Note 2 - Liquidity |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Notes to Financial Statements | |
| Substantial Doubt about Going Concern [Text Block] |
Note 2 - Liquidity
As of December 31, 2025, we had $2,258,000 in cash and cash equivalents, $5,395,000 in digital assets, and working capital of $7,029,000. For the year ended December 31, 2025, we incurred a net loss of $6,355,000, and we used $3,015,000 of net cash in operating activities.
Cash used in investing activities for the year ended December 31, 2025, was $8,736,000, consisting of new investments in digital assets. There was no cash used in investing activities for the year ended December 31, 2024.
Net cash provided by financing activities during the year ended December 31, 2025, was $9,043,000, consisting of net proceeds from the 2025 Private Placement and warrant exercises. Net cash provided by financing activities during the year ended December 31, 2024, was $2,381,000, consisting of net proceeds from warrant exercises (see Note 5 - Capital Stock and Note 6 - Preferred Stock to our Consolidated Financial Statements).
Future Capital Requirements
We believe our existing cash, cash equivalents, and the fair value of our TAO tokens (if converted to cash) will be sufficient to fund our operations and meet our working capital requirements for at least the next twelve months from the filing of this Report. This assessment is based on current market conditions, regulatory environment, and the Company's operational plans, all of which are subject to change. In the long term, we believe additional capital will be required to fund operations and provide growth capital, including expanding our cryptocurrency treasury. To access capital to fund operations or provide growth capital, we will need to raise capital from the exercise of outstanding common and/or preferred warrants, and/or in one or more debt and/or equity offerings. There can be no assurance that we will be successful in raising the necessary capital or that any such offering will be on terms acceptable to the Company. If we are unable to raise additional capital on terms acceptable to us, it could have a material adverse effect on the Company. |