Note 10 - Subsequent Events

Digital Asset Activity

In July and August 2025, the Company purchased 8,496.99 $TAO tokens for an aggregate of $6,346,000. The majority of these tokens have been staked and are earning rewards. As of August 12, 2025, the Company holds 21,648.76 $TAO tokens with a fair value of $7,793,338.

Capital and Preferred Stock Activity

In July 2025, 116,861 Common Warrants were exercised, at a price of $3.41 per share, for 116,861 shares of Common Stock. The Company received gross and net proceeds of $399,000 and $367,000, respectively.

In July 2025, 780 shares of Series F Preferred Stock, plus accrued dividends of $21,000, were converted into 212,454 shares of the Company’s Common Stock.

In July 2025, 575 Preferred Warrants were exercised, at a price of $975 per share, for 575 shares of the Company's Series F Preferred Stock. In accordance with the Preferred Warrant Agreement, 152,519 Common Warrants were issued as a result of these exercises. The Company received gross and net proceeds of $561,000 and $516,000, respectively.

On July 5, 2025, the first 8.33% of the Advisor Warrant vested, and on August 5, 2025, the second 8.33% of the Advisor Warrant vested. As of August 12, 2025, 1,666 of the 100,000 warrant shares were vested and exercisable.

In August 2025, 426,228 Pre-Funded Warrants were exercised, at a price of $0.0001 per share, for 426,228 shares of Common Stock. The proceeds from these exercises were immaterial.

As of August 12, 2025, the Company had 2,350,307 shares of Common Stock, 150 shares of Series F Preferred Stock, 3,665,631 warrants for Common Stock, and 30,527 warrants for Preferred Stock outstanding.

In July 2025, pursuant to the terms of the 2023 Placement Agent Agreement, we incurred a cash fee equal to 8% of the aggregate gross proceeds raised from the exercise of the Common Stock Warrants and the Preferred Stock Warrants, payable to Dawson James. The fees total $77,000; Mr. Schechter will not receive any of the fee paid.