Datacentrex, Inc.

Previous wording

The following discussion reflects the operations of Doge and its successors for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025. The Company began the first quarter of 2025 with an initial deployment of approximately 1,500 Scrypt ASIC miners at a single colocation facility outside of the United States. Over the course of 2025, Doge deployed additional units in domestic colocation sites, relocated the original fleet of approximately 1,500 miners back to the United States and continued to deploy additional rigs. As of June 30, 2026, our total operating fleet consisted of 3,085 Scrypt ASIC miners deployed across four geographically diversified colocation facilities, all located in the United States with no material additions or removals during the quarter then ended.

Current wording

The following discussion reflects the operations of Doge and its successors for the three and nine months ended September 30, 2026, as compared to the three and nine months ended September 30, 2025. The Company began the first quarter of 2025 with an initial deployment of approximately 1,500 Scrypt ASIC miners at a single colocation facility outside of the United States. Over the course of 2025, Doge deployed additional units in domestic colocation sites, relocated the original fleet of approximately 1,500 miners back to the United States and continued to deploy additional rigs. As of September 30, 2026, our total operating fleet consisted of 3,085 Scrypt ASIC miners deployed across four geographically diversified colocation facilities, all located in the United States with no material additions or removals during the quarter then ended.

Previous wording

We manage a treasury of digital assets and cash intended to preserve capital, maintain liquidity, and enhance long-term value creation. As of June 30, 2026, the Company held over $5.9 million in digital assets, comprising a mix of Bitcoin accumulated through hashrate marketplace settlement and unsold Dogecoin and Litecoin from pool-based mining. Management expects that future treasury concentration will favor Bitcoin over time, consistent with the Company’s hashrate marketplace monetization model in which settlement is typically received in Bitcoin.

Current wording

We manage a treasury of digital assets and cash intended to preserve capital, maintain liquidity, and enhance long-term value creation. As of September 30, 2026, the Company held over $1.7 million in digital assets, comprising a mix of Bitcoin accumulated through hashrate marketplace settlement and unsold Dogecoin and Litecoin from pool-based mining. Management expects that future treasury concentration will favor Bitcoin over time, consistent with the Company’s hashrate marketplace monetization model in which settlement is typically received in Bitcoin.

Previous wording

The Company’s operations are principally operated remotely at various data centers throughout the United States. The Company’s principal address is 470 W 200 N STE 18, Salt Lake City, UT 84103 and its telephone number is (800) 403-6150. The Company’s website address is www.datacentrex.com. The information provided on the Company’s website or connected thereto does not constitute part of, and is not incorporated by reference into, this quarterly report on Form 10-Q.

Current wording

The Company’s operations are principally conducted remotely at various data centers throughout the United States. The Company’s principal address is 470 W 200 N STE 18, Salt Lake City, UT 84103 and its telephone number is (800) 403-6150. The Company’s website address is www.datacentrex.com. The information provided on the Company’s website or connected thereto does not constitute part of, and is not incorporated by reference into, this quarterly report on Form 10-Q.

Previous wording

The Company currently operates under three colocation arrangements that provide access to electric power sourced from the Electric Reliability Council of Texas (ERCOT) grid, the Midcontinent Independent System Operator (MISO) grid, and the Georgia Power grid, respectively. These arrangements allow Datacentrex to diversify geographic exposure, grid risk, and operational dependencies while supporting deployment of its existing fleet. Hosting arrangements expose the Company to counterparty risk, including the risk that a hosting provider fails to perform its obligations, experiences operational disruptions, or becomes financially distressed. Hosting agreements may also include provisions related to curtailment, maintenance windows, capacity constraints, or other operational limitations that can affect uptime and revenue.

Current wording

The Company currently operates under four colocation arrangements that provide access to electric power sourced from the Electric Reliability Council of Texas (ERCOT) grid, the Midcontinent Independent System Operator (MISO) grid, and the Georgia Power grid, respectively. These arrangements allow Datacentrex to diversify geographic exposure, grid risk, and operational dependencies while supporting deployment of its existing fleet. Hosting arrangements expose the Company to counterparty risk, including the risk that a hosting provider fails to perform its obligations, experiences operational disruptions, or becomes financially distressed. Hosting agreements may also include provisions related to curtailment, maintenance windows, capacity constraints, or other operational limitations that can affect uptime and revenue.

