| Schedule of Financial Assets and Liabilities that are Measured at Fair Value on a Recurring Basis |
Financial assets and liabilities that are measured at fair value on a recurring basis are classified as Level 1, Level 2, and Level 3 as follows:
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As of March 31, 2026 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Digital assets |
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$ |
61,609,205 |
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$ |
61,609,205 |
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$ |
- |
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$ |
- |
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Total assets |
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$ |
61,609,205 |
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$ |
61,609,205 |
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$ |
- |
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$ |
- |
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Liabilities: |
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Customer rewards liability |
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$ |
5,253,902 |
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$ |
- |
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$ |
- |
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$ |
5,253,902 |
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February 2026 Investor Note - embedded derivative |
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63,418 |
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- |
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- |
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63,418 |
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Total liabilities |
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$ |
5,317,320 |
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$ |
- |
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$ |
- |
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$ |
5,317,320 |
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As of December 31, 2025 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Digital assets |
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$ |
140,531,660 |
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$ |
140,531,660 |
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$ |
- |
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$ |
- |
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Total assets |
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$ |
140,531,660 |
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$ |
140,531,660 |
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$ |
- |
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$ |
- |
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Liabilities: |
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Customer rewards liability |
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$ |
6,872,869 |
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$ |
- |
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$ |
- |
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$ |
6,872,869 |
|
March 2025 Investor Note |
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47,207,556 |
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- |
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- |
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47,207,556 |
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Total liabilities |
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$ |
54,080,425 |
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$ |
- |
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$ |
- |
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$ |
54,080,425 |
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| Summary of Significant Inputs which the Fair Value Measurements Associated with Convertible Note |
The following table summarizes the significant inputs which the fair value measurements associated with the convertible note was determined:
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As of March 31, 2026 |
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As of December 31, 2025 |
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Risk-free rate (continuously compounded) |
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- |
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3.60 |
% |
Fold volatility (annual) |
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- |
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99.16 |
% |
Bitcoin volatility (annual) |
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- |
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52.03 |
% |
Note term |
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- |
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4.18 Years |
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Fold stock price |
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- |
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$ |
2.61 |
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Bitcoin price |
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- |
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$ |
87,508.83 |
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Correlation (Fold and Bitcoin) |
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- |
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|
0.4289 |
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Conversion price |
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- |
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$ |
12.50 |
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Dividend yield (annual) |
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- |
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|
0.00 |
% |
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| Summary of Changes in Fair Value Associated With Level 3 |
The following table summarizes the changes in fair value associated with Level 3 convertible note financial instruments held at the beginning or end of the periods presented:
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Convertible Note |
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Balance at January 1, 2025 |
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$ |
- |
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Additions |
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46,279,500 |
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Fair value adjustment - day one loss on issuance of debt |
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12,753,994 |
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Fair value adjustment - change in fair value |
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(6,219,851 |
) |
Balance at March 31, 2025 |
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$ |
52,813,643 |
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Fair value adjustment - change in fair value |
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(5,606,087 |
) |
Balance at December 31, 2025 |
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$ |
47,207,556 |
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Fair value adjustment - change in fair value |
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(13,200,089 |
) |
Settlement - delivery of 500 bitcoin |
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(34,007,467 |
) |
Balance at March 31, 2026 |
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$ |
- |
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