| DIGITAL ASSETS |
NOTE
5 – DIGITAL ASSETS
Adoption
of ASU No. 2023-08, Accounting for and Disclosure of Digital Assets
Effective
January 1, 2025, the Company adopted ASU 2023-08, which requires entities to measure crypto assets at fair value with changes recognized
in the Statement of Operations each reporting period. The Company’s digital assets are within the scope of ASU 2023-08, and the
transition guidance requires a cumulative-effect adjustment as of the beginning of the current fiscal year for any difference between
the carrying amount of the Company’s digital assets and fair value. As a result of the Company’s early adoption of ASU 2023-08,
the Company recorded a $148,346 increase to digital assets and a $148,346 decrease to accumulated deficit on the Balance Sheets as of
the beginning of the fiscal year ended December 31, 2025.
The
following table presents the Company’s Digital Asset holdings as of June 30, 2026:
SCHEDULE
OF DIGITAL ASSETS
| | |
Quantity | | |
Cost
Basis | | |
Fair
Value | |
| Bitcoin | |
| 67.58 | | |
$ | 6,247,014 | | |
$ | 3,957,453 | |
| USDC | |
| 57,930 | | |
| 57,930 | | |
| 57,930 | |
| USDT | |
| 997 | | |
| 997 | | |
| 997 | |
| Total digital assets
held as of June 30, 2026 | |
| | | |
$ | 6,305,941 | | |
$ | 4,016,380 | |
The
following table presents a roll-forward of total digital assets for the six months ended June 30, 2026, based on the fair value model
under ASU 2023-08:
SCHEDULE
OF DIGITAL ASSETS ACTIVITY
| | |
Fair
Value | |
| Balance as of December 31, 2025 | |
$ | 5,464,011 | |
| Beginning balance, fair value | |
$ | 5,464,011 | |
| Cumulative effect adjustment upon adoption
of ASU 2023-08 | |
| | |
| Revenue recognized from Bitcoin mined (14.70
Bitcoin) | |
| 1,112,071 | |
| Digital assets collected from membership
revenue | |
| 53,658 | |
| Digital assets collected for deferred coffee
sales | |
| 5,607 | |
| Purchase of digital assets | |
| 368,072 | |
| Proceeds from sale of fixed assets | |
| 2,916 | |
| Proceeds from sale of digital assets | |
| (942,446 | ) |
| Operating expenses paid with digital assets | |
| (209,801 | ) |
| Dividends paid via digital assets | |
| (82,920 | ) |
| Realized gain (loss) on digital assets | |
| (56,392 | ) |
| Change in fair value
of digital assets | |
| (1,698,396 | ) |
| Balance as of June
30, 2026 | |
$ | 4,016,380 | |
| Ending balance, fair
value | |
$ | 4,016,380 | |
The
following table presents a roll-forward of total digital assets for the six months ended June 30, 2025, based on the fair value model
under ASU 2023-08:
| | |
Fair
Value | |
| Balance as of December 31, 2024 | |
$ | 1,127,891 | |
| Beginning balance, fair value | |
$ | 1,127,891 | |
| Cumulative effect adjustment upon adoption
of ASU 2023-08 | |
| 148,346 | |
| Revenue recognized from Bitcoin mined (17.33
Bitcoin) | |
| 1,692,175 | |
| Digital assets collected from membership
revenue | |
| 643,731 | |
| Digital assets received from sale of fixed
assets | |
| 123,064 | |
| Purchase of digital assets | |
| 4,517,592 | |
| Proceeds from sale of digital assets | |
| (4,601,110 | ) |
| Operating expenses paid with digital assets | |
| (1,008,392 | ) |
| Dividends paid via digital assets | |
| (81,486 | ) |
| Realized gain (loss) on digital assets | |
| 119,743 | |
| Change in fair value
of digital assets | |
| 179,258 | |
| Balance as of June
30, 2025 | |
$ | 2,860,812 | |
| Ending balance, fair
value | |
$ | 2,860,812 | |
|