NOTE 7. Intangible Assets

As of June 30, 2026 and December 31, 2025, the Company’s intangible assets had aggregate carrying values of $22,454,994 and $18,022,219, respectively. The June 30, 2026 balance consisted of $69,858 of finite-lived internal-use software and $22,385,136 of indefinite-lived intangible assets. The December 31, 2025 balance consisted of $142,382 of finite-lived internal-use software and $17,879,837 of indefinite-lived intangible assets.

Internal-use Software

The Company’s finite-lived intangible assets consist primarily of internally developed software and technology platforms used in its digital asset ecosystem. These assets include software developed by Nodalium, Inc. for Know Your Customer (“KYC”) and Anti-Money Laundering (“AML”) onboarding, technology platforms developed by Instruxi Limited for the tokenization of precious metal, mineral, and commodity assets, and subsequent software upgrades and enhancements. These assets are amortized on a straight-line basis over their estimated useful lives.

The Company recognized amortization expense of $36,262 and $72,524 during the three and six months ended June 30, 2026, respectively. The carrying amount of internal-use software decreased from $142,382 as of December 31, 2025 to $69,858 as of June 30, 2026, primarily as a result of amortization expense recognized during the period.

The Company expects to recognize approximately $59,191 of additional amortization expense during the remainder of 2026, $8,667 during 2027, and $2,000 during 2028.

Indefinite-lived Intangible Assets

The Company’s indefinite-lived intangible assets consist primarily of ION.au, pmUSD, and xPM, which are gold-backed digital assets. These assets are considered to have indefinite useful lives and, accordingly, are not amortized but are evaluated for impairment at least annually and whenever events or changes in circumstances indicate that impairment may exist.

As of December 31, 2025, the carrying value of the Company’s indefinite-lived intangible assets was $17,879,837. During the six months ended June 30, 2026, the Company used 489.50 units of ION.au, with a carrying value of $890,381, to settle bridge loan obligations totaling $1,331,000, resulting in a gain on the settlement of debt of $440,619 (see Note 9).

During the six months ended June 30, 2026, the Company received 1,331,000 units of pmUSD from a third party that had a fair value of $1,331,000 and which are required to be returned to the third part under the related arrangement; therefore, the Company recorded a corresponding liability within other current liabilities on the condensed consolidated balance sheet.

During the six months ended June 30, 2026, the Company exchanged 2,719 units of ION.au, with a historical carrying value of $4,945,750, for 9,000,000 units of pmUSD, with a fair value of $8,968,500, and 1,000,000 units of xPM, with a fair value of $41,930. The transaction was accounted for as an exchange of intangible assets, and the Company recognized a gain on the exchange of intangible assets of $4,064,680, representing the excess of the fair value of the assets received over the carrying value of the ION.au surrendered.

As of June 30, 2026, the carrying value of the Company’s indefinite-lived assets was $22,385,136. No impairment was recognized during the three and six months ended June 30, 2026.