Datacentrex, Inc.

Notes to the Unaudited Condensed Consolidated Financial Statements

September 30, 2026

Note 1 –Business Organization and Nature of Operations

Datacentrex (“DTCX” or the “Company”) was incorporated on October 27, 2020, under the laws of the State of Nevada, and its headquarters is located in Salt Lake City, Utah. The Company is a digital asset mining company focused on mining Dogecoin (“DOGE”) and Litecoin (“LTC”).

Note 2 –Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

These interim Condensed Consolidated Financial Statements (“interim financial statements”) of Datacentrex, Inc. and its subsidiaries (collectively, the “Company”) are unaudited and have been prepared in accordance with the rules of the Securities and Exchange Commission for interim statements. Certain information and footnote disclosures required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) have been condensed or omitted as permitted by such rules, although the Company believes that the disclosures included are adequate to make the information presented not misleading. The interim financial statements included herein are expressed in United States dollars and, in the opinion of management, include all adjustments (all of which are of a normal recurring nature) and disclosures necessary for a fair presentation. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2025, included in the Company’s annual report on Form 10-K. The year-end balance sheet data were derived from the audited financial statements. Unless otherwise noted, there have been no material changes to the footnotes from the audited consolidated financial statements contained in the Company’s annual report on Form 10-K. The Company’s financial statements as of September 30, 2026 and December 31, 2025, and for the three and nine months ended September 30, 2026 and 2025, have been prepared on a consolidated basis and include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The Company prepares its financial statements in accordance with U.S. GAAP, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements and the reported amounts of expenses during the reported period. These assumptions and estimates could have a material effect on the financial statements. Actual results may differ materially from those estimates. The Company’s management periodically reviews estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause the Company to revise these estimates. Significant estimates include estimates used in the accounting for digital assets, revenue recognition, useful lives of equipment and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.

Fair Value Measurement

As defined in GAAP, fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a result, fair value is a market-based approach that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering these assumptions, GAAP defines a three-tier value hierarchy that prioritizes the inputs used in the valuation methodologies in measuring fair value.

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Cash and Cash Equivalents

Cash and cash equivalents include all cash on hand, demand deposits and short-term investments with original maturities of three months or less when purchased.

As of September 30, 2026, and December 31, 2025, the Company’s cash and cash equivalents consisted of $27,547,026 and $38,919,486, respectively. The Company maintains its cash in banks insured by the Federal Deposit Insurance Corporation (“FDIC”) in accounts that at times may be in excess of the federally insured limit of $250,000 per bank. The Company minimizes this risk by placing its cash deposits with major financial institutions. At September 30, 2026, and December 31, 2025, the uninsured balances amounted to $27,297,026 and $37,914,117, respectively. There is a risk the Company may lose uninsured balances over the FDIC insurance limit. The Company has not experienced any such losses.

Digital Assets

The Company holds digital assets classified as indefinite-lived intangible assets in accordance with Accounting Standard Update (“ASU”) 2023-08, “Accounting for and Disclosure of Crypto Assets.” These crypto assets are measured at fair value on a recurring basis. As part of its scope assessment, the Company evaluated all digital assets held during the nine months ended September 30, 2026, and the year ended December 31, 2025, respectively, to determine whether they meet the criteria for recognition under ASU 2023-08. Based on this assessment, the Company concluded that its holdings of Bitcoin, Dogecoin and other Litecoins are in-scope digital assets. These assets are actively traded, held in custodial arrangements with enforceable rights, and used in operations or treasury activities. Further, the Company noted there are no digital assets that are not actively used, lack enforceable ownership rights, or are immaterial in value as of September 30, 2026 and December 31, 2025, respectively.

The Company determines the fair value of its in-scope digital assets using the market approach, primarily based on observable market prices in active exchanges. The valuation process considers relevant inputs such as exchange prices of similar digital assets, liquidity, and market depth. The fair value measurements are classified within Level 1 of the fair value hierarchy, as the inputs are quoted prices in active markets for identical assets. As of September 30, 2026 and December 31, 2025, the Company’s digital assets are recorded at a fair value of $1,736,796 and $4,430,202. During the three and nine months ended September 30, 2026, the Company recognized a net unrealized and realized gain of $2,202,885 and a net unrealized and realized loss of $278,713, respectively and during the three and nine months ended September 30, 2025 the Company recognized a net unrealized and realized gain of $234,971 and $306,453, respectively, in the condensed consolidated statements of operations and related to changes in fair value of digital assets. The Company continuously evaluates the fair value of its digital assets, considering market conditions and other factors that may impact valuation. There were no significant changes in the valuation techniques or inputs used during the reporting period.

