computed using the simplified method as the Company’s best estimate given its lack of actual exercise history. The Company has selected a risk-free rate based on the implied yield available on U.S. Treasury securities with a maturity equivalent to the expected exercise term of the stock option.

The Company grants restricted stock units (“RSUs”) to employees and non-employee directors as part of its equity-based compensation program. RSUs represent the right to receive shares of the Company’s common stock upon vesting, subject to specified service. RSUs do not have voting or dividend rights prior to the issuance of shares, except for dividend equivalents if and when declared, as applicable under the terms of the award agreements.

The Company accounts for RSUs in accordance with ASC 718, Compensation—Stock Compensation. Compensation expense for RSUs is measured at the grant-date fair value, which is equal to the closing market price of the Company’s common stock on the date of grant. For RSUs subject solely to service-based vesting conditions, compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the award. The Company accounts for forfeitures as they occur.

Upon vesting, each RSU is converted into one share of the Company’s common stock. The Company may withhold shares to satisfy statutory tax withholding requirements. The issuance of shares upon vesting results in an increase to common stock and additional paid-in capital.

Advertising

Advertising

Advertising costs are expensed as incurred and are recognized as a component of general and administrative expenses on the consolidated statement of operations and comprehensive loss. Advertising costs expensed were approximately $0.1 million and $0.2 million for the years ended December 31, 2025 and 2024, respectively.

Government Grants

Government Grants

Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to an expense item, the grant is recognized in other income as government grants, deferred over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates to an asset, it is recognized as deferred income, and then recognized as income over the useful life of the related depreciable asset.

Research and Development

Research and Development

Research and development expenditures are expensed as incurred for designing and engineering products, including the costs of developing design tools. All research and development costs related to product development are expensed as incurred.

Research and Development Tax Credits

Research and Development Tax Credits

Research and development expenditures are expensed as incurred. The Company claims investment tax credits as a result of incurring scientific research and experimental development expenditures. Investment tax credits are recognized when the related expenditures are incurred, and there is reasonable assurance of their realization. Management has made a number of estimates and assumptions in determining the expenditures eligible for the investment tax credit claim. The Company’s claim is subject to audit by Canada Revenue Agency who may disallow all or a portion of the amount recorded. For the years ended December 31, 2025 and 2024, the Company earned $0.0 million and $0.2 million of research and development tax credits.

Net Loss Per Share

Net Loss Per Share

Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The two-class method determines net income (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income (loss) available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to shares in undistributed earnings as if all income (loss) for the period had been distributed. The Company’s preferred stock does not contractually require the holders of such stock to participate in losses of the Company. Accordingly, in periods in which the Company reports a net loss attributable to common stockholders, such losses are not allocated to such participating securities.

Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common stock and potentially dilutive securities outstanding for the period. For purposes of this calculation, stock options, warrants, and restricted stock units have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive for all periods presented.

Segment reporting

Segment reporting

The Company has a single operating and reportable segment. The Company’s Chief Executive Officer (“CEO”) is its Chief Operating Decision Maker (“CODM”), who reviews financial information presented on a consolidated basis for the purposes of making operating decisions, allocating resources and evaluating financial performance.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU No. 2023-09 (Topic 740), Improvements to Income Tax Disclosures, which enhances the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024. The Company has adopted this guidance on a retrospective basis, which did not have an impact on its financial position, results of operations, or cash flows, although it did result in expanded disclosures which are included in Note 16 of the consolidated financial statements.

Issued in November 2024, ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40), requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures.

In March 2025, the FASB issued ASU No. 2025-03 (Topics 805 and 810), Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. The ASU modifies the guidance for identifying the accounting acquirer in business combinations involving a variable interest entity (VIE) by requiring entities to evaluate the existing business combination indicators when the VIE is a business and equity interests are exchanged. The ASU is effective on a prospective basis for annual reporting periods beginning after December 15, 2026. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The ASU introduces a practical expedient that allows entities to assume current economic conditions remain unchanged over the life of an asset when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions under ASC 606, Revenue from Contracts with Customers. The guidance is effective for annual periods beginning after December 15, 2025, and interim periods within those annual periods. Early adoption is permitted. The amendments are applied prospectively to eligible assets existing on or arising after the date of adoption. The Company does not currently have accounts receivable or contract assets arising from ASC 606 transactions. Accordingly, the adoption of ASU 2025-05 is not expected to have a material impact on the Company’s financial position, results of operations, or cash flows. The Company will continue to monitor future activity and evaluate the applicability of this guidance if accounts receivable or contract assets arise in future periods.

In December 2025, the FASB issued ASU 2025-10, “Accounting for Government Grants Received by Business Entities” (“ASU 2025-10”), which establishes the accounting and presentation for government grants received by a business entity. ASU 2025-10 is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. Early adoption is permitted. ASU 2025-10 permits an entity to apply the new guidance using a modified prospective basis, a modified retrospective basis, or a full retrospective basis. The Company is currently evaluating the impact from ASU 2025-10 on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (ASU 2025-11). ASU 2025-11 is intended to improve the clarity and navigability of interim reporting guidance by (i) specifying the required form and content of interim financial statements, (ii) consolidating and organizing interim disclosure requirements across the Codification, and (iii) introducing a disclosure principle requiring entities to describe events occurring after the end of the most recent annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for public business entities for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2025-11 on its consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements ("ASU 2025-12"). ASU 2025-12 adds clarification, corrects errors, or makes minor improvements. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual reporting period and adoption can be applied on prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2025-12 on its consolidated financial statements and disclosures.

Other than as described above, no accounting pronouncements issued or effective during the year ended December 31, 2025, has had or is expected to have a material impact on the consolidated financial statements.

