Solana Co
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
HSDT$1.930.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001104659-26-062611
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001610853-26-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 64 previous paragraphs and 103 current paragraphs.
40 unchanged; 19 reworded; 38 added; 5 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
SOL Validator Cluster
Current report
We launched our own SOL validator cluster in July 2026. As of the date of this Form 10-Q, external parties have delegated 0.5 million SOL to stake on our cluster.
Current report
Share Purchase Agreement
Current report
On March 17, 2026, Solana Company (Hong Kong) Limited entered into a share purchase agreement to acquire, directly or indirectly, all of the issued share capital of a Hong Kong trust company. The acquisition closed on July 15, 2026. The total purchase price for the acquisition was $2 million, consisting of 50% payable in cash, $0.5 million of which was paid as a deposit during the second quarter of 2026 and the remaining $0.5 million paid in July 2026, and 50% equity consideration, pursuant to which 597,086 shares of our Class A common stock were issued to the Sellers.
Current report
General and administrative expenses increased in the second quarter of 2026, compared to the same period in the prior year, primarily due to a $6.8 million increase in severance expense associated with the sale of the PoNS business and executive separation agreements, a $0.6 million increase in professional fees, a $0.5 million increase in trading advisory and custodian fees supporting our DAT strategy and a $0.3 million increase in D&O insurance premiums. These increases were partially offset by decreased salaries and benefits due to the terminated PoNS employees, stock-based compensation, research and development expenses, and advertising costs.
Current report
Unrealized gain on digital assets and digital assets receivable
Current report
Loss on digital asset derivatives
Current report
Loss on digital asset derivatives was $0.7 million in the second quarter of 2026, compared to none in the prior-year period, reflecting net premiums and fair value changes on the written SOL put option contracts and SOL call option spread positions entered into under the Company's OTC SOL options strategy, which commenced during the second quarter of 2026.
Current report
The change in fair value of derivative liabilities was a loss of $0.3 million for the three months ended June 30, 2026, compared with a loss of $6.0 million for the same period in 2025. The decrease was primarily attributable to the reclassification to equity of the derivative warrant liabilities from our 2022 public offering and our June 2025 public offering upon exercise in the second quarter of 2025. As a result, the put option issued in connection with the Registered Direct Offering was the only derivative liability recorded in this caption during the second quarter of 2026.
Current report
Gain on Sale of Business
Current report
Gain on sale of business was $3.1 million in the second quarter of 2026, compared to none in the prior-year period, relating entirely to the PoNS Asset Sale that closed on April 8, 2026.
Current report
Other expense
Current report
Financing Costs
Current report
Financing costs were $0.1 million in the second quarter of 2026, compared to $0.4 million in the prior-year period. The decrease was primarily attributable to the absence of non-cash costs recognized in the prior-year period in connection with the January 2025 warrant inducement and related note financing.
Current report
Six Months Ended June 30, 2026 compared to the Six Months Ended June 30, 2025
Current report
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025 (in thousands):
Current report
Revenue
Current report
The increase in staking revenue in the first half of 2026 compared to the same period in the prior year was the result of our staked SOL earning staking yield, which was not applicable in the same period of 2025. There were no SOL holdings during the same period in 2025.
Current report
Cost of Revenue
Current report
The cost of revenue for the first half of 2026 increased slightly as compared to the same period in the prior year primarily due to the increase in staking revenue related costs partially offset by reduction of PoNS product costs due to the PoNS Asset Sale.
Current report
General and Administrative Expenses
Current report
General and administrative expenses increased in the first half of 2026, compared to the same period in the prior year, primarily due to a $6.8 million increase in severance expense associated with the sale of the PoNS business and executive separation agreements, a $1.6 million increase in professional fees, a $1.2 million increase in trading advisory and custodian fees supporting our DAT strategy and a $0.6 million increase in D&O insurance premiums. These increases were partially offset by decreased salaries and benefits due to the terminated PoNS employees, stock-based compensation, research and development expenses, and advertising costs.
Current report
The unrealized loss on digital assets and digital assets receivable represents the unrealized mark-to-market for our digital asset holdings to record digital assets at fair value due to the decline in value of SOL partially offset by the reversal of prior unrealized loss that was realized on sales and derecognition of digital assets, which was not applicable in the second half of 2025.
