TerraVolt Holdings, Inc. 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2026 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File No. 000-50331 TerraVolt Holdings, Inc. (Exact name of registrant as specified in its charter) Nevada 98-0371433 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 11753 Willard Avenue Tustin , California 92782 (Address of Principal Executive Offices) (Zip Code) (714) 352-5315 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. ☐ Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☒ Smaller reporting company ☐ Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒ As of August 14, 2026, there were 25,730,540 outstanding shares of the registrant’s common stock, par value $ 0.001 per share. TABLE OF CONTENTS PAGE Cautionary Note Regarding Forward Looking Statements ii PART I FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets as of June 30, 2026 (unaudited) and December 31, 2025 1 Condensed Consolidated Statements of Operations for the three-month and six-month periods ended June 30, 2026 and 2025 (unaudited) 2 Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the three-month and six-month periods ended June 30, 2026 and 2025 (unaudited). 3 Condensed Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2026 and 2025 (unaudited) 4 Notes to the Condensed Consolidated Financial Statements (Unaudited) 5 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3. Quantitative and Qualitative Disclosures about Market Risk 22 Item 4. Controls and Procedures 22 PART II OTHER INFORMATION Item 1. Legal Proceedings 23 Item 1A. Risk Factors 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23 Item 3. Default Upon Senior Securities 23 Item 4. Mine Safety Disclosures 23 Item 5. Other Information 23 Item 6. Exhibits 24 Signatures 25 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information set forth in this Quarterly Report on Form 10-Q, including in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, with respect to our financial condition, results of operations and business that are not historical facts are “forward-looking statements”. Forward-looking statements can be identified by the use of forward-looking terminology, such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “seek”, “estimate”, “project”, “could”, “may” or the negative thereof or other variations thereon, or by discussions of strategy that involve risks and uncertainties. Management wishes to caution the reader of the forward-looking statements that any such statements that are contained in this report reflect our current beliefs with respect to future events and involve known and unknown risks, uncertainties and other factors, including, but not limited to, economic, competitive, regulatory, technological, key employees, and general business factors affecting our operations, markets, growth, services, products and other factors, some of which are described in this report and some of which are discussed in our other filings with the Securities and Exchange Commission. These forward-looking statements are only estimates or predictions. No assurances can be given regarding the achievement of future results, as actual results may differ materially as a result of risks facing our company, and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events. Important factors to consider in evaluating any forward-looking statements include: ● our ability to finance and complete the design and construction of our proposed data center operations; ● our ability to implement our business plan; ● our ability to attract key personnel; ● our ability to operate profitably; ● our ability to efficiently and effectively finance our operations; ● inability to achieve future sales levels or other operating results; ● inability to raise additional financing for working capital; ● inability to efficiently manage our operations; ● the inability of management to effectively implement our strategies and business plans; ● the unavailability of funds for capital expenditures and/or general working capital; ● the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require management to make estimates about matters that are inherently uncertain; ● deterioration in general or regional economic conditions; ● changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate; ● adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations; These risk factors should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. All written and oral forward-looking statements made in connection with this report that are attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given these uncertainties, we caution investors not to unduly rely on our forward-looking statements. We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by applicable law or regulation. Notwithstanding the above, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), expressly state that the safe harbor for forward-looking statements does not apply to companies that issue penny stock. If, as now, we are considered to be an issuer of penny stock, the safe harbor for forward-looking statements may not apply to us at certain times. Throughout this report, unless otherwise designated, the terms “we,” “us,” “our,” “the Company” and “our company” refer to TerraVolt Holdings, Inc., a Nevada corporation, and its subsidiaries. All amounts are in U.S. Dollars, unless otherwise indicated. ii PART I - FINANCIAL INFORMATION Item 1: Financial Statements TerraVolt Holdings, Inc. Condensed Consolidated Balance Sheets As of June 30, 2026 December 31, 2025 (Unaudited) Assets Current assets Cash and cash equivalents $ 10,689,000 $ 287,000 Prepaid and other current expenses 19,000 8,000 Total current assets 10,708,000 295,000 Other assets 3,673,000 - Total assets $ 14,381,000 $ 295,000 Liabilities and stockholders’ deficit Current liabilities Accounts payable and accrued expenses $ 990,000 $ 775,000 Notes payable – related party, net of discount - 739,000 Convertible debentures, net 1,608,000 1,581,000 Total current liabilities 2,598,000 3,095,000 Notes payable – related party, net of discount 14,025,000 - Total liabilities 16,623,000 3,095,000 Stockholders’ deficit Series A convertible preferred stock, par value $ 0.001 , 3,600,000 shares designated; no shares issued and outstanding - - Preferred stock, par value $ 0.001 , 100,000,000 shares authorized; no shares issued and outstanding - - Preferred stock value - - Common stock par value $ 0.001 : 100,000,000 shares authorized; 25,730,540 and 25,730,540 shares issued and outstanding 26,000 26,000 Additional paid-in capital 38,346,000 35,543,000 Stock subscription receivable ( 1,000 ) ( 1,000 ) Accumulated deficit ( 40,613,000 ) ( 38,368,000 ) Total stockholders’ deficit ( 2,242,000 ) ( 2,800,000 ) Total liabilities and stockholders’ deficit $ 14,381,000 $ 295,000 See the accompanying notes to these unaudited condensed consolidated financial statements. 