Intangible Assets, Net - Estimated future amortization (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Intangible Assets, Net
2026	$ 43,417
2027	43,417
2028	43,417
2029	43,417
2030	43,417
Thereafter	490,664
Total	$ 707,749	$ 616,972

Government Grants (Details)	Sep. 02, 2020 CAD ($)	Dec. 31, 2025 USD ($)	Mar. 31, 2025	Dec. 31, 2024 USD ($)
Government Grants
Total contribution		$ 14,925,373
Repayment duration of government grant	25 years
Repayment multiplier for government assistance	1.75
Annual repayment rate for government assistance based on revenue			3.00%
Repayment accrual		$ 0		$ 10,274
Government Assistance, Liability, Current, Statement of Financial Position [Extensible Enumeration]		Accounts Payable and Accrued Liabilities, Current		Accounts Payable and Accrued Liabilities, Current
Maximum
Government Grants
Total contribution	$ 20,000,000

Significant Accounting Policies - Liquidity and Going Concern (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Significant Accounting Policies
Operating losses	$ 25,196,475	$ 10,353,542
Negative cash flow from operations	16,472,912	8,202,934
Cash and cash equivalents	97,164,391	3,021,795
Short-Term Investments	200,626,281
Net working capital	293,600,000
Accumulated deficit	124,624,883	$ 96,608,242
Proceeds from Issuance or Sale of Equity	292,000,000
Proceeds from Issuance of Private Placement, Gross	50,000,000
Cash-trust and cash, net of redemptions	$ 242,000,000
Trust Account, Redemption, Percentage	1.00%

Net Loss Per Share of Common Share (Tables)

12 Months Ended

Dec. 31, 2025

Net Loss Per Share of Common Share

Schedule of computation of basic and dilutive net loss per share


		For the year ended
		December 31,
		2025			2024
Numerator:
Net loss		$	(28,016,641)		$	(11,485,410)
Denominator:
Weighted-average shares outstanding, basic and diluted			71,646,985			60,414,175
Net loss per share, basic and diluted		$	(0.39)		$	(0.19)

Schedule of potentially dilutive securities


		For the year ended
		December 31,
		2025			2024
Stock options			17,691,184			18,951,539
RSUs			1,232,794			—
Warrants (public and private)			30,276,119			7,759,535
Total			49,200,097			26,711,074

Income Taxes

12 Months Ended

Dec. 31, 2025

Income Taxes

Income Taxes

16. Income Taxes

The income tax expense (benefit) for 2025 and 2024 are as follows:


		2025			2024
Current:
Federal		$	—		$	35,088
State			700			—
Foreign			1,849			1,278
Total current income tax			2,549			36,366

Deferred:
Federal			15,401			(15,401)
State			—			—
Foreign			—			—
Total deferred tax			15,401			(15,401)
Total income tax expense		$	17,950		$	20,965

A reconciliation between domestic and international earnings (loss) before income taxes is as follows:


		2025			2024
Domestic		$	(17,127,042)		$	(1,374,250)
International			(10,871,649)			(10,090,195)
Net loss before income taxes		$	(27,998,691)		$	(11,464,445)

A reconciliation between the effective income tax rate and the federal statutory income tax rate is as follows:


	2025				2024
Federal tax at statutory rate	$	(5,879,725)	21.0	%	$	(2,407,533)	21.0	%
Permanent book/tax differences		1,317,897	(4.7)			676,297	(5.9)
Return to provision adjustments		1,392,136	(5.0)			(65,996)	0.6
Difference in tax rates		(539,994)	1.9			(586,767)	5.1
Impact of Canadian dollar exchange rate changes		(1,013,116)	3.6			1,560,416	(13.6)
Change in valuation allowance		4,740,752	(16.9)			844,548	(7.4)
Total tax expense	$	17,950	(0.1)	%	$	20,965	(0.2)	%

Deferred Income Tax

The significant components of the deferred tax assets and liabilities consisted of the following:


		2025			2024
Deferred tax assets:
R&D expenses		$	3,485,406		$	3,380,350
Net operating loss carryforwards			17,547,661			13,401,755
Tax credit carryforwards			2,445,772			3,133,678
Operating lease liabilities			498,400			239,253
Stock based compensation			502,016			—
R&D intangible tax pool section 174			622,270			—
Other			93,988			73,668
Total gross deferred tax assets			25,195,513			20,228,704
Valuation allowance			(24,640,726)			(19,821,008)
Total deferred tax assets, net of valuation allowance			554,787			407,696

Deferred tax liabilities
Property and equipment			(94,585)			(60,460)
Intangible assets			(27,892)			(96,660)
Right of use assets			(432,310)			(176,333)
Convertible debt			—			(740,196)
Total gross deferred tax liabilities			(554,787)			(1,073,649)
Net deferred tax liabilities		$	—		$	(665,953)

In assessing the realizability of deferred tax assets, management considers all positive and negative evidence to determine whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Due to the uncertainty of the Company’s ability to realize the benefit of the deferred tax assets, primarily related to the history of cumulative operating losses, the net deferred tax assets are offset by a valuation allowance at December 31, 2025 and 2024. As of December 31, 2025, the Company recorded a valuation allowance of $24,640,726 compared to $19,821,008 as of December 31, 2024.

As of December 31, 2025 and 2024, the Company had no unrecognized tax benefits. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. As of both December 31, 2025 and December 31, 2024, the Company had no accrual for any for net interest and penalties.

