NOTE 2 – LIQUIDITY

As of June 30, 2026, we had working capital of approximately $32,841 and cash of $5,605. For the six months ended June 30, 2026, we used $21,918 in operating activities, generated $9,163 in investing activities, and used $1,882 in financing activities.

During the six months ended June 30, 2026, the Company strengthened its liquidity position through financing transactions and asset monetization activities and eliminated its outstanding convertible debt. In January 2026, the Company completed an underwritten public offering generating net proceeds of $37,184. The Company also received $21,003 from the sale of marketable securities and $26,410 from the sale of gold bullion that had been classified as held for sale as of December 31, 2025, resulting in a realized gain on sale of gold of $2,938. On February 6, 2026, $15,000 of principal was converted into 3,750,000 shares of common stock. The Company subsequently paid approximately $38,903 in cash to settle the remaining obligations, consisting of $35,000 of principal, a $3,500 prepayment premium, and approximately $403 of accrued interest, and recognized a loss on extinguishment of $3,057.

As of June 30, 2026, the Company’s principal sources of liquidity, in addition to cash on hand, include marketable securities of $12,861, digital assets of $6,001, and its investment in Metalayer, with a carrying amount of $1,828, which is measured using net asset value per share as a practical expedient for fair value and, following expiration of a three-month lock-up on August 26, 2026, is redeemable only as of the last business day of each calendar quarter upon 15 calendar days’ prior written notice, such that the earliest available redemption date is September 30, 2026. The Company also holds a significant ownership interest in Streamex Ltd. in the form of GLDY tokens. As part of its capital strategy, the Company intends to monetize portions of this interest through sales to third-party participants to support its liquidity and growth initiatives, as it did during the six months ended June 30, 2026. The realization and timing of any such proceeds depend on identifying suitable counterparties. On July 1, 2026, the Company disbursed $5,000 of its USD Coin, a stablecoin issued by Circle Internet Financial, LLC (“USDC”) holdings, together with 1,069 GLDY tokens, to an independent proprietary trading firm under an interest-free loan agreement to support secondary-market liquidity for GLDY. The Company may recall the loaned assets at any time on 30 days’ notice. See Note 23 — Subsequent Events.

We expect to continue incurring operating losses and negative cash flows until our digital infrastructure platform, including Streamex Exchange’s tokenization and GLDY offerings, achieves sustained commercial scale. “GLDY” refers to the Company’s gold-backed digital token, which represents an economic interest in physical gold held to support the token program and is issued through Streamex Ltd. During the six months ended June 30, 2026, the Company launched GLDY and began generating gold lease income through its tokenized gold platform; however, income recognized to date remain immaterial. We expect to incur additional costs related to platform development, regulatory compliance, and strategic partnerships as we scale income-generating activities. The timing and extent of future income growth will depend on, among other things, continued investor adoption of GLDY, growth in assets under management, completion of development milestones, regulatory considerations, market conditions, and the successful commercialization of the Streamex Exchange platform and related offerings.

Management evaluated whether conditions and events, considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern for the one-year period following the date these unaudited condensed consolidated financial statements are issued, in accordance with ASC 205-40, Presentation of Financial Statements — Going Concern. In performing this evaluation, management considered the Company’s recurring operating losses, negative cash flows from operations, existing cash and other available financial resources, current obligations, and forecasted operating and capital expenditures. Based on this evaluation, including the Company’s cash of $5,605, working capital of $32,841, and other financial resources available to the Company as described above, management concluded that substantial doubt about the Company’s ability to continue as a going concern was not raised as of the issuance date of these financial statements. Management’s forecast indicates that the Company’s available liquidity is expected to be sufficient to meet its obligations as they become due for at least one year following the issuance date of these financial statements.

On July 1, 2026, the Board authorized a stock repurchase program. See Note 23, Subsequent Events, for additional information. The Company’s liquidity assessment and going concern evaluation as of June 30, 2026 do not assume repurchases under the authorization.