NOTE 4 – INVESTMENT IN EQUITY SECURITIES

On December 12, 2025, in connection with the merger and deconsolidation of RPM Interactive (see Note 3), the Company received 6,561.71 shares of Series E Preferred Stock of Avalon GloboCare Corp., a publicly held company (“Avalon”). Each share of Series E Preferred Stock has a stated value of $1,000 per share and is convertible into shares of Avalon common stock at a conversion price of $1.50 per share, subject to certain restrictive periods. As the Company does not have the ability to exercise significant influence over Avalon, this investment is recorded at fair value. Due to the lack of marketability and conversion restrictions, the Company determined that the stated value did not represent the immediate fair value. Utilizing a valuation model incorporating Avalon’s quoted common share price, market volume and liquidity constraints, the Company determined the fair value of the Avalon Series E Preferred Stock to be $1,726,000 and $2,920,000 as of March 31, 2026 and December 31, 2025, respectively. This valuation accounted for the estimated time required to liquidate the shares in the open market and the associated marketability discounts. During the three months ended March 31, 2026, the Company recorded an unrealized loss on equity securities of $1,194,000.