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Note 6 - Intangible Digital Assets
6 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Crypto Asset [Text Block]

Note 6 Intangible Digital Assets

 

On August 28, 2025, the Company adopted Bitcoin as its primary treasury reserve asset. Under this new treasury strategy, the Company purchases and holds Bitcoin for long term investment purposes. The Company accounts for its Bitcoin as in indefinite-lived intangible asset in accordance with ASC 350, Intangibles-Goodill and Other and has ownership over its Bitcoin, which are included in intangible digital assets in the Unaudited Condensed Consolidated Balance Sheets. As of June 30, 2025, there were no contractual restrictions on the Company sale of its Bitcoin.

 

Bitcoin investment

 

The Company's Bitcoin purchased for investment purpose are initially recorded at cost, inclusive of transaction costs and fees. Subsequently, the Company remeasure its Bitcoin investment at fair value at the end of each reporting period with changes recognized in net income through other (expense) income, net on the Company's Condensed Consolidated Statements of Operations. As of September 30, 2025, the Company held approximately 43.15 Bitcoins with a cost basis of $5.0 million and a fair value of $4.9 million.

 

The Company began cryptocurrency activities during the three months ended September 30, 2025. The Company purchased $5.0 million of cryptocurrency during the three months ended September 30, 2025, and recognized a loss of $79,000 associated with the change in fair value during the period. The Company did not sell any of its cryptocurrency during the three months ended September 30, 2025.