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The following discussion and analysis compares our consolidated
−Removed: results of operations for the three months ended March 31, 2025 (the “2025 Quarter”) with those for the three months ended
−Removed: March 31, 2024 (the “2024 Quarter”).
+Added: results of operations for the three months ended June 30, 2025 (the “2025 Quarter”) with those for the three months ended
+Added: June 30, 2024 (the “2024 Quarter”) and our consolidated results of operations for the six months ended June 30, 2025 (the
+Added: “2025 Period”) with those for the six months ended June 30, 2024 (the “2024 Period”).
Cautionary Note Regarding Forward-Looking Statements
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and impacts, see Note 1 to the unaudited condensed consolidated financial statements.
−Removed: Three Months Ended March 31, 2025 Compared
−Removed: to the Three Months Ended March 31, 2024
+Added: Three Months Ended June 30, 2025 Compared to
+Added: the Three Months Ended June 30, 2024
Results of operations
Our operating expenses for the three months ended
−Removed: March 31, 2025 (the “2025 Quarter”) was $22,115,041 compared to $336,599, for the three months ended March 31, 2024 (the “2024
+Added: June 30, 2025 (the “2025 Quarter”) was $3,262,408 compared to $380,819, for the three months ended June 30, 2024 (the “2024
Quarter”), an increase of 88%.
−Removed: In the 2025 Quarter, the Company incurred stock-based compensation expense of $21,679,711 compared
−Removed: to $0 for the 2024 Quarter.
−Removed: The stock-based compensation for the 2025 Quarter was related to the amendment of options to the officers
−Removed: of the Company.
−Removed: Our other income for the 2025 Quarter was $1,243,060
−Removed: compared to other expense of $114,605 for the 2024 Quarter.
−Removed: Other income in the 2025 quarter was comprised of $11,187 in interest expense
−Removed: and $1,254,247 for the gain on the change in fair value of derivative liabilities.
−Removed: Other expense for the 2024 quarter was comprised of
−Removed: $24,420 in interest expense and $90,185 for the loss on the change in fair value of derivative liabilities.
+Added: In the 2025 Quarter, the Company incurred stock-based compensation expense of $26,250 compared to
+Added: $0 for the 2024 Quarter.
+Added: The stock-based compensation for the 2025 Quarter was related to shares issued to a consultant for services performed.
+Added: Our other expense for the 2025 period was $564,873
+Added: compared to other income of $69,941 for the 2024 Quarter.
+Added: Other expenses in the 2025 period was comprised of $20,377 in interest expense,
+Added: $396,443 for the loss on the change in fair value of derivative liabilities and $148,053 on the loss on settlement of debt.
+Added: Other expense
+Added: in the 2024 Quarter was comprised of $45,552 in interest expense and $152,052 for the loss on the change in fair value of derivative liabilities
+Added: offset by income of $150,000 on the refund of an equipment deposit.
+Added: Six Months Ended June 30, 2025 Compared to
+Added: the Six Months Ended June 30, 2024
+Added: Results of operations
+Added: Our operating expenses for the six months ended
+Added: June 30, 2025 (the “2025 Period”) was $25,377,549 compared to $722,018, for the six months ended June 30, 2024 (the “2024
+Added: Period”), an increase of 723%.
+Added: In the 2025 Period, the Company incurred stock-based compensation expense of $24,273,137 compared
+Added: to $0 for the 2024 Period.
+Added: The stock-based compensation for the 2025 Quarter was related to the amendment of options to the officers of
+Added: the Company and issuance of shares to an outside consultant.
+Added: Our other income for the 2025 Period was 678,187
+Added: compared to other expense of $44,664 for the 2024 Period.
+Added: Other income in the 2025 Period was comprised of $31,564 in interest expense,
+Added: $857,804 for the gain on the change in fair value of derivative liabilities and $148,053 on the loss on settlement of debt.
+Added: Other expense
+Added: in the 2024 Period was comprised of $45,552 in interest expense, $60 in other expense and $152,052 for the loss on the change in fair
+Added: value of derivative liabilities offset by income of $150,000 on the refund of an equipment deposit.
Liquidity and Capital Resources
−Removed: As of May 15, 2025, the Company had approximately
+Added: As of August 14, 2025, the Company had approximately
$3,000 of cash on hand.
Historically, our liquidity was primarily derived from debt and equity investments from accredited investors.
−Removed: During the three months ended March 31, 2025, we received an initial payment of approximately $303,000 for colocation services to be provided
+Added: During the six months ended June 30, 2025, we received an initial payment of approximately $303,000 for colocation services to be provided
by the Company.
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Summary of cash flows
−Removed: March 31, 2025
−Removed: March 31, 2024
+Added: June 30, 2025
+Added: June 30, 2024
Net cash provided by (used in) operating activities
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Operating Activities
−Removed: During the 2025 Quarter, cash provided by operating
+Added: During the 2025 period, cash used in operating
activities of $43,487 primarily resulted from the Prepaid AI hosting services (customer deposits), offset by the net loss of $24,699,362
and stock-based compensation of $24,273,137, and change in the fair value of derivative liabilities of $857,804.
−Removed: During the 2024 Quarter, cash used in operating
+Added: During the 2024 period, cash used in operating
activities of $2,047 primarily resulted from the net loss of $766,682 offset by change in fair value of derivative liabilities of $152,052,
1 unchanged sentence
Investing Activities
−Removed: During the 2025 Quarter, the Company advanced
−Removed: $183,000 of cash for working capital needs in connection with the business acquisition of SAPL for purposes of financing the construction
−Removed: of the HPC facility.
−Removed: The Company had no investing activities during
−Removed: the 2024 Quarter.
+Added: During the 2025 Period, the Company paid $47,915
+Added: of cash for assets in the construction of the HPC facility as well as $183,000 in connection with the acquisition of SAPL.
+Added: Cash used in investing activities in the 2024
+Added: Period of $4,600 resulted from the purchase of cryptocurrency assets.
Financing Activities
−Removed: During the 2025 Quarter, the Company received
−Removed: $300,000 in cash proceeds in connection with the sale of shares of common stock of the Company, offset by repayments of related party
−Removed: advances of $9,900.
−Removed: The Company had no financing activities during
−Removed: the 2024 Quarter.
+Added: During the 2025 Period, the Company received $300,000
+Added: in cash proceeds in connection with the sale of shares of common stock of the Company, offset by repayments of related party advances
+Added: In the 2024 Period, cash provided by financing
+Added: activities of $6,725 consisted of $10,000 for the repayment of convertible notes payable, offset by proceeds from related party advances
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.