NOTE 4 – LIQUIDITY

During the six months ended June 30, 2026, we recorded a net loss from operations of $4,294,329 and a net loss of $7,103,509. During that period, we were able to meet our short-and long-term working capital and capital expenditure requirements.

The Company’s capital is generally used to support operations and capital expenditures. However, the Company also, from time-to-time, will review potential investments that it believes present unique situations to participate in growth opportunities. Two such opportunities presented themselves when the Company, during October 2025 and March 2026, invested an aggregate of $3.25 million in a special purpose vehicle (the “SPV”) organized by Dream Ventures LLC, which participated in exempt private placements in an early-stage enterprise developing next-generation nuclear power and infrastructure technologies. The Company’s investment consisted of the acquisition of restricted units of the SPV valued at the time of the investments at $3.25 million, as a limited rights participant in two investment rounds in an aggregate amount of $95 million. The SPV, in turn, used the proceeds of those investment rounds to invest in private investment securities of the early-stage nuclear enterprise. We do not possess a controlling financial interest or exercise significant influence over the SPV, and any proposed transfer of our restricted units requires prior written consent of the SPV.

The Company is not in the business of making investments in private securities, however, these investments were viewed by the Board of Directors as a strategic investment intended to access a possible growth opportunity that takes advantage of renewed momentum around modular, rapidly deployable energy systems, supported by recent federal initiatives and Department of Energy programs promoting advanced-reactor innovation.

At June 30, 2026, we had a working capital deficit of $881 thousand (including $2.0 million in cash and cash equivalents), and a digital asset balance at a fair value of $4,016,380. These amounts were sufficient to sustain our losses from operations during the first half of the year. Even though we have incurred significant operating losses through the first half of 2026, we do not believe that our operating losses will continue at this level for the longer term, based on recent efforts we have made to, among others, expand our direct selling network, diversify our revenue base, transition our direct-to-consumer business unit toward a more diversified operating platform, wind-down our bitcoin mining operations starting July 2026, and implement broad-based cost-cutting initiatives. Despite our expectations, our operations have not yet reflected any such expected improvement. However, notwithstanding the time it may take to reflect an improvement in operations, we still believe that we will be able to sustain our operations for at least the next twelve months since during August 2026 we have been able to monetize our private investments, and at amounts that are significantly appreciated above our purchase price. See “NOTE 15 – SUBSEQUENT EVENTS.”