1 TerraVolt Holdings, Inc. Condensed Consolidated Statements of Operations (Unaudited) 2026 2025 2026 2025 For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Revenues $ - $ - $ - $ - Operating Expenses Professional fees 210,000 81,000 316,000 177,000 Equity-based compensation 315,000 ( 145,000 ) 637,000 ( 103,000 ) General and administrative 15,000 12,000 16,000 13,000 Payroll and related expense 247,000 187,000 414,000 268,000 Amortization of gas reservation fee 160,000 - 160,000 - Total operating expenses 947,000 135,000 1,543,000 355,000 Loss from operations ( 947,000 ) ( 135,000 ) ( 1,543,000 ) ( 355,000 ) Other income (expenses) Interest income 54,000 1,000 55,000 2,000 Financing costs ( 54,000 ) ( 55,000 ) ( 108,000 ) ( 77,000 ) Financing costs – related party ( 488,000 ) ( 75,000 ) ( 649,000 ) ( 75,000 ) Financing costs ( 488,000 ) ( 75,000 ) ( 649,000 ) ( 75,000 ) Abandoned project costs - ( 4,581,000 ) - ( 4,581,000 ) Total other expenses ( 488,000 ) ( 4,710,000 ) ( 702,000 ) ( 4,731,000 ) Loss before provision for income taxes ( 1,435,000 ) ( 4,845,000 ) ( 2,245,000 ) ( 5,086,000 ) Provision for income taxes - - - - Net loss $ ( 1,435,000 ) $ ( 4,845,000 ) $ ( 2,245,000 ) $ ( 5,086,000 ) Net loss per share - Basic and Diluted $ ( 0.06 ) $ ( 0.19 ) $ ( 0.09 ) $ ( 0.20 ) Weighted Average common shares outstanding - Basic and Diluted 25,730,540 25,730,540 25,730,540 25,730,540 See the accompanying notes to these unaudited condensed consolidated financial statements. 2 TerraVolt Holdings, Inc. Condensed Consolidated Statements of Stockholders’ Deficit (Unaudited) For the Three and Six Months Ended June 30, 2026 Shares Amount Capital Receivable Deficit deficit Common Stock Additional Paid-in Stock Subscription Accumulated Total Stockholders’ Shares Amount Capital Receivable Deficit deficit Balance December 31, 2025 25,730,540 $ 26,000 $ 35,543,000 $ ( 1,000 ) - $ ( 38,368,000 ) $ ( 2,800,000 ) Equity-based compensation - signing bonus - - 260,000 - - 260,000 Equity-based compensation expense - - 62,000 - - 62,000 Net loss - - - - - ( 810,000 ) ( 810,000 ) Balance March 31, 2026 25,730,540 $ 26,000 $ 35,865,000 $ ( 1,000 ) - $ ( 39,178,000 ) $ ( 3,288,000 ) Equity-based compensation expense - - 315,000 - - - 315,000 Warrants issued for note payable – related party - - 2,166,000 - - 2,166,000 Net loss - - - - ( 1,435,000 ) ( 1,435,000 ) Balance June 30, 2026 25,730,540 $ 26,000 $ 38,346,000 $ ( 1,000 ) - $ ( 40,613,000 ) $ ( 2,242,000 ) TerraVolt Holdings, Inc. Condensed Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited) For the Three and Six Months Ended June 30, 2025 Shares Amount Capital Receivable Income Deficit (deficit) Common Stock Additional Paid-in Stock Subscription Other Comprehensive Accumulated Total Stockholders’ equity Shares Amount Capital Receivable Income Deficit (deficit) Balance December 31, 2024 25,730,540 $ 26,000 $ 36,153,000 $ ( 1,000 ) $ 9,000 $ ( 31,870,000 ) $ 4,317,000 Forfeiture of stock options - - ( 1,073,000 ) - - - ( 1,073,000 ) Equity-based compensation - - 467,000 - - - 467,000 Net loss - - - - - ( 241,000 ) ( 241,000 ) Balance March 31, 2025 25,730,540 $ 26,000 $ 35,547,000 $ ( 1,000 ) $ 9,000 $ ( 32,111,000 ) $ 3,470,000 Equity-based compensation - - 92,000 - - - 92,000 Forfeiture of stock options - - ( 366,000 ) - - - ( 366,000 ) Reversal of equity-based compensation - - ( 817,000 ) - - - ( 817,000 ) Warrants issued for note payable – related party - - 134,000 - - - 134,000 Net loss - - - - - ( 4,845,000 ) ( 4,845,000 ) Balance June 30, 2025 25,730,540 $ 26,000 $ 34,590,000 $ ( 1,000 ) $ 9,000 $ ( 36,956,000 ) $ ( 2,332,000 ) See the accompanying notes to these unaudited condensed consolidated financial statements. 3 TerraVolt Holdings, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended June 30, 2026 2025 Cash Flows From Operating Activities Net loss $ ( 2,245,000 ) $ ( 5,086,000 ) Adjustments to reconcile net loss to net cash used in operating activities: Abandoned project cost - 4,581,000 Amortization of note payable discounts 372,000 70,000 Amortization of debt issuance cost 27,000 26,000 Amortization of gas reservation fee 160,000 - Fair value of equity-based compensation 637,000 ( 103,000 ) Changes in operating assets and liabilities Prepaid expenses and other current assets ( 11,000 ) ( 8,000 ) Accounts payable and accrued expenses 295,000 293,000 Net cash used in operating activities ( 765,000 ) ( 227,000 ) Cash Flows From Investing Activities Purchase of gas reservation fee ( 3,833,000 ) - Data center campus development cost - ( 464,000 ) Net cash used in investing activities ( 3,833,000 ) ( 464,000 ) Cash Flows From Financing Activities Proceeds from the issuance of notes payable – related party 15,000,000 250,000 Proceeds from the issuance of convertible debentures - 225,000 Cost for issuance of convertible debentures - ( 10,000 ) Net cash provided by financing activities 15,000,000 465,000 Net increase (decrease) in cash and cash equivalents 10,402,000 ( 226,000 ) Cash and cash equivalents, beginning of period 287,000 286,000 Cash and cash equivalents, end of period $ 10,689,000 $ 60,000 Supplemental disclosure of cash flow information: Cash paid for interest $ - $ - Cash paid for income taxes $ - $ - Non-cash investing and financing activities Relative fair value of warrants issued with notes payable – related party $ 2,166,000 $ 157,000 Accrued expenses – project development cost $ - $ ( 165,000 ) See the accompanying notes to these unaudited condensed consolidated financial statements. 