Current report
Realized loss on digital assets
Current report
Loss on digital asset derivatives
Current report
Loss on digital asset derivatives was $0.7 million in the first half of 2026, compared to none in the prior-year period, reflecting net premiums and fair value changes on the written SOL put option contracts and SOL call option spread positions entered into under the Company's OTC SOL options strategy, which commenced during the second quarter of 2026.
Current report
Nonoperating income (expense)
Current report
The change in fair value of derivative liabilities was a loss of $0.3 million in the first half of 2026, compared with a loss of $5.9 million for the same period in 2025. The decrease was primarily attributable to the reclassification to equity of the derivative warrant liabilities from our 2022 public offering and our June 2025 public offering upon exercise in the first half of 2025. As a result, the put option issued in connection with the Registered Direct Offering was the only derivative liability recorded in this caption for the six months ended June 30, 2026.
Current report
Gain on Sale of Business
Current report
Gain on sale of business was $3.1 million in the first half of 2026, compared to none in the prior-year period, relating entirely to the PoNS Asset Sale that closed on April 8, 2026.
Current report
Financing Costs
Current report
Financing costs were $0.1 million in the first half of 2026, compared to $0.4 million in the prior-year period. The decrease was primarily attributable to the absence of non-cash costs recognized in the prior-year period in connection with the January 2025 warrant inducement and related note financing.
Current report
In connection with the Registered Direct Offering in April 2026, we entered into put option agreements with the purchasers, which we have recorded as a derivative liability of $4.2 million as of June 30, 2026. These put options represent a contingent cash obligation if exercised and may affect our future liquidity.
Current report
On May 29, 2026, we entered into an amended and restated sales agreement (“Sales Agreement”) with Clear Street LLC (“Clear Street”) and Maxim Group LLC (“Maxim”) as agents, pursuant to which we may offer and sell, from time to time through Clear Street and Maxim, shares of our Class A common stock in connection with our existing “at-the-market” offering program. On the same day, we filed a prospectus supplement with the SEC, covering the offering, issuance and sale of up to a maximum aggregate offering of $250.0 million of our Class A common stock (excluding any shares that were previously sold under the prior prospectus supplement) that may be issued and sold from time to time under the Sales Agreement. During the six months ended June 30, 2026, no shares were sold under the Sales Agreement
Current report
Net cash provided by investing activities was $10.9 million for the six months ended June 30, 2026, compared to nil for the same period in the prior year. The primary sources of cash were $13.3 million in proceeds from the sale of digital assets, $4.2 million in net proceeds from the PoNS Asset Sale, and $1.1 million in proceeds from premiums on digital asset derivative contracts, partially offset by $5.5 million in digital asset purchases and $1.5 million in payments for digital asset derivative contract settlements, $0.5 million for deposit on acquisition of a business and 0.2 million net posted collateral.
Current report
Accounting and Valuation of Derivative Instruments
Current report
We have issued and may continue to issue financial instruments that require us to account for such instruments in accordance with Accounting Standard Codification (“ASC”) 480 Distinguishing Liabilities from Equity and/or ASC 815 Derivatives and Hedging. If determined to be classified as an asset or a liability, we will remeasure the fair value of the financial instruments at each balance sheet date. If the financial instruments are determined to be classified as equity, the fair value of the instruments will be measured as of the date of issuance and will not be subject to remeasurement at each balance sheet date.
Current report
We use the lattice and Black-Scholes option-pricing models to value derivative financial instrument liabilities. These models use Level 3 inputs in the fair value hierarchy established by ASC 820 - Fair Value Measurement.
Removed paragraphs (5)
Previous report
Selling, general and administrative expenses in the first quarter of 2026 increased as compared to the same period in prior year primarily due to a $0.9 million increase in professional fees due to increased legal and audit costs, a $0.7 million increase in trading advisory and custodian costs to support the DAT business, a $0.3 million increase in director and officer insurance, a $0.1 million increase in advertising costs partially offset by a $0.1 million decrease in employee wages and benefits partially offset by a $0.5 million decrease in stock-based compensation, and a $0.1 million decrease in franchise tax.
