INVESTMENTS IN EQUITY METHOD INVESTEE

12 Months Ended

Dec. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN EQUITY METHOD INVESTEE

12. INVESTMENTS IN EQUITY METHOD INVESTEE

The Company’s investments in its equity method investee, MagicBlocks, include its equity method investment and its SAFEs on the consolidated balance sheets, which consisted of the following:

(Dollars in thousands)
Balance, October 8, 2024	$	75
Advances converted to SAFE		130
Loss on equity method investment		(58	)
Balance, December 31, 2024	$	147
SAFE Investments		267
Loss on equity method investment		(266	)
Balance, December 31, 2025	$	148

Intercompany profits and losses resulting from transactions between the Company and MagicBlocks are eliminated with the resulting adjustments recorded to the carrying amount of the investment and the Company’s share of losses of MagicBlocks.

In March 2025, the Company entered into a Master Services Agreement with MagicBlocks for a monthly service fee of $10,000, and was amended on August 27, 2025 to $20,000, whereby MagicBlocks provides the Company certain services. For the year ended December 31, 2025, the Company paid MagicBlocks $0.1 million in service fees related to its Master Services Agreement.