As of December 31, 2025 and 2024, the Company had net operating loss carryforwards (“NOLs”) of $67,261,109 and $50,927,528, respectively, comprised of $62,233,225 Canadian NOLs which have a 20-year expiration period and will begin to expire in 2035 and $5,027,884 U.S NOLs with indefinite carryforward period, Canadian federal tax credit carryforwards of $2,197,097 and $3,187,456, respectively, that have a 20-year expiration period and will begin to expire in 2039, Canadian state tax credit carryforwards of $830,310 and $790,898, respectively, that have a 20-year expiration and will begin to expire in 2035, and foreign tax credit carryforwards of $0 and $7,136, respectively, that have a 20-year expiration period and will begin to expire in 2041.

The Company is subject to U.S. federal and state income tax, Canadian federal and provincial income tax, as well as various other foreign jurisdictions that impose an income tax. The years that remain subject to examination are primarily 2021 and later.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA includes significant tax law changes, including the permanent extension of certain provisions from the U.S. Tax Cuts and Jobs Act, modifications to the international tax framework, and the reinstatement of favorable business tax provisions. These include 100% bonus depreciation, immediate expensing of Section 174 domestic research and experimental expenditures, and revised limitations under Section 163(j) on the deductibility of business interest expense. The legislation has multiple effective dates, with certain provisions effective beginning in 2025, and others implemented through 2027. We evaluated the impact of the OBBBA and determined its provisions do not have a material impact on our overall tax liability both for the current year and in the succeeding years.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477617/942-740-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 740
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478822/944-740-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
REVENUE
Engineering services revenue		$ 248,357
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	us-gaap:ServiceMember	us-gaap:ServiceMember
OPERATING EXPENSES
Research and development costs	$ 9,767,996	$ 5,176,932
General and administrative	14,266,775	4,168,576
Depreciation and amortization	1,161,704	1,256,391
Total Operating Expenses	25,196,475	10,601,899
OPERATING LOSS	(25,196,475)	(10,353,542)
OTHER (EXPENSE) INCOME
Government grants	323,496	708,004
Loss on extinguishment of debt		(1,183,289)
Interest and dividend income	1,270,713	59,860
Foreign exchange gain (loss)	(57,214)	617,357
OTHER (EXPENSE) INCOME	(2,802,216)	(1,110,903)
Net loss before income tax	(27,998,691)	(11,464,445)
Income tax expense	(17,950)	(20,965)
Net loss	$ (28,016,641)	$ (11,485,410)
Loss per common share, basic (in dollars per share)	$ (0.39)	$ (0.19)
Loss per common share, diluted (in dollars per share)	$ (0.39)	$ (0.19)
Weighted-Average Shares of Common Shares Outstanding, Basic (in shares)	71,646,985	60,414,175
Weighted-Average Shares of Common Shares Outstanding, Diluted (in shares)	71,646,985	60,414,175
Other comprehensive (loss) income net of tax:
Foreign currency translation adjustments	$ (260,731)	$ 395,525
Change in unrealized gains on short term investments	1,129,448
Comprehensive loss	(27,147,924)	(11,089,885)
Nonrelated party
OTHER (EXPENSE) INCOME
Interest expense	(3,900,997)	(1,223,929)
Related party
OPERATING EXPENSES
Research and development costs		42,212
OTHER (EXPENSE) INCOME
Interest expense	$ (438,214)	$ (88,906)

Convertible Notes and Convertible Notes - Related Parties - February 2025 Bridge Round Offering (Details) - February 2025 Offering $ / shares in Units, $ in Millions	1 Months Ended
	Feb. 28, 2025 USD ($) Y $ / shares item
Convertible Notes and Convertible Notes - Related Parties
Proceeds from convertible debt \| $	$ 11.0
Number of warrants per unit \| item	10
Exercise price of warrants exercisable	$ 2.24
Principal amount per unit	$ 1,000
Interest rate (in percentage)	8.00%
Debt instrument, Convertible, Conversion price	$ 7.91
Conversion price, percentage on issue price	75.00%
Warrants and Rights Outstanding, Valuation Technique [Extensible Enumeration]	us-gaap:BlackScholesMertonModelMember
Stock price
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input	1.45
Exercise (Strike) price
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input	2.24
Time to maturity (years)
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input \| Y	3.4
Annualized risk-free rate
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input	0.042
Annualized volatility
Convertible Notes and Convertible Notes - Related Parties
Warrants, measurement input	0.513
Automatic conversion upon SPAC merger
Convertible Notes and Convertible Notes - Related Parties
Conversion price, percentage on issue price	75.00%
Threshold days after the lock up expiration	21 days
Floor price	$ 5
Threshold issuance of common and preferred shares \| $	$ 50.0
Automatic conversion upon attaining threshold equity or equity linked financing
Convertible Notes and Convertible Notes - Related Parties
Conversion price, percentage on issue price	75.00%
Automatic conversion upon initial public offering
Convertible Notes and Convertible Notes - Related Parties
Conversion price, percentage on issue price	75.00%

Significant Accounting Policies

12 Months Ended

Dec. 31, 2025

Significant Accounting Policies

Significant Accounting Policies

2. Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

Emerging Growth Company Status

Use of Estimates

Variable Interest Entities

Foreign Currency

Liquidity and Going Concern

Cash, Cash Equivalents and Short-Term Investments

Property and Equipment, Net


Computer equipment		2 – 4 years
Computer software		1 – 3 years
Equipment		5 years
Furniture and fixtures		5 years

Concentration of Credit Risks

The Company’s cash accounts in a financial institution may at times exceed the Federal Depository Insurance coverage of $250,000. No losses have been incurred to date on any deposit balance.

Intangible Assets, Net

Impairment of Long-lived Assets

Revenue Recognition

Leases

All leases are accounted for by recognizing a right-of-use asset and a lease liability except for leases with a duration of 12 months or less.

