For the Period from March 1, 2025 (Inception) through December 31, 2025

CONSOLIDATED BALANCE SHEET

As of December 31, 2025 (Unaudited)

(Amounts in USD)

ASSETS

Current Assets:

Cash and cash equivalents	32,190,843.16
Accounts receivable, net	512,386.27
Prepaid expenses and other current assets	175,229.92
Digital assets (1FNXAI and BTC)	600,730,417.18
Total current assets	633,608,876.53

Non-current Assets:

Property and equipment, net	728,159.81
Capitalized software and intangible assets, net	517,224.00
Total non-current assets	1,245,383.81
TOTAL ASSETS	635,378,298.81

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Liabilities	0.00
Total liabilities	0.00

Stockholders' Equity:

Class A & B common stock, $0.0001 par value;
1,000,000,000 shares authorized for each class;
53,762,500 Class A shares issued and outstanding;
71,600,000 Class B shares issued and outstanding	12,536.25
Additional paid-in capital	9,249,245.52
Retained earnings	25,387,204.09
Non-cash capital contributions (digital assets)	600,730,417.18
Total stockholders' equity	635,378,298.81
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	635,378,298.81

Notes:

1.Property and equipment, net reflects gross property and equipment of $933,374.60 less accumulated depreciation of $205,214.79, yielding $728,159.81.

2.Capitalized software and intangible assets, net reflects gross capitalized software of $619,437.39 less accumulated amortization of $102,213.39, yielding $517,224.00.

3.All trade payables, taxes, and accrued items outstanding during the stub period were settled prior to December 31, 2025; accordingly, no liabilities were outstanding at period end.

4.Share counts: Class A common stock had 53,762,500 shares issued and outstanding as of December 31, 2025. Class B common stock had 71,600,000 shares issued and outstanding.

CONSOLIDATED STATEMENT OF OPERATIONS

For the Period from March 1, 2025 (Inception) through December 31, 2025 (Unaudited)

(Amounts in USD)

Revenue and Other Income
Trading income	57,733,775.28
Other revenue	1,461,916.63
Total revenue and other income from operations	59,195,691.91
Distribution, Transaction, and Other Costs
Distribution and transaction costs	16,199,432.93
Other costs	496,698.96
Total distribution, transaction, and other costs	16,696,131.89
Gross profit	42,499,560.02
Operating Expenses
Compensation expenses	1,566,226.61
General and administrative expenses	854,150.88
Depreciation and amortization expense	954,155.74
IT infrastructure costs	2,899,799.80
Marketing expenses	724,698.63
Other operating expenses	3,588,081.84
Total operating expenses	10,587,113.50
Operating income from operations	31,912,446.52
Other income, net	166,455.01
Net income before income taxes	32,078,901.53
Income tax expense	6,692,801.67
Net income from operations	25,386,099.86

Per Share Data:

Weighted-average shares outstanding — basic	125,362,500
Weighted-average shares outstanding — diluted	125,362,500
Net income per share — basic	$0.2025
Net income per share — diluted	$0.2025

(We had no dilutive securities during the stub period; therefore, basic and diluted EPS are the same.)

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

For the Period from March 1, 2025 (Inception) through December 31, 2025 (Unaudited)

(Amounts in USD)

	Common Stock	Additional	Retained	Treasury Reserve
	(Par Value)	Paid-in Capital	Earnings	& Digital Asset Surplus
Balance, March 1, 2025 (inception)	---	---	---	---
Issuance of common stock	12,536.25	9,249,245.52	---	---
Non-cash capital contributions (digital assets)	---	---	---	600,730,417.18
Net income	---	---	25,386,099.86	---
Balance, December 31, 2025	12,536.25	9,249,245.52	25,386,099.86	600,730,417.18
Total Stockholders' Equity				635,378,298.81

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Period from March 1, 2025 (Inception) through December 31, 2025 (Unaudited)

(Amounts in USD)

