NOTE 2 — LIQUIDITY AND GOING CONCERN

As of December 31, 2025, the Company had approximately $19.3 million in cash and an accumulated deficit of $140.0 million. For the years ended December 31, 2025 and 2024, the Company used cash of $7.0 million and $6.3 million, respectively, in operations, and generated no revenue in both years while suffering from recurring net loss.

During the year ended December 31, 2025, the Company borrowed a total of $3.5 million from nine investors as promissory notes and convertible debt, each due within six months after the date of borrowing. In July 2025, the Company closed a private placement transaction to raise additional funding through the sale of equity, for a net total of $4.2 million. In September 2025, the Company closed a subscription agreement to raise additional funding through the sale of equity for a net total of $37.7 million . While this $37.7 million of cash was received, up to $6.8 million of the net cash proceeds will be used to pay existing debt and fund the Company’s existing research and development operations, and the balance of the cash proceeds will be used for the establishment of the Company’s new cryptocurrency treasury operations, and will therefore not readily be available  to fund immediate operations.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The financial statements do not include any adjustments that would be necessary should the Company be unable to continue as a going concern, and therefore, be required to liquidate its assets and discharge its liabilities in other than the normal course of business and at amounts that may differ from those reflected in the accompanying financial statements.