Derivative Instruments

The Company, from time to time, sells call options on Bitcoin to a third-party counterparty and accounts for these written options as derivative instruments under ASC 815, Derivatives and Hedging. The options are not designated as hedging instruments. The premium received is recorded as a derivative liability at fair value on the trade date, and the options are remeasured at fair value at each reporting date, with changes in fair value recognized in Net change in fair value of derivative in the condensed consolidated statements of operations. See Note 3 – Digital Assets for further information.

Impairment of long-lived assets

Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the three and nine months ended September 30, 2026, the Company recognized $0 and $60,092, respectively, of impairment associated with its capitalized software. This impairment is included in general and administrative expense in the condensed consolidated statement of operations.

Prepaid Expenses and Other Assets

As of September 30, 2026 and December 31, 2025, the Company had $454,205 and $468,817, respectively, of prepaid expenses which primarily consisted of premiums on insurance policies and prepaid power charges associated with its locations. As of September 30, 2026 and December 31, 2025, the Company had $621,660 of other assets which primarily consisted of hosting deposits for its colocation locations. See Note 7 for further details on the Company’s colocation arrangements.

Equipment

Equipment, which consists of mining and computer equipment, is recorded at cost and depreciated using the straight-line method over the estimated useful lives. Ordinary repair and maintenance costs are included in general and administrative expenses on our statement of operations. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. At the time assets are sold or disposed of, the cost and accumulated depreciation are removed from their respective accounts and the related gains or losses are reflected in the condensed consolidated statements of operations in gains from sales of property and equipment, net. The estimated useful life for mining equipment and computer equipment istwo andthree years, respectively. The Company evaluates the appropriateness of remaining depreciable lives assigned to computer equipment at the end of each fiscal year.

Capitalized Software Costs

The Company capitalizes certain costs related to the development and enhancement of the Thumzup platform. In accordance with authoritative guidance, including ASC 350-40, we began to capitalize these costs when the technological feasibility was established and preliminary development efforts were successfully completed, management has authorized and committed project funding, and it was probable that the project would be completed and the software would be used as intended. Such costs are amortized when placed in service, on a straight-line basis over the estimated useful life of the related asset, generally estimated to be three years. Costs incurred prior to meeting these criteria together with costs incurred for training and maintenance are expensed as incurred and recorded in product development expenses on our condensed consolidated statements of operations. Costs incurred for enhancements that were expected to result in additional features or functionality that would generate additional revenue are capitalized and expensed over the estimated useful life of the enhancements, generally three years. The Company does not capitalize any testing or maintenance costs. The accounting for these capitalized software costs requires the Company to make significant judgments, assumptions and estimates related to the timing and amount of recognized capitalized software development costs. As of September 30, 2026, the Company determined impairment totaling $60,092 of its capitalized software costs was warranted.

Common Unit Purchase Agreement

On August 27, 2026, the Company acquired 23,076,923 Class A Common Units of ELNG Equity LLC (“ELNG”), a Delaware limited liability company, representing approximately 12.27% of the outstanding Class A Common Units, for $30.0 million in cash. The Company’s rights are limited to customary minority investor protections, and the Company does not have board representation or substantive consent, veto, or policy-making rights. Based on these facts, including the concentration of approximately 87.7% of the same unit class held by another member, the Company concluded that it does not control ELNG under ASC 810 and that the presumption of more-than-minor influence under ASC 323-30 was overcome. Accordingly, the investment is accounted for as an equity security under ASC 321.

The ELNG Class A Common Units do not have a readily determinable fair value. The Company did not elect the fair value option under ASC 825 and elected the measurement alternative under ASC 321. Under the measurement alternative, the investment is measured at cost, less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of ELNG. As of September 30, 2026, the carrying amount of the investment was $30.0 million, plus any qualifying capitalized transaction costs, if applicable. No impairment or observable price adjustment was recognized from the acquisition date through September 30, 2026.