On initial recognition, the carrying value of the lease liability also includes:

●

amounts expected to be payable under any residual value guarantee;

●

the exercise price of any purchase option granted in favor of the Company if it is reasonably certain to assess that option;

●

any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.

Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

●

lease payments made at or before commencement of the lease;

●

initial direct costs incurred; and

●

the amount of any provision recognized where the Company is contractually required to dismantle, remove or restore the leased asset.

Fair Value Measurements

●

Level 1: Inputs are quoted prices in active markets for identical assets or liabilities.

●

Level 3: Inputs are unobservable for the asset or liability.

Convertible Notes

Warrants

Income Taxes

Stock-Based Compensation

Advertising

Government Grants

Research and Development

Research and Development Tax Credits

Net Loss Per Share

Segment reporting

Recent Accounting Pronouncements

Stock-Based Compensation - Stock-based compensation expense (Details) - Employee Stock Option - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Stock-Based Compensation
Stock-based compensation expense	$ 1,323,108	$ 670,243
Stock-based compensation expense related to awards not yet recognized	$ 2,000,000
Weighted average period for stock-based compensation expense related to awards not yet recognized	1 year 8 months 12 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Taxes

Schedule of income tax expense (benefit)


		2025			2024
Current:
Federal		$	—		$	35,088
State			700			—
Foreign			1,849			1,278
Total current income tax			2,549			36,366

Deferred:
Federal			15,401			(15,401)
State			—			—
Foreign			—			—
Total deferred tax			15,401			(15,401)
Total income tax expense		$	17,950		$	20,965

Reconciliation between domestic and international earnings (loss) before income taxes


		2025			2024
Domestic		$	(17,127,042)		$	(1,374,250)
International			(10,871,649)			(10,090,195)
Net loss before income taxes		$	(27,998,691)		$	(11,464,445)

Reconciliation between the effective income tax rate and the federal statutory income tax rate


	2025				2024
Federal tax at statutory rate	$	(5,879,725)	21.0	%	$	(2,407,533)	21.0	%
Permanent book/tax differences		1,317,897	(4.7)			676,297	(5.9)
Return to provision adjustments		1,392,136	(5.0)			(65,996)	0.6
Difference in tax rates		(539,994)	1.9			(586,767)	5.1
Impact of Canadian dollar exchange rate changes		(1,013,116)	3.6			1,560,416	(13.6)
Change in valuation allowance		4,740,752	(16.9)			844,548	(7.4)
Total tax expense	$	17,950	(0.1)	%	$	20,965	(0.2)	%

Summary of significant components of the deferred tax assets and liabilities


		2025			2024
Deferred tax assets:
R&D expenses		$	3,485,406		$	3,380,350
Net operating loss carryforwards			17,547,661			13,401,755
Tax credit carryforwards			2,445,772			3,133,678
Operating lease liabilities			498,400			239,253
Stock based compensation			502,016			—
R&D intangible tax pool section 174			622,270			—
Other			93,988			73,668
Total gross deferred tax assets			25,195,513			20,228,704
Valuation allowance			(24,640,726)			(19,821,008)
Total deferred tax assets, net of valuation allowance			554,787			407,696

Deferred tax liabilities
Property and equipment			(94,585)			(60,460)
Intangible assets			(27,892)			(96,660)
Right of use assets			(432,310)			(176,333)
Convertible debt			—			(740,196)
Total gross deferred tax liabilities			(554,787)			(1,073,649)
Net deferred tax liabilities		$	—		$	(665,953)

Organization and Description of Business (Details)	Dec. 31, 2025 $ / shares	Dec. 31, 2024 $ / shares	Dec. 13, 2023 $ / shares
Organization and Description of Business
Common shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, share exchange ratio	1	1
Preferred shares, par value (in dollars per share)	$ 0.0001
Terrestrial Energy Delaware Inc
Organization and Description of Business
Common shares, par value (in dollars per share)			$ 0.001
Common Stock, share exchange ratio			1
Preferred shares, par value (in dollars per share)			$ 0.001
Preferred Stock, share exchange ratio			1
Terrestrial Energy Canada (Exchange) Inc.
Organization and Description of Business
Common Stock, share exchange ratio			1
Preferred Stock, share exchange ratio			1

Income Taxes - Reconciliation between domestic and international earnings (loss) before income taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Income Taxes
Domestic	$ (17,127,042)	$ (1,374,250)
International	(10,871,649)	(10,090,195)
Earnings/(loss) before income taxes	$ (27,998,691)	$ (11,464,445)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

Reverse Recapitalization - Common Stock Issued Immediately Following Business Combination (Details) - shares		2 Months Ended
	Dec. 31, 2025	Dec. 31, 2025	Oct. 28, 2025	Dec. 31, 2024
Reverse Recapitalization
Preferred shares, Issued (in shares)	0	0		6,154,342
Common shares, Issued (in shares)	81,771,422	81,771,422		39,159,901
Total recapitalized exchangeable shares at December 31, 2025	24,011,017	24,011,017		24,011,017
Terrestrial Energy Development, Inc
Reverse Recapitalization
Preferred shares, Issued (in shares)			200,592
Common shares, Issued (in shares)	81,771,422	81,771,422	784,831
Total TEDI shares at closing date			985,423
Total TEDI shares at closing date - recasted			44,051,295
Conversion of convertible notes to common shares		3,977,517
Issuance of shares to PIPE investors		5,000,000
Issuance of shares to HCM II		28,742,610
Preferred exchangeable shares, shares issued			6,200
Common exchangeable shares, shares issued			530,924
Total TEDI exchangeable shares at closing date			537,124
Total TEDI exchangeable shares at closing date - recasted			24,011,017
Conversion of preferred exchangeable shares to exchangeable shares	277,158
Conversion of common exchangeable shares to exchangeable shares	23,733,859
Total recapitalized exchangeable shares at December 31, 2025	24,011,017	24,011,017

Organization and Description of Business

12 Months Ended

Dec. 31, 2025

Organization and Description of Business

Organization and Description of Business

1. Organization and Description of Business

Terrestrial Energy Inc. (the “Company” or “TEI”), a Company incorporated under the laws of the State of Delaware, is a Company developing Generation IV nuclear technology, as defined by the Generation IV International Forum. The Company is committed to delivering reliable, resilient, emission-free, and cost-competitive energy by developing and deploying its patented Integral Molten Salt Reactor (“IMSR”) for commercial operation.

