14.Concentration of Credit Risk

Credit risk is the risk of loss from amounts owed by the financial counterparties. Credit risk can occur at multiple levels as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Financial instruments that potentially subject the Company to credit risk consist of cash, Bitcoin and accounts receivable.

The Company maintains cash with major financial institutions. The Company’s cash consists of bank deposits held with banks that, at times, exceed federally insured limits. As of June 30, 2025 and December 31, 2024, the Company held deposits of $9,902 and $5,314, respectively. These deposits are largely uninsured. The Company also invested in U.S. government money market funds in the amount of $3,714 and $3,638 as of June 30, 2025 and December 31, 2024, respectively. The Company held 4,636 and 877

Bitcoins, valued at $496,865 and $54,945 as of June 30, 2025 and June 30, 2024, respectively. As of June 30, 2025, two providers accounted for 71.8% and 28.2% of the Company’s total Bitcoin holdings. As of June 30, 2024, two providers accounted for 94.4% and 5.6% of the Company’s total Bitcoin holdings. The Company’s Bitcoin is held offline in cold storage with third-party providers. The Company limits its credit risk by dealing with counterparties that are considered to be of high credit quality and by performing periodic evaluations of the relative credit standing of these financial institutions.

Management periodically monitors the creditworthiness of its customers and believes that it has adequately provided for exposure to potential credit losses. For the three months ended June 30, 2025, two customers (including affiliates) accounted for 44.9% and 31.0% of the Company’s revenues, respectively. For the three months ended June 30, 2024, three customers (including affiliates) accounted for 43.6%, 26.6% and 10.8% of the Company’s revenues, respectively. For the six months ended June 30, 2025, two customers (including affiliates) accounted for 43.3% and 31.5% of the Company’s revenues, respectively. For the six months ended June 30, 2024, three customers (including affiliates) accounted for 44.3%, 25.6% and 10.6% of the Company’s revenues, respectively. As of June 30, 2025, two customers accounted for 45.7% and 28.1% of the Company’s accounts receivable, respectively. As of December 31, 2024, three customers accounted for 33.9%, 28.7%, and 14.0% of the Company’s accounts receivable, respectively.

As of June 30, 2025, two vendors accounted for 33.7%, and 14.5% of the Company’s accounts payable, respectively. As of December 31, 2024, three vendors accounted for 29.4%, 16.7% and 15.6% of the Company’s accounts payable, respectively.

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