Previous report
Change in fair value of derivative liability in the first quarter of 2026 decreased as compared with the same period in the prior year due the derivative liability balance being reclassified into equity in the prior year.
Previous report
Our investing activities in the three months ended March 31, 2026 primarily related to the sale of SOL as we redeployed capital for repurchases of our Class A common stock under our stock repurchase program and operating expenses.
Previous report
Related Party Transactions
Previous report
For information on related party transactions and their financial impact, see Note 10 to the unaudited condensed consolidated financial statements contained herein.
Reworded paragraphs (19)
Previous wording
The forward-looking statements in this Form 10-Q include but are not limited to statements relating to: expected benefits and implementation of our digital asset treasury strategy; expected staking, yield and broader opportunities across the Solana ecosystem; our expected token treasury growth; the potential tokenization of our Class A common stock; the anticipated terms of custody arrangements; prospects and potential benefits of the Solana Foundation; our future growth and operational progress; our compliance with Nasdaq requirements; the impacts of the current global macroeconomic environment on our sufficiency of cash and availability of funds and operating costs; our market awareness; our ability to compete effectively; our future expenses and cash flow; our ability to become profitable; our future financing arrangements; and any future stock price. Such forward-looking statements involve risks and uncertainties, known and unknown, including capital requirements to achieve the our business objectives, expected benefits and implementation of our digital asset treasury strategy, expected staking, yield and broader opportunities across the Solana ecosystem; our expected token treasury growth, the impact on the Company of global macroeconomic conditions including risks related to logistics challenges, labor shortages, disruptions in the banking system and financial markets, high levels of inflation and high interest rates on our ability to operate our business and access capital markets, the success of our business plan, our operating costs and use of cash, our ability to achieve significant revenues and other factors discussed in the section entitled “Risk Factors”.
Current wording
The forward-looking statements in this Form 10-Q include but are not limited to statements relating to: expected benefits and implementation of our digital asset treasury strategy; expected staking, yield and broader opportunities across the Solana ecosystem; our expected token treasury growth; the potential tokenization of our Class A common stock; the anticipated terms of custody arrangements; prospects and potential benefits of the Solana Foundation; our future growth and operational progress; our compliance with Nasdaq requirements; the impacts of the current global macroeconomic environment on our sufficiency of cash and availability of funds and operating costs; our market awareness; our ability to compete effectively; our future expenses and cash flow; our ability to become profitable; our future financing arrangements; and any future stock price. Such forward-looking statements involve risks and uncertainties, known and unknown, including capital requirements to achieve our business objectives, expected benefits and implementation of our digital asset treasury strategy, expected staking, yield and broader opportunities across the Solana ecosystem; our expected token treasury growth, the impact on the Company of global macroeconomic conditions including risks related to logistics challenges, labor shortages, disruptions in the banking system and financial markets, high levels of inflation and high interest rates on our ability to operate our business and access capital markets, the success of our business plan, our operating costs and use of cash, our ability to achieve significant revenues and other factors discussed in the section entitled “Risk Factors”.
Previous wording
These forward-looking statements speak only as of the date of this Form 10-Q. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information become available in the future. You should, however, review the factors and risks and other information we describe in the reports we will file from time to time with the SEC after the date of this Form 10-Q.
Current wording
These forward-looking statements speak only as of the date of this Form 10-Q. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. You should, however, review the factors and risks and other information we describe in the reports we will file from time to time with the SEC after the date of this Form 10-Q.
Previous wording
On April 27, 2026, we entered into securities purchase agreements (collectively, the “RDO Purchase Agreements”) with the purchasers named therein (the “Purchasers”), pursuant to which we issued and sold to the Purchasers, in a registered direct offering (the “Registered Direct Offering”), 3,076,922 shares of our Class A common stock. The offering price of each share of Class A common stock was $2.60 per share (the “Offering Price”). The Registered Direct Offering closed on April 29, 2026. The net proceeds to us from the Registered Direct Offering were $7.9 million.
Current wording
On April 27, 2026, we entered into securities purchase agreements (collectively, the “RDO Purchase Agreements”) with the purchasers named therein (the “Purchasers”), pursuant to which we issued and sold to the Purchasers, in a registered direct offering (the “Registered Direct Offering”),3,076,922 shares of our Class A common stock. The offering price of each share of Class A common stock was $2.60 per share (the “Offering Price”). The Registered Direct Offering closed on April 29, 2026. The net proceeds to us from the Registered Direct Offering were $7.9 million after $0.1 million of transaction related costs.
