Discontinued Operations

9 Months Ended

Sep. 30, 2026

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 3. Discontinued Operations

Digital Assets

Following the private placement that closed in August 2025, the Company previously transitioned its operations to focus primarily on the tokenization of real-world assets supported by a digital asset treasury model with ETH as the Company’s initial primary treasury asset. The Company’s treasury strategy was focused on commercializing and expanding the tokenization of real-world assets, potentially including affordable housing, reinsurance, real estate and other asset classes. The Company’s digital asset portfolio was comprised of a combination of ETH and wrapped staked ETH (“wstETH”).

In June 2026, the Company’s Board authorized management to exit the Company’s digital asset business. As a result, the Company sold all of its cryptocurrency assets prior to the end of the second quarter of 2026.

Reinsurance

The Company’s former wholly owned reinsurance subsidiary, FG Reinsurance Ltd (“FGRe”), a Cayman Islands limited liability company, provides specialty property and casualty reinsurance. During the fourth quarter of 2024, the Board approved a plan to evaluate the potential sale of the Company’s reinsurance business. As a result, management evaluated the classification of its reinsurance business as a discontinued operation as of December 31, 2024 and determined the reinsurance business is a component of an entity and represented a discontinued operation. Accordingly, the reinsurance business has been included as part of discontinued operations for all periods presented.

On March 14, 2025, the Company entered into an agreement for the sale of the entire issued share capital of FG RE Corporate Member Limited and for the planned commutation of its Lloyds of London reinsurance treaties UHA 251 22, B1868HT2300259, and B1868HT2400259. The transaction closed during the second quarter of 2025, and the Company received consideration of $5.6 million.

In October 2025, the Company entered into an agreement to sell the remaining portion of its reinsurance business, which closed during the first quarter of 2026. Pursuant to the agreements, the Company received (1) the release of $3.3 million of collateral that the Company had posted in connection with certain reinsurance contracts; (2) the payment of $1.0 million in cash; and (3) a 40% equity interest in Devondale Holdings, LLC (“Devondale”), the entity purchasing the reinsurance business. Additionally, pursuant to the agreements, the Company agreed to leave $1.3 million dollars in cash in the reinsurance business in exchange for a promissory note in the amount of $1.3 million that accrues interest at a rate of 6% per annum with all principal and accrued interest due and payable on January 1, 2028.

During the first quarter of 2026, the Company recorded a $1.6 million gain on the sale of the remaining portion of its reinsurance business.

Strong Technical Services, Inc.

On August 8, 2025, the Company transferred its ownership of Strong Technical Services, Inc. (its managed services operating segment) to the CVR Trust, as described above. Management evaluated the classification of Strong Technical Services as a discontinued operation and determined it is a component of an entity and represented a discontinued operation. Accordingly, the managed services segment is included as part of discontinued operations in the accompanying consolidated financial statements.

The major line items constituting the net (loss) income from discontinued operations during the three and nine months ended September 30, 2026 and September 30, 2025 are as follows (in thousands):

		Digital Assets				Reinsurance				Total
		Three Months Ended September 30, 2026
		Digital Assets				Reinsurance				Total
Staking rewards		$	-			$	-			$	-

Total revenue
General and administrative expenses			(29	)			-				(29	)
Cost of products and services revenues
Net losses and loss adjustment expenses
Amortization of deferred policy acquisition costs
Realized loss on cryptocurrency assets
Selling and administrative expenses
Impairment of assets
Gain on sale of reinsurance business
Loss on ETH digital assets			(108	)			-				(108	)
Total expenses			(137	)			-				(137	)
Loss from operations			(137	)			-				(137	)
Other expense			-				-				-
Loss from discontinued operations before taxes			(137	)			-				(137	)
Income tax expense			-				-				-
Net loss from discontinued operations		$	(137	)		$	-			$	(137	)