Previous wording

*Fleet Scaling and Deployment.*The Company began the second quarter of 2026 with a total operating fleet of 3,085 Scrypt ASIC miners deployed across four geographically diversified colocation facilities, all located in the United States. The fleet remained stable during the quarter, with no material additions or removals and no changes to colocation arrangements or contracted power capacity.

Current wording

*Fleet Scaling and Deployment.*The Company began the third quarter of 2026 with a total operating fleet of 3,085 Scrypt ASIC miners deployed across four geographically diversified colocation facilities, all located in the United States. The fleet remained stable during the quarter, with no material additions or removals and no changes to colocation arrangements or contracted power capacity.

Previous wording

*Hashrate and Power Capacity.*As of June 30, 2026, the Company’s fleet of 3,085 operating Scrypt ASIC miners had an average nameplate capacity of approximately 14 GH/s per unit, representing aggregate deployed hashrate of approximately 43.2 TH/s at full uptime. The fleet’s average nameplate power consumption was approximately 3.95 kW per unit, representing approximately 12.5 MW of total deployed power capacity across the Company’s four colocation facilities.

Current wording

*Hashrate and Power Capacity.*As of September 30, 2026, the Company’s fleet of 3,085 operating Scrypt ASIC miners had an average nameplate capacity of approximately 14 GH/s per unit, representing aggregate deployed hashrate of approximately 43.2 TH/s at full uptime. The fleet’s average nameplate power consumption was approximately 3.95 kW per unit, representing approximately 12.2 MW of total deployed power capacity across the Company’s four colocation facilities.

Previous wording

*Revenue and Financial Performance.*For the quarter ended June 30, 2026, the Company generated revenues of approximately $1.9 million from digital asset mining operations, with cost of revenue of approximately $1.7 million and gross profit of approximately $0.2 million. The Company reported a net loss attributable to common stockholders of approximately $5.5 million, driven primarily by depreciation expense of $3.3 million on mining equipment (amortized over a two-year useful life), stock-based compensation of $0.8 million, and general and administrative expenses associated with operating as a public company. Adjusted EBITDA, which is defined as net loss, adjusted for impacts of interest expense, income tax provision or benefit and depreciation and amortization, and non-cash stock-based compensation was approximately $(1.3) million for the period, reflecting the impact of net realized and unrealized losses on digital assets held in treasury during the period.

Current wording

*Revenue and Financial Performance.*For the quarter ended September 30, 2026, the Company generated revenues of approximately $1.7 million from digital asset mining operations, with cost of revenue of approximately $1.7 million and gross profit of approximately $0.1 million. The Company reported a net loss attributable to common stockholders of approximately $2.6 million, driven primarily by depreciation expense of $3.3 million on mining equipment (amortized over a two-year useful life), stock-based compensation of $0.7 million, and general and administrative expenses associated with operating as a public company. Adjusted EBITDA, which is defined as net loss, adjusted for impacts of interest expense, income tax provision or benefit and depreciation and amortization, and non-cash stock-based compensation was approximately $1.3 million for the period, reflecting the impact of net realized and unrealized gains on digital assets held in treasury during the period.

Previous wording

Our results are primarily driven by realized revenue rates per unit of hashrate deployed, power costs and facility-level economics, fleet uptime and operational execution, hardware supply and replacement cycle dynamics, digital asset market conditions, and treasury and capital allocation decisions. For a further discussion of these key operating inputs, see Item 1, “Business — Key Operating Inputs” and the discussion of results of operations below.

Current wording

Our results are primarily driven by realized revenue rates per unit of hashrate deployed, power costs and facility-level economics, fleet uptime and operational execution, hardware supply and replacement cycle dynamics, digital asset market conditions, and treasury and capital allocation decisions. For a further discussion of these key operating inputs, see “Key Factors that Affect Operating Results — Key Operating Inputs” above and the discussion of results of operations below.