4 TerraVolt Holdings, Inc. Condensed Consolidated Financial Statements (Unaudited) For the Three and Six Months Ended June 30, 2026 and 2025 Note 1 – Organization and Accounting Policies TerraVolt Holdings, Inc., formerly CalEthos, Inc. (the “Company” or “we”), was incorporated on March 20, 2002 under the laws of the State of Nevada. On July 10, 2026, the Company changed its corporate name from CalEthos, Inc. to TerraVolt Holdings, Inc. by filing a Certificate of Amendment to its Articles of Incorporation, as amended, with the Secretary of State of the State of Nevada. The name change was effected to reflect the Company’s strategic focus on sustainable powered land and infrastructure solutions for large-scale data center development and end users. The Company’s proposed solution is a Physical Infrastructure-as-a-Service (PIaaS) Platform that will integrate a portfolio of grid and behind-the-meter power with construction-ready data center building sites that include utilities and fiber connectivity. The Company plans to provide this turnkey solution to hyperscalers, colocation providers, and data center companies seeking to deploy new capacity faster than with traditional power generation and transmission. The Company is currently focusing on properties in states in which onsite power production utilizing natural gas turbines and reciprocating engines are allowed and in which the Company can acquire access to natural gas pipeline and capacity for delivery within a reasonable timeframe. Basis of Presentation The accompanying condensed consolidated financial statements and notes thereto are unaudited. The unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in the Company’s annual financial statements have been condensed or omitted. The December 31, 2025 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. These interim unaudited condensed consolidated financial statements, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the three and six-month periods ended June 30, 2026 and 2025. The results for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year ending December 31, 2026 or for any future period. 5 These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2025, included in the Company’s annual report on Form 10-K filed with the SEC on March 31, 2026. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary from the formation date. All material intercompany transactions and balances have been eliminated in consolidation. Going Concern and Liquidity The Company incurred a net loss of approximately $ 2,245,000 for the six months ended June 30, 2026, had an accumulated deficit of approximately $ 40,613,000 as of June 30, 2026, and has not generated recurring revenue from operations. The Company has financed its activities principally through debt and equity financing and shareholder contributions. Management expects to incur additional losses and cash outflows in the foreseeable future in connection with its operating activities. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for one year from the issuance of these unaudited condensed consolidated financial statements. The Company’s unaudited condensed consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is subject to a number of risks similar to those of other similar stage companies, including dependence on key individuals; successful development, marketing and branding of services; the uncertainty of product development and generation of revenues; dependence on outside sources of financing; risks associated with research and development; dependence on third-party suppliers and collaborators; protection of intellectual property; and competition with larger, better-capitalized companies. Ultimately, the attainment of profitable operations is dependent on future events, including locating and contracting to purchase suitable real estate with access to gas pipelines or other suitable power sources, contracting for the purchase of natural gas or otherwise obtaining the necessary power for the development of a data center, obtaining adequate financing to fund the Company’s operations and generating a level of revenues adequate to support the Company’s cost structure. The Company will need to raise debt or equity financing in the future in order to continue its operations and achieve its growth targets. However, there can be no assurance that such financing will be available in sufficient amounts and on acceptable terms, when and if needed, or at all. The precise amount and timing of the funding needs cannot be determined accurately at this time. The Company believes its cash balances and cash flow from operations will not be sufficient to fund its operations and growth for the next twelve months from the issuance date of these financial statements. If the Company is unable to raise additional funding from investors or through other avenues, it may not be able to continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Segment Reporting The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The Company operates as one operating segment and uses net income or loss as measures of profit or loss on a consolidated basis in making decisions regarding the allocation of capital resources and performance assessment. Additionally, the Company’s CODM regularly reviews the Company’s expenses on a consolidated basis. The financial metrics used by the CODM help make key operating decisions, such as determination of the use of capital resources for data center development and general and administrative expenses. 6 Since the Company operates as one reportable segment, all financial information required by “Segment Reporting” can be found in the accompanying unaudited condensed consolidated financial statements. The CODM does not review segment assets at a level other than that presented in the Company’s unaudited condensed consolidated balance sheets. There are no intra-entity sales or transfers, and no significant expense categories regularly provided to the CODM beyond those disclosed in the unaudited condensed consolidated statements of operations. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. As of and for the six months ended June 30, 2026, the Company had no assets or liabilities that required fair value measurement. Cash and Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates their fair value. The Company maintains its cash and cash equivalents in banks insured by the Federal Deposit Insurance Corporation (“FDIC”) in accounts that at times may be in excess of the federally insured limit of $ 250,000 per bank. The Company minimizes this risk by placing its cash deposits with major financial institutions. As of June 30, 2026 and December 31, 2025, the Company had approximately $ 10,437,000 and $ 31,000 , respectively, in excess of the federal insurance limit. 7 Prepaid Expenses Prepaid expenses are assets held by the Company that are expected to be realized and consumed within twelve months after the reporting period. Related Parties The Company follows Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) section 850-10 for the identification of related parties and disclosure of related-party transactions. Pursuant to ASC section 850-10-20, the related parties include (a) affiliates of the Company (“Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option of ASC section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The consolidated financial statements are required to include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures are required to include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitments and Contingencies The Company follows ASC section 450-20 to report accounting for contingencies. Certain conditions may exist as of the date the unaudited condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s unaudited condensed consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. 8 Stock-Based Compensation The Company accounts for its stock-based compensation under ASC 718, “ Compensation – Stock Compensation ” using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company uses the fair value method for equity instruments granted to non-employees and uses the Black-Scholes Option Pricing model for measuring the fair value of options. The fair value of stock-based compensation is determined as of the date of the grant (measurement date) and is recognized over the vesting periods. Earnings Per Share The Company uses ASC 260, “ Earnings Per Share ” for calculating the basic and diluted earnings (loss) per share. The Company computes basic earnings (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed based on the weighted average number of shares of common stock plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include outstanding stock options and warrants and stock awards. For periods with a net loss, basic and diluted loss per share is the same, in that any potential common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share. Securities that could potentially dilute loss per share in the future were not included in the computation of diluted loss per share for the three and six months ended June 30, 2026 and 2025 because their inclusion would be anti-dilutive. Common stock equivalents amounted to 30,523,510 and 11,438,678 as of June 30, 2026 and 2025, respectively. Recent Accounting Pronouncements The Company’s management reviewed all recently issued accounting standard updates (“ASUs”) not yet adopted by the Company and does not believe the future adoption of any such ASUs may be expected to cause a material impact on the Company’s unaudited condensed consolidated financial condition or the results of its operations. Note 2 – Gas Reservation Fee In April 2026, the Company entered into a natural gas supply agreement (the “Supply Agreement”) with a natural gas marketing company (“Fuel Supplier”) pursuant to which the Fuel Supplier made a firm commitment to provide the Company with 55,000 MMBTU per day of natural gas for the Company’s planned behind-the-meter onsite power plant to be located on the Company’s master-planned data center campus development to be located in Southeast Idaho on the Northwest Natural Gas Pipeline. Pursuant to the Supply Agreement, in May 2026, the Company paid to the Fuel Supplier a natural gas reservation fee in the amount of approximately $ 3,833,000 . The Company is also required to deliver to the Fuel Supplier a letter of credit in the maximum drawable amount of $ 6,000,000 to secure the Company’s obligations under the agreement; the parties have agreed to extend the date by which the letter of credit must be delivered, and as of June 30, 2026, the letter of credit had not been delivered. The Supply Agreement also provides for comprehensive fuel management services provided by the Fuel Supplier, which will allow the Company to better manage customer needs and power plant fluctuations to ensure maximum cost-effectiveness and operational reliability as data center buildings are completed and commence operation. 9 The reservation fee reserves the Company’s right to the firm natural gas allotment during the reservation window; it is not credited against the purchase price of gas purchased under the Supply Agreement and is forfeited if the Company does not commence the gas transaction. Under the Supply Agreement, the Company must deliver a notice designating the start date of gas deliveries by April 30, 2028 and must designate a start date no later than July 31, 2029, upon which a three-year delivery period commences. Both deadlines may be extended by up to eight months for delays beyond the Company’s reasonable control. The Company concluded that the reservation right does not meet the definition of a derivative under ASC 815, Derivatives and Hedging, as the arrangement contemplates physical delivery of natural gas and the net settlement criterion is not met. Accordingly, the Company recorded the reservation fee as a noncurrent deferred asset under ASC 340-10, Other Assets and Deferred Costs, and is amortizing the fee on a straight-line basis over the approximately 38-month reservation window from the date of payment through the outside start date of July 31, 2029, or approximately $ 106,000 per month, as an operating expense. The amortization period is reassessed each reporting period and will be revised prospectively as a change in accounting estimate once the start date becomes estimable or the extension provisions are invoked. The Company evaluates the recoverability