On December 31, 2024, the Company completed the sale of substantially all of its historical intellectual property and related intangible assets (the “Assets”) to Boumarang Inc. (“Boumarang”) pursuant to an Asset Purchase Agreement. As consideration for the Assets, the Company received 2,906,977 shares of Boumarang common stock (the “Boumarang Shares”), with consideration valued at $5,000,000 in accordance with the Asset Purchase Agreement.

Classification

The Company holds an ownership interest of less than 20% in Boumarang, has no representation on Boumarang’s board of directors, does not participate in Boumarang’s policy-making decisions, and has no other indicators of significant influence over Boumarang’s operating or financial policies. Accordingly, the investment does not qualify for equity-method accounting under ASC 323 and is accounted for as an equity security under ASC 321, Investments — Equity Securities.

Measurement Policy

The Boumarang Shares do not have a readily determinable fair value within the meaning of ASC 321-10-20 because Boumarang’s common stock is not currently traded on a national securities exchange or in an over-the-counter market, and observable transaction data for identical or similar securities of Boumarang sufficient to determine fair value is not available. Boumarang has filed a Registration Statement on Form S-1 with the U.S. Securities and Exchange Commission; however, as of the date these consolidated financial statements were available to be issued, Boumarang’s common stock was not publicly traded.

The Company has elected the measurement alternative permitted by ASC 321-10-35-2 for equity investments without readily determinable fair values. Under this alternative, the investment is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Within the fair value hierarchy of ASC 820, observable price changes (if any) and any impairment measurement would generally be classified within Level 3 because the inputs are unobservable.

Carrying Value and Activity

The carrying value of the investment in Boumarang was $5,000,000 at June 30, 2026 and $5,000,000 at December 31, 2025. There were no observable price changes in orderly transactions for the identical or a similar investment of Boumarang, and no impairment was recognized, during the six months ended June 30, 2026 or the year ended December 31, 2025. Accordingly, no adjustments to the carrying value were recorded in either period, and no gains or losses related to the Boumarang investment are reflected in the consolidated statements of operations.

Impairment Assessment

At each reporting date, the Company performs a qualitative assessment for impairment in accordance with ASC 321-10-35-3. Indicators considered include, among others: a significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of Boumarang; significant adverse changes in the regulatory, economic, or technological environment in which Boumarang operates; significant adverse changes in the general market conditions of Boumarang’s industry or geographic area; a bona fide offer to purchase the investment, an offer by Boumarang to sell, or a completed auction process for the same or a similar investment by the same issuer for an amount less than the carrying value; and factors that raise significant concerns about Boumarang’s ability to continue as a going concern.

Based on its qualitative assessment as of June 30, 2026, the Company concluded that no indicators of impairment existed and no impairment loss was recognized during the six months ended June 30, 2026 or the year ended December 31, 2025. The Company will continue to monitor Boumarang’s registration process, observable secondary-market transactions (if any), and other indicators that could give rise to an observable price change or an impairment in future periods.