| Fair Value Measurements |
Note 6. Fair Value Measurements The table below presents the Company’s financial assets and liabilities measured at fair value on a recurring basis aggregated by the level in the fair hierarchy: | | | As of June 30, 2026 | | | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | Assets: | | | | | | | | | | | | | | Digital assets - restricted | | $ | 53,366 | | | $ | - | | | $ | - | | | $ | 53,366 | | | Total assets, measured at fair value | | $ | 53,366 | | | $ | - | | | $ | - | | | $ | 53,366 | | | | | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | Demand notes - related party | | $ | 51,796 | | | $ | - | | | $ | - | | | $ | 51,796 | | | Warrant liability | | | 4,715,000 | | | | | | | | | | | | 4,715,000 | | | Total liabilities, measured at fair value | | $ | 4,766,796 | | | $ | - | | | $ | - | | | $ | 4,766,796 | | | | | As of December 31, 2025 | | | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | Assets: | | | | | | | | | | | | | | Digital assets - restricted | | $ | 97,912 | | | $ | - | | | $ | - | | | $ | 97,912 | | | Total assets, measured at fair value | | $ | 97,912 | | | $ | - | | | $ | - | | | $ | 97,912 | | | | | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | | | | | Demand notes - related party | | $ | 97,912 | | | $ | - | | | $ | - | | | $ | 97,912 | | | Total liabilities, measured at fair value | | $ | 97,912 | | | $ | - | | | $ | - | | | $ | 97,912 | | Level 1 instruments consisted of digital assets, related party demand notes and public warrants which are valued using quoted priced in active markets for the underlying tokens and warrants at the reporting date, with the changes recognized in the condensed consolidated statements of operations. See Notes 5, 9 and 14. Demand notes denominated in cash are excluded from the fair value table. The change in the fair value of the Company’s assets and liabilities measured at fair value during the three and six months ended June 30, 2026 were as follows: | | | Digital
assets | | | Demand
notes -
related
party | | | Warrant
liability | | | | | | | | | | | | | | Balance at March 31, 2026 | | $ | 70,121 | | | $ | 69,455 | | | $ | - | | | Digital assets earned in the period | | | 904 | | | | - | | | | - | | | Warrant liability assumed in merger | | | - | | | | - | | | | 6,900,000 | | | Change in estimated fair value | | | (17,659 | ) | | | (17,659 | ) | | | (2,185,000 | ) | | Balance at June 30, 2026 | | $ | 53,366 | | | $ | 51,796 | | | $ | 4,715,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2025 | | $ | 97,912 | | | $ | 97,912 | | | $ | - | | | Digital assets earned in the period | | | 1,570 | | | | - | | | | - | | | Warrant liability assumed in merger | | | - | | | | - | | | | 6,900,000 | | | Change in estimated fair value | | | (46,116 | ) | | | (46,116 | ) | | | (2,185,000 | ) | | Balance at June 30, 2026 | | $ | 53,366 | | | $ | 51,796 | | | $ | 4,715,000 | |
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