TaoWeave第二季虧損擴大至329萬美元 聚焦質押TAO代幣策略

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Represents general and administrative costs, less the amounts allocated to the segments for labor and benefits, general liability insurance, professional services, property taxes, and interest income.
The exercise price for the Pre-Funded Warrants was paid upon issuance of the Pre-Funded Warrants. The exercise of the Pre-Funded Warrants will not result in additional proceeds for the Company.

 
Calculation assumes exercise of the Preferred Warrants for cash into Series F Preferred Stock and subsequent conversion of the Series F Preferred Stock into Common Stock at a conversion price of $3.77.
Unallocated other income in Corporate is primarily related to interest income.
Includes direct labor costs (including sales and marketing costs), employment taxes, employee benefits, workers’ compensation, and office expenses.
Operating expenses related to the Company's Collaboration Products Segment include sales and marketing, and other miscellaneous expenses.
Calculation assumes conversion of the stated value and accrued dividends of the Series F Preferred Stock into Common Stock at a conversion price of $3.77 per share.
Operating expenses related to the Company's Digital Assets segment include cash and stock-based advisory fees.
Other segment items include other income and expenses, net, interest expense, certain professional services, and miscellaneous taxes and fees.
Non-cash fees are related to custodian fees paid in tokens and a one-time setup and transfer fee for Kraken.
Corporate operating expenses include costs that are not specific to a particular segment but are general to the group. These include expenses for administrative, information technology, and accounting staff, general liability and other insurance, professional fees, and similar corporate expenses.
Other income (expense) for the Company's Digital Assets segment includes unrealized gains and (losses) from revaluations of our digital assets. The three months ended March 31, 2026 also includes realized gains on the sale of digital assets.
Other expense for the Company's Managed Services segment includes interest expense.

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 Table of Contents

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

 

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2026.

or

 

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

 

Commission file number: 001-35376

TAOWEAVE, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 Delaware
 77-0312442
 

 (State or Other Jurisdiction of Incorporation or Organization)
 (I.R.S. Employer Identification No.)
 

 

110 16th Street, Suite 1400-1024, Denver, CO 80202

(Address of Principal Executive Offices, including Zip Code)

 

(213) 683-8863 ext. 5

(Registrant’s Telephone Number, including Area Code)

 

(Former name, former address, and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 Title of each class
   Trading Symbol(s)
   Name of each exchange on which registered
 

 Common Stock, par value $0.0001 per share
   TWAV
   Nasdaq Capital Market
 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒  No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒  No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 Large accelerated filer ☐
 Accelerated filer ☐
 

  

 Non-accelerated filer ☒
 Smaller reporting company ☒
 

  

  Emerging growth company ☐
 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       Yes ☐ No ☒

 

The number of shares outstanding of the registrant’s common stock as of August 5, 2026, was  3,877,219.

 

 
 
 
  
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

 
 TAOWEAVE, INC.

 Index

  

 
 
 
 PART I - FINANCIAL INFORMATION
 
  
 

 
  
  
 

 
 Item 1. Financial Statements
 
 1
 
 

 
  
  
 

 
 Condensed Consolidated Balance Sheets at June 30, 2026 (unaudited) and December 31, 2025
 
 1
 
 

 
  
  
 

 
 Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026, and 2025
 
 2
 
 

 
  
  
 

 
 Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2026, and 2025
 
 3
 
 

 
  
  
 

 
 Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026, and 2025
 
 5
 
 

 
  
  
 

 
 Notes to unaudited Condensed Consolidated Financial Statements
 
 6
 
 

 
  
  
 

 
 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
 27
 
 

 
  
  
 

 
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
 
 43
 
 

 
  
  
 

 
 Item 4. Controls and Procedures
 
 43
 
 

 
  
  
 

 
  
  
 

 
 PART II - OTHER INFORMATION
 
  
 

 
  
  
 

 
 Item 1. Legal Proceedings
 
 44
 
 

 
  
  
 

 
 Item 1A. Risk Factors
 
 44
 
 

 
  
  
 

 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
 46
 
 

 
  
  
 

 
 Item 3. Defaults Upon Senior Securities
 
 46
 
 

 
  
  
 

 
 Item 4. Mine Safety Disclosures
 
 46
 
 

 
  
  
 

 
 Item 5. Other Information
 
 46
 
 

 
  
  
 

 
 Item 6. Exhibits
 
 47
 
 

