Item 1A. Risk Factors
Item 1A. Risk Factors
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, other than as follows. Our digital-asset holdings represented 89% of our total assets as of June 30, 2026 and are measured at fair value with changes recognized in earnings; declines in the price of Bitcoin, Tether or the NILA token would have an immediate and material adverse effect on our results of operations and financial condition, and the NILA token trades in markets that are not active, which may limit our ability to monetize that position at its carrying value. Substantial doubt exists about our ability to continue as a going concern. Notes payable with an aggregate principal amount of $5,000,000 matured on July 1, 2026, and the forbearance arrangement with the holder of our senior secured convertible note expired on June 30, 2026; if we are unable to repay, extend or restructure these obligations, the holders may exercise remedies against substantially all of our assets. We are not in compliance with Section 1007 of the NYSE American Company Guide and our common stock could be delisted if we do not regain compliance within the cure period. We effected a 1-for-10 reverse stock split on July 24, 2026, which may adversely affect the liquidity and market price of our common stock.
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