Previous wording

The Company generated revenues of $1,913,779 for the three months ended June 30, 2026, as compared to $1,928,587 for the three months ended June 30, 2025. Revenue was relatively consistent for the three months ended June 30, 2026 and 2025 due to steady levels of operating activity during both periods. Cryptocurrency mining revenues are significantly affected by volatility in digital asset prices, changes in the blockchain network hash rate, increases in the overall quantity and efficiency of rigs utilizing the Scrypt mining algorithm, and changes in the difficulty index associated with solving blocks on the blockchain.

Current wording

The Company generated revenues of $1,736,681 for the three months ended September 30, 2026, as compared to $2,449,482 for the three months ended September 30, 2025. Revenue decreased by $712,801, or approximately 29%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. Cryptocurrency mining revenues are significantly affected by volatility in digital asset prices, changes in the blockchain network hash rate, increases or decreases in the overall quantity and efficiency of rigs utilizing the Scrypt mining algorithm, and changes in the difficulty index associated with solving blocks on the blockchain.

Previous wording

Cost of revenue for the three months ended June 30, 2026 of approximately $1,708,524 consisted primarily of direct production costs of the mining operations, including utilities and fees paid to the Company’s colocation agreement hosts, but excluding depreciation and amortization, which are separately stated. By comparison, cost of revenue for the three months ended June 30, 2025 of approximately $998,062 consisted primarily of direct production costs of the mining operations, including utilities and fees paid to the Company’s colocation agreement hosts. The increase of $710,462 reflects the increased power rates of the Company’s deployed mining fleet.

Current wording

Cost of revenue for the three months ended September 30, 2026 of approximately $1,657,145 consisted primarily of direct production costs of the mining operations, including utilities and fees paid to the Company’s colocation agreement hosts, but excluding depreciation and amortization, which are separately stated. By comparison, cost of revenue for the three months ended September 30, 2025 of approximately $998,496 consisted primarily of direct production costs of the mining operations, including utilities and fees paid to the Company’s colocation agreement hosts. The increase of $658,649 reflects the increased number of units of the Company’s deployed mining fleet.

Previous wording

For the three months ended June 30, 2026 the Company incurred operating expenses of $5,001,465, consisting of general and administrative expenses of $863,281, depreciation and amortization of $3,287,326, and stock-based compensation of $850,858. General and administrative expenses primarily reflect legal, accounting, and other professional fees, payroll and outside consultant fees, insurance, and public company compliance costs. Depreciation and amortization expense is primarily attributable to in-service mining equipment, which is amortized over a two-year useful life. Stock-based compensation reflects expense recognized under the Company’s equity incentive plan for eligible employees and directors. For the three months ended June 30, 2025 the Company incurred operating expenses of $2,355,630, consisting of general and administrative expenses of $193,099, depreciation and amortization of $2,162,531, and no stock-based compensation. The increase of $2,645,835 in operating expenses period over period is primarily attributable to increases in depreciation expense of $1,124,795 reflecting the substantially larger in-service mining fleet, stock-based compensation of $850,858, legal and accounting fees of approximately $254,000, and payroll and outside consultant fees of approximately $356,000.

Current wording

For the three months ended September 30, 2026 the Company incurred operating expenses of $4,879,918, consisting of general and administrative expenses of $935,781, depreciation and amortization of $3,275,361, and stock-based compensation of $668,776. General and administrative expenses primarily reflect legal, accounting, and other professional fees, payroll and outside consultant fees, insurance, and public company compliance costs. Depreciation and amortization expense is primarily attributable to in-service mining equipment, which is amortized over a two-year useful life. Stock-based compensation reflects expense recognized under the Company’s equity incentive plan for eligible employees and directors. For the three months ended September 30, 2025 the Company incurred operating expenses of $3,108,862, consisting of general and administrative expenses of $931,739, depreciation and amortization of $2,177,123, and no stock-based compensation. The increase of $1,771,056 in operating expenses period over period is primarily attributable to increases in depreciation expense of $1,098,238 reflecting the substantially larger in-service mining fleet, stock-based compensation of $668,776 and general and administrative expenses of $4,042.