Previous wording
In connection with the Registered Direct Offering, we entered into put option agreements (collectively, the “Put Option Agreements”) with the Purchasers pursuant to which we granted each Purchaser the right to require us to repurchase all or a portion of the shares of Class A common stock it purchased in the Registered Direct Offering at a price per share equal to the Offering Price plus an amount that would result in an internal rate of return of 7.0% per annum (collectively, the “Put Options”). The Put Options may be exercised in connection with the occurrence of certain qualifying events, including the 12-month and 18-month anniversaries of the closing of the Registered Direct Offering, a failure of our net debt to total capitalization ratio to remain at or below 30%, or a suspension or halt of trading in the Class A common stock on the applicable trading market exceeding a specified number of consecutive trading days or the issuance of a delisting notice.
Current wording
In connection with the Registered Direct Offering, we entered into put option agreements (collectively, the “Put Option Agreements”) with the Purchasers pursuant to which we granted each Purchaser the right to require us to repurchase all or a portion of the shares of Class A common stock it purchased in the Registered Direct Offering at a price per share equal to the Offering Price plus an amount that would result in an internal rate of return of 7.0% per annum (collectively, the “Put Options”). The Put Options may be exercised in connection with the occurrence of certain qualifying events, including the 12-month and 18-month anniversaries of the closing of the Registered Direct Offering, a failure of our net debt to total capitalization ratio to remain at or below 30%, or a suspension or halt of trading in the Class A common stock on the applicable trading market exceeding a specified number of consecutive trading days or the issuance of a delisting notice. As of June 30, 2026, there have been no qualifying events under the Put Option Agreements.
Previous wording
On April 8, 2026, we entered into and closed a purchase and sale agreement with Bioness Medical, Inc. (the “Buyer”), pursuant to which we sold the assets related to its Portable Neuromodulation Stimulator (“PoNS “) business to the Buyer (the “PoNS Asset Sale”), and the Buyer assumed certain liabilities related to the PoNS business. The purchase price of the PoNS Asset Sale consisted of an upfront payment of $5 million, and the right to receive post-closing cash earnout payments of up to $20 million in the aggregate based on a specified formula that takes into account the revenues of the PoNS business through the 2028 fiscal year.
Current wording
On April 8, 2026, we entered into and closed a purchase and sale agreement with Bioness Medical, Inc. (the “Buyer”), pursuant to which we sold the assets related to the Portable Neuromodulation Stimulator (“PoNS“) business to the Buyer (the “PoNS Asset Sale”), and the Buyer assumed certain liabilities related to the PoNS business. The purchase price of the PoNS Asset Sale consisted of an upfront payment of $5 million, and the right to receive post-closing cash earnout payments of up to $20 million in the aggregate based on a specified formula that takes into account the revenues of the PoNS business through the 2028 fiscal year.
Previous wording
In connection with the PoNS Asset Sale, in April 2026, the Company terminated the employment of certain employees supporting the PoNS business, for which severance was offered and paid to such employees totaling $1.4 million.
Current wording
In connection with the PoNS Asset Sale, in April 2026, the Company terminated the employment of certain employees supporting the PoNS business, for which severance was offered and paid to such employees in the second quarter of 2026 totaling $1.4 million.
Previous wording
Our treasury management business is expected to be heavily dependent on the price of SOL, which has historically experienced significant volatility. As of March 31, 2026, our total SOL exposure, that we held directly in our accounts or indirectly, was 2,331,610 SOL, valued at $193.8 million based on a market price of $83.12 per token. SOL is valued at fair value at the end of each reporting period, with changes in fair value recognized in net income. Refer to Note 3, Note 4 and Note 5 in the unaudited condensed consolidated financial statements for more details on the breakout of our SOL holdings and exposure. As a result, fluctuations in the price of SOL may significantly impact our results of operations.
