v3.26.3
Fair Value Measurements
 12 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 5. Fair Value Measurements

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value is as follows:

•
Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. We review the fair value hierarchy classification at each reporting period. As of June 30, 2026 and 2025, we had no financial assets or liabilities measured at fair value on a nonrecurring basis. As of June 30, 2025, we had no financial liabilities measured at fair value on a recurring basis.

As of June 30, 2025, our financial assets measured at fair value, on a recurring basis, consisted of our cash equivalents of $17.8 million. The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2026, (in thousands):

 

 

June 30, 2026

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

4,867

 

 

$

4,867

 

 

$

—

 

 

$

—

 

Digital assets

 

 

27,272

 

 

 

27,272

 

 

 

—

 

 

 

—

 

Digital assets receivable, net

 

 

7,627

 

 

 

—

 

 

 

7,627

 

 

 

—

 

Investments in SAFE

 

 

400

 

 

 

—

 

 

 

—

 

 

 

400

 

Investment in token warrants

 

 

600

 

 

 

—

 

 

 

—

 

 

 

600

 

Total assets measured on a recurring basis

 

$

40,766

 

 

$

32,139

 

 

$

7,627

 

 

$

1,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities - Covered Call
      Options

 

$

40

 

 

 

—

 

 

$

40

 

 

 

—

 

Total liabilities measured on a recurring
    basis

 

$

40

 

 

$

—

 

 

$

40

 

 

$

—

 

 

The following table presents the changes in the carrying amount of our digital assets (in thousands):

Balance as of June 30, 2025

 

$

—

 

Purchases of digital assets

 

 

100,000

 

Change in fair value of digital assets:

 

 

 

Realized loss on sale of digital assets

 

 

(5,421

)

Realized loss upon transfer of digital assets as collateral

 

 

(6,986

)

Unrealized loss on digital assets

 

 

(42,001

)

Digital assets transferred as collateral

 

 

(15,093

)

Digital assets returned by GSR Markets

 

 

1,813

 

Disposition of digital assets

 

 

(5,040

)

Balance as of June 30, 2026

 

$

27,272

 

 

 

Fair Value of SAFE and Token Warrants

As more fully described in Note 8. Derivatives, we invested in a SAFE and Token Warrants during the fiscal year ended June 30, 2026. The fair value of the SAFE and Token Warrants is determined in accordance with ASC 820 and included both Level 2 and Level 3 inputs. The Level 3 inputs include (i) the stock price, (ii) the timing of various liquidity events, (iii) probabilities of occurrence of the respective liquidity events and (iv) a dissolution scenario recovery rate.

The following tables provide a reconciliation of all financial assets measured at fair value, during the fiscal year ended June 30, 2026, using Level 3 significant unobservable inputs (in thousands):

 

 

Level 3 Assets

 

 

 

SAFE

 

 

Token Warrants

 

Balance as of June 30, 2025

 

$

—

 

 

$

—

 

Issuance of financial instruments

 

 

400

 

 

 

600

 

Balance as of June 30, 2026

 

$

400

 

 

$

600