2024 Redomestication

Prior to April 5, 2024, the Company was incorporated under the Business Corporations Act of Ontario and was domiciled in Canada. On December 13, 2023 the Company entered into an agreement with Terrestrial Energy Delaware Inc. (“DelawareCo”) and Terrestrial Energy Canada (Exchange) Inc. (the “Arrangement Agreement”) pursuant to which TEI completed a corporate redomicile under the laws of the State of Delaware by way of a statutory plan of arrangement under Section 182 of the Business Corporations Act (Ontario) (the “Arrangement”) that provided for, among other things:

(a)

the issuance to holders of Class A Common Shares, at their election and subject to applicable eligibility criteria, for their Class A Common Shares of either: (i) shares of common stock of Terrestrial Energy Delaware Inc., par value $0.001 per share (the “DelawareCo Common Shares”), a corporation existing under the laws of the State of Delaware (“DelawareCo”), on a one-for-one basis; or (ii) common exchangeable shares in the capital of Terrestrial Energy Canada (Exchange) Inc. (the “Common Exchangeable Shares”), a corporation existing under the laws of the Province of Ontario (“ExchangeCo”) and a direct wholly-owned subsidiary of Terrestrial Energy Canada (Call) Inc., a corporation existing under the laws of the Province of Ontario and a direct, wholly-owned subsidiary of DelawareCo (“CallCo”), on a one-for-one basis;

(b)

the issuance to holders of Series 4 Preferred Shares, at their election and subject to applicable eligibility criteria, for their Series 4 Preferred Shares of either: (i) shares of Series A preferred stock in the capital of DelawareCo, par value $0.001 per share (the “DelawareCo Series A Preferred Shares”), on a one-for-one basis, or (ii) Preferred Exchangeable Shares in the capital of ExchangeCo on a one-for-one basis;

(c)

the issuance to holders of Exchangeable Shares of voting shares in the Company proportionate to their beneficial ownership interest;

(d)

the entry by DelawareCo, CallCo and ExchangeCo into the Exchange and Support Agreement (the “Exchange and Support Agreement”);

(e)

the exchange of outstanding warrants issued by Terrestrial Energy (Ontario) Inc. (“TEON”) for warrants issued by TEI; and

(f)

the exchange of options exercisable for TEON securities for options exercisable for TEI securities.

The Arrangement became effective on April 5, 2024. Based on an assessment of the ownership and control of the Company both prior to and after the reorganization, the reorganization was accounted for as a transaction under common control. As a result, the assets and liabilities of the transferred entities were recognized at their carrying amounts at the date of transfer. In addition, the reorganization has been treated with retrospective application as of the beginning of the reporting period.

2025 Merger Agreement

On October 28, 2025 (the “Closing Date”), Terrestrial Energy Inc. (formerly HCM II Acquisition Corp. “HCM II”) consummated the transactions set forth by the Business Combination Agreement dated March 26, 2025 with Terrestrial Energy Development Inc. (formerly Terrestrial Energy, Inc.) (“TEDI”) and Merger Sub (the “Business Combination”). Upon closing, Merger Sub merged with and into TEDI, with TEDI surviving as a wholly owned subsidiary of Terrestrial Energy Inc. (collectively, the “Transactions”). Under the terms of the Agreement, TEDI’s outstanding shares of common stock and convertible notes were exchanged for shares in Terrestrial Energy Inc. at an exchange ratio specified in the Business Combination Agreement.

The Business Combination was accounted for as a reverse recapitalization in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Under this method of accounting, TEDI was deemed to be the accounting acquirer for financial reporting purposes. Additional information regarding the accounting is included in Note 3, “Reverse Recapitalization”.

The Business Combination closed on Tuesday, October 28, 2025, with trading commencing on the Nasdaq Stock Market LLC (“Nasdaq”) on Wednesday, October 29, 2025.

Upon closing of the transaction, the combined company became known as Terrestrial Energy Inc. and its securities and warrants were listed on Nasdaq under the symbols “IMSR” and “IMSRW”, respectively.

Related Party Balances and Transactions (Details) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2025	Dec. 31, 2024
Related Party Balances and Transactions
Research and development expenses paid to companies controlled by officers included in general and administrative		$ 9,767,996	$ 5,176,932
Proceeds from related party advances			100,000
February 2025 Offering
Related Party Balances and Transactions
Proceeds from related party advances	$ 100,000
Related party
Related Party Balances and Transactions
Professional fees and expenses paid to companies controlled by officers included in general and administrative		$ 249,323	442,110
Research and development expenses paid to companies controlled by officers included in general and administrative			42,212
Accounts payable due to related parties	$ 9,010		$ 9,010
Related party \| SWH
Related Party Balances and Transactions
Acquisition of non-controlling interest (in shares)			2,818,520

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147483326/850-10-50-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1

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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2025

Accounts Payable and Accrued Expenses

Schedule of components of accounts payable and accrued expenses


		December 31,
		2025		2024
Trade payables		$	4,478,088	$	366,321
Accrued salaries and benefits			87,360		54,569
Accrued contractor expense			92,593		47,956
Government grant repayment accrual			—		10,274
Other accrued expenses			842,905		269,747
Total		$	5,500,946	$	748,867

Stockholders' Equity (Deficit)

12 Months Ended

Dec. 31, 2025

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)

13. Stockholders’ Equity (Deficit)

Preferred Stock

The Company is authorized to issue 1,000,000 shares of preferred stock, par value $0.0001 per share. The Company’s Board of Directors is authorized, without further stockholder action, to issue preferred stock in one or more series and to establish the designations, powers, preferences and rights of each such series and the qualifications, limitations and restrictions thereof.