Revenue Recognition

The Company engages in digital asset mining utilizing the Scrypt hashing algorithm which falls outside of ASC 606, Revenue from Contracts with Customers.

The Company engages in the mining of digital assets, such as Litecoin (LTC) and Dogecoin (DOGE), primarily utilizing the Scrypt hashing algorithm. Scrypt is a cryptographic proof-of-work algorithm designed to be computationally and memory intensive, offering an alternative to the SHA-256 algorithm used in traditional Bitcoin mining.

Scrypt mining involves solving complex mathematical problems that require both processing power and memory bandwidth. This algorithm supports the security and integrity of blockchain networks by making it economically impractical to manipulate transaction data. The Company utilizes specialized mining equipment optimized for the Scrypt algorithm to maximize efficiency and output. The Company participates in merged mining of Litecoin and Dogecoin, leveraging the Scrypt algorithm to simultaneously validate blocks on both blockchain networks.

Under Scrypt mining, there is no contract with a customer, as the mining rewards are granted by the decentralized blockchain protocol and not by a party entering into a contractual agreement. Therefore, revenue is recognized when control of the mined digital assets is obtained and transferred to a digital wallet, measured at the fair market value of the assets at the time of receipt. Fair value is based on a principal or most advantageous market, using observable market prices from reputable exchanges.

Cost of Revenue

The Company’s cost of revenue consists primarily of direct production costs related to mining operations, including electricity costs, and other relevant costs paid to our hosting facilities in accordance with the colocation agreement.

Sales and Marketing

Sales and marketing expenses primarily include costs related to advertising and marketing programs. Sales and marketing costs are expensed as incurred and totaled $1,650 and $4,879 for the three and nine months ended September 30, 2026, respectively, and $0 and $2,804 for the three and nine months ended September 30, 2025, respectively. These costs are included in general and administrative expenses on the condensed consolidated statement of operations.

Income Taxes

The Company accounts for income taxes under the asset and liability method, which requires that deferred income taxes be provided for temporary differences between the tax basis of the Company’s assets and liabilities and their financial statement carrying amount. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development tax credit carry forwards. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considers all available evidence, including past operating results, estimates of future taxable income and the feasibility of tax planning strategies.

In the event that the Company changes its determination as to the amount of deferred tax assets that is more likely than not to be realized, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. The Company follows the authoritative guidance regarding uncertain tax positions. This guidance requires that realization of an uncertain income tax position must be more likely than not (i.e., greater than 50% likelihood of receiving a benefit) before it can be recognized in the financial statements. The guidance further prescribes the benefit to be realized assumes a review by tax authorities having all relevant information and applying current conventions.

Segment Reporting

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information for purposes of making operating decisions, allocating resources, and evaluating financial performance. While the Company does have revenue from multiple products, no measures of profitability by product are available, so discrete financial information is not available for each such component. As such, the Company has determined that it operates asone operating segment andone reportable segment.

Share-based Compensation

The Company maintains its 2024 Equity Incentive Plan, 2025 Equity Incentive Plan and 2025 Omnibus Equity Incentive Plan (collectively, the “Equity Plans”), under which the Company’s employees, officers, directors, and other eligible participants may be and have been awarded various types of share-based compensation, including options to purchase shares of the Company’s common stock, restricted stock units (“RSUs”), and other stock-based awards. Additionally, under the Equity Plans, awards may be and have been granted that are subject to the achievement of one or more performance measures established by the Company’s board of directors or a duly authorized committee thereof.

For options and other stock-based awards, the share-based compensation expense is based on the fair value of the awards on the date of grant, as estimated using the Black-Scholes valuation model. For restricted stock units, the share-based compensation expense is based on the fair value of the Company’s common stock on the date of grant. The fair value of liability-classified awards (e.g., the other stock-based awards and cash-settled restricted stock units) is remeasured at each reporting date.

The Company recognizes share-based compensation expense for service-conditioned awards granted under the Equity Plans on a straight-line basis over the requisite service period (generally, the vesting period for service-conditioned awards under the Equity Plans).

See Note 8, Stock Awards, to the financial statements for further information regarding the Equity Plans, related share-based compensation expense, and assumptions used in determining fair value.