		Digital Assets				Managed Services				Reinsurance				Total
		Three Months Ended September 30, 2025
		Digital Assets				Managed Services				Reinsurance				Total
Net product and services revenue		$	641			$	3,941			$	-			$	4,582
Net premiums earned			-				-				2,017				2,017
Total revenue			641				3,941				2,017				6,599
Cost of products and services revenues			-				(3,233	)			-				(3,233	)
Net losses and loss adjustment expenses			-				-				(1,691	)			(1,691	)
Amortization of deferred policy acquisition costs			-				-				(551	)			(551	)
Realized loss on cryptocurrency assets			(21	)			-				-				(21	)
Unrealized gain on ETH digital assets			14,078				-				-				14,078
Selling and administrative expenses			(454	)			(380	)			(339	)			(1,173	)
Total expenses			13,603				(3,613	)			(2,581	)			7,409
Income (loss) from operations			14,244				328				(564	)			14,008
Other expense			-				(7	)			(11	)			(18	)
Income (loss) from discontinued operations before taxes			14,244				321				(575	)			13,990
Income tax expense			-				-				-				-
Net income (loss) from discontinued operations		$	14,244			$	321			$	(575	)		$	13,990

		Digital Assets				Reinsurance				Total
		Nine Months Ended September 30, 2026
		Digital Assets				Reinsurance				Total
Staking rewards		$	144			$	-			$	144

General and administrative expenses			(1,815	)			-				(1,815	)
Loss on ETH digital assets			(41,276	)			-				(41,276	)
Gain on digital intangible assets			398				-				398
Impairment of digital intangible assets			(2,793	)			-				(2,793	)
Gain on sale of reinsurance business			-				1,625				1,625
Total expenses			(45,486	)			1,625				(43,861	)
(Loss) income from operations			(45,342	)			1,625				(43,717	)
Other expense			-				-				-
(Loss) income from discontinued operations before taxes			(45,342	)			1,625				(43,717	)
Income tax expense			-				-				-
Net (loss) income from discontinued operations		$	(45,342	)		$	1,625			$	(43,717	)

		Digital Assets				Managed Services				Reinsurance				Total
		Nine Months Ended September 30, 2025
		Digital Assets				Managed Services				Reinsurance				Total
Net product and services revenue		$	641			$	19,387			$	-			$	20,028
Net premiums earned			-				-				12,214				12,214
Total revenue			641				19,387				12,214				32,242
Cost of products and services revenues			-				(16,020	)			-				(16,020	)
Net losses and loss adjustment expenses			-				-				(7,022	)			(7,022	)
Amortization of deferred policy acquisition costs			-				-				(3,308	)			(3,308	)
Realized loss on cryptocurrency assets			(21	)			-				-				(21	)
Unrealized gain on ETH digital assets			14,078				-				-				14,078
Selling and administrative expenses			(454	)			(2,550	)			(1,523	)			(4,527	)
Impairment of assets			-				-				(1,478	)			(1,478	)
Total expenses			13,603				(18,570	)			(13,331	)			(18,298	)
Income (loss) from operations			14,244				817				(1,117	)			13,944
Other income			-				1				8				9
Income (loss) from discontinued operations before taxes			14,244				818				(1,109	)			13,953
Income tax expense			-				-				-				-
Net income (loss) from discontinued operations		$	14,244			$	818			$	(1,109	)		$	13,953

The liabilities of discontinued operations as of September 30, 2026 relate to obligations in connection with exiting the digital asset business. The major line items constituting the assets and liabilities of discontinued operations as of December 31, 2025 are as follows (in thousands):

		Digital Assets				Reinsurance				Total
		December 31, 2025
		Digital Assets				Reinsurance				Total
ETH digital assets		$	119,384			$	-			$	119,384
Reinsurance balance receivable			-				11,218				11,218
Funds deposited with reinsured companies			-				2,665				2,665
Total assets of discontinued operations		$	119,384			$	13,883			$	133,267

Accounts payable and accrued liabilities		$	707			$	169			$	876
Loss and loss adjustment expense reserves			-				5,380				5,380
Present value of future profits			-				3,878				3,878
Total liabilities of discontinued operations		$	707			$	9,427			$	10,134