Note 15. Commitments and Contingencies

Contingencies

At each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies.

Consulting Agreement

Effective August 28, 2025 (“Effective Date”), the Company entered into (i) a consulting agreement (the “Consulting Agreement”) with Sol Edge Limited (the “Consultant”) pursuant to which the Consultant will provide consulting and related services to the Company with respect to its Treasury Policy and (ii) a strategic advisor agreement (the “Strategic Advisor Agreement”) with Sol Markets, a Cayman Islands exempt company (“Strategic Advisor”) pursuant to which the Strategic Advisor will provide strategic advice and guidance relating to the Company’s business, operations, growth initiatives and industry trends in the crypto technology sector. Based on terms of the Consulting Agreement, the Company transferred to the Consultant stablecoin valued at $10,000,000 for the initial annual period. For the six months ended June 30, 2026, the Company recorded an expense of $5,000,000 for the services provided, as described above, with a remaining prepaid expense of $1,666,000. For the three months ended June 30, 2026, the Company recorded an expense of $2,500,000 for the services provided.

The Consulting Agreement commenced on the Effective Date and shall continue in full force and effect for a term of 20 years (the “Term”), unless earlier terminated in accordance with Section 13(c). Thereafter, the Consulting Agreement may be renewed for additional periods as mutually agreed in writing by the Parties. If the Consulting Agreement is terminated by the Company for any reason during the Term, or if the Consultant terminates the Consulting Agreement due to a material breach by the Company, the Company shall pay to the Consultant, as liquidated damages and not as a penalty, an amount equal to all fees and other compensation that would have accrued to the Consultant under this Agreement from the date of termination through the end of the Term, paid monthly throughout the Term in accordance with the payment provisions herein.

Beginning on August 27, 2026, the Company has agreed under an amendment dated March 26, 2026 to pay the Consultant a monthly fee equal to 2% per annum for up to the first $1 billion in Account Equity, 1.75% per annum for the next $500 million and 1.5% per annum for all additional amounts above $1.5 billion. The Company has agreed to pay to the Consultant such fee, at its option, in the form of USDC, USDT, SOL, or some combination thereof. Account Equity is defined as the value as of any date of the financial instruments and other assets in accounts which are being administered, in whole or in part, by the Consultant.

The Consultant is wholly-owned and controlled by James Zhang, the brother of Alice Zhang, our Chief Investment Officer and Director.

Leases

On January 10, 2026, the Company executed a lease for a 3,116 square foot office facility in Shenzhen, China as a satellite office. The minimum lease term is through January 31, 2027 at a monthly rent of 58,709 Chinese Yuan.

Effective May 2, 2026, the Company leased a 1,467 square foot office in Hong Kong to serve as the headquarters of our overseas operations, the terms of which include an initial two-month rent free period. The lease term is three years and will continue through May 1, 2029 at a monthly rent of 82,321 Hong Kong dollars.

The Company evaluated the Shenzhen and Hong Kong leases under ASC 842 and determined that both leases are operating leases. The rate implicit in each lease was not readily determinable. Accordingly, the Company used its incremental borrowing rate based on information available at lease commencement. The selected incremental borrowing rates were 6.50% for the Shenzhen lease and 9.00% for the Hong Kong lease. The Company does not currently have any finance leases.

The Company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of fixed lease payments over the applicable lease term. Fixed lease payments included in the measurement of lease liabilities exclude refundable deposits, VAT, utilities, property management fees, and other non-lease or variable components. Cash paid for amounts included in the measurement of operating lease liabilities was $46,131 for the six months ended June 30, 2026.

 Summary Of Operating Lease Maturity