Treasury Stock

On February 26, 2025, the Thumzup board of directors approved a share repurchase program authorizing the Company to purchase up to an aggregate of $1 million of common stock. Subject to applicable rules and regulations, the shares may be purchased from time to time in the open market or in privately negotiated transactions. Such purchases will be at times and in amounts as deemed appropriate, based on factors such as market conditions, legal requirements and other business considerations.

On September 23, 2025, the Thumzup board of directors approved a share repurchase program authorizing the Company to purchase up to an aggregate of $10 million of common stock. Subject to applicable rules and regulations, the shares may be purchased from time to time in the open market. Such purchases will be at times and in amounts as deemed appropriate, based on factors such as market conditions, cash reserves, cash flows and other business considerations.

As of September 30, 2026 and December 31, 2025, the Company had $274,231 in treasury stock, respectively.

Preferred Stock

The Company is authorized to issue 25,000,000 shares of preferred stock, par value $0.001 per share. At September 30, 2026 and December 31, 2025,176,327 and 174,660 shares were issued and outstanding, respectively.

Common Stock

The Company is authorized to issue 250,000,000 shares of common stock, par value $0.001 per share. At September 30, 2026 and December 31, 2025,47,139,643 and 30,375,530 shares were issued and outstanding, respectively.

Member Units

During the nine months ending September 30, 2025, the Company issued 11,215,625 Class A -1 units for cash proceeds of $17,945,000 and 5,974,556 Class A-2 Units for cash proceeds of 10,422,402. There were no Member units outstanding as of September 30, 2026.

Net Loss Per Common Share

The Company computes loss per share under ASC subtopic 260-10, Earnings Per Share. Net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods, as applicable.

The computation of basic and diluted loss per share, for the nine months ended September 30, 2026 and 2025, excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.

Potentially dilutive securities excluded from the computation of basic and diluted net loss per share are as follows:

Recent Accounting Pronouncements Not Yet Adopted

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued Accounting Standards Update No. 2024-03,Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)(“ASU 2024-03”). ASU 2024-03 requires specified information about certain costs and expenses be disclosed in the notes to the financial statements, including the expense on the face of the income statement in which they are disclosed, in addition to a qualitative description of remaining amounts not separately disaggregated. Entities will also be required to disclose their definition of “selling expenses” and the total amount in each annual period. The standard is effective for the Company for annual periods beginning December 15, 2026, and for interim periods beginning December 15, 2027, with updates applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its disclosures.

There are other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.

Note 3 –Digital Assets

The following table presents the Company’s significant digital assets holdings as of September 30, 2026:

The following table presents the Company’s significant digital assets holdings as of December 31, 2025:

The following table summarizes the Company’s digital asset activity for the nine months indicated:

The following table presents a roll-forward of Bitcoin (“BTC”) for the nine months ended September 30, 2026, based on the fair value model under ASU 2023-08:

The following table presents a roll-forward of Dogecoin for the nine months ended September 30, 2026, based on the fair value model under ASU 2023-08:

Digital Asset Option Contracts

In April 2026, the Company entered into a Master Confirmation with FalconX Bravo, Inc. under which the Company may sell call options on Bitcoin for a premium. During the three months ended September 30, 2026, the Company entered into two such contracts. The Company accounts for these options as derivatives not designated as hedges, measured at fair value with changes recognized in net change in fair value of derivative. For the three and nine months ended September 30, 2026, the Company recognized a net loss of $314,100 on these contracts. No options were outstanding at September 30, 2026.

Note 4 –Deposits on Equipment

The deposits for equipment represented advance payments for purchases of miner, high performance computing equipment and other equipment used in digital asset mining activity at the Colocation site. The Company initially recognizes deposits for equipment when cash is advanced to our suppliers. Subsequently, the Company derecognizes and reclassifies deposits for mining equipment to mining equipment when control is transferred to and obtained by the Company. At September 30, 2026 and December 31, 2025, the Company had deposits and advance payments of approximately $3,600,100, respectively, for mining equipment.

