Quarterly report [Sections 13 or 15(d)]

Digital Assets

v3.26.1
Digital Assets
3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Digital Assets

Note 5 – Digital Assets

 

Digital assets are measured at fair value on a recurring basis using quoted prices in its principal market (Level 1 inputs). We have designated a principal market based on the market we have access to that has the greatest volume and level of orderly transactions for digital assets. We reassess the principal market when facts and circumstances change, including, but not limited to, when new markets become accessible, or the volume/activity in the current principal market declines.

 

The following table sets forth the number of tokens, cost basis and fair value of digital assets held, as shown on the consolidated balance sheet as of March 31, 2026:

 

    Tokens     Cost basis     Fair value  
CHZ     37,517,000     $ 1,350,000     $ 1,585,356  

 

The following table represents a reconciliation of our assets and (liabilities) related to our digital assets during the three months ended March 31, 2026:

 

   

Three months ended

March 31, 2026

 
Fair Value, January 1, 2026   $ 1,145,180  
Purchases made with cash and cash equivalents     500,000  
Unrealized loss     (59,824 )
Fair Value, March 31, 2026   $ 1,585,356  

 

On January 12, 2026, we purchased 10,416,000 CHZ tokens for $500,000. As of May 1, 2026, we own 37,517,000 CHZ tokens, which had a fair value of $1.6 million as of such date.