| Schedule of Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis |
Financial assets and liabilities that are measured at fair value on a recurring basis are classified as Level 1, Level 2, and Level 3 as follows:
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As of June 30, 2026 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Digital assets |
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$ |
15,860,313 |
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$ |
15,860,313 |
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$ |
- |
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$ |
- |
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Total assets |
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$ |
15,860,313 |
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$ |
15,860,313 |
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$ |
- |
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$ |
- |
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Liabilities: |
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Customer rewards liability |
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$ |
4,504,290 |
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$ |
- |
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$ |
- |
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$ |
4,504,290 |
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February 2026 Investor Note - embedded derivative |
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85,214 |
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- |
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- |
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85,214 |
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Total liabilities |
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$ |
4,589,504 |
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$ |
- |
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$ |
- |
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$ |
4,589,504 |
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As of December 31, 2025 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Digital assets |
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$ |
140,531,660 |
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$ |
140,531,660 |
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$ |
- |
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$ |
- |
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Total assets |
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$ |
140,531,660 |
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$ |
140,531,660 |
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$ |
- |
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$ |
- |
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Liabilities: |
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Customer rewards liability |
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$ |
6,872,869 |
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$ |
- |
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$ |
- |
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$ |
6,872,869 |
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March 2025 Investor Note |
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47,207,556 |
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- |
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- |
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47,207,556 |
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Total liabilities |
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$ |
54,080,425 |
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$ |
- |
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$ |
- |
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$ |
54,080,425 |
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| Summary of Changes in Fair Value Associated With Level 3 |
The following table summarizes the changes in fair value associated with Level 3 convertible note financial instruments held at the beginning or end of the periods presented:
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Convertible Note |
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Balance at January 1, 2025 |
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$ |
- |
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Additions |
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46,279,500 |
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Fair value adjustment - day one loss on issuance of debt |
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12,753,994 |
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Fair value adjustment - change in fair value |
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(910,243 |
) |
Balance at June 30, 2025 |
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$ |
58,123,251 |
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Fair value adjustment - change in fair value |
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(10,915,695 |
) |
Balance at December 31, 2025 |
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$ |
47,207,556 |
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Fair value adjustment - change in fair value |
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(13,200,089 |
) |
Settlement - delivery of 500 bitcoin |
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(34,007,467 |
) |
Balance at June 30, 2026 |
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$ |
- |
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