NOTE 11 — DISCONTINUED OPERATIONS

During the second quarter of 2026, we shut down our healthcare operations, which historically generated revenue from providing outpatient services through clinics and telemedicine platforms. The decision was made in connection with our strategic shift towards the development of a scalable, Bitcoin-native operating business.

We evaluated whether the healthcare operations met the held-for-sale criteria in ASC 205-20-45-1E and concluded they did not, principally because the business was never probable to be sold. We then evaluated the disposal under the guidance in ASC 205-20-45-1B(c) for disposals other than by sale and considered the healthcare operations to be held and used until the date of abandonment in accordance with ASC 360-10-45-15. We concluded that the date of abandonment occurred as of June 19, 2026, when the last healthcare clinic was closed.

The shutdown of the healthcare operations represents a strategic shift that has a major effect on our operations and financial results as all of our revenues in 2025 were from healthcare operations, all of our activities prior to the August 2025 merger with Nakamoto Holdings were healthcare related and the results of healthcare operations were previously reported as one of our reportable operating segments.

The loss recognized on the disposal of the healthcare operations includes the impairment of the right-of-use assets associated with the abandoned leases recorded in the first three months of 2026, together with severance and employee termination costs and other disposal related costs recognized through the date of abandonment. These expenses of $1.2 million and $1.7 million for the three and six months ended June 30, 2026, respectively, are presented within net loss from discontinued operations on the condensed consolidated statement of comprehensive loss.

The healthcare operations were previously reported within our Healthcare Operations segment. As a result of the disposal, the Healthcare Operations segment is no longer presented as a continuing operation, see Note 13 — Segment Information. The results for the healthcare operations have been retrospectively reclassified and presented as discontinued operations for all periods presented in our condensed consolidated statement of comprehensive loss. Prior to the merger with Nakamoto Holdings in August 2025, we operated a single operating segment consisting of Healthcare Operations. All operating expenses prior to the merger with Nakamoto Holdings were previously reflected in Healthcare Operations. General corporate overhead incurred during the three and six months ended June 30, 2025, that was not directly attributable to healthcare operations was not material. Accordingly, we report no results from continuing operations for the three and six months ended June 30, 2025.

The following table presents the pretax loss and the major classes of line items constituting the pretax loss of the discontinued operations for the three and six months ended June 30, 2026, and 2025 (in thousands).

SCHEDULE OF DISCONTINUED OPERATIONS

There is no income tax expense or benefit for the three and six months ended June 30, 2026, and 2025.