On August 15, 2025, the Company adopted the $IP Token as its primary treasury reserve asset. Under this new treasury strategy, the Company purchases and holds $IP Tokens for long term investment purposes. The Company accounts for its $IP Tokens as an indefinite-lived intangible asset in accordance with ASC 350, Intangibles—Goodwill and Other and has ownership of and control over its $IP Tokens, which are included in intangible digital assets in the condensed consolidated balance sheets. As of March 31, 2026 and December 31, 2025, there were contractual restrictions consisting of restrictions on sale or transfer and lock ups on the Company’s sale of its $IP Tokens.


	As of March 31, 2026
	Units	Cost Basis		Fair Value
$IP Tokens (a)	52,339,862	$	205,338,068	$	26,321,507
APL Tokens	13,889	$	10,000	$	—
ARIAIP Tokens	125,000	$	10,000	$	403
Total	52,478,751	$	205,358,068	$	26,321,910


	As of December 31, 2025
	Units	Cost Basis		Fair Value
$IP Tokens (a)	53,339,862	$	209,261,236	$	91,691,223
APL Tokens	13,889	$	10,000	$	2
ARIAIP Tokens	125,000	$	10,000	$	9,978
Total	53,478,751	$	209,281,236	$	91,701,203

(a) 6,176,470.588 $IP Tokens were acquired in conjunction with the PIPE for a total price of $21,000,000 with a 12 month restriction on transfer or sale. Per the Omnibus Amendment dated March 6, 2026, a total of 17.3 million plus 6.2 million, or 23.5 million tokens were restricted and such restriction would not be lifted until after August 15, 2027, except for 1 million tokens that were released from said restriction.

There were no Token Treasury Segment activities prior to the year ended December 31, 2025. The following table represents a reconciliation of the fair values of the Company’s intangible digital assets:


Intangible Digital Assets	Fair Value
	$IP Tokens		All Other
Balance - December 31, 2024	$	—	$	—
Additions (a)
PIPE Offering	128,819,949		—
Purchases	80,000,034		20,000
Staking Rewards	4,951,565		—
Dispositions
Sale of Staking Rewards	(2,890,396)		—
Sale of Purchased Intangible Digital Assets	(1,000,000)
Change in Fair Value of Intangible Digital Assets (b)	(118,189,929)		(10,020)
Balance -December 31, 2025	$	91,691,223	$	9,980
Additions (a)
Purchases	—		—
Staking Rewards	1,212,231		—
Dispositions	(2,121,847)		—
Reclassification of Covered Calls to Current Assets	(1,478,005)
Loss on Sale of Intangible Digital Assets	(2,359,699)
Change in Fair Value of Intangible Digital Assets (b)	(62,100,401)		(9,577)
Ending Balance - March 31, 2026	$	24,843,502	$	403

(a) Additions represent initial consideration received in 2025 as part of the August 15, 2026 PIPE offering, and purchases of, and staking rewards earned on, Crypto assets held for investment. Per the Omnibus Amendment dated March 6, 2026, a total of 17.3 million plus 6.2 million, or 23.5 million tokens were restricted and such restriction would not be lifted until after August 15, 2027, except for 1 million tokens that were released from said restriction.

(b) The Company measures gains and losses by each asset held. These include cumulative realized losses of $705,204 and 374,214 and realized gains of $1,762 and $246,253 for the three months ended March 31, 2026 and the year ended December 31, 2025, respectively.

The Company from time to time also holds stablecoins, primarily USDC, which are designed to maintain a value pegged to the U.S. dollar. These holdings are presented within other current assets on the condensed consolidated balance sheets. Because stablecoins do not meet the definition of cash or cash equivalents under ASC 305, cash and cash equivalents, they are accounted for as financial instruments and measured at fair value under ASC 820, with changes recognized in net income. The Company monitors liquidity, counterparty risk, and regulatory developments related to these holdings on an ongoing basis. As of March 31, 2026 and December 31, 2025, the Company did not hold any positions in stablecoins.

Sale of Covered Call Contracts on Intangible Digital Assets — On January 6, 2026, the Board approved using 3 million of unlocked $IP Tokens for covered call transactions, and the Company began entering into such covered call transactions. On March 4, 2026, the Board increased the authorization for the number of $IP Tokens allowed to be use under the covered call strategy to 6 million.

The covered call contracts were written to generate additional income from existing holdings while retaining potential for capital appreciation up to the strike price. Each contract granted the counterparty the right, but not the obligation, to purchase the specified quantity of $IP Tokens at a predetermined strike price on or before the contract’s expiration date,.

Premiums received from the sale of these options totaled $277,394 during the three months ended March 31, 2026, of which $240,272 was recognized as crypto and related revenue for covered call contracts that expired without exercise, and $37,122 was recognized as a liability as of March 31, 2026 until subsequent expiration or settlement of the respective covered call contracts. If any of the covered call contracts had been exercised, the carrying amount of the underlying digital asset and the option liability would have been derecognized, and any resulting gain or loss would be recognized in crypto and related revenue. Revenue from covered call contracts is recorded in crypto and related revenue without giving effect to a fee of 7.5% of premiums earned that is due to the Company’s contract Chief Investment Officer. That fee totalled $18,020 and was recorded in cost of crypto and related revenue.

As of March 31, 2026, the Company had outstanding covered call contracts covering 3,000,000 $IP Tokens, with a weighted average strike price of $0.7698 per $IP Token, a weighted average remaining contractual term of 13.37 days, and a fair value of outstanding option liabilities of $2,309,400. During the three months ended March 31, 2026, the Company wrote covered call contracts covering an aggregate of 6,500,000 $IP Tokens with a weighted average strike price of $1.0868 per $IP Token, all with terms of 30 days.

Sale of Intangible Digital Assets (1 million SIP Tokens) — In March 2026, the Board approved selling up to 1 million $IP Tokens and using the proceeds there from for operations. As of March 31, 2026, the Company sold these $IP Tokens at an average price of $0.798 for cash proceeds of $798,450 before deducting any fees or commissions on any such sales.