Note 5 –Equipment

As of September 30, 2026 and December 31, 2025, equipment, net consisted of the following:

Depreciation expense for the three and nine months ended September 30, 2026 totaled $3,253,917 and $9,762,527, respectively, and for three and nine months ended September 30, 2025 totaled $2,177,123 and $4,529,134, respectively, and is included in operating expenses on the condensed consolidated statement of operations.

Note 6 –Capitalized Software

As of September 30, 2026 and December 31, 2025, capitalized software consisted of the following:

Amortization expense for the three and nine months ended September 30, 2026 totaled $21,444 and $87,419, respectively, and is included in operating expenses on the condensed consolidated statement of operations. There wasno amortization expense for the three and nine months ended September 30, 2025.

Note 7 –Contingencies

Legal

From time to time, the Company may be involved in various litigation matters and disputes arising in the ordinary course of business. The Company reviews its lawsuits, regulatory investigations and other legal proceedings on an ongoing basis. The Company records liabilities for contingencies, including legal costs, when it is probable that a liability has been incurred before the balance sheet date and the amount can be reasonably estimated.

Various legislative and executive bodies in the United States and in other countries may, in the future, adopt laws, regulations or guidance, or take other actions that could severely impact the permissibility of digital assets generally and the technology behind them or the means of transacting in or transferring them. It is difficult to predict how or whether regulatory agencies may apply existing or new regulation with respect to this technology and its applications.

Colocation Agreement

The Company utilizes third-party data center facilities to support its digital asset mining operations. Specifically, the Company has entered into a colocation and hosting services agreement with an independent data center provider for the ongoing provision of rack space, electrical power capacity, network connectivity, and cooling infrastructure required to operate the Company’s mining hardware. These arrangements do not convey to the Company the right to control the use of any identified physical asset within the data center, and the service provider retains substantive substitution rights of the assets at all times. Accordingly, consistent with the guidance in ASC 842, the Company has concluded that the arrangement represents a service contract and does not contain a lease, as the Company does not obtain control of an identified asset during the contract term.

The colocation and hosting contracts generally include variable charges based on power consumption and other usage-based elements. Under ASC 842, the Company recognizes expense for such service arrangements as incurred, and no right-of-use (“ROU”) asset or lease liability is recorded on the condensed consolidated balance sheet because the contract is outside the scope of lease accounting.

For the three and nine months ended September 30, 2026, the Company incurred $1,657,145 and $5,031,997, respectively, and for the three and nine months ended September 30, 2025, the Company incurred $998,496 and $2,072,528, respectively, in colocation and hosting-related service expenses, which are included within cost of revenues in the accompanying condensed consolidated statements of operations.

Note 8 –Stock Awards

Thumzup’s stockholders approved Thumzup’s 2024 Equity Incentive Plan in May 2024, amending it in July 2024 to increase the number of shares reserved for issuance thereunder to 2,000,000, and approved Thumzup’s 2025 Equity Incentive Plan in April 2025 with an additional 2,000,000 shares reserved for issuance thereunder. In December 2025, the Company’s stockholders approved the 2025 Omnibus Equity Incentive Plan. The number of shares reserved for issuance under the plan is 7,000,000. The equity plans approved by the stockholders are collectively referred to as the “Plans.”

The Plans provide for the grant of incentive stock options to Thumzup’s employees, including officers, consultants and directors, and its subsidiaries’ employees, including officers, consultants and directors and for the grant of stock options, stock bonus awards, restricted stock awards, performance stock awards and other forms of stock compensation. The Plans also provide that the grant of performance stock awards may be paid out in cash as determined by the committee administering the Plans.

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option pricing model with a volatility figure derived from historical data. The Company accounts for the expected life of options based on the contractual life of the options.

As of September 30, 2026, the Company had 5,187,575 shares of common stock available for future issuance under the Plans.

A summary of the stock option activity for the nine months ended September 30, 2026, is as follows:

A summary of the stock options outstanding at September 30, 2026, is as follows:

The aggregate intrinsic value of outstanding stock options was $0, based on options with an exercise price less than the Company’s stock price of $1.80 as of September 30, 2026.

The fair value of all options that vested during the three and nine months ended September 30, 2026 was $115,765 and $474,279, respectively. Unrecognized compensation expense was $1,041,887 as of September 30, 2026.

In January 2026,100,000 RSUs were granted to advisors to the Company. The RSUs vested 50% immediately and 50% in July 2026.

