v3.26.1
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Net operating losses carryforward $ 16,566 $ 11,163
Operating lease liabilities 167 210
Employee benefits 69 64
Inventory write off 664 277
Warrants liability 6
Unrealized loss on digital assets [1] 6,971
Research and development expenses 998 1,143
Issuance costs 209 11
Total deferred tax assets 25,644 12,874
Less deferred tax liabilities (related to right of use assets) (167) (224)
Deferred tax assets, net 25,477 12,650
Less valuation allowance for deferred tax assets (25,477) (12,650)
Deferred tax assets
Valuation allowance at beginning of year (12,650) (9,792)
Changes in valuation allowance (12,827) (2,858)
Valuation allowance at end of year $ (25,477) $ (12,650)
[1] The Company establishes a deferred tax asset if the fair market value of bitcoin at the reporting date is lower than the cost basis of the Company’s bitcoin holdings at such reporting date, and any subsequent increases or decreases in the fair market value of bitcoin increases or decreases the deferred tax asset. The Company has established a valuation allowance against the deferred tax asset as there is currently no expectation of taxable income from bitcoin or realization of gains. If the fair market value of bitcoin increases to the point where the fair market value exceeds the Company’s tax basis in bitcoin, the deferred tax asset reverses and a deferred tax liability for the unrealized gain would be recorded.