Current wording
Our treasury management business is expected to be heavily dependent on the price of SOL, which has historically experienced significant volatility. As of June 30, 2026, our total SOL exposure, that we held directly in our accounts or indirectly, was 2,319,919 SOL, valued at $170.6 million based on a market price of $73.54 per token. SOL is valued at fair value at the end of each reporting period, with changes in fair value recognized in net income. Refer to Note 3, Note 4 and Note 5 in the unaudited condensed consolidated financial statements for more details on the breakout of our SOL holdings and exposure. As a result, fluctuations in the price of SOL may significantly impact our results of operations.
Previous wording
The increase in staking revenue in the first quarter of 2026 compared to the same period in the prior year was the result of our staked SOL earning staking yield.
Current wording
The increase in staking revenue in the second quarter of 2026 compared to the same period in the prior year was the result of our staked SOL earning staking yield, which was not applicable in the same period of 2025. There were no SOL holdings during the same period in 2025.
Previous wording
The cost of revenue for the first quarter of 2026 increased as compared to the same period in the prior year primarily due to the increase in staking revenue related costs.
Current wording
The cost of revenue for the second quarter of 2026 decreased slightly as compared to the same period in the prior year primarily due to the elimination of PoNS product costs partially offset by an increase in staking revenue related costs.
Previous wording
The unrealized loss on digital assets represents the unrealized mark-to-market for our digital asset holdings to record digital assets at fair value due to the decline in value of SOL.
Current wording
The unrealized gain on digital assets and digital assets receivable represents the unrealized mark-to-market for our digital asset holdings to record digital assets at fair value due to the decline in value of SOL offset by the reversal of prior unrealized loss that was realized on sales and derecognition of digital assets, which was not applicable in the same period of 2025.
Previous wording
The realized loss on digital assets represents the loss realized on sales of SOL with proceeds utilized to repurchase shares and fund operating expenses.
Current wording
The realized loss on digital assets represents the loss realized on sales of SOL with proceeds utilized to repurchase shares and fund operating expenses, which was not applicable in the same period of 2025.
Previous wording
The unrealized loss on digital assets fund investment represents the unrealized mark-to-market for our digital asset fund investment holdings to record digital asset investment fund at fair value due to the decline in value of SOL.
Current wording
The unrealized loss on digital assets fund investment represents the unrealized mark-to-market for our digital asset fund investment holdings to record digital asset investment fund at fair value due to the decline in value of SOL, which was not applicable in the same period of 2025.
Previous wording
Other (expense) income in the first quarter of 2026 was primarily attributable to dividend income earned on investments of excess cash in money market mutual funds offset by foreign exchange loss due to fluctuations in the Canadian to U.S. dollar exchange rates.
Current wording
Other (expense) income in the second quarter of 2026 was primarily attributable to the decrease in dividend income earned on investments of excess cash in money market mutual funds and the foreign exchange loss due to fluctuations in the Canadian to U.S. dollar exchange rates.
Previous wording
In December 2025 and January 2026, we executed open market purchases of our Class A common stock under our stock repurchase program totaling 1,603,971 shares at an average cost of $2.20 per share for an aggregate cost of $3.5 million, inclusive of fees. See Note 8 to our unaudited condensed consolidated financial statements.
Current wording
During the six months ended June 30, 2026, we executed open market purchases of our Class A common stock under our stock repurchase program totaling 2,937,083 shares at an average cost of $1.99 per share for an aggregate cost of $5.9 million, inclusive of fees. As of June 30, 2026, approximately $94.1 million remained available under our $100 million stock repurchase program. See Note 9 to our unaudited condensed consolidated financial statements.
Previous wording
Prior to our recent financings, our primary source of liquidity have been our operations. The primary demand on our working capital has historically been operating losses. Historically, our sources of liquidity have been adequate to satisfy working capital requirements arising in the ordinary course of business. Following our strategic pivot to a DAT strategy in September 2025, our liquidity profile has fundamentally changed. We anticipate that our current liquidity and financial resources will remain adequate to manage our operating and financial requirements through at least May 2027. This assessment assumes that we will be able to liquidate digital assets in amounts and at times necessary to meet our obligations, which may not be possible during periods of market stress or reduced liquidity. Additionally, our liquidity assessment does not account for potential margin calls or collateral requirements that may arise from potential DeFi activities, lending arrangements, or borrowing against pledged SOL.
