14. DISCONTINUED OPERATIONS Through June 6, 2024, we operated our digital asset mining operations in a hosted facility in Granbury, Texas. As of June 7, 2024, all miners were disconnected from their power source and many were sold during the year ended June 30, 2025. This marked a strategic shift in the Company’s operations. The following is a reconciliation of major classes of assets and liabilities classified as held for sale on our consolidated balance sheets: | | March 31, 2026 | | | June 30, 2025 | | Major classes of assets included as held for sale | | | | | | | Prepaid expenses and other current assets | | $ | 220 | | | $ | 220 | | Deposits, current | | | - | | | | - | | Current assets held for sale | | | 220 | | | | 220 | | | | | | | | | | | Property and equipment, net | | | - | | | | 72,719 | | Other assets held for sale | | | - | | | | 72,719 | | | | | | | | | | | Total major classes of assets held for sale in the consolidated balance sheets | | $ | 220 | | | $ | 72,939 | | | | | | | | | | | Major classes of liabilities included as discontinued operations | | | | | | | | | Accounts payable | | $ | - | | | $ | - | | | | | | | | | | | Total major classes of liabilities held for sale in the consolidated balance sheets | | $ | - | | | $ | - | |
The following are reconciliations of major classes of revenue and expenses classified as discontinued operations on our consolidated income statements: | | During the Three Months Ended March 31, | | | | 2026 | | | 2025 | | Major classes of line items constituting net income (loss) from discontinued operations | | | | | | | Depreciation and amortization | | $ | - | | | $ | (199,181 | ) | Impairment expense | | | - | | | | - | | Gain on settlement of payables | | | - | | | | 352,397 | | Gain on sale of property and equipment | | | - | | | | 38,380 | | Total major classes of line items constituting net income (loss) from discontinued operations | | $ | - | | | | 191,596 | |
| | During the Nine Months Ended March 31, | | | | 2026 | | | 2025 | | Major classes of line items constituting net income (loss) from discontinued operations | | | | | | | Depreciation and amortization | | $ | (17,151 | ) | | $ | (1,081,655 | ) | Impairment expense | | | (55,568 | ) | | | (103,410 | ) | Gain on settlement of payables | | | - | | | | 352,397 | | Gain on sale of property and equipment | | | - | | | | 38,380 | | Total major classes of line items constituting net income (loss) from discontinued operations | | $ | (72,719 | ) | | | (794,288 | ) |
Digital Asset Mining - Expenses During the three months ended March 31, 2026 and 2025, we impaired mining equipment and recognized impairment expense of $0 and $0, respectively, and $55,568 and $103,410 for the nine months ended March 31, 2026 and 2025, respectively.
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