8. Intangible Assets and License Contract Liability

On January 31, 2025, the Company entered into an exclusive, royalty-bearing trademark license agreement (“the License Agreement”) with Dogecoin Foundation, Inc. and its affiliate, MadeUpNumbers Ltd. (collectively, the “Licensors”). The License agreement grants the Company worldwide rights to use certain Dogecoin related trademarks, including the DOGECOIN mark, in connection with the manufacture, marketing, sale and distribution of licensed goods and services. The initial contractual term is five years, and the Company has an option to renew the arrangement for an additional fifteen- year period.

Under the License Agreement, the Company is required to pay a royalty equal to 5% of net sales of licensed products and services, subject to a minimum aggregate royalty payment of $200,000 USD per month during the initial five year term. The minimum royalty payments are payable monthly in advance. The Company determined that the trademark license is a finite-lived intangible asset and amortizes the recognized cost on a straight-line basis over the initial five-year contractual term.

Initial recognition and measurement

At inception, the Company recognized the trademark license at a gross carrying amount of $8,014,429, consisting of $7,945,832 for the present value of minimum guaranteed royalty payments, $65,400 for the fair value of 32,700,000 common shares issued to the Licensors, and $3,197 for the initial fair value of the contractual top-up rights. The present value of the minimum royalty payments was determined using an annual discount rate of 18.5%.

A corresponding license contract liability was recognized for the present value of the fixed minimum royalty payments. The obligation is subsequently measured at amortized cost using the effective interest method. Scheduled minimum royalty payments reduce the obligation, and the unwinding of the discount is recognized as a finance expense.

The intangible asset is being amortized over 5 years. The amortization period will be reassessed annually to ensure alignment with the estimated useful life of the license.

Intangible license asset

The continuity of intangible assets for the period ended June 30, 2026 is as follows:

The Company’s finite-lived intangible assets consist solely of the trademark license. The gross carrying amount, accumulated amortization and net carrying amount of the finite-lived trademark license were as follows:

Amortization expense was $400,721 for each of the three months ended June 30, 2026 and 2025. No additions or impairment charges were recorded during the three months ended June 30, 2026. Estimated amortization expense for the remaining contractual term is as follows:

License contract liability

The continuity of license contract liability for the period ended June 30, 2026 is as follows:

During the three months ended June 30, 2026, the Company recognized finance expense of $282,473 using the effective interest method and made scheduled minimum royalty payments of $600,000, resulting in a net reduction of $317,527 in the license contract liability.

At June 30, 2026, the undiscounted future minimum royalty payments and their reconciliation to the carrying amount of the license contract liability were as follows:

Equity guarantee and amendment

The original License Agreement included an equity guarantee under which the Licensors were entitled to own no less than 9.99% of the Company immediately following a qualifying go-public event. The guarantee was accounted for separately from the license contract liability. On June 25, 2025, the Company settled the guarantee by issuing 1,598,731 additional common shares with a fair value of $1,055,163. The parties subsequently amended and restated the License Agreement to reflect aggregate share consideration of 34,298,731 common shares; all other material terms continued to apply. No liability related to the equity guarantee remained at June 30, 2026 or March 31, 2026, and the settlement did not change the fixed minimum royalty payment schedule.

Impairment assessment

The Company evaluates the finite-lived trademark license for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. At June 30, 2026 and March 31, 2026, the Company identified no such indicators. Accordingly, no recoverability test was required, and no impairment loss was recognized during the three months ended June 30, 2026.