of the deferred asset each reporting period and will write off any unamortized balance in the period in which it becomes probable that the gas allotment will not be utilized. For the three and six months ended June 30, 2026, the Company recognized amortization of the gas reservation fee of approximately $ 160,000 , which is included in operating expenses in the accompanying unaudited condensed consolidated statements of operations. As of June 30, 2026, the unamortized reservation fee of approximately $ 3,673,000 is included in other assets in the accompanying unaudited condensed consolidated balance sheets. In connection with the Supply Agreement, the Company is required to deliver to the Fuel Supplier a standby letter of credit in the maximum drawable amount of $ 6,000,000 and, prior to the start of gas deliveries, a delivery-period letter of credit of up to $ 50,000,000 , in each case to secure the Company’s obligations under the Supply Agreement. The parties have agreed to extend the date by which the initial letter of credit must be delivered, and as of June 30, 2026, the initial letter of credit had not been delivered. The letters of credit will represent off-balance-sheet commitments unless and until drawn upon. See Note 7 – Subsequent Events. Note 3 – Notes Payable – Related Party Notes Payable – Related Party On April 20, 2026, the Company entered into a letter agreement (the “Letter Agreement”) with SFO IDF LLC (“SFO IDF”), a company owned and controlled by a trust established for the benefit of certain family members of Sean Fontenot, a director of the Company, the trustees of which are independent and not affiliated with Mr. Fontenot. Pursuant to the Letter Agreement, on April 23, 2026, SFO IDF advanced $ 15,000,000 in cash to the Company, and the Company’s three previously outstanding promissory notes held by SFO IDF in the aggregate principal amount of $ 1,000,000 , which bore interest at the rate of 10 % per annum and were to mature on June 30, 2026, were cancelled. In consideration, the Company issued to SFO IDF (i) an 8 % promissory note in the principal amount of $ 16,000,000 (the “Note”) and (ii) a warrant to purchase up to 6,000,000 shares of the Company’s common stock at an exercise price of $ 0.50 per share, exercisable through April 30, 2032 (the “Warrant”). The Note matures on April 30, 2028 , with interest payable at maturity, is prepayable in whole or in part at any time without penalty or premium, and bears interest at the rate of 12 % per annum during the continuance of an event of default. The Warrant was determined to be equity-classified. The Company allocated the proceeds between the Note and the 6,000,000 Warrant shares based on their relative fair values, resulting in approximately $ 2,166,000 recorded as additional paid-in capital and as a debt discount, which is being amortized to financing costs – related party over the term of the Note using the effective interest method. The fair value of the Warrant was calculated to be approximately $ 2,992,000 using the Black-Scholes fair value option-pricing model with key input variables provided by management, as of the date of issuance: volatility of 241.14 %, the fair value of common stock of $ 0.50 per share, estimated life of 6.0 years, risk-free rate of 3.96 % and dividend rate of nil. 10 The cancellation of the three previously outstanding notes in exchange for a portion of the Note was accounted for as a debt modification in accordance with ASC 470-50, Debt – Modifications and Extinguishments, as the terms of the new instruments were not substantially different from those of the cancelled notes. Accordingly, no gain or loss was recognized on the cancellation. The $ 1,000,000 principal balance of the cancelled notes and the related accrued and unpaid interest of approximately $ 80,000 were carried forward into the net carrying amount of the Note. The approximately $ 102,000 of unamortized debt discount remaining on the cancelled notes, which arose from the relative fair value of the warrants previously issued with those notes, was combined with the approximately $ 2,166,000 relative fair value discount attributable to the Warrant, and the combined debt discount balance is being amortized to financing costs – related party over the term of the Note. As additional consideration for the $ 15,000,000 advance, the Company agreed to pay to SFO IDF, within five business days of the Company’s receipt thereof, all amounts received by the Company or any of its affiliates from the future sale or lease of any Phase 1 construction-ready building sites or parcels to data center off-takers in Phase 1 of a proposed data center campus, up to an aggregate of $ 37,500,000 , with additional amounts payable if subsequent phases of the proposed campus are developed. If aggregate payments to SFO IDF from Phase 1 parcel sales or leases are less than $ 37,500,000 , the Company and SFO IDF will negotiate in good faith the sources and percentages of the Company’s net income from campus site services from which the remaining amounts would be paid over a two-year period until SFO IDF has received an aggregate of $ 37,500,000 . Because the payment mechanism for any such residual amounts has not been determined and the underlying payments are dependent on future events, including future parcel sales or leases, the fair value of these contingent payment rights was not reliably measurable at the transaction date, no proceeds were allocated to them, and no liability has been recognized as of June 30, 2026. The Company will recognize any such payments as additional financing costs when they become probable and reasonably estimable. As of June 30, 2026, the Company had not secured land to be used for the proposed data center campus. Notes payable – related party transactions are summarized for the periods as follows: SCHEDULE OF NOTES PAYABLE As of June 30, 2026 As of December 31, 2025 Principal Balance, beginning of the period $ 1,011,000 $ 11,000 Principal balance, beginning of the period $ 1,011,000 $ 11,000 Additions 16,000,000 1,000,000 Cancellation ( 1,000,000 ) - Balance, end of the period 16,011,000 1,011,000 Principal balance, end of the period 16,011,000 1,011,000 Discount Balance, beginning of the period 272,000 - Discount balance, beginning of the period 272,000 - Additions 2,166,000 885,000 Accrued interest on cancelled notes ( 80,000 ) - Amortization ( 372,000 ) ( 613,000 ) Balance, end of the period 1,986,000 272,000 Discount balance,end of the period 1,986,000 272,000 Net carrying amount $ 14,025,000 $ 739,000 Financing cost for the notes payable – related party amounted to $ 488,000 and $ 75,000 for the three months ended June 30, 2026 and 2025, respectively, and $ 649,000 and $ 75,000 for the six months ended June 30, 2026 and 2025, respectively. 