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DIGITAL ASSETS
 3 Months Ended
Nov. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
DIGITAL ASSETS

NOTE 3 – DIGITAL ASSETS

 

The Company accounts for its digital assets, which are comprised of BTC and ETH as indefinite-lived intangible assets in accordance with ASC 350-60, Intangibles—Goodwill and Other-Crypto Assets. The Company has ownership of and control over its BTC and ETH and uses third-party custodial services at multiple locations that are geographically dispersed to store its digital assets. The Company’s digital assets are initially recorded at cost. Subsequently, they are measured at fair value, with the gain or loss associated with remeasurement of the digital assets reported in net income.

 

The fair value of the Company’s digital assets is determined based on the quoted price in its principal market, CoinBase, at the time of measurement (midnight UTC). The Company determines its principal market as the market that it has access to and has the greatest volume and level of orderly transactions in accordance with ASC 820, Fair Value Measurement. The Company tracks the cost of its digital assets using the first-in-first-out (FIFO) method. During the three months ended November 30, 2025 and 2024, the Company realized gains from the sale of digital assets of $0 and $0, respectively.

 

Digital assets earned by the Company through its mining activities are included within operating activities on the accompanying Condensed Statements of Cash Flows. The sales of digital currencies are included within investing activities in the accompanying condensed statements of cash flows and any realized gains or losses from such sales are included in operating expense in the condensed statements of income and comprehensive income (loss).

 

The Company holds its BTC in an account at Bitgo Trust (“Bitgo”), a well-known BTC custodian, which it also uses to liquidate its BTC when necessary. The Company also has an account with Gemini Trust Company, LLC, which is regulated by the New York Department of Financial Services as a backup facility.

 

Additionally, the Company has strategically invested in ETH, becoming the largest corporate holder of ETH, with over 3,737,140 tokens valued at approximately $10,544,339 as of November 30, 2025. These purchases were made through major OTC desks like Bitgo and Galaxy Digital. The Company views ETH as a long-term reserve asset, central to its positioning in the AI and digital asset investment.

 

As part of the Company’s normal operations, there are trades at month end that have been finalized and recorded but not yet settled. As of November 30, 2025, the Company has unsettled trades totaling $125,000, representing transactions accounted for but pending settlement. This amount is recorded as a current liability on the Condensed Consolidated Balance Sheet.

 

See Note 3, Digital Assets, to the Interim Statements for further information regarding the Company’s purchases and sales of digital assets.

 

The following table sets forth the units held, cost basis, and fair value of both BTC and ETH held, as shown on the balance sheet as of November 30, 2025:

 

    Units   Cost Basis   Fair Value 
BTC    193   $21,380   $17,450 
ETH    3,737,140    14,953,824    10,544,339 
Total    3,737,333   $14,975,204   $10,561,789 

 

Cost basis is equal to the cost of the digital asset, net of any transaction fees, if any, at the time of purchase or upon receipt. Fair value represents the quoted digital assets prices within the Company’s principal market at the time of measurement (midnight Eastern). The following table presents a reconciliation of BTC held as of November 30, 2025 and November 30, 2024:

 

   November 30, 2025   November 30, 2024 
Fair value, beginning balance  $20,923   $15 
Additions from BTC mining and hosting activity   2    484 
Additions from purchases of BTC   350    - 
Additions from advance payments in BTC   -    86 
Direct payments in BTC   (172)   (142)
Sale of BTC   -    (378)
Remeasurement of fair value of BTC   (3,653)   85 
Fair value, ending balance  $17,450   $150 

 

The Company acquired ETH as a part of a strategic business shift during fiscal year 2025. The following table presents a reconciliation of ETH held as of November 30, 2025:

 

   November 30, 2025 
Fair value, beginning balance  $8,260,610 
Additions from staking activity   980 
Additions from the purchase of ETH   7,527,221 
Direct Payments in ETH   (200)
Realized gains   - 
Unrealized remeasurement of fair value   (5,244,272)
Fair value, ending balance  $10,544,339 

 

Note: The Company did not hold any ETH as of November 30, 2024.