In March 2026,100,000 RSUs were granted to advisors to the Company. The RSUs vested immediately.

In April 2026,70,000 RSUs were granted to the former Chief Financial Officer in accordance with the separation agreement. The RSUs vested immediately.

The Company determined the fair value of all the RSUs issued during the nine months ended September 30, 2026 to be $529,150 based on the price of the most recent sale of common stock prior to each grant date for those RSUs granted prior to the Listing Date, or the quoted market value on the date of issuance of the RSUs granted after the Listing Date. As of September 30, 2026, there was unamortized stock-based compensation of approximately $3,728,011, which the Company expects to recognize over approximately 2 years.

The activity related to RSUs is summarized as follows:

Note 9 –Warrants

A summary of the warrant activity for the nine months ended September 30, 2026, is as follows:

A summary of the warrants outstanding at September 30, 2026, is as follows:

The aggregate intrinsic value of outstanding stock warrants was $3,723,200, based on warrants with an exercise price less than the Company’s stock price of $1.80 as of September 30, 2026, which would have been received by the warrant holders had those holders exercised the warrants as of that date.

Note 10-Secured Promissory Notes

In February 2025, the Company entered into a secured promissory note for a principal sum of $2,150,000 that bore interest at 10% and matured on August 21, 2025. As of December 31, 2025, the note was repaid in full.

In March 2025, the Company entered into a secured promissory note for a principal sum of $2,000,000 that bore interest at 10% and matured on April 26, 2025. As of December 31, 2025, the note was repaid in full.

In June 2025, the Company entered into a secured promissory note with a fund for a principal sum of $1,900,000 less an original issue discount amount of $150,000. The original issue discount was amortized to the maturity date using the effective interest method. The note was due on December 24, 2025; however, its terms provided that if the Company closed on a financing with an institutional lender for an amount of net loan proceeds in excess of the total principal amount, ordinary interest, and late interest then outstanding, or on a sale of all or substantially all the assets of the Company, the maturity date would accelerate to the date of such closing. As of December 31, 2025, the note was repaid in full.

In September 2025, the Company entered into a secured promissory note for a principal sum of $2,500,000. The note was due on September 24, 2026; however, its terms provided that if the Company consummated the planned merger through the purchase agreement between the Company and Thumzup Media Corporation, the maturity date would accelerate to the date of such closing. As of December 31, 2025, the note was repaid in full.

Note 11 –Stockholders’ Equity

Public Offering

On March 26, 2026, the Company entered into a placement agency agreement with Dominari Securities LLC, pursuant to which we sold directly to investors, in a best efforts offering, an aggregate of(i) 4,510,000 shares of common stock at $2.00 per share and (ii) pre-funded warrants to purchase up to an aggregate of 5,575,000 shares of common stock at $1.99 per pre-funded warrant. The securities were offered and sold by the Company pursuant to our effective registration statement on Form S-3 (File No. 333-286951). The closing of the offering occurred on March 31, 2026 and the gross proceeds from the offering were approximately $20.2 million, before deducting placement agent fees and expenses and estimated offering expenses totaling $2,270,300. The funds associated with the warrants were received in full as of April 2, 2026.

As of September 30, 2026, pre-funded warrants to purchase 2,080,000 shares of common stock remained outstanding. The pre-funded warrants are exercisable at $0.01 per share, are subject to beneficial ownership limitations, and are classified as equity.

Issuance of December 15, 2025 Series A Preferred Dividends

In January 2026, the Company issued an aggregate of approximately 3,079 shares of Series A Preferred Stock in satisfaction of the December 15, 2025 quarterly dividend that had been declared but had not yet been issued due to administrative processing delays.

March 16, 2026 Series A Preferred Dividends

On March 16, 2026, the Company declared and issued an aggregate of approximately 3,139 shares of Series A Preferred Stock as quarterly dividends due under the Series A Preferred Certificate of Designation.

June 16, 2026 Series A Preferred Dividends

On June 16, 2026, the Company declared an aggregate of approximately 3,117 shares of Series A Preferred Stock as quarterly dividends due under the Series A Preferred Certificate of Designation. The shares were issued during the three months ended September 30, 2026.