11 Note 4 – Convertible Debentures CONVERTIBLE DEBENTURE Convertible debentures transactions are summarized as follows : SCHEDULE OF CONVERTIBLE DEBENTURES Principal As of June 30, 2026 As of December 31, 2025 Balance, beginning of period $ 1,635,000 $ 1,410,000 Principal balance, beginning of period $ 1,635,000 $ 1,410,000 Additions - 225,000 Balance, end of period 1,635,000 1,635,000 Principal balance, end of period 1,635,000 1,635,000 Debt issuance cost Balance, beginning of period 54,000 97,000 Debt issuance cost balance, beginning of period 54,000 97,000 Additions - 10,000 Amortization ( 27,000 ) ( 53,000 ) Balance, end of period 27,000 54,000 Debt issuance cost balance, end of period 27,000 54,000 Net book value $ 1,608,000 $ 1,581,000 Financing cost for convertible debentures amounted to $ 54,000 and $ 55,000 for the three months ended June 30, 2026 and 2025, respectively, and $ 108,000 and $ 104,000 for the six months ended June 30, 2026 and 2025, respectively, of which $ 27,000 of the $ 104,000 for the six months ended June 30, 2025 was capitalized as data center campus cost. Note 5 – Commitments and Contingencies COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. The Company is not currently a party to any material legal proceedings, nor is the Company aware of any pending or threatened litigation that would have a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. Note 6 – Stockholders’ Deficit STOCKHOLDERS’ DEFICIT Stock Options SCHEDULE OF STOCK OPTION ACTIVITIES Number of Shares Weighted Average Strike Price/Share Weighted Average Remaining Contractual Term (Years) Weighted Average Grant Date Fair Value/Share Intrinsic Value Balance, December 31, 2025 6,716,500 0.65 6.48 0.63 - Granted 2,500,000 0.52 7.0 0.23 - Forfeited - - - - - Exercised - - - - - Expired - - - - - Balance, June 30, 2026 9,216,500 0.62 5.5 0.52 2,232,000 Vested and exercisable, June 30, 2026 6,478,584 0.59 5.6 0.47 1,655,000 Unvested, June 30, 2026 2,737,916 $ 0.69 5.2 $ 0.66 $ 577,000 For the three months ended June 30, 2026 and 2025, the total equity-based compensation expense (credit) was approximately $ 315,000 and $( 145,000 ), respectively, and for the six months ended June 30, 2026 and 2025, was approximately $ 637,000 and $( 103,000 ), respectively. As of June 30, 2026, the Company had 9,216,500 stock options outstanding - 6,541,500 options had a time-based vesting requirement and 2,675,000 had a performance-based vesting requirement, as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING FOR TIME-BASED AND PERFORMANCE-BASED ACTIVITIES Time-based Performance-based VP - Corporate Development 500,000 500,000 CEO 3,750,000 1,750,000 VP - Senior Counsel 175,000 175,000 VP – Engineering and Construction 250,000 - Terminated employees - vested 212,500 - Non-employees -Vested on issuance 1,654,000 - Non-employee advisor - 250,000 Total 6,541,500 2,675,000 12 The outstanding performance-based awards, excluding the option granted to the non-employee advisor described below, are as follows: SCHEDULE OF OUTSTANDING PERFORMANCE-BASED AWARDS ACTIVITY VP – Corporate Development CEO VP- Senior Counsel Total Milestone 1 100,000 350,000 35,000 485,000 Milestone 2 100,000 350,000 35,000 485,000 Milestone 3 100,000 350,000 35,000 485,000 Milestone 4 100,000 350,000 35,000 485,000 Milestone 5 100,000 350,000 35,000 485,000 Total 500,000 1,750,000 175,000 2,425,000 The performance-based options held by the Company’s VP – Corporate Development, CEO and VP - Senior Counsel vest upon the achievement of five specified milestones related to the development of the Company’s data center platform. In June 2026, pursuant to provisions of the option agreements that permit the vesting milestones to be altered or changed upon the mutual agreement of the Company and each optionee as the development plan is further defined, the Company and the optionees agreed to update the five performance milestones to align them with the Company’s current natural gas-based development plan: (1) fuel supply and transportation rights; (2) site control; (3) regulatory and land use approvals; (4) customer or offtake commitment; (5) purchase order for principal power plant component; and (6) permit to operate power generator facility. Milestone 1 through 4 vests 20% and milestones 5 and 6 10% of each optionee’s performance-based options. The change was made pursuant to the awards’ existing terms and did not change the number of options, the exercise prices, or the vesting structure of the awards; accordingly, the change did not constitute a modification, and the awards continue to be measured at their original grant date fair values. In May 2026, the first milestone (fuel supply and transportation rights) was achieved upon the execution of the Company’s natural gas supply and transportation arrangements. As a result, 485,000 performance-based options vested and the Company recognized compensation expense of approximately $ 285,000 for the three and six months ended June 30, 2026, equal to the grant date fair value of the vested options. Management cannot estimate whether or when the remaining four milestones will be achieved and, accordingly, no compensation expense has been recognized for the remaining unvested performance-based options, which have an aggregate grant date fair value of approximately $ 1,138,000 . The probability of achievement of the milestones is reassessed at each reporting date, and compensation cost for a milestone tranche will be recognized if and when achievement of that milestone becomes probable. In June 2026, the Company entered into an employment agreement with its VP – Engineering and Construction, with