Previous wording

The Company realized a net loss from operations of $4,796,210 for the three months ended June 30, 2026, as compared to a net loss from operations of $1,425,105 for the three months ended June 30, 2025, which is attributed to the reasons stated above in the section “Operating Expenses.”

Current wording

The Company realized a net loss from operations of $4,800,382 for the three months ended September 30, 2026, as compared to a net loss from operations of $1,657,876 for the three months ended September 30, 2025, which is attributed to the reasons stated above in the section “Operating Expenses.”

Previous wording

For the three months ended June 30, 2026, the Company had $672,147 in other expense, net. This included net unrealized and realized loss on digital assets of $1,269,425 and interest income, net, of $597,278. For the three months ended June 30, 2025, the Company had $104,125 in other expense, net, consisting of net unrealized and realized gain on digital assets of $72,381 and interest expense, net of $176,506.

Current wording

For the three months ended September 30, 2026, the Company had $2,191,780 in other income, net. This included net unrealized and realized gain on digital assets of $2,202,885, a net loss from the change in fair value of derivative of $314,100, and interest income, net, of $302,995. For the three months ended September 30, 2025, the Company had $126,964 in other income, net, consisting of net unrealized and realized gain on digital assets of $234,971, other income of $10,605 and interest expense, net of $118,612.

Previous wording

The Company realized a net loss before income taxes of $5,468,357 for the three months ended June 30, 2026, as compared to $1,529,230 for the three months ended June 30, 2025. Our net losses were due to the reasons stated above in the preceding sections.

Current wording

The Company realized a net loss before income taxes of $2,608,602 for the three months ended September 30, 2026, as compared to $1,530,912 for the three months ended September 30, 2025. Our net losses were due to the reasons stated above in the preceding sections.

Previous wording

The following table sets forth certain selected consolidated statements of operations data for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025.

Current wording

The following table sets forth certain selected consolidated statements of operations data for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025.

Previous wording

The Company generated revenues of $4,092,987 for the six months ended June 30, 2026 as compared to $2,088,212 for the six months ended June 30, 2025. The increase of $2,004,775 was driven primarily growth in the number of deployed units and expanded capacity, as well as the Company’s transition during 2026 to the hashrate marketplace monetization model under which settlement is typically received in Bitcoin.

Current wording

The Company generated revenues of $5,829,668 for the nine months ended September 30, 2026 as compared to $4,537,694 for the nine months ended September 30, 2025. The increase of $1,291,974 was driven primarily by growth in the number of deployed units and expanded capacity, as well as the Company’s transition during 2026 to the hashrate marketplace monetization model under which settlement is typically received in Bitcoin.

Previous wording

Cost of revenue increased by $2,300,820, to $3,374,852 for the six months ended June 30, 2026, from $1,074,032 for the six months ended June 30, 2025. Consistent with the three-month comparison, the increase was primarily attributable to the expansion of the Company’s deployed mining fleet, increased power rates and increased operating activity during 2026.

Current wording

Cost of revenue increased by $2,959,469, to $5,031,997 for the nine months ended September 30, 2026, from $2,072,528 for the nine months ended September 30, 2025. Consistent with the three-month comparison, the increase was primarily attributable to the expansion of the Company’s deployed mining fleet, and increased operating activity during 2026.

Previous wording

For the six months ended June 30, 2026 the Company incurred operating expenses of $10,531,999, consisting of general and administrative expenses of $1,950,490, depreciation and amortization of $6,574,585, and stock-based compensation of $2,006,924. For the six months ended June 30, 2025 the Company incurred operating expenses of $2,746,981, consisting of general and administrative expenses of $394,970, depreciation and amortization of $2,352,011, and no stock-based compensation. The increase of $7,785,018 in operating expenses period over period is primarily attributable to increases in depreciation expense of $4,222,574 reflecting the substantially larger in-service mining fleet, stock-based compensation of $2,006,924, legal and accounting fees of approximately $416,000, insurance cost of approximately $250,000 and payroll and outside consultant fees of approximately $700,000.

