NOTE 5 — PREPAID INVESTMENT, PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid Investment – related party

As of March 31, 2026, the Company recorded a prepaid investment of $10.0 million, representing cash advanced in connection with a contractually committed equity investment for which the underlying securities have not yet been issued or settled. On January 30, 2026, the Company entered into an entrusted investment arrangement with Gold King Arthur Holding Limited (“GKA”), pursuant to which the Company engaged GKA to act as fiduciary to acquire, hold, manage, tokenize, monetize and dispose of securities of the Faraday for the benefit of the Company. In connection with the arrangement, GKA entered into a Securities Purchase Agreement (the “SPA”) with the Faraday to purchase $10.0 million of the Faraday’s Class A common stock. The arrangement provided that the Company would fund the investment principal and GKA would manage the investment and related activities. In February 2026, on behalf of GKA, the Company paid $10.0 million to Faraday, which is a related party, in connection with an investment arrangement pursuant to which GKA is designated to acquire shares of Faraday on behalf of the Company. As of March 31, 2026, the Faraday shares have not yet been issued to or received by GKA, and therefore the Company has not obtained ownership rights to the underlying equity securities. The prepaid investment is classified within current assets based on management’s expectation that the investment will be completed within one year. Additionally, the underlying equity to be purchased is not subject to contractual lock-ups or other restrictions that would necessitate non-current classification.

Because the underlying equity securities have not been issued as of the reporting date, the prepaid investment does not represent an equity interest, investment security, or financial instrument. Accordingly, the prepaid investment is not subject to fair value measurement and is carried at cost. Upon issuance and receipt of the underlying equity securities, the prepaid investment will be derecognized and reclassified to the appropriate account and accounted for in accordance with applicable U.S. GAAP based on the nature of the Company’s interest. The underlying equity securities were issued in April 2026, which is further discussed in Note 17 – Subsequent Events.

Prepaid expenses and other current assets consisted of the following at March 31, 2026 and December 31, 2025:

 SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS