5. Dogecoin Cash Token

6 Months Ended

Jun. 30, 2025

Notes

5. Dogecoin Cash Token

5. Dogecoin Cash Token

On November 13, 2024, the Company completed the acquisition of 100% of the membership interests of DogeSPAC LLC, a Colorado limited liability company. As a result of the acquisition, the Company obtained 600,000,000 Dogecoin Cash ($DOG) tokens.

In consideration for the acquisition, the Company issued 4,500,000 shares of its Series A Preferred Stock to the seller. The Series A Preferred Stock is not convertible but is redeemable at the option of the Company over a ten-year period. Additionally, upon declaration of dividends by the Company’s board of directors, each share of Series A Preferred Stock is entitled to receive one share of common stock per year as a dividend in kind.

Although the Series A Preferred Stock is not convertible, the Company evaluated its fair value based on its redeemable nature and the economic substance of the dividend rights. Based on the Company’s intent to redeem the shares by issuing common stock in lieu of cash, the economic value of the Series A Preferred Stock was determined based on the implied issuance of 45,000,000 shares of common stock (4.5 million Preferred × 10 years × 1 common per year). The fair value of the consideration transferred was calculated as follows:

45,000,000 × $0.00680 (common stock price on 11/13/24) = $306,000

Accordingly, the Company recorded the following journal entry:

Account	Debit	Credit
Investment in DogeSPAC LLC	$306,000
Series A Preferred Stock (par)		$4,500
Additional Paid in Capital		$301,500

Valuation of Dogecoin Cash Tokens

Although the quoted market price of Dogecoin Cash tokens on the acquisition date was $0.009562 per token—resulting in a nominal fair value of $5,737,200—the Company has elected to record the tokens at historical cost. This decision reflects management’s view that the asset’s market is unstable and lacks sufficient liquidity to justify fair value recognition. Contributing factors include low trading volume, limited exchange availability, high price volatility, and minimal market depth.

Nonetheless, in accordance with ASC 820, Fair Value Measurement, the Company performed a fair value analysis as of December 31, 2024, to evaluate potential reporting disclosures. Due to the absence of an active market and the presence of significant unobservable inputs, the Company classified the valuation as a Level 3 fair value measurement.

To estimate fair value, the Company applied a weighted illiquidity discount model based on the following inputs:

- Low Trading Volume: 30% weight, 60% discount (18.00% weighted)

- Exchange Availability: 25% weight, 70% discount (17.50% weighted)

- Market Depth: 20% weight, 65% discount (13.00% weighted)

- Community Strength: 15% weight, 50% discount (7.50% weighted)

- Volatility Risk: 10% weight, 75% discount (7.50% weighted)

Total weighted illiquidity discount: 63.5%

Fair value calculation (for disclosure purposes only):

- Nominal Market Value: 600,000,000 × $0.009562 = $5,737,200  

- Adjusted Fair Value: $5,737,200 × (1 – 0.635) = $2,097,222

This fair value was not recorded on the balance sheet. Instead, the Company continues to carry the Dogecoin Cash tokens at historical cost ($306,000), based on the consideration transferred in the acquisition, until such time that market conditions stabilize and fair value can be reliably measured.

Management will continue to monitor market developments and evaluate potential impairment or revaluation in future periods as necessary.

On May 22, 2025 the Company entered into an agreement with Bots, Inc to purchase 420,000,000 million Dogecoin Cash tokens in exchange for 4,200,000 shares of the Company’s common stock. This acquisition was valued at $4,200 and the shares were issued to Bots, Inc on June 12, 2025.

On June 25, 2025, Meme Coins Inc., a 100% controlled subsidiary of Dogecoin Cash, Inc. entered into a definitive Digital Asset Purchase Agreement with Tipestry, Inc., a Delaware corporation. Pursuant to the agreement, Meme Coins agreed to acquire 3,000,000,000 Dogecoin Cash tokens (crypto symbol: DOG) in exchange for 375,000 shares of

Meme Coins Inc.’s preferred stock. The preferred shares entitle the holder to one vote per share and are non-convertible unless authorized by the board of directors and approved by a majority of the outstanding Class A Preferred shareholders. The par value of the preferred stock is $20 therefore the cost of the acquired Dogecoin cash tokens were valued at $7,500,000. Due to the same factors of instability in the coin, the value of the coins were discounted by 95% to the lowest closing value of the coin from the acquisition to the end of the June 30th quarter which was $0.002801, which calculated to an impairment of the investment in the coins in the amount of $7,079,850 as reported in the statement of operations for the three and six months ended June 30, 2025 attributable 100% to the non-controlling interest in Meme Coins Inc.