Cash Flows from Operating Activities:
Net income	25,386,099.86
Adjustments to reconcile net income to net cash provided by operating activities:
\quad Depreciation and amortization	954,155.74
\quad Changes in operating assets and liabilities:
\quad\quad Accounts receivable	(512,386.27)
\quad\quad Prepaid expenses and other current assets	(175,229.92)
\quad\quad Accounts payable and accrued liabilities	---
\quad\quad Other working capital changes	917,560.07
Net cash provided by operating activities	26,570,199.48
Cash Flows from Investing Activities:
Purchases of property and equipment	(933,374.60)
Capitalized software development costs	(619,437.39)
Other investing activities	(19,726.39)
Net cash used in investing activities	(1,572,538.38)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock	9,261,781.77
Cash capital contributions, net of digital asset transfers	(2,068,599.71)
Net cash provided by financing activities	7,193,182.06
Net increase in cash and cash equivalents	32,190,843.16
Cash and cash equivalents, beginning of period	---
Cash and cash equivalents, end of period	32,190,843.16

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Nature of Business

1 Finanx AI Technologies, Inc. ("the Company") is a Montana corporation incorporated in March 2025. The Company's primary business is the acquisition and long-term stewardship of a corporate Treasury Reserve Fund (TRF), which consists of digital assets including 1FNXAI and Bitcoin. The Company's secondary business, operated through its wholly owned Hong Kong subsidiary Finanxai Tech Limited, develops AI-driven trading, analytics, and tokenomics infrastructure.

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation: The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and include the accounts of 1 Finanx AI Technologies, Inc. and its wholly owned subsidiary, Finanxai Tech Limited. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revenue Recognition: The Company recognizes trading and analytics revenue when services are rendered and performance obligations are satisfied in accordance with ASC 606.

Digital Assets: The Company holds digital assets, including 1FNXAI tokens and Bitcoin, as part of its Treasury Reserve Fund. The Company adopted ASU 2023-08 effective January 1, 2025, which requires in-scope crypto assets to be measured at fair value with changes recognized in earnings. Under this standard, the Company will provide required roll-forward information and fair-value hierarchy disclosures.

Property and Equipment: Property and equipment are stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 7 years.

Capitalized Software: Costs incurred in the development of internal-use software are capitalized during the application development stage and amortized over the estimated useful life of the software, typically 3 to 5 years.

Income Taxes: The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities.

3. Digital Assets and Treasury Reserve Fund

As of December 31, 2025, the Company held digital assets with a carrying value of $600,730,417.18 as part of its Treasury Reserve Fund (TRF) framework, consisting of:

Asset Type	Quantity	Carrying Value (USD)	% of TRF
1FNXAI tokens (operational treasury)	270,000,000	540,000,000.00	89.89%
Bitcoin (BTC)	685.00	60,730,417.18	10.11%
Total Digital Assets		600,730,417.18	100.00%

Treasury Reserve Fund Composition and Policy Framework

The Company's Treasury Reserve Fund is governed by a board-approved policy that specifies:

1.Target Allocation: Approximately 90% to 1FNXAI tokens and 10% to Bitcoin, with explicit concentration bands to accommodate market movements and rebalancing thresholds.

2.Liquidity Buffers: The Company maintains liquidity buffers sized to modeled stress events and working capital needs, ensuring the ability to meet obligations without forced liquidation of reserve assets during adverse market conditions.

3.Custody Architecture: Reserve assets are held with reputable, regulated institutional custodians using segregated accounts, multi-signature or multi-party computation (MPC) controls, geographically distributed key shards, allow-listed addresses, and strict separation of duties among transaction initiation, approval, and settlement. Hot and warm balances are capped by policy; the default state is cold storage.

4.Counterparty Standards: All exchanges, OTC venues, custodians, and liquidity providers are evaluated against criteria including financial strength, regulatory compliance posture, service-level commitments, incident history, and cybersecurity controls.

5.Valuation Methodology: The Company measures in-scope crypto assets at fair value in accordance with U.S. GAAP, specifically pursuant to ASU 2023-08 (effective January 1, 2025), with changes in fair value recognized in earnings. The Company provides required roll-forward disclosures and fair-value hierarchy classifications in its financial statements.

6.Rebalancing Protocol: Rebalancing is explicit, rules-driven, and executed in measured increments to minimize market impact. Deviations outside approved bands trigger staged rebalancing, subject to liquidity, volatility, and execution constraints.

7.Risk Limits: The Company does not intend to lend, pledge, hypothecate, rehypothecate, or otherwise encumber TRF assets. The Company does not intend to stake TRF assets absent separate Board approval under a distinct, risk-bounded policy.

