v3.26.1
Condensed Statements of Cash Flows - USD ($)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Cash Flows From Operating Activities    
Net income (loss) $ 8,840,550 $ (3,483,533)
Adjustments to reconcile net income (loss) to net cash and cash equivalents used in operating activities:    
Stock-based compensation 1,804,485 279,628
Change in fair value of shares issued for accrued dividend 146,719  
Amortization of debt discount 55,461 277,972
Non-cash lease expense 75,591 75,591
Provision for credit losses 504,511  
Gain on extinguishment of liabilities   (89,623)
Realized gain - digital assets (3,623,764)  
Unrealized gain - digital assets (10,973,979)  
Unrealized gain - digital intangible assets receivable (367,251)  
Net gains on derivative instruments (39,401)  
Impairment loss - digital intangible assets 1,231,668  
Non-cash revenue, net (244,271)  
Non-cash portion of other income (6,041)  
Non-cash interest income from digital assets receivable (198,957)  
Paid-in-kind interest expense 83,672 198,829
Changes in operating assets and liabilities:    
Prepaid expenses and other current assets (1,542,190) (577,321)
License fee and expense reimbursements receivables   (960)
Accounts payable 110,366 (999,807)
Accrued expenses and other current liabilities 67,117 28,814
Lease liabilities (120,938) (152,436)
Net Cash and Cash Equivalents Used In Operating Activities (4,196,652) (4,442,846)
Cash Flows From Investing Activities    
Purchase of digital assets (1,472,835)  
Net Cash and Cash Equivalents Used In Investing Activities (1,472,835)  
Cash Flows From Financing Activities    
Proceeds from sale of common stock in At the Market offering 6,981,098 5,851,007
Proceeds from induced exercise of stock warrants   1,039,206
Payment of issuance costs for At the Market offering (315,716) (187,741)
Repayments of notes payable (58,440) (152,279)
Payment of issuance costs for debt modification   (177,228)
Payment of cash issuance costs for induced exercise of stock warrants   (116,456)
Reverse stock split settlement of fractional shares   (160)
Net Cash and Cash Equivalents Provided By Financing Activities 6,606,942 6,256,349
Net Increase in Cash and Cash Equivalents 937,455 1,813,503
Cash and Cash Equivalents - Beginning of Period 6,443,467 2,121,463
Cash and Cash Equivalents - End of Period 7,380,922 3,934,966
Supplemental Disclosure of Cash Flow Information:    
Interest 86,737  
Supplemental Disclosure of Non-Cash Investing and Financing Activities    
Modification date carrying value of extinguished Avenue Loan   10,262,280
Modification date fair value of modified Avenue Loan   10,172,657
Transfer of digital intangible assets into digital intangible assets receivable 8,863,235  
Deposits of USDH into Hyperion Rysk Vault 1,765,075  
Redemption of digital assets from Hyperion Rysk Vault 151,377  
Warrant modification and additional warrants - incremental value [1]   $ 1,194,102
Prepaid insurance financed by note payable 598,055  
Common stock issued for accrued dividends payable 939,337  
Accrued dividend payable to preferred stockholders 815,297  
Treasury shares retired 253,558  
Deposits of digital assets into liquid staking activities 224,011  
Liability for digital assets received from lender, prior to loan origination 150,163  
Common stock issued upon conversion of preferred stock 60  
Receipt of digital assets from liquid staking activities 4  
Issuance of common stock upon vesting of restricted stock units $ 3  
[1] Incremental value from the warrant inducement entered into on January 16, 2025.

Source

10-Q XBRL Zip