No shares of preferred stock were issued or outstanding as of December 31, 2025 or 2024 on a post-Reverse Recapitalization basis. Immediately prior to the Reverse Recapitalization described in Note 3, the Company had 6,154,342 shares of Series A Preferred Stock outstanding as of December 31, 2024 and issued an additional 2,812,708 shares of Series A-1 Preferred Stock during 2025. In connection with the Reverse Recapitalization, all 8,967,050 outstanding shares of preferred stock were converted into common stock.

Common Stock

The Company’s Board of Directors has authorized 500,000,000 shares of common stock, par value $0.0001. Holders of common stock are entitled to one vote per share. Subject to the rights of any series of preferred stock that may be outstanding, holders of common stock are entitled to receive dividends when, as and if declared by the Board of Directors out of funds legally available. In the event of liquidation, dissolution or winding up, holders of common stock are entitled to share ratably in the Company’s remaining assets after the satisfaction of liabilities and subject to any preferential rights of preferred stock. par value of Common Stock. As of December 31, 2025 and 2024, the Company has 81,771,422 and 39,159,901 shares of common stock issued and outstanding, respectively. In connection with the Reverse Recapitalization, outstanding share amounts as of December 31, 2024 have been retrospectively restated to give effect to the Business Combination.

Common Stock Warrants

As of December 31, 2025, the Company had 30,276,119 of outstanding warrants to purchase common stock at an average exercise price of $8.24 per share.

As of December 31, 2024, the Company had 7,759,535 of outstanding warrants to purchase common stock at an average exercise price of $2.24 per share.

Call Options

Pursuant to various call option agreements entered into with certain stockholders prior to the Company’s April 5, 2024 redomicile and corporate reorganization and the Business Combination, the Company retains the right to repurchase up to an aggregate of 6,124,297 shares of its outstanding common stock at fixed exercise prices ranging from $1.12 CAD to $2.24 per share. These call options are exercisable at the Company’s discretion and expire at various dates ranging from December 31, 2035, through March 7, 2043. The call options are not subject to any service, performance, or market-based vesting conditions and are not transferable without Company consent. The Company has not exercised any of these call options as of December 31, 2025.

The call option agreements continue to be valid and enforceable following the redomicile and corporate reorganization and consummation of the business combination. These instruments are presented within stockholders’ equity (deficit) at the original consideration price per share and are not remeasured unless exercised.

Exchangeable Shares

As of both December 31, 2025 and 2024, the Company had 24,011,017 exchangeable shares outstanding on a post-Reverse Recapitalization basis. Immediately prior to the Reverse Recapitalization, the December 31, 2024 balance consisted of 277,158 preferred exchangeable shares and 23,733,859 common exchangeable shares. These shares are legally issued by Terrestrial Energy Canada (Exchange) Inc., a wholly-owned subsidiary of the Company (“ExchangeCo”). In connection with the closing of the Business Combination, ExchangeCo exchangeable preferred shares and exchangeable common shares that existed prior to the Business Combination were recapitalized into a single class of exchangeable shares as of the Business Combination.

Each exchangeable share is convertible on a 1-for-1 basis into the Company’s common shares, either at the option of the holder or upon the occurrence of certain events. The exchangeable shares carry economic rights and dividend entitlements equivalent to the Company’s corresponding equity instruments and participate in Company-level voting through a special voting mechanism. Exchangeable shares hold limited economic rights with respect to ExchangeCo and are not entitled to dividends of ExchangeCo; provided that holders of exchangeable shares are entitled to dividends paid on Company shares.

The Company has entered into an amended and restated support and exchange agreement with the ExchangeCo and a trustee to guarantee all obligations associated with the exchangeable shares and ensure that holders receive equivalent rights that are intended to be substantively equivalent to direct shareholders of the Company. As such, these instruments are treated as equity of the Company, and not reported as noncontrolling interests. No exchange of shares occurred during the years ended December 31, 2025 or 2024.

- Definition

The entire disclosure for equity.

+ References

+ Details

Net Loss Per Share of Common Share (Details)	12 Months Ended
Net Loss Per Share of Common Share (Details)	Dec. 31, 2025 shares	Dec. 31, 2024 shares
Net Loss Per Share of Common Share
Potentially dilutive securities included in calculation	0	0
Share exchangeable ratio	1	1

Commitments and Contingencies

12 Months Ended

Dec. 31, 2025

Commitments and Contingencies

Commitments and Contingencies

18. Commitments and Contingencies

Litigation and loss contingencies

From time to time, the Company may be subject to other legal proceedings, claims, investigations, and government inquiries (collectively, legal proceedings) in the ordinary course of business. It may receive claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. There are no currently pending legal proceedings that the Company believes will have a material adverse impact on the business or consolidated financial statements.