 
  
  
 

 
 Signatures
 
 48
 
 

 
 
  

 
 
 
 
  
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 

 
  
 

 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

  

 This quarterly report on Form 10-Q (this “Report”) contains statements that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and its rules and regulations (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, and its rules and regulations (the “Exchange Act”). These forward-looking statements include, but are not limited to, statements about the plans, objectives, expectations and intentions of TaoWeave, Inc. (“TaoWeave” or “we” or “us” or the “Company”). All statements other than statements of current or historical fact contained in this Report, including statements regarding TaoWeave’s future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” and similar expressions, as they relate to TaoWeave, are intended to identify forward-looking statements. These statements are based on TaoWeave’s current plans, and TaoWeave’s actual future activities and results of operations may be materially different from those set forth in the forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. Any or all of the forward-looking statements in this Report may turn out to be inaccurate. TaoWeave has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, and financial needs. The forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks, uncertainties, and assumptions. There are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including our plans, objectives, expectations and intentions and other factors that are discussed under the section entitled “Part I. Item 1A. Risk Factors” and in our consolidated financial statements and the footnotes thereto for the fiscal year ended December 31, 2025, each included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on March 20, 2026, as well as under “Part II. Item 1A. Risk Factors” in this report. TaoWeave undertakes no obligation to publicly revise these forward-looking statements to reflect events occurring after the date hereof. All subsequent written and oral forward-looking statements attributable to TaoWeave or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained in this Report. Forward-looking statements in this Report include, among other things: the Company's plans to explore partnerships within the Bittensor ecosystem, demand for our product offerings, future revenues, expenses, capital expenditures and cash flows; our ability to fund operations and continue as a going concern; our liquidity projection; expectations regarding adjustments to our cost of revenue and other operating expenses; the future exercise of warrants; our ability to raise capital through sales of additional equity or debt securities and/or loans from financial institutions; our beliefs about the ongoing performance of our Managed Services business; statements relating to market need and evolution of the industry, our solutions and our service platforms;  our beliefs about employee relations;  adequacy of our internal controls; and statements regarding our information systems and ability to prevent cybersecurity incidents. 

 Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below:

  

 
 
 
 • 
 
 our ability to raise capital in one or more debt and/or equity offerings in order to fund operations or any growth initiatives, and our ability to continue as a going concern;
 
 

 
 
 
 
 
 • 
 
 the impact of conversions of our Series F Preferred Stock to Common Stock, exercises of the Series F Preferred Stock warrants and Common Warrants, Pre-Funded Warrants, and sales of the underlying conversion shares;
 
 

 
 
 
 
 
 • 
 
 the rewards and costs of staking transactions on blockchains;
 

 
 • 
 
 fluctuations in the price of our digital assets;
 

 
 •
 potential decreases in the value of our digital assets and rewards;
 

 
 •
 risks related to the loss or theft of private withdrawal keys, resulting in the complete loss of digital assets and rewards;
 

 
 
 
 
 
 • 
 
 the ongoing performance of our Managed Services business;
 
 

 
 
 
 
 
 • 
 
 our ability to grow revenue;
 
 

 
 
 
 
 
 • 
 
 risks related to the concentration of our customers and the degree to which our sales, now or in the future, depend on certain large client relationships;
 
 

 
 
 
 
 
 • 
 
 increases in labor costs;
 
 

 
 
 
 
 
 • 
 
 our ability to attract and retain highly skilled personnel;
 
 

 
 
 
 
 
 • 
 
 our reliance on open-source software and technology;
 
 

 
 
 
 
 
 •
 use of cash related to potential repurchases under our Stock Repurchase Program;
 

 
 
 
 
 
 • 
 
 the costs, disruption, and diversion of management’s attention associated with campaigns commenced by activist investors; and
 
 

 
 
 
 
 
 • 
 
 our management’s ability to execute its plans, strategies, and objectives for future operations.
 
 

 
 
  

 
 
 
 
  
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

  

 PART I - FINANCIAL INFORMATION

  

 ITEM 1. FINANCIAL STATEMENTS

  

 TAOWEAVE, INC.

 CONDENSED CONSOLIDATED BALANCE SHEETS

 (In thousands, except shares, par value, and stated value)

  

 
    June 30, 2026
    December 31, 2025
  

   (Unaudited)
      

 ASSETS
         

 Current assets:
         

 Cash and cash equivalents
  $735  $2,258 

 Digital assets
   4,709   5,395 

 Accounts receivable, net
   5   138 

 Prepaid expenses and other current assets
   267   424 

 Total current assets
   5,716   8,215 

 Intangible assets, net
   58   — 

 SAFE investment
   1,000   — 

 Other assets
   2   4 

 Total assets
  $6,776  $8,219 

 LIABILITIES AND STOCKHOLDERS’ EQUITY
         

 Current liabilities:
         

 Accounts payable
  $106  $112 

 Accrued expenses and other current liabilities
   1,176   1,061 

 Deferred revenue
   2   13 

 Total current liabilities
   1,284   1,186 

 Total liabilities
   1,284   1,186 

 Commitments and contingencies (see Note 13)
           

 Stockholders’ equity:
         

 Preferred stock Series F, convertible; $0.0001 par value; $180,000 stated value; 42,000 shares authorized, 150 shares issued and outstanding as of June 30, 2026 and December 31, 2025
   —   — 

 Common stock; $0.0001 par value; 150,000,000 shares authorized, 3,571,590 shares issued, and 3,571,401 outstanding as of June 30, 2026 and December 31, 2025
   —   — 

 Treasury Stock, 189 common shares
   (181)  (181)

 Additional paid-in capital
   245,895   245,843 

 Accumulated deficit
   (240,222)  (238,629)

 Total stockholders’ equity
   5,492   7,033 

 Total liabilities and stockholders’ equity
  $6,776  $8,219 

 

  

  

 See accompanying notes to condensed consolidated financial statements.

 
  
 

  

 
 
 
 
 -1-
 

 

 

 
 
 
 
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 TAOWEAVE, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 (In thousands, except share and per share data)

 (Unaudited)

  

 
    Three Months Ended
    Six Months Ended
  

   June 30,
    June 30,
  

   2026
    2025
    2026
    2025
  

 Revenue
  $522  $592  $1,229  $1,214 

 Cost of revenue
   248   364   485   737 

 Gross profit
   274   228   744   477 

                 

 Operating expenses:
                 

 Research and development
   —   3   —   6 

 Sales and marketing
   —   6   7   14 

 General and administrative
   1,115   902   2,137   1,831 

 Total operating expenses
   1,115   911   2,144   1,851 

 Operating loss
   (841)  (683)  (1,400)  (1,374)

 Other (expense) income, net
                 

 Interest income, net
   13   47   19   73 

 Realized loss on digital assets, net
   (166)  —   (114)  — 

 Unrealized (loss) gain on digital assets, net
   (2,295)  31   (97)  31 

 Total other (expense) income, net
   (2,448)  78   (192)  104 

 Loss before income taxes
   (3,289)  (605)  (1,592)  (1,270)

 Income tax expense
   1   —   1   7 

 Net loss
   (3,290)  (605)  (1,593)  (1,277)

 Preferred stock dividends
   4   13   8   25 

 Net loss attributable to common stockholders
  $(3,294) $(618) $(1,601) $(1,302)

                 

 Net loss attributable to common stockholders per share:
                 

 Basic and diluted net loss per share
  $(0.84) $(0.38) $(0.41) $(0.86)

 Weighted-average number of shares of Common Stock:
                 

 Basic and diluted
   3,913,471   1,613,483   3,913,471   1,514,829 

 

  

 See accompanying notes to condensed consolidated financial statements.

  

 
 
 
 
 -2-
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

  

 TAOWEAVE, INC.

 CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 Three Months Ended June 30, 2026

 (In thousands, except shares data)

 (Unaudited)

  

 
    Series F Preferred Stock
    Common Stock
    Treasury Stock
              

                           Additional
    Accumulated
      

   Shares
    Amount
    Shares
    Amount
    Shares
    Amount
    Paid-In Capital
    Deficit
    Total
  

 Balance on December 31, 2025
   150  $—   3,327,399  $—   189  $(181) $245,843  $(238,629) $7,033 

 Net income
   —   —   —   —   —   —   —   1,697   1,697 

 Series F Preferred Stock dividends
   —   —   —   —   —   —   (4)  —   (4)

 Balance on March 31, 2026
   150  $—   3,327,399  $—   189  $(181) $245,839  $(236,932) $8,726 

 Net loss
   —   —   —   —   —   —   —   (3,290)  (3,290)

 Closing warrant issuance
   —   —   —   —   —   —   60   —   60 

 Pre-Funded warrant exercise
   —   —   244,191   —   —   —   —   —   — 

 Series F Preferred Stock dividends
   —   —   —   —   —   —   (4)  —   (4)

 Balance on June 30, 2026
   150   —   3,571,590   —   189   (181)  245,895   (240,222)  5,492 

 

  

 
 
 
 
 -3-
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 TAOWEAVE, INC.

 CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

 Three Months Ended June 30, 2025

 (In thousands, except shares data)

 (Unaudited)

  

 
    Series F Preferred Stock
    Common Stock
    Treasury Stock
              

                           Additional
    Accumulated
      

   Shares
    Amount
    Shares
    Amount
    Shares
    Amount
    Paid-In Capital
    Deficit
    Total
  

 Balance on December 31, 2024
   545  $—   1,144,926  $—   189  $(181) $236,458  $(232,274) $4,003 

 Net loss
   —   —   —   —   —   —   —   (672)  (672)

 Common warrant exercise, net of fees
   —   —   10,000   —   —   —   31   —   31 

 Series F Preferred Stock dividends
   —   —   —   —   —   —   (12)  —   (12)

 Balance on March 31, 2025
   545  $—   1,154,926  $—   189  $(181) $236,477  $(232,946) $3,350 

 Net loss
   —   —   —   —   —   —   —   (605)  (605)

 Proceeds from Private Placement, net of fees
   —   —   —   —   —   —   6,925   —   6,925 

 Advisor warrant issuance
   —   —   —   —   —   —   335   —   335 

 Common warrant exercise, net of fees
   —   —   394,864   —   —   —   1,241   —   1,241 

 Series F Preferred Stock conversions
   (190)  —   45,163   —   —   —   19   —   19 

 Series F Preferred Stock dividends
   —   —   —   —   —   —   (13)  —   (13)

 Balance on June 30, 2025
   355   —   1,594,953   —   189   (181)  244,984   (233,551)  11,252 

 

  

 See accompanying notes to condensed consolidated financial statements.

  

 
 
 
 
 -4-
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

 
  
 

  

 TAOWEAVE, INC.

 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (In thousands)

 (Unaudited)

  

 
    Six Months Ended June 30,
  

   2026
    2025
  

 Cash flows from operating activities:
         

 Net loss
  $(1,593) $(1,277)

 Adjustments to reconcile net loss to net cash used in operating activities:
         

 Bad debt recovery
   —   (18)

 Amortization expense
   2   — 

 Stock-based expense
   166   — 

 Non-cash revenue from digital assets
   (191)  (2)

 Unrealized net loss (gain) on digital assets
   97   (31)

 Realized net loss on sale of digital assets
   114   — 

 Changes in operating assets and liabilities:
         

 Accounts receivable
   133   190 

 Prepaid expenses and other current assets
   (9)  (114)

 Other assets
   2   1 

 Accounts payable
   (6)  17 

 Accrued expenses and other current liabilities
   107   522 

 Deferred revenue
   (11)  (5)

 Net cash used in operating activities
   (1,189)  (717)

 Cash flows from investing activities:
         

 Purchases of digital assets
   (506)  (1,650)

 Proceeds from the sale of digital assets
   1,172   — 

 Investment in Manako Labs, Ltd.
   (1,000)  — 

 Net cash used in investing activities
   (334)  (1,650)

 Cash flows from financing activities:
         

 Proceeds from private placement, net of issuance costs
   —   6,925 

 Proceeds from exercise of common stock warrants, net of costs
   —   1,272 

 Net cash provided by financing activities
   —   8,197 

 (Decrease) increase in cash
   (1,523)  5,830 

 Cash and cash equivalents at beginning of period
   2,258   4,965 

 Cash and cash equivalents at end of period
  $735  $10,795 

         

 Supplemental disclosures of cash flow information:
         

         

 Reconciliation of cash and cash equivalents
         

 Cash
  $735  $10,295 

 Current certificates of deposit
   —   500 

 Total cash and cash equivalents
  $735  $10,795 

         

 Non-cash investing and financing activities:
         

 Common warrant issuance
  $60  $335 

 Series F Preferred Stock conversion
  $—  $19 

 Series F Preferred Stock dividends
  $8  $25 

 

  

  

  

  

 See accompanying notes to condensed consolidated financial statements.

