5. Accounts Receivable and Revenue Recognition

ETP and ETF support services - 21Shares

Effective April 4, 2025, the Company entered into a five-year support services agreement with 21 Shares. The European 21Shares Dogecoin ETP commenced trading on April 8, 2025 and the U.S. 21Shares Dogecoin ETF (ticker: TDOG) commenced operations on January 22, 2026.

Under the agreement, the Company provides a royalty-free license to specified Dogecoin and House of Doge marks together with research and operational assistance, marketing support, website and link support, access to relationships and channels, and related ongoing collaboration activities. The licensed marks and support activities are highly interdependent and are accounted for as one combined stand-ready performance obligation satisfied over time.

Consideration is variable and equals the Company’s contractual 50% share of gross sponsor or management fees actually received by 21Shares for the applicable product. Revenue is constrained until the underlying product fee activity is earned and the Company’s gross fee share is determinable from 21Shares’ quarterly statements and related invoices.

The Company is principal for the combined licensed marks and support service because it controls and is primarily responsible for that specified service before transfer to 21Shares. The Company is not principal for the underlying ETP or ETF sponsorship, issuance, regulatory, custody, distribution or fund-management services performed or arranged by 21Shares and therefore does not recognize 100% of the underlying product fees. Its share of product operating costs separately invoiced by 21Shares is presented as cost of services and accounts payable rather than as a reduction of revenue, to the extent the costs represent distinct services at fair value.

For the three months ended June 30, 2026, the Company recognized $38,399 of ETP and ETF support-services revenue, compared with no revenue in the prior-year period. The Company separately recognized $16,399 cost related to the European ETP and U.S. ETF. The related support-services receivable was $43,624 at June 30, 2026 and $108,235 at March 31, 2026.

Remaining performance obligations

At June 30, 2026, the Company had no fixed transaction price allocated to unsatisfied or partially unsatisfied performance obligations. Consideration under the continuing 21Shares support agreement is entirely variable based on future sponsor and management fee activity and is allocated to the service period in which the related support is provided. The Company applies the practical expedient in ASC 606 and does not disclose an estimate of variable consideration allocated to future performance obligations when the consideration is allocated entirely to a wholly unsatisfied performance obligation or to a distinct future period of a series.

Customer and credit concentrations

21Shares accounted for 100% of the Company’s revenue for the three months ended June 30, 2026 and approximately 67.5% of accounts receivable at June 30, 2026. Approximately 83.7% of accounts receivable at March 31, 2026 was due from 21Shares. The Company had no revenue for the three months ended June 30, 2025.