INVESTMENTS IN EQUITY METHOD INVESTEE

3 Months Ended

Mar. 31, 2026

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN EQUITY METHOD INVESTEE

10. INVESTMENTS IN EQUITY METHOD INVESTEE

The Company’s investments in its related party 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)	March 31, 2026			December 31, 2025
Balance, beginning of year	$	148		$	147
SAFE Investments		-			267
Loss on equity method investment		(117	)		(266	)
Balance, end of period	$	31		$	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. See Note 18 – Related Party Transactions.

In March 2025, the Company entered into a Master Services Agreement with MagicBlocks for a monthly service fee of $10,000, which was amended on August 27, 2025 to $20,000, whereby MagicBlocks provides the Company certain services.