services commencing July 1, 2026. As part of the employment agreement, the Company granted a non-qualified stock option to purchase 250,000 shares of the Company’s common stock at an exercise price of $ 0.65 per share under the Company’s 2021 Equity Incentive Plan. The option is exercisable for a period of seven years from the date of grant and vests in four quarterly installments of 62,500 shares as earned, based on hours worked, beginning July 1, 2026. The option grant date fair value of approximately $ 185,000 was calculated using the Black-Scholes fair value option-pricing model with key input variables provided by management, as of the date of grant: the fair value of common stock $ 0.74 , volatility of 249 %, estimated life of 7 seven years, and risk-free interest rate of 4.24 %. Compensation expense will be recognized as the option is earned over the requisite service period beginning July 1, 2026; accordingly, no compensation expense was recognized for the three and six months ended June 30, 2026. In June 2026, the Company granted to a non-employee advisor a non-qualified stock option to purchase 250,000 shares of the Company’s common stock at an exercise price of $ 0.65 per share under the Company’s 2021 Equity Incentive Plan. The option is exercisable for a period of seven years from the date of grant and vests solely upon the achievement of the following performance milestones related to the development of the Company’s data center project: (1) completion of the data center energy stack baseline and strategy definition ( 15 %, or 37,500 shares); (2) selection of the power plant architecture and execution model ( 20 %, or 50,000 shares); (3) strategic partner sourcing and engineering selection for the Company’s planned Idaho data center campus ( 20 %, or 50,000 shares); (4) execution of a letter of intent for power plant financing or with an off-taker ( 15 %, or 37,500 shares); and (5) design, build and construction commissioning of the power plant ( 30 %, or 75,000 shares). The option grant date fair value of approximately $ 125,000 was calculated using the Black-Scholes fair value option-pricing model with key input variables provided by management, as of the date of grant: the fair value of common stock $ 0.50 , volatility of 249 %, estimated life of seven years, and risk-free interest rate of 4.24 %. None of the milestones had been achieved as of the option issuance date or June 30, 2026, and management cannot estimate when the milestones will be completed because the Company has not secured the land for its planned data center campus sites and has not received, or commenced the process to receive, the state and local approvals necessary to zone and develop the sites, which are the developments on which the achievement of the milestones depends. Accordingly, no compensation expense has been recognized for this option for the three and six months ended June 30, 2026. Compensation cost equal to the grant date fair value will be recognized when achievement of the performance milestones becomes probable. The probability of achievement of the milestones is reassessed at each reporting date. In March 2026, the Company entered into an employment agreement with its CEO. As a sign-on bonus, the CEO received a non-qualified stock option (the “Bonus Options”) to purchase 2,000,000 shares of the Company’s common stock at a price of $ 0.49 per share. The Bonus Options vested immediately with an expiration date of March 26, 2033 . The Bonus Options grant date fair value of $ 260,000 was calculated using the Black-Scholes fair value option-pricing model with key input variables provided by management, as of the date of issuance: volatility of 227.99 %, the fair value of common stock $ 0.14 , estimated life of 3.5 years, risk-free rate of 4.0 % and dividend rate of nil. In January 2025, the Company issued to the Vice President and Sr. Counsel, Real Estate, Land Use and Governmental Affairs, a non-qualified stock option agreement for the purchase of 350,000 shares of the Company’s common stock for an exercise price of $ 1.99 per share, which was the fair value of the Company’s common stock on the grant date. The option vests as to 350,000 shares of common stock as follows: ● The option became exercisable as to 43,750 shares of common stock on January 16, 2026 and shall vest and become exercisable as to an additional 43,750 shares of common stock on each of January 16, 2027, January 16, 2028, and January 16, 2029 provided that the optionee is a consultant, an employee or a Board member in good standing with the Company on such applicable vesting date. ● The option vests as to the remaining 175,000 shares of common stock based on the employee completing the modified milestones, as disclosed above. 13 The option grant date fair value of $ 690,000 was calculated using the Black-Scholes fair value option-pricing model with key input variables provided by management, as of the date of issuance: volatility range 223.09 to 237.39 %, the fair value of common stock $ 1.99 , estimated life range 4.5 to 5.25 years, risk-free rate of 4.45 % and dividend rate of nil . Warrants The following table summarizes warrants outstanding as of June 30, 2026: SCHEDULE OF WARRANTS ACTIVITY Number of Shares Weighted Average Strike Price/Share Weighted Average Remaining Contractual Term (Years) Weighted Average Grant Date Fair Value/Share Intrinsic Value Balance, December 31, 2025 11,504,678 0.81 3.84 0.68 - Granted 6,000,000 0.50 5.8 0.50 - Forfeited - - - - - Exercised - - - - - Expired - - - - - Balance, June 30, 2026 17,504,678 0.71 4.2 0.62 4,051,992 Vested and exercisable, June 30, 2026 17,504,678 0.71 4.2 0.62 4,051,992 Unvested, June 30, 2026 - $ - - $ - $ - In April 2026, the Company issued to SFO IDF the Warrant to purchase up to 6,000,000 shares of the Company’s common stock at an exercise price of $ 0.50 per share, exercisable through April 30, 2032, in connection with the issuance of the $ 16,000,000 promissory note and the cancellation of the previously outstanding notes payable – related party (see Note 3 – Notes Payable – Related Party). The relative fair value of the Warrant of approximately $ 2,166,000 was recorded as additional paid-in capital and as a debt