Note 5 - Digital Assets

9 Months Ended

Sep. 30, 2026

Notes to Financial Statements

Crypto Asset [Text Block]

NOTE 5. DIGITAL ASSETS

The Company holds SKY tokens, which it acquired in connection with the January 2026 Private Placement and through subsequent purchases on digital asset exchanges. The Company also receives additional SKY tokens through participation in the Sky Protocol’s staking program, as described below.

The following table summarizes the Company’s digital asset holdings as of September 30, 2026 (in thousands, except number of tokens):

Crypto Asset	Number of Units / Tokens		Cost Basis		Fair Value		Cumulative Unrealized Gain
SKY tokens		2,321,079,862	$	149,340	$	180,209	$	30,869

The Company did not hold any digital assets as of December 31, 2025.

As of September 30, 2026, the Company’s digital assets were not subject to any contractual sale restrictions.

The following table presents a roll forward of the Company’s digital asset holdings for the period ended September 30, 2026 (in thousands, except number of tokens):

	Number of Tokens		Fair Value
Balance at December 31, 2025		—	$	—
Additions:
Received in connection with the January 2026 Private Placement		943,599,689		58,031
Purchased on digital asset exchanges		1,275,778,785		84,500
Received as staking rewards		101,701,388		6,809
Dispositions		—		—
Net change in fair value		N/A		30,869
Balance at September 30, 2026		2,321,079,862	$	180,209

The Company recognized unrealized gain of $58.8 million and $30.9 million on its digital assets during the three and nine months ended September 30, 2026, respectively, representing the change in fair value of SKY tokens held during the period. The Company did not dispose of any SKY tokens during the three and nine months ended September 30, 2026, and accordingly, no realized gains or losses were recognized on SKY tokens.

The 943,599,689 SKY tokens received in connection with the January 2026 Private Placement were initially recorded at a value of approximately $58.0 million, based on a per-token price of $0.0615.

In connection with the January 2026 Private Placement, the Company also received stablecoins (USDT and USDS) with an aggregate fair value of approximately $51.0 million as of the closing date. The Company redeemed all of the stablecoins received for U.S. dollars during the three months ended March 31, 2026, and used a portion of the proceeds to acquire additional SKY tokens. The Company recognized no material gain or loss in connection with the redemption of the stablecoins, which were held for a brief period prior to redemption.

Native Staking

The Company participates in the Sky Protocol’s staking program by locking SKY tokens directly into the protocol’s staking smart contract through wallets controlled by the Company. Unstaking is not subject to any fixed lockup, unbonding period, or exit queue: SKY may be staked and unstaked, and rewards claimed, at any time and in any amount, with no minimum. There is no lockup and, currently, no exit fee. The staking module includes a governance-settable exit fee parameter that is currently set to zero, and exit parameters are governance-adjustable.

As of September 30, 2026, the Company had staked 2,320,499,452 SKY tokens. During the three and nine months ended September 30, 2026, the Company received 34,568,488 SKY tokens and 101,701,388 SKY tokens, respectively, with a fair value of $2.1 million and $6.8 million, respectively, from staking rewards, which was recognized as revenue. See Note 2, “Summary of Significant Accounting Policies,” for the Company’s revenue recognition policy related to staking rewards.