Note 12 – Current maturity of long-term loan

On July 25, 2025, the Company entered into a series of related agreements with BTC KZ, a company organized under the laws of Kazakhstan, and Ulife Media and Production International Limited (“ULife”), a wholly owned subsidiary of BTC KZ, in connection with the restructuring of the payment of consideration under a prior purchase agreement dated February 26, 2025 (see Note 15 for details) involving the acquisition of certain cryptocurrency mining machines. As disclosed in Note 15, the Company had agreed to pay to ULife a total of $9,000,000 in cash and 813 restricted Class A ordinary shares for the purchase of Equipment, and $3,400,000 of the Cash Consideration had been paid.

Due to regulatory concerns surrounding the issuance of the Share Consideration, the parties mutually agreed to cancel the Share Consideration and restructure the unpaid balance into a secured term loan arrangement. As part of this restructuring, the Company entered into a secured term loan agreement with BTC KZ pursuant to which BTC KZ agreed to lend the Company $31,600,000 (the “Loan”). The Loan bears interest at a rate of 5% per annum, matures on July 24, 2028, and is repayable in equal quarterly installments of $2.85 million beginning September 30, 2025. The Company is also required to prepay the outstanding balance of the Loan with at least 50% of the net proceeds from any public or private equity offering. In connection with the Loan, the Company issued a promissory note to BTC KZ in the principal amount of $31,600,000 (the “BTC KZ Note”). To secure the Company’s obligations under the Loan and the BTC KZ Note, the parties entered into a security agreement granting BTC KZ a first-priority security interest in the Equipment. The Equipment remains hosted in Kazakhstan pursuant to a hosting agreement dated March 20, 2025, between Model Queen and BTC KZ. The Loan was originally classified as a long-term liability, with its current portion determined by the contractual quarterly installment schedule. During the year ended June 30, 2026, the Company repaid principal of approximately $12.0 million ahead of the contractual installment schedule, including in connection with the offering under SPA 9 consummated in August 2025 (see Note 15), SPA 10 consummated in October 2025 (see Note 15), and SPA 12 consummated in March 2026 (see Note 13). As a result of the early repayment term, the remaining outstanding balance of $8,593,101 is contractually payable within the twelve months ending June 30, 2027. Accordingly, the entire remaining loan balance was classified as a current liability as of June 30, 2026. 

The obligation is payable as follows:

Interest expense for the years ended June 30, 2026, 2025 and 2024 for the above loan amounted to $726,714, nil and nil, respectively.