Note 5 - Digital Assets (Liquidity Pool Positions and Other Intangible Digital Assets)

The Company holds certain digital assets that are not measured at fair value on a recurring basis and are instead accounted for as indefinite-lived intangible assets in accordance with ASC 350. These assets consist of (i) tokenized LP positions and (ii) NFTs, which primarily represent digital art. These assets are distinct from digital assets measured at fair value, which are presented separately in Note 4.

LP positions represent the Company’s ownership interest in decentralized exchange liquidity pools and provide exposure to a proportional share of the underlying pooled digital assets, pool-generated fees and other rewards, where applicable. These assets do not represent ownership interests in a legal entity or contractual rights to cash flows and are therefore accounted for as indefinite-lived intangible assets.

As of March 31, 2026 and December 31, 2025, the carrying value of these assets consisted of:

 Schedule of Carrying Value of Digital Assets

Activity Rollforward

The following table presents the activity of the Company’s digital assets accounted for as indefinite-lived intangible assets:

 Schedule of Digital Assets Accounted for as Indefinite-lived Intangible Assets

Deposits into liquidity pools represent the Company’s contribution of digital assets into decentralized exchange protocols in exchange for LP positions. Withdrawals represent the redemption of such positions for underlying digital assets.

Realized gains or losses are recognized upon withdrawal based on the difference between the carrying value of LP position and the fair value of the digital assets received. Realized gains or losses are included in realized gains or losses on digital asset transactions in the statements of operations.

During the three months ended March 31, 2026, the Company recognized impairment losses of approximately $210,000 related to its LP positions and NFTs. Impairment losses are included in impairment loss on intangible digital assets in the statements of operations.

Due to the absence of quoted market prices for LP positions, the Company estimates fair value based on the observable value of the underlying assets in the liquidity pools, considering pool composition, liquidity. and quoted market prices for the underlying digital assets. See Note 6 – Fair Value Measurements for additional information regarding nonrecurring fair value measurements.