Net Loss Per Share of Common Share

12 Months Ended

Dec. 31, 2025

Net Loss Per Share of Common Share

Net Loss Per Share of Common Share

14. Net Loss Per Share of Common Share

Prior to the Merger, the Company used the two-class method required for participating securities. The two-class method determines net income (loss) per share for each class of common and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income (loss) available to common stockholders for the period to be allocated between common and participating securities based upon their respective rights to shares in undistributed earnings as if all income (loss) for the period had been distributed. The Company’s preferred stock that was outstanding prior to the Merger contractually entitled the holders of such stock to participate in dividends but did not contractually require the holders of such stock to participate in losses of the Company. Accordingly, in periods in which the Company reported a net loss attributable to common stockholders, such losses were not allocated to the preferred stock. The Company may be required to issue additional common shares pursuant to contingent value rights (“CVRs”) issued in connection with the Business Combination. The number of shares issuable is contingent upon the Company’s future stock price performance over a specified measurement period. As the contingency has not been met as of December 31, 2025, these shares have not been included in the calculation of basic or diluted net loss per share.

After the Merger, the Company applied the treasury stock method to determine the dilutive effect of potentially dilutive securities, and the if-converted method to determine the dilutive effect of any potentially dilutive convertible securities, as post-merger, the Company’s only participating securities were shares of the Company’s common stock, and any dividends declared on the common stock would be forfeitable if not vested.

Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common stock outstanding during the period, without consideration of potentially dilutive securities. There are no potentially dilutive securities included in the Company’s diluted net loss per share calculation for the years ended December 31, 2025 and 2024, as the effect of any potentially dilutive security is anti-dilutive due to the net losses in those periods.

The table below sets forth the computation of basic and dilutive net loss per share:


		For the year ended
		December 31,
		2025			2024
Numerator:
Net loss		$	(28,016,641)		$	(11,485,410)
Denominator:
Weighted-average shares outstanding, basic and diluted			71,646,985			60,414,175
Net loss per share, basic and diluted		$	(0.39)		$	(0.19)

The weighted-average shares outstanding above include both common shares and exchangeable shares outstanding at December 31, 2025 and 2024 as these shares are exchangeable one-for-one basis into the Company’s common shares and are therefore economically equivalent to common shares outstanding.

The table below sets forth a listing of potentially dilutive securities that were excluded from the calculation of diluted net loss per share attributable to common shareholders because the impact of including them would have been anti-dilutive or out-of-the-money. Potentially dilutive securities include stock options, restricted stock units, warrants, and other share-settled instruments:


		For the year ended
		December 31,
		2025			2024
Stock options			17,691,184			18,951,539
RSUs			1,232,794			—
Warrants (public and private)			30,276,119			7,759,535
Total			49,200,097			26,711,074

Financial Instruments (Details) - USD ($)	12 Months Ended
Financial Instruments (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024
Financial Instruments
Amortized Cost	$ 199,496,833
Unrealized Gains	1,129,448
Short-Term Investments	200,626,281
Cash and cash equivalents	97,164,391	$ 3,021,795
Fair Value
Financial Instruments
Short-Term Investments	200,626,281
Cash
Financial Instruments
Cash and cash equivalents	3,266,974
Money market funds
Financial Instruments
Cash and cash equivalents	93,897,417
U.S. Treasury securities
Financial Instruments
Amortized Cost	199,496,833
Unrealized Gains	1,129,448
Short-Term Investments	200,626,281
U.S. Treasury securities \| Fair Value
Financial Instruments
Short-Term Investments	$ 200,626,281

Leases

12 Months Ended

Dec. 31, 2025

Leases

Leases

9. Leases

The Company leases office spaces and office equipment from various lessors. Some property leases contain extension options exercisable by the Company up to one year before the end of the non-cancellable contract period. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease cost for the year ended December 31, 2025 and 2024 are summarized below:


		Year ended
		December 31,
		2025	2024
Operating lease cost		296,466	218,886
Finance lease cost		148,537	62,453
Total lease cost		445,003	281,339

Operating lease costs are included under “general and administrative” in the consolidated statements of operations. Interest on finance leases are included under “interest expense” in the consolidated statements of operations, with amortization of finance leases included under “depreciation and amortization” in the consolidated statements of operations.

Other information — operating leases


		Year ended
		December 31,
		2025			2024
Weighted-average remaining lease term (in years)			4.28			5.00
Weighted-average discount rate			4.22	%		4.38	%
Cash paid for amounts included in the measurement of operating lease liabilities		$	328,496		$	218,886

Right-of-use assets obtained in exchange for operating lease liabilities for the year ended December 31, 2025 and 2024 were $970,279 and $144,978, respectively.


		Operating			Finance
Period range		leases			leases
0 – 1 years		$	458,502		$	37,831
1 – 2 years			511,596			37,831
2 – 3 years			521,179			12,153
3 – 4 years			530,970			8,999
4 – 5 years			148,235			—
Total undiscounted lease payments			2,170,482			96,814
Less: imputed interest			(186,587)			(7,473)
Total lease liabilities			1,983,895			89,341
Less current portion			(383,223)			(33,362)
Noncurrent portion		$	1,600,672		$	55,979

Financial Instruments

12 Months Ended

Dec. 31, 2025

Financial Instruments

Financial Instruments

7. Financial Instruments

The following table shows the Company’s cash, cash equivalents and short-term investments by significant investment category as of December 31, 2025.



								Cash and Cash		Short-Term
	Amortized Cost			Unrealized Gains		Fair Value		Equivalents		Investments
Cash	$	—	$	—	$	—	$	3,266,974	$	—
Level 1:		—		—		—		—		—
Money market funds		—		—		—		93,897,417		—
U.S. Treasury securities		199,496,833		1,129,448		200,626,281		—		200,626,281
Total	$	199,496,833	$	1,129,448	$	200,626,281	$	97,164,391	$	200,626,281

As of December 31, 2024, the Company’s cash and cash equivalents were $3,021,795.