September 16, 2026 Series A Preferred Dividends

On September 16, 2026, the Company declared an aggregate of approximately 3,183 shares of Series A Preferred Stock as quarterly dividends due under the Series A Preferred Certificate of Designation. The shares were not issued as of September 30, 2026 and a liability has been recorded in accounts payable and accrued expenses.

Second Amended and Restated Certificate of Designation – Series A Preferred Convertible Voting Stock

On March 27, 2026, the Company filed with the Secretary of State of the State of Nevada the Second Amended and Restated Certificate of Designation of Rights, Powers, Preferences, Privileges and Restrictions of Series A Preferred Convertible Voting Stock (the “Second A&R COD”), which had been approved by the Board of Directors and the holders of the Series A Preferred Convertible Voting Stock. The Second A&R COD continues to authorize 1,000,000 shares of Series A Preferred Convertible Voting Stock, par value $0.001 per share, with a stated value of $45.00 per share.

Holders of Series A Preferred Convertible Voting Stock are entitled to non-cumulative quarterly dividends, when, as and if declared by the Board of Directors out of funds lawfully available, in an amount equal to $0.875 per share per quarter ($3.50 per share on an annualized basis), payable on each of March 15, June 15, September 15 and December 15. Dividends may be paid in cash or, at the Company’s election, in additional shares of Series A Preferred Convertible Voting Stock valued at the $45.00 per share Purchase Price; provided that, if the closing price of the Common Stock on the trading day prior to the applicable payment date is below the Reference Rate (as defined below) then in effect, dividend shares will be valued at the Purchase Price multiplied by VWAP divided by the Reference Rate.

Each share of Series A Preferred Convertible Voting Stock is convertible at the option of the holder into 23 shares of Common Stock at a reference rate of $2.00 per share of Common Stock (the “Reference Rate”), subject to adjustment for stock splits, stock dividends, business combinations and similar recapitalizations and to the anti-dilution provisions described below. Conversions are subject to a 4.99% beneficial ownership limitation, which may be waived by the holder upon 61 days’ advance notice, and a 9.99% beneficial ownership limitation that may not be waived.

In the event the Company issues additional securities at a per-share purchase price less than the then-effective Reference Rate (a “Dilutive Financing”), the Conversion Rate is adjusted by (i) multiplying the lowest per-share price paid in the Dilutive Financing by 0.8 to derive the Discount Rate, (ii) dividing the Reference Rate by the Discount Rate to derive the Adjustment Factor and (iii) multiplying the then-effective Conversion Rate by the Adjustment Factor; the Reference Rate is then reset to equal the Discount Rate. The anti-dilution provisions are inoperable when all of the following conditions are met: (a) the Company has closed on an offering of at least $5 million, net of fees, at a minimum of $5.00 per share; (b) the Securities and Exchange Commission has declared effective a registration statement registering for resale the Common Stock issuable upon conversion of the Series A Preferred Convertible Voting Stock; (c) the Common Stock is listed on the NYSE or NASDAQ; and (d) the Common Stock has had a closing price of $6.00 or more for 20 consecutive Trading Days. The anti-dilution provisions do not apply to issuances of securities upon conversion of the Series A Preferred Convertible Voting Stock or as dividends thereon, conversion of preexisting convertible securities, or stock splits, stock dividends, or other subdivisions of Common Stock.

The Series A Preferred Convertible Voting Stock votes together with the Common Stock on an as-converted basis, with each holder limited to a maximum of 9.99% of the total votes entitled to be cast, except as required by law. Upon a liquidation, dissolution or winding up of the Company, holders of Series A Preferred Convertible Voting Stock are entitled to receive, prior to any distribution to holders of Common Stock or other junior securities, an amount in cash equal to $45.00 per share plus any accrued and declared but unpaid dividends, and thereafter participate pari passu with the holders of Common Stock on an as-converted basis.

