NOTE 3 – SHORT-TERM INVESTMENTS, INVESTMENT IN NON-TRADED EQUITY SECURITIES AND COST-METHOD INVESTMENTS

Short-Term Investments

On June 30, 2026, the Company’s short-term investments consisted of the following:

On December 31, 2025, the Company’s short-term investments consisted of the following:

During the six months ended June 30, 2026 and 2025, the realized gain or loss on short-term investments consisted of the following:

Investment in Non-Traded Equity Securities, at Fair Value

The following table summarizes activity in the Company’s investment in non-traded equity securities, at fair value for the periods presented:

On June 30, 2025, non-traded equity securities, at fair value, consisted of 666,660 shares of common equity securities of one entity, RPM Interactive, Inc., a security without a readily determinable fair value. On May 16, 2024, the Company purchased 666,660 common shares of RPM Interactive, Inc. for $199,998. On December 10, 2025, the Company exchanged a $10,000 note receivable into an additional 100,000 shares of RPM Interactive valued at $10,000. On December 12, 2025 (the “Exchange Date”), the Company exchanged its 766,660 shares of RPM Interactive for 402.45 shares of Avalon’s Series E preferred shares valued at $60,000 and $180,000 as of June 30, 2026 and December 31, 2025, respectively, using a dribble out model using assumptions such as Avalon’s trading volume, sale restrictions, marketability discount and capitalization rate.

Investment in Cost Method Investees

On March 2, 2026, the Company entered into a Membership Interest Purchase Agreement (the “Purchase Agreement”) with America First Defense.AI LLC, a New Mexico limited liability company (“AFD”), pursuant to which the Company agreed to purchase, and AFD agreed to sell, 19.99% of AFD’s outstanding membership interests (the “Membership Interests”) for an aggregate purchase price of $2,900,000. The closing of the purchase (the “Closing”) occurred on March 4, 2026 and the Company paid the purchase price. Additionally, in April 2026, the Company paid expenses of $15,000 related to the Purchase Agreement, which was included in the purchase price for an aggregate purchase price of $2,915,000. The Purchase Agreement contains customary representations, warranties and covenants of the parties, including provisions regarding the private offering nature of the transaction. The Membership Interests have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under applicable state securities laws, and are being issued and sold in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act. The Purchase Agreement also includes restrictions on transfer of the Membership Interests, including that any transfer must be made in accordance with applicable law and AFD’s operating agreement.

On June 18, 2026, the Company entered into and simultaneously consummated the closing of an Asset Purchase Agreement, by and among the Company and Game Foundry AI (the “Buyer”) for the sale of substantially all of the Company’s gaming assets, including its portfolio of mobile games and Gaxos Gaming in exchange for the issuance of 2,200,000 shares of the Buyer’s common stock, for an aggregate estimated consideration of $1,760,000, or $0.80 per share, based on recent sales of Buyer’s common shares in a private placement. Additionally, the Company purchased 250,000 shares of the Buyer for cash of $200,000. As of June 30, 2026, the Company owns 2,450,000 common shares of Game Foundry with a cost basis of $1,960,000.

In connection with the sale of the Company’s gaming assets, for the three and six months ended June 30, 2026, the Company recorded a gain on sale of assets of $1,749,890, which includes the value of the Buyers common shares received of $1,760,000 less the write off on unamortized capitalized internal-use software development costs of $10,110.