NOTE 11 – INVESTMENTS

Investments in Marketable Securities

Investments in marketable equity securities, classified as trading securities, are measured at fair value on a recurring basis using quoted prices in active markets and are therefore classified within Level 1 of the fair value hierarchy. The Company holds less than a 5% interest in these securities. Changes in fair value are recognized in earnings within the consolidated statements of operations.

The balance of our marketable securities was as follows:

Gains and losses to measure our investments in marketable equity at fair value were included in the other income. These represent unrealized gains and losses arising from changes in market value at the reporting date.

For the six months ended June 30, 2026 and 2025, the carrying value of the investment was adjusted to its fair value, and accordingly, unrealized gains in the amount of $3,520 and $0 were recognized.

Debt Securities Held to Maturity

The Company classifies certain investments in government debt securities as held-to-maturity because it has the positive intent and ability to hold these securities until their contractual maturity. Accordingly, these investments are carried at amortized cost, net of any allowance for expected credit losses.

During October 2025, subsidiaries within the MeridianBet Group purchased eurobonds issued by the Republic of Serbia and the Republic of Romania. These investments bear fixed coupon interest and mature between 2032 and 2033.

 As of June 30, 2026, debt securities held to maturity consisted of the following:

The following table reconciles the Company’s investments reported on the consolidated balance sheet as of June 30, 2026:

Interest income earned on held-to-maturity debt securities is recognized using the effective interest method and is included in interest income in the consolidated statements of operations.

The fair values of the held-to-maturity debt securities are based on quoted market prices or other observable market inputs.

The Company evaluated the held-to-maturity debt securities for expected credit losses in accordance with ASC 326. As of June 30, 2026, no allowance for expected credit losses was recorded, as management determined that the securities have a low risk of credit loss.