Series D Convertible Preferred Stock

In connection with the Merger, the Company designated 16,240 shares of Series D Convertible Preferred Stock, par value $0.001 per share (“Series D Preferred”). Each share of Series D Preferred is convertible at any time at the option of the holder into 1,000 shares of common stock, subject to a beneficial ownership limitation of 4.99% (which a holder may increase to up to 9.99% on 61 days’ notice) and to customary adjustments for stock splits, stock dividends and similar events. Holders are entitled to dividends only when dividends are paid on the common stock, on an as-converted basis and in the same form. The Series D Preferred has no voting rights except as required by law and for approval of certain changes that adversely affect the series. In a liquidation, dissolution or winding up, holders are entitled to receive, after the holders of Series A Preferred Convertible Voting Stock, $1.00 per share, and thereafter participate pari passu with the holders of common stock on an as-converted basis. Shares that are converted are canceled and are not reissued as Series D Preferred.

During the nine months ended September 30, 2026, holders converted approximately 6,797 shares of Series D Preferred into 6,797,282 shares of common stock.

Note 12-Segment Information

The Company applies the provisions of ASC 280, Segment Reporting, which requires public entities to disclose information about operating segments based on the internal reports that are regularly reviewed by the Company’s Chief Operating Decision Maker (“CODM”) for purposes of allocating resources and assessing performance.

The CODM, who is the Company’s Chief Executive Officer, evaluates the business and makes operating decisions using a consolidated set of financial information. Management has determined that the Company operates asone operating segment, as the Company’s operations are organized and managed as a single business component with:

One set of economic activities—the development, deployment, and operation of digital asset mining infrastructure; A single management team making decisions about resource allocation across all activities; and revenue focus on the production, validation, and sale of digital assets; and a centralized cost structure, including equipment procurement, colocation arrangements, power usage, maintenance, and operational oversight.

Based on this analysis, management has concluded that the Company has one reportable segment, referred to as the “Digital Asset Mining Business.” This segment is primarily engaged in mining Dogecoin and other Litecoin-network digital assets, utilizing specialized hardware and third-party colocation facilities.

Because the Company has only one reportable segment, separate segment information (such as disaggregated revenues, profit or loss measures, or segment assets) is not presented, as such information is identical to the information presented in the Company’s condensed consolidated financial statements. Because substantially all operations and assets are located in a single geographic area, no additional geographic disaggregation is presented.

**Note 13 –Income Taxes **

The Company did not provide for income taxes for the three and nine months ended September 30, 2026 and 2025, since there was a loss and a full valuation allowance against all deferred tax assets.

Note 14 –Related Party Transactions

IRTH Communications, LLC

IRTH Communications, LLC (“IRTH”) is owned and controlled by Robert Haag. On November 20, 2025, the Company entered into a Services Agreement with IRTH pursuant to which IRTH provides investor relations, public relations, financial communications and strategic consulting services. The agreement had an initial term of three months with automatic renewal and provided for a non-refundable monthly fee of $30,000, payable quarterly in advance.

On February 20, 2026, the Company and IRTH Communications, LLC (“IRTH”) entered into Amendment No. 1 to the Services Agreement dated November 20, 2025, pursuant to which: (i) the Company, as successor-in-interest to Thumzup Media Corporation, formally assumed all rights and obligations under the original agreement; (ii) the term was extended for a fixed period of six months expiring August 20, 2026, with no automatic renewal; (iii) the monthly cash fee was reduced from $30,000 to $15,000, payable monthly in advance; and (iv) the Company granted IRTH 60,000 fully vested stock options with an exercise price of $2.00 per share under the Company’s 2025 Omnibus Equity Incentive Plan. The equity grant was ratified by the Compensation Committee on February 20, 2026.

During the three and nine months ended September 30, 2026, the Company paid IRTH an aggregate of $295,000 and $370,000, respectively, consisting of monthly fixed fees and a corporate branding service.

Isaac Dietrich

Isaac Dietrich served as the Company’s Chief Financial Officer and as a member of the Board of Directors until his resignation from both positions effective December 15, 2025, in connection with the Merger. In connection with his separation, the Company entered into a Transition and Separation Agreement with Mr. Dietrich dated December 10, 2025 (the “Transition Agreement”), pursuant to which Mr. Dietrich was engaged as an independent contractor to provide transition consulting services through the date the Company filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Note 15 –Subsequent Events

The Company evaluated subsequent events and transactions through the date the unaudited condensed consolidated financial statements were issued. Based on this evaluation, the Company determined that no subsequent events required adjustment to or disclosure in the unaudited condensed consolidated financial statements.