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DIGITAL ASSET HOLDINGS | 3 Months Ended
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Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract] |
DIGITAL ASSET HOLDINGS | 3. DIGITAL ASSET HOLDINGS Digital Assets The following table sets forth the units held, cost basis, and fair value of digital assets held, as shown on the condensed consolidated balance sheet as of March 31, 2026 and December 31, 2025: SCHEDULE OF FAIR VALUE OF DIGITAL ASSETS
|  | Units |  |  | Cost Basis |  |  | Fair Value |
Balance, March 31, 2026 |  |  |  |  |  |  |  |  |  |  |  |
TON |  |  | 221,881,224 |  |  | $ | 733,884 |  |  | $ | 272,026 |
Total |  |  | 221,881,224 |  |  | $ | 733,884 |  |  | $ | 272,026 |
|  | Units |  |  | Cost Basis |  |  | Fair Value |
Balance, December 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |
TON |  |  | 219,709,826 |  |  | $ | 730,740 |  |  | $ | 356,809 |
Total |  |  | 219,709,826 |  |  | $ | 730,740 |  |  | $ | 356,809 |
Cost basis is equal to the cost of the digital assets inclusive of any transaction fees, if any, at the time of purchase or upon receipt. Fair value represents the quoted digital asset prices within the Company’s principal market at the time of measurement (midnight UTC). Of the units of TON presented above 59,091,372 units are unrestricted and 162,789,852 units are subject to restriction. Refer to Note 15 – Subsequent Events for further discussion on the fair value of the units of TON held. The following table represents a reconciliation of TON – Unrestricted digital assets held at March 31, 2026: SCHEDULE OF UNRESTRICTED DIGITAL ASSETS
|  | For the three months ended March 31, 2026 |
Fair Value, December 31, 2025 |  | $ | 89,628 |
Receipt of TON from staking |  |  | 3,151 |
Non-cash transaction fees |  |  | (6 | )
Vesting of locked TON |  |  | 2,493 |
Unrealized loss |  |  | (22,820 | )
Fair Value, March 31, 2026 |  | $ | 72,446 |
The receipts of TON from staking represent the rewards earned from staking activities. The vesting of Locked TON represents restricted TON that vested during the period and was reclassified to unrestricted TON. During the three months ended March 31, 2026, the Company recognized cumulative realized gains of $0, and cumulative realized losses of $0 upon the payment TON for gas fees and transaction costs. The following table represents a reconciliation of TON – Restricted digital assets held at March 31, 2026: SCHEDULE OF RESTRICTED DIGITAL ASSETS
|  | For the three months ended March 31, 2026 |
Fair Value, December 31, 2025 |  | $ | 267,181 |
Vesting of locked TON |  |  | (2,493 | )
Unrealized loss |  |  | (65,108 | )
Fair Value, March 31, 2026 |  | $ | 199,580 |
The vesting of Locked TON represents restricted TON that vested during the period and was reclassified to unrestricted TON. During the three months ended March 31, 2026, the Company recognized cumulative realized gains of $0, and cumulative realized losses of $0 upon the payment TON for gas fees and transaction costs. Restricted Digital Assets The following table sets forth the fair value of unrestricted and restricted TON digital assets held, as shown on the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025: SCHEDULE OF FAIR VALUE OF UNRESTRICTED AND RESTRICTED TON DIGITAL ASSETS
|  | March 31, 2026 |  |  | December 31, 2025 |
TON – Unrestricted |  | $ | 72,446 |  |  | $ | 89,628 |
TON – Restricted |  |  | 199,580 |  |  |  | 267,181 |
Total |  | $ | 272,026 |  |  | $ | 356,809 |
Through contributions from the PIPE the Company received 18,007,358 units of TON subject to Locked TON vesting restrictions. See Note 14 – Related Party Transactions. The Locked TON is a smart contract mechanism on the TON blockchain. The smart contract includes a start time, a total duration, and a cliff period. The TON vests monthly on a 30-day cycle. During the year ended December 31, 2025 the Company made purchases of 177,790,167 units of TON from two different parties subject to legal restrictions enforced through purchase agreements. The total lock-up period is four years for each purchase and commenced on July 31, 2025 and August 4, 2025. The TON is subject to an initial 12-month lock-up with 25% unlocked after the first year and the remaining 75% vesting ratably each month for the remaining 36 months. On November 3 2025, restrictions on approximately 28,773,971 units of TON were lifted and those units are no longer subject to the lock-up period or vesting schedule. Refer to Note 2 – Summary of Significant Accounting Policies and Supplemental Disclosures for discussion on fair value considerations of the restrictions. Although the restricted units of TON are not eligible for trading or transfer, the restricted or Locked TON do not carry any restrictions regarding staking and all restricted TON can be staked by the Company to generate staking revenue. During the three months ended March 31, 2026, 1,730,197 units of restricted TON vested. The table below sets forth the units of TON that will vest during subsequent years: SCHEDULE OF UNITS OF TON VEST
Year ending |  | TON units to vest |
2026 |  |  | 54,605,518 |
2027 |  |  | 43,669,472 |
2028 |  |  | 39,581,312 |
2029 |  |  | 24,933,550 |
Total units of TON to vest |  |  | 162,789,852 |

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