COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
|---|---|
May 31, 2026 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments During the fiscal year ended August 31, 2025, the Company entered into a Consulting Agreement with Eth Tower, a third-party service provider, to provide consulting, asset management, custody, and staking services. The Consulting Agreement has a term of ten years and may be renewed. Under the terms of the Consulting Agreement, the Company is obligated to pay the third-party service provider a consulting fee calculated as follows: •1.00% per annum on digital assets managed up to $1,000,000; •0.50% per annum on digital assets managed from $1,000,000 to $5,000,000; and •0.25% per annum on digital assets managed above $5,000,000. The fee is earned daily and paid monthly, which may be settled in cash or digital assets. The aggregate fees to be incurred by the Company are expected to be in the range of $40,000 to $50,000 annually. The Consulting Agreement is non-cancelable except under limited circumstances. If the Company terminates the Consulting Agreement without cause, Eth Tower is entitled to 85% of all fees that would have accrued through the end of the term as liquidated damages. During the three and nine months ended May 31, 2026, the Company recorded $12,759 and $37,468, respectively, in expenses related to the consulting agreement with the third-party service provider. In connection with the acquisition of Pier Two, the Company entered into a Management Services Agreement with Eth Tower pursuant to which Eth Tower provides management and operational services to MAVAN Holdings. The agreement has an initial term of ten years and provides for compensation consisting of a 2.0% membership interest in MAVAN Holdings and revenue-based fees related to certain staking activities. The agreement may be terminated under specified circumstances. If terminated by the Company prior to the expiration of the term, Eth Tower may be entitled to continue receiving certain revenue participation payments or elect a lump-sum termination payment. No expense was recognized under the agreement during the three and nine months ended May 31, 2026, and no amounts were accrued or payable as of May 31, 2026. Contingencies From time to time, the Company is subject to legal proceedings that arise in the ordinary course of business. While any legal proceeding or claim has an element of uncertainty, the Company believes the outcome of each lawsuit, claim or legal proceeding that is pending or threatened, or all of them combined, will not have a material adverse effect on the Company’s condensed financial position or results of operations. It is possible, however, that future results of operations could be materially and adversely affected by any new developments relating to the legal proceedings and claims. As of May 31, 2026, and August 31, 2025, zero legal matters were considered probable and reasonably estimable.
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