Current wording

For the nine months ended September 30, 2026 the Company incurred operating expenses of $15,411,917, consisting of general and administrative expenses of $2,886,271, depreciation and amortization of $9,849,946, and stock-based compensation of $2,675,700. For the nine months ended September 30, 2025 the Company incurred operating expenses of $5,855,843, consisting of general and administrative expenses of $1,326,709, depreciation and amortization of $4,529,134, and no stock-based compensation. The increase of $9,556,074 in operating expenses period over period is primarily attributable to increases in depreciation expense of $5,320,812 reflecting the substantially larger in-service mining fleet, stock-based compensation of $2,675,700 and general and administrative expenses of $1,559,562.

Previous wording

The Company realized a net loss from operations of $9,813,864 for the six months ended June 30, 2026, as compared to a net loss from operations of $1,732,801 for the six months ended June 30, 2025, which is attributed to the reasons stated above in the section “Operating Expenses.”

Current wording

The Company realized a net loss from operations of $14,614,246 for the nine months ended September 30, 2026, as compared to a net loss from operations of $3,390,677 for the nine months ended September 30, 2025, which is attributed to the reasons stated above in the section “Operating Expenses.”

Previous wording

For the six months ended June 30, 2026, the Company had $1,806,200 in other expense, net. This included net unrealized and realized loss on digital assets of $2,481,598, other income of $6,467, and interest income, net, of $668,931. For the six months ended June 30, 2025, the Company had $105,024 in other expense, net, consisting of net unrealized and realized gain on digital assets of $71,482 and interest expense, net of $176,506.

Current wording

For the nine months ended September 30, 2026, the Company had $385,580 in other income, net. This included net unrealized and realized loss on digital assets of $278,713, a net loss from the change in fair value of derivative of $314,100, other income of $6,467, and interest income, net, of $971,926. For the nine months ended September 30, 2025, the Company had $21,940 in other income, net, consisting of net unrealized and realized gain on digital assets of $306,453, other income of $10,605 and interest expense, net of $295,118.

Previous wording

The Company realized a net loss before income taxes of $11,620,064 for the six months ended June 30, 2026, as compared to $1,837,825 for the six months ended June 30, 2025. Our net losses were due to the reasons stated above in the preceding sections.

Current wording

The Company realized a net loss before income taxes of $14,228,666 for the nine months ended September 30, 2026, as compared to $3,368,737 for the nine months ended September 30, 2025. Our net losses were due to the reasons stated above in the preceding sections.

Previous wording

As of June 30, 2026, the Company had cash and cash equivalents of $51,884,089, stockholders’ equity of $74,533,809, and working capital of $58,145,080.

Current wording

As of September 30, 2026, the Company had cash and cash equivalents of $27,547,026, stockholders’ equity of $72,593,983, and working capital of $29,480,615.

Previous wording

The Company’s accumulated deficit was $20,122,949 as of June 30, 2026.

Current wording

The Company’s accumulated deficit was $22,731,551 as of September 30, 2026.

Previous wording

The Company used net cash in operating activities of $4,991,617 for the six months ended June 30, 2026. For the six months ended June 30, 2026, operating cash flows were impacted by depreciation and amortization of $6,574,585, stock-based compensation of $2,006,924, digital asset mining revenue of $4,092,987, net unrealized and realized loss on digital assets of $2,481,598, impairment of capitalized software of $60,092, increase in prepaid expense of $108,694, increase in other receivables of $16,873, and decrease in accounts payable and accrued expenses of $276,198.

Current wording

The Company used net cash in operating activities of $7,516,521 for the nine months ended September 30, 2026. For the nine months ended September 30, 2026, operating cash flows were impacted by depreciation and amortization of $9,849,946, stock-based compensation of $2,675,700, digital asset mining revenue of $5,829,668, net unrealized and realized loss on digital assets of $278,713, net change in fair value of derivative of $314,100, impairment of capitalized software of $60,092, decrease in prepaid expense of $14,611, increase in other receivables of $10,643, and decrease in accounts payable and accrued expenses of $640,706, which included the cash settlement of the derivative liability.