Income Taxes - Tax credit carryforwards (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Tax credit carryforwards
Operating loss carryforwards	$ 67,261,109	$ 50,927,528
US
Tax credit carryforwards
Operating loss carryforwards	5,027,884
State
Tax credit carryforwards
Tax credit carryforwards	$ 830,310	$ 790,898
Expiration period of tax credit carryforwards	20 years	20 years
Foreign
Tax credit carryforwards
Tax credit carryforwards	$ 0	$ 7,136
Expiration period of tax credit carryforwards	20 years	20 years
Canada
Tax credit carryforwards
Operating loss carryforwards	$ 62,233,225
Expiration period of operating loss carryforwards	20 years	20 years
Tax credit carryforwards	$ 2,197,097	$ 3,187,456
Expiration period of tax credit carryforwards	20 years	20 years

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2025

Financial Instruments

Schedule of Financial Instruments

The following table shows the Company’s cash, cash equivalents and short-term investments by significant investment category as of December 31, 2025.



								Cash and Cash		Short-Term
	Amortized Cost			Unrealized Gains		Fair Value		Equivalents		Investments
Cash	$	—	$	—	$	—	$	3,266,974	$	—
Level 1:		—		—		—		—		—
Money market funds		—		—		—		93,897,417		—
U.S. Treasury securities		199,496,833		1,129,448		200,626,281		—		200,626,281
Total	$	199,496,833	$	1,129,448	$	200,626,281	$	97,164,391	$	200,626,281

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2025	Dec. 31, 2024
Consolidated Balance Sheets
Common shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, number of shares authorized	500,000,000	500,000,000
Common stock, shares issued	81,771,422	39,159,901
Common stock, shares outstanding	81,771,422	39,159,901
Exchangeable shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Exchangeable shares, shares issued	24,011,017	24,011,017
Exchangeable shares, share outstanding	24,011,017	24,011,017

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Income Taxes - Reconciliation between the effective income tax rate and the federal statutory income tax rate (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Income tax reconciliation, monetary
Federal tax at statutory rate	$ (5,879,725)	$ (2,407,533)
Permanent book/tax differences	1,317,897	676,297
Return to provision adjustments	1,392,136	(65,996)
Difference in tax rates	(539,994)	(586,767)
Impact of Canadian dollar exchange rate changes	(1,013,116)	1,560,416
Change in valuation allowance	4,740,752	844,548
Total income tax expense	$ 17,950	$ 20,965
Tax Jurisdiction of Domicile [Extensible Enumeration]	UNITED STATES
Income tax reconciliation. percentage
Federal tax at statutory rate	21.00%	21.00%
Permanent book/tax differences	(4.70%)	(5.90%)
Return to provision adjustments	(5.00%)	0.60%
Difference in tax rates	1.90%	5.10%
Impact of Canadian dollar exchange rate changes	3.60%	(13.60%)
Change in valuation allowance	(16.90%)	(7.40%)
Total tax benefit	(0.10%)	(0.20%)

Reverse Recapitalization - Transaction Expenses (Details) - Terrestrial Energy Development, Inc - HCM II Acquisition Corp	12 Months Ended
	Dec. 31, 2025 USD ($)
Terrestrial Transaction expenses
Professional fees	$ 14,324,981
Legal expenses	7,980,748
Total transaction costs	$ 22,305,729

Segment Information (Tables)

12 Months Ended

Dec. 31, 2025

Segment Information

Schedule of segment information


		For the year ended
		December 31,
		2025			2024
Research and development costs		$	9,767,996		$	5,176,932
General and administrative expenses			14,266,775			4,168,576
Other significant non-cash items:
Depreciation and amortization			1,161,704			1,256,391
Total Operating Expenses			25,196,475			10,601,899
Revenue			—			248,357
Total other (expense) income			(2,802,216)			(1,110,903)
Income tax expense			(17,950)			(20,965)
Net loss		$	(28,016,641)		$	(11,485,410)

Schedule of geographic location of long-lived assets


		December 31,
		2025			2024
United States		$	1,231,273		$	14,853
Canada			2,189,215			2,024,865
Total		$	3,420,488		$	2,039,718

Related Party Balances and Transactions

12 Months Ended

Dec. 31, 2025

Related Party Balances and Transactions

12. Related Party Balances and Transactions

The following table summarizes the Company’s related party transactions for the year:


		2025			2024
Professional fees and expenses paid to companies controlled by officers included in general and administrative		$	249,323		$	442,110
Research and development expenses paid to companies controlled by officers included in general and administrative		$	—		$	42,212
Accounts payable due to related parties		$	—		$	9,010

These transactions are in the normal course of operations and are measured at fair value, which is the amount of consideration established and agreed to by the related parties.

During the year ended December 31, 2024, the Company issued 2,818,520 shares of Common Stock to SWH Capital LLC, an entity controlled and owned by the Chief Executive Officer of the Company, as consideration for all of the shares of common stock of TEUSA owned by SWH.

In December 2024, the Company received $100,000 in advance from a related party as an advance of the February 2025 Bridge Round Offering.

The Company had issued convertible notes to certain related parties, which included accrued interest prior to automatic conversion to common shares following the SPAC merger, refer Note 3 and 11 for further detail. All convertible notes converted as of December 31, 2025.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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Net Loss Per Share of Common Share - Computation of basic and dilutive net loss per share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Net Loss Per Share of Common Share
Net Income (Loss)	$ (28,016,641)	$ (11,485,410)
Weighted-average shares outstanding, basic (in shares)	71,646,985	60,414,175
Weighted-average shares outstanding, diluted (in shares)	71,646,985	60,414,175
Net loss per share, basic (in dollars per share)	$ (0.39)	$ (0.19)
Net loss per share, diluted )in dollars per share)	$ (0.39)	$ (0.19)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details