  

 
 
 
 
 -5-
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 

  

 TAOWEAVE, INC.

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 Three and Six Months Ended June 30, 2026

 (Unaudited)

  

 
  
 

 
 Note 1 - Business Description and Significant Accounting Policies

  

 Business Description

  

 TaoWeave, Inc. ("TaoWeave" or the "Company") was formed as a Delaware corporation in May 2000.

  

 TaoWeave is focused on the Bittensor ecosystem, a decentralized, open-source protocol that coordinates the development and deployment of artificial intelligence (“AI”) models. The Company's principal asset is TAO, Bittensor’s native cryptocurrency, which the Company accumulates and stakes on the Bittensor network to generate yield in the form of additional TAO tokens. The Company's goal is to provide public-market investors with economic exposure to the Bittensor ecosystem. The Company also operates legacy businesses including managed services for network solutions and video collaboration and collaboration products.

  

 

 Basis of Presentation
  
 The Company’s fiscal year ends on December 31 of each calendar year. The accompanying interim Condensed Consolidated Financial Statements are unaudited and have been prepared on substantially the same basis as the Company's annual Consolidated Financial Statements for the fiscal year ended December 31, 2025. In the opinion of the Company’s management, these interim Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company's financial position, results of operations, and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates.
  
 The December 31, 2025 Condensed Consolidated Balance Sheet data in this document was derived from audited consolidated financial statements. The Condensed Consolidated Financial Statements and notes included in this quarterly report on Form 10-Q do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2025, and notes thereto included in the Company’s fiscal 2025 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on  March 20, 2026 (the “2025 Annual Report”).
  
 The results of operations and cash flows for the interim periods included in these Condensed Consolidated Financial Statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.

 

  

 

 Principles of Consolidation
  
 The Condensed Consolidated Financial Statements include the accounts of TaoWeave and the Company's 100%-owned subsidiaries (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, and (ii) Oblong Industries, Inc. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries.

 

  

 

 Cash and Cash Equivalents
  
 As of June 30, 2026, the Company's total cash balance of $735,000 is available. As of December 31, 2025, the Company's total cash balance of $2,258,000 was available, with $500,000 held in short-term certificates of deposit with MidFirst Bank. The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents.

 

  

 
 
 
 
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 6-
 

 

 

 
 
 
 
 Table of Contents
 

 

 

 
  
 

 Stock-Based Expense
  
 In June 2025, the Company granted warrants to an advisor related to digital assets. See Note 8 - Capital Stock for further information. The total stock-based cost of these warrants is $335,000, which was expensed ratably over the twelve-month original life of the contract and the vesting period of the warrants. During the three and six months ended June 30, 2026, $82,000 and $166,000 was recorded as stock-based advisory fees in general and administrative expense, respectively. During the year ended December 31, 2025, $169,000 was recorded as stock-based advisory fees in general and administrative expense, and as of June 30, 2026, no expense remains to be recognized.

 

  

 

 Segments
  
 The Company currently operates in three segments: (1) "Digital Assets", which represents the business surrounding the Company's treasury activity with Bittensor, (2) “Managed Services”, which represents the business surrounding managed services for video collaboration and network solutions, and (3) “Collaboration Products”, which represents the business surrounding the Company's Mezzanine™ product offerings. See Note 12 - Segment Reporting for further discussion. The Company continually evaluates its operations for changes in its segment activity.

 

  

 

 Use of Estimates
  
 Preparation of the Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. The Company continually evaluates the reasonableness of estimates used in the preparation of the Company's consolidated financial statements. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include determining estimated credit losses, the inputs used to determine the fair value of equity-based awards, fair value of the SAFE investment, and the fair value of digital assets.

 

  

 Significant Accounting Policies

  

 The significant accounting policies used in the preparation of these Condensed Consolidated Financial Statements are disclosed in the Company's 2025 Annual Report and there have been no changes, other than those listed below, to the Company’s significant accounting policies during the six months ended June 30, 2026.

  

 

 Investments in Equity Securities. Investments in equity securities and other ownership interests in entities that the Company does not consolidate and over which it does not exercise significant influence are accounted for under ASC 321. The Company evaluates each investment for embedded features requiring bifurcation under ASC 815-15; where separation is required, the host instrument remains within ASC 321. Equity securities with a readily determinable fair value are measured at fair value with changes recognized in net income. For equity securities without a readily determinable fair value, the Company may elect the fair value option under ASC