Previous wording

By comparison, the Company used net cash in operating activities of $2,337,272 for the six months ended June 30, 2025. For the six months ended June 30, 2025, operating cash flows were impacted by depreciation and amortization of $2,352,011, digital asset mining revenue of $2,088,212, net unrealized and realized gain on digital assets of $71,482, increase in prepaid expense of $60,691, increase in other assets of $686,893, and increase in accounts payable and accrued expenses of $55,820.

Current wording

By comparison, the Company used net cash in operating activities of $4,481,390 for the nine months ended September 30, 2025. For the nine months ended September 30, 2025, operating cash flows were impacted by depreciation and amortization of $4,529,134, digital asset mining revenue of $4,537,694, net unrealized and realized gain on digital assets of $306,453, amortization of original issue discount of $75,586, increase in prepaid expense of $130,673, increase in other assets of $793,665, and increase in accounts payable and accrued expenses of $50,717.

Previous wording

Net cash provided by investing activities for the six months ended June 30, 2026 was $56,520 consisting of proceeds from the sale of digital assets. The Company did not purchase additional mining equipment or pay deposits on equipment to be received during the period.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2026 was $21,755,639 consisting of the $30.0 million investment in ELNG Class A Common Units, partially offset by $8,244,361 of proceeds from the sale of digital assets. The Company did not purchase additional mining equipment or pay deposits on equipment to be received during the period.

Previous wording

By comparison, net cash used in investing activities for the six months ended June 30, 2025 was $23,988,068. During the six months ended June 30, 2025, the Company purchased $17,423,650 of mining equipment, paid $7,029,862 in deposits on mining equipment to be received, and received $465,444 in proceeds from sale of digital assets.

Current wording

By comparison, net cash used in investing activities for the nine months ended September 30, 2025 was $25,135,788. During the nine months ended September 30, 2025, the Company purchased $23,803,630 of mining equipment, paid $6,063,982 in deposits on mining equipment to be received, and received $29,990 in proceeds from the sale of equipment and $4,701,834 in proceeds from the sale of digital assets.

Previous wording

Cash provided by financing activities for the six months ended June 30, 2026 was $17,899,700, consisting of net proceeds from the Company’s March 2026 confidentially marketed public offering. The Company did not issue Class A-1 or Class A-2 Units during the six months ended June 30, 2026.

Current wording

Cash provided by financing activities for the nine months ended September 30, 2026 was $17,899,700, consisting of net proceeds from the Company’s March 2026 confidentially marketed public offering. The Company did not issue Class A-1 or Class A-2 Units during the nine months ended September 30, 2026.

Previous wording

By comparison, cash provided by financing activities for the six months ended June 30, 2025 was $30,117,402, consisting of $5,250,000 of proceeds from long-term debt net of discount, repayments of long term debt of $3,500,000, $17,945,000 of proceeds from the issuance of Class A-1 Units and $10,422,402 of proceeds from the issuance of Class A-2 Units.

Current wording

By comparison, cash provided by financing activities for the nine months ended September 30, 2025 was $32,117,402, consisting of $8,400,000 of proceeds from long-term debt net of discount, repayments of long term debt of $4,650,000, $17,945,000 of proceeds from the issuance of Class A-1 Units and $10,422,402 of proceeds from the issuance of Class A-2 Units.

Previous wording

June 30, 2026, we had cash and cash equivalents on hand of $51,884,089. We currently have minimal sources of liquidity such as arrangements with credit institutions that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.

Current wording

As of September 30, 2026, we had cash and cash equivalents on hand of $27,547,026. We do not have any credit facilities such as arrangements with credit institutions that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.

Previous wording

The ability to raise funds as equity, debt or conversion of cryptocurrency to maintain our operations is subject to many risks and uncertainties.