Current wording
Our primary source of liquidity going forward is expected to be our digital asset holdings, which totaled approximately $170.6 million in fair value as of June 30, 2026. Our working capital includes $21.0 million of digital assets that we classify as current. We anticipate that our current liquidity and financial resources will remain adequate to manage our operating and financial requirements for at least the next twelve months. This assessment assumes that we will be able to liquidate digital assets in amounts and at times necessary to meet our obligations, which may not be possible during periods of market stress or reduced liquidity. Additionally, our liquidity assessment does not account for potential margin calls or collateral requirements that may arise from potential DeFi activities, lending arrangements, or borrowing against pledged SOL.
Previous wording
The following table summarizes our cash flows for the three months ended March 31, 2026 and 2025 (in thousands):
Current wording
The following table summarizes our cash flows for the six months ended June 30, 2026 and 2025 (in thousands):
Previous wording
The higher level of cash used in operating activities in the three months ended March 31, 2026 primarily resulted from increases in selling, general and administrative expenses as compared to the same period in the prior year.
Current wording
The higher level of cash used in operating activities in the six months ended June 30, 2026 primarily resulted from increases in $9.1 million general and administrative expenses as compared to the same period in the prior year including $6.8 million in severance costs related to the PoNS Asset Sale and executive separation agreements, and increased costs supporting our DAT strategy. The net loss of $130.1 million included significant non-cash items, primarily the $86.8 million unrealized loss on digital assets and digital assets receivable, the $32.4 million realized loss on the sale of digital assets, the $5.9 million non-cash staking revenue adjustment, and the $3.1 million gain on sale of business, each of which were added back or deducted in reconciling net loss to net cash used in operating activities.
Previous wording
During the three months ended March 31, 2026, $3.5 million was used to repurchase shares of our Class A common stock under our stock repurchase program. During the three months ended March 31, 2025, $3.5 million in net proceeds were generated from entering into a warrant inducement with current warrant holders and net proceeds of $0.1 million from issuance and sales of shares in at-the-market offerings.
Current wording
During the six months ended June 30, 2026, we received net proceeds of $7.9 million from the Registered Direct Offering completed on April 29, 2026, which was partially offset by $5.9 million used to repurchase shares of our Class A common stock under our stock repurchase program. During the six months ended June 30, 2025, $3.4 million in net proceeds were generated from entering into a warrant inducement with current warrant holders, net proceeds of $0.1 million from issuance and sales of shares under the ATM, we sold, in a private placement, promissory notes and issued shares of Class A common stock generating net proceeds of $1.2 million and we generated $8.2 million in net proceeds from an offering of Class A common stock and warrants. We repaid the promissory notes of $1.6 million.
Previous wording
Our critical accounting estimates are described in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” of our 2025 10-K. There have been no changes in critical accounting estimates in the current year from those described in our 2025 10-K.
Current wording
Our critical accounting estimates are described in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates” of our 2025 10-K. There have been no changes in critical accounting estimates in the current year from those described in our 2025 10-K except for those described below.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
The realized loss on digital assets represents the loss realized on sales of SOL with proceeds utilized to repurchase shares and fund operating expenses and the loss realized on SOL transfers to derivative margin collateral, which was not applicable in the second half of 2025.
Current report — wording carried from elsewhere
Unrealized loss on digital assets fund investment
Current report — wording carried from elsewhere
The unrealized loss on digital assets fund investment represents the unrealized mark-to-market for our digital asset fund investment holdings to record digital asset investment fund at fair value due to the decline in value of SOL, which was not applicable in the second half of 2025.
Current report — wording carried from elsewhere
Change in Fair Value of Derivative Liability
Current report — wording carried from elsewhere
Other (expense) income in the first half of 2026 was primarily attributable to the decrease in dividend income earned on investments of excess cash in money market mutual funds and the foreign exchange loss due to fluctuations in the Canadian to U.S. dollar exchange rates.
Current report — wording carried from elsewhere
Prior to our recent financings, our primary source of liquidity has been our operations. The primary demand on our working capital has historically been operating losses. Historically, our sources of liquidity have been adequate to satisfy working capital requirements arising in the ordinary course of business. Following our strategic pivot to a DAT strategy in September 2025, our liquidity profile has fundamentally changed.