Additional TRF Metrics (as of December 31, 2025)

1FNXAI tokens circulating (ecosystem): 414,700,020

1FNXAI tokens staked (ecosystem): 500,821,058

Cumulative 1FNXAI tokens burned (ecosystem): 540,709.45

1FNXAI Strategic Reserve: 270,000,000 tokens held as long-term strategic allocation

The metrics above are presented for transparency regarding our ecosystem. 1FNXAI tokens are not being offered as part of this registration statement.

TRF Footnotes

(a) Fair Value Measurement: Digital assets are recorded at fair value based on quoted prices in active markets (Level 1 inputs where available) or using observable market data and valuation techniques (Level 2 inputs). The Company has established procedures to identify the principal market, prioritize observable inputs from qualified price sources, specify measurement time for financial close processes, and document price-verification and override controls.

(b) Unrealized Gains/Losses: Under ASU 2023-08, changes in the fair value of in-scope crypto assets are recognized in earnings in the period of change. This results in earnings volatility that may not reflect underlying operational performance.

(c) Custody and Security: All digital assets are held in institutional-grade custody arrangements with segregated accounts. Multi-signature wallet controls require multiple independent authorizations for any transaction. Key material is geographically distributed with no single point of failure. The Company maintains comprehensive insurance coverage for digital assets, subject to policy limits and exclusions.

(d) Strategic Reserve Allocation (1FNXAI): The 270,000,000 1FNXAI token strategic reserve allocation represents a long-term commitment to the 1FNXAI ecosystem and is not intended for near-term trading or liquidation. This allocation is measured at fair value consistent with other digital assets.

(e) Acquisition and Deployment: The Company acquired its initial TRF holdings through a combination of capital contributions from affiliated entities (see Note 9 — Related Party Transactions) and secondary-market purchases from unaffiliated counterparties. Future TRF expansion will be executed through staged acquisitions designed to minimize market impact.

(f) Regulatory Considerations: The regulatory classification of digital assets, including 1FNXAI and Bitcoin, remains subject to ongoing evaluation by U.S. and non-U.S. regulators. A determination that 1FNXAI or Bitcoin constitutes a security, commodity, or other regulated instrument could materially affect the Company's ability to acquire, hold, custody, or transact in such assets, and could require changes to the TRF policy framework.

The Company intends to hold these assets as part of its long-term Treasury Reserve Fund strategy and to provide regular public disclosures regarding TRF composition, fair value roll-forwards, sensitivity analyses, and policy compliance.

4. Property and Equipment

Property and equipment consisted of the following as of December 31, 2025:

Computer equipment and hardware	420,000
Security infrastructure	310,000
Furniture and fixtures	203,374.60
Gross property and equipment	933,374.60
Less: Accumulated depreciation	(205,214.79)
Property and equipment, net	728,159.81

5. Capitalized Software and Intangible Assets

Capitalized software and intangible assets consisted of the following as of December 31, 2025:

Capitalized software development costs	619,437.39
Less: Accumulated amortization	(102,213.39)
Capitalized software and intangible assets, net	517,224.00

6. Stockholders' Equity

The Company is authorized to issue two classes of common stock: Class A common stock and Class B common stock. As of December 31, 2025:

Class A common stock: 53,762,500 shares issued and outstanding

Class B common stock: 71,600,000 shares issued and outstanding

Class B common stock has ten votes per share; Class A common stock has one vote per share. Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder.

7. Income Taxes

The Company's effective tax rate for the period ended December 31, 2025 was approximately 20.9%. The provision for income taxes consists of current and deferred taxes. As of December 31, 2025, the Company had no material deferred tax assets or liabilities.

8. Commitments and Contingencies

The Company has entered into operating leases for office space and various service agreements in the ordinary course of business. As of December 31, 2025, future minimum lease payments under non-cancelable operating leases were not material.

9. Related Party Transactions

During the period ended December 31, 2025, the Company received equity capital contributions totaling $7,193,182.06 from founders and affiliated entities, including Finanxai Foundation, LLC and Greatspeed Bitcoin Foundation Limited LLC. Additionally, the Company received transfers of digital assets from affiliated entities as part of establishing its Treasury Reserve Fund.

10. Subsequent Events

The Company has evaluated subsequent events through the date of this report and determined that no material subsequent events require disclosure or adjustment to the consolidated financial statements.