Exodus Movement, Inc.

4. Variable Interest Entity

Refer to "Note 2 – Summary of Significant Accounting Policies" for more information on the Company's accounting policies related to the consolidation of VIEs.

In connection with the acquisition of Monavate Holdings Limited and its subsidiaries that was completed on May 1, 2026, the Company consolidates UAB Monavate, a Lithuanian private limited liability company and regulated electronic money institution. The Company determined that UAB Monavate is a VIE given UAB Monavate's insufficiency of equity at risk and because the Company holds a variable interest in UAB Monavate through Monavate Ltd's existing service arrangements with UAB Monavate.

UAB Monavate is included in the Company's condensed consolidated financial statements under the VIE provisions of ASC 810. This accounting treatment reflects the application of ASC 810's related party and de facto agent provisions to certain Company employees, who are on the board of directors of and hold equity interest in UAB Monavate, together with Monavate Ltd's existing service arrangements with UAB Monavate.

The Company holds no equity or voting interest in UAB Monavate, has no right to acquire its equity and is not entitled to proceeds from any sale of UAB Monavate. Consolidation does not confer ownership or additional contractual decision-making rights on the Company and does not change UAB Monavate's separate legal or regulatory status. The Company has not guaranteed UAB Monavate's obligations or committed to fund its losses. UAB Monavate's net loss attributable to its equity holders is allocated entirely to noncontrolling interests.

UAB Monavate's assets can be used only to settle UAB Monavate's obligations and there is no recourse to the Company by creditors for UAB Monavate’s liabilities. Accordingly, they are presented separately in the condensed consolidated balance sheets.