NOTE 8 – MARKETABLE SECURITIES

Exchange-Traded Funds

The Company’s marketable securities consist of shares of exchange-traded funds that invest primarily in short-term U.S. Treasury securities and investment-grade corporate debt instruments. Because the Company holds equity interests in the exchange-traded funds rather than the underlying debt securities directly, the investments are accounted for as equity securities under ASC 321, Investments — Equity Securities, rather than as debt securities under ASC 320, Investments — Debt Securities. See Note 14 — Fair Value Measurements.

At June 30, 2026, the Company’s marketable securities consisted of an exchange-traded fund portfolio with a cost basis of approximately $12,981 and a fair value of approximately $12,861. Based on the underlying unrounded amounts, the Company recognized a net unrealized loss of $119 during the six months ended June 30, 2026, all of which related to securities held as of June 30, 2026 and is included in change in fair value of marketable securities in the unaudited condensed consolidated statements of operations.

At December 31, 2025, the Company’s marketable securities consisted of its investment in Empress Royalty Corp., which was sold in full during the six months ended June 30, 2026.

Empress Royalty Corp.

In December 2025, the Company acquired approximately 9.9% of the outstanding common shares of Empress Royalty Corp. (“Empress”), a publicly traded royalty company, in exchange for shares of the Company’s common stock. Because the Company does not have significant influence over Empress, the investment was accounted for as a marketable security rather than under the equity method. At December 31, 2025, the fair value of the investment was approximately $9,706.

In January 2026, the Company sold its entire investment in Empress Royalty Corp. for gross proceeds of approximately $10,190 and recognized a transaction-specific realized gain of approximately $484 relative to the investment’s December 31, 2025 carrying value. During the three months ended June 30, 2026, the Company recognized realized losses of approximately $106 on sales of exchange-traded fund securities. The Empress gain and realized results from other marketable-security transactions produced a net realized gain on marketable securities of $377 for the six months ended June 30, 2026, as presented in the unaudited condensed consolidated statements of operations. The Company held no investment in Empress Royalty Corp. as of June 30, 2026.