Current wording

The ability to raise funds through equity or debt issuances or the conversion of cryptocurrency to maintain our operations is subject to many risks and uncertainties.

Previous wording

The following table presents additional information about our cryptocurrency mining activities in coins and amounts during the six months ended June 30, 2026.

Current wording

The following table presents additional information about our cryptocurrency mining activities in coins and amounts during the nine months ended September 30, 2026.

Previous wording

The following table presents additional information about our cryptocurrency mining activities in coins and amounts during the six months ended June 30, 2025.

Current wording

The following table presents additional information about our cryptocurrency mining activities in coins and amounts during the nine months ended September 30, 2025.

Previous wording

The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into colocation and hosting services agreements with independent data center providers for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. For the six months ended June 30, 2026, the Company incurred approximately $3,374,852 of colocation and hosting-related service expenses, which are included in cost of revenue in the accompanying consolidated statements of operations.

Current wording

The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into colocation and hosting services agreements with independent data center providers for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. For the nine months ended September 30, 2026, the Company incurred approximately $5,031,997 of colocation and hosting-related service expenses, which are included in cost of revenue in the accompanying consolidated statements of operations.

Previous wording

Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric as of the three months ended June 30, 2026 and June 30, 2025, are presented in the table below:

Current wording

Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric for the three months ended September 30, 2026 and September 30, 2025 are presented in the table below:

Previous wording

Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric as of the six months ended June 30, 2026 and June 30, 2025, are presented in the table below:

Current wording

Reconciliations of Adjusted EBITDA to the most comparable U.S. GAAP financial metric for the nine months ended September 30, 2026 and September 30, 2025 are presented in the table below:

Previous wording

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements. These financial statements are prepared in accordance with U.S. GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of our assets, liabilities, revenues, and expenses, to disclose contingent assets and liabilities on the dates of the consolidated financial statements, and to disclose the reported amounts of revenues and expenses incurred during the financial reporting periods. The most significant estimates and assumptions include, but are not limited to, the accounting for digital assets, revenue recognition, useful lives of equipment and the evaluation allowance related to deferred tax assets. We continue to evaluate these estimates and assumptions that we believe to be reasonable under the circumstances. We rely on these evaluations as the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates as a result of changes in our estimates. Some of our accounting policies require higher degrees of judgment than others in their application. We believe critical accounting policies as disclosed in this release reflect the more significant judgments and estimates used in preparation of our consolidated financial statements. For a summary of significant accounting policies, refer to Note 2 Summary of Significant Accounting Policies in our Notes to consolidated financial statements included elsewhere herein.

Current wording

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements. These financial statements are prepared in accordance with U.S. GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of our assets, liabilities, revenues, and expenses, to disclose contingent assets and liabilities on the dates of the consolidated financial statements, and to disclose the reported amounts of revenues and expenses incurred during the financial reporting periods. The most significant estimates and assumptions include, but are not limited to, the accounting for digital assets, revenue recognition, useful lives of equipment and the valuation allowance related to deferred tax assets. We continue to evaluate these estimates and assumptions that we believe to be reasonable under the circumstances. We rely on these evaluations as the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from those estimates as a result of changes in our estimates. Some of our accounting policies require higher degrees of judgment than others in their application. We believe critical accounting policies as disclosed in this Quarterly Report reflect the more significant judgments and estimates used in preparation of our consolidated financial statements. For a summary of significant accounting policies, refer to Note 2 Summary of Significant Accounting Policies in our Notes to consolidated financial statements included elsewhere herein.

Previous wording

The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into colocation and hosting services agreements with independent data center providers for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. For the six months ended June 30, 2026, the Company incurred approximately $3,374,852 of colocation and hosting-related service expenses, which are included in cost of revenue in the accompanying consolidated statements of operations.

Current wording

The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into colocation and hosting services agreements with independent data center providers for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. For the nine months ended September 30, 2026, the Company incurred approximately $5,031,997 of colocation and hosting-related service expenses, which are included in cost of revenue in the accompanying consolidated statements of operations.