As of June 30, 2026, the Company held digital assets consisting primarily of USDC and FRAX in a custodial wallet maintained pursuant to the Company's financing agreements. Accordingly, the assets are accounted for as indefinite-lived intangible assets under ASC 350-30. The digital assets are initially recorded at cost, including directly attributable transaction costs, and subsequently measured at historical cost less any impairment losses. These assets are not amortized and are evaluated for impairment at least annually or more frequently if events or changes in circumstances indicate that the assets may be impaired. Any impairment loss is recognized in operating results, and subsequent increases in value are not recognized until realized.

 

 The Company's digital assets are held in custody at BitGo and are subject to contractual transfer restrictions under the Company's financing arrangements. These restrictions are off-chain in nature and do not represent staking arrangements, protocol-level restrictions, smart contract lockups, or vesting provisions.

 

The digital assets are classified as current since the Company expects to utilize the funds in the near term.

 

The following table provides a summary of changes in fair value associated with digital assets for the six-month period ended  June 30, 2026:

 

	FRX USD								USDC									Total
	# of units		$/unit			$ Value			# of units			$/unit			$ Value			# of units			$/unit			$ Value
Balance January 1, 2026		-	$	-		$	-			-		$	-		$	-			-		$	-		$	-
Additions		6,635,396		1.00			6,635,396			8,142,127			1.00			8,142,127			14,777,523			1.00			14,777,523
Disposals		-		1.00			-			(6,635,396	)		1.00			(6,635,396	)		(6,635,396	)		1.00			(6,635,396	)
Fair value adj		-		-			-			-			-			-			-			-			-
Balance March 31, 2026		6,635,396		-			6,635,396			1,506,731			-			1,506,731			8,142,127			-			8,142,127
Additions		3,675,946		1.00			3,675,946			2,669,592			1.00			2,669,592			6,345,538			1.00			6,345,538
Disposals		-		1.00				​		(4,176,323	)		1.00			(4,176,323	)		(4,176,323	)		1.00			(4,176,323	)
Fair value adj		-		-			-			-			-			-			-			-			-
Balance June 30,2026		10,311,342	$	1.00		$	10,311,342			-		$	1.00			-		$	10,311,342		$	1.00		$	10,311,342

 

At  June 30, 2026, digital asset units held and fair market value are as follows:

 

As of June 30, 2026				​				​				​
Asset		Units Held				$/unit				Fair Market Value ($)
FRX USD			10,311,342			$	1.00			$	10,311,342
Total			10,311,342			$	1.00			$	10,311,342