discount on the Note. Note 7 – Subsequent Events SUBSEQUENT EVENTS The Company evaluated all events that occurred after the balance sheet date through the date the financial statements were issued to determine if they must be reported. Management determined there are no reportable events, except for the following: In August 2026, the Company entered into an agreement with a financial institution (the “Financial Institution”) under which the Financial Institution issued an irrevocable standby letter of credit in the amount of $6,000,000 (the “LOC”) for the account of the Company and for the benefit of the Fuel Supplier, as required under the natural gas supply agreements described in Note 2. The LOC expires on March 31, 2029. In connection with the issuance of the LOC, the Company placed $6,000,000 into a deposit account at the Financial Institution and assigned the deposit account to the Financial Institution as collateral for the Company’s reimbursement obligations in the event of a draw under the LOC. The assignment will remain in effect until the LOC is terminated and the Company’s related obligations to the Financial Institution have been satisfied. The $6,000,000 deposit will be reported as restricted cash in the Company’s balance sheet beginning in the third quarter of 2026. 14 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with our financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the financial statements and related notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion contains certain forward-looking statements that involve risks and uncertainties. Our actual results and the timing of certain events could differ materially from those discussed in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth herein and elsewhere in this Quarterly Report and in our other filings with the Securities and Exchange Commission. See “Cautionary Note Regarding Forward Looking Statements.” Plan of Operations We are a developer of large-scale data center infrastructure designed to power the digital economy. Our primary focus is the development of a “master-planned” data center campus in a business-friendly Northwestern U.S. location. Unlike traditional developments, our campus will be designed to be onsite-powered, meaning we intend to provide our tenants with dedicated, reliable energy generated on the property. Our proposed solution is a Physical Infrastructure-as-a-Service (PIaaS) platform that will integrate onsite behind-the-meter (BTM) power with construction-ready data center building sites that include utilities and fiber connectivity. We plan to provide a turnkey solution with power and utilities to hyperscaler, neocloud, and colocation data center companies seeking to deploy new capacity faster than with traditional power and transmission from a local electric utility company. We are currently focused on a location where onsite power production using natural gas turbines and reciprocating engines is allowed under local and state building codes and where there is direct access to a natural gas pipeline with capacity for delivery within a reasonable timeframe. In April 2026, we entered into a natural gas supply agreement (the “Supply Agreement”) with a natural gas marketing company (“Fuel Supplier”) pursuant to which the Fuel Supplier agreed to provide us with 55,000 MMBTU per day of natural gas for our planned onsite powered data center campus in Southeast Idaho on the Northwest Natural Gas Pipeline. Pursuant to the Supply Agreement, in May 2026, we paid to the Fuel Supplier a natural gas reservation fee in the amount of $3,832,500, and in August 2026, we delivered to the Fuel Supplier a letter of credit in the maximum drawable amount of $6,000,000 to secure our obligations under the Supply Agreement. The Supply Agreement also provides for comprehensive fuel management services provided by the Fuel Supplier, that will allow us to better manage our customer’s needs and power plant fluctuations to ensure maximum cost-effectiveness and operational reliability as data center buildings are completed and commence operation. We are currently negotiating with a number of landowners to purchase properties in Southeast Idaho on the Northwest Natural Gas pipeline that we deem sufficient for a large-scale onsite powered data center campus. As of the date of this Report, we have commenced the initial phase of our data center campus development process, which includes working with the local county planning and development department on land-use applications, zoning amendments, and studies and reports that will be required for the county to approve our plans once we gain site control of a property, which we expect will be within the next 60 days. Concurrently, we also are finalizing timelines and budgets for all necessary county and state environmental assessments. These studies cover the data center campus, the onsite power plant, electrical distribution systems, and critical utility infrastructure (water, sewer, fiber, and gas). We expect to file these reports before the end of 2026, with the aim of securing all necessary construction approvals by the second quarter of 2027. Additionally, we expect to submit to applicable county and state agencies all design and environmental documentation for land use and conditional zoning amendment approvals, which include the onsite natural gas power plant and data center campus development, by year-end 2026. However, there can be no assurance that we will be able to successfully negotiate or enter into a definitive purchase agreement for targeted properties or to gain all required approvals for land use or conditional zoning amendments. It is anticipated that we will incur significant expenses in the implementation of our business plan as described herein. In April 2026, we borrowed $15,000,000 to fund certain expenses related to the Supply Agreement and preliminary permitting for our planned data center campus. It is anticipated that we will require substantial additional financing to complete the development and construction of the planned data center campus. A failure to obtain this necessary capital when required on acceptable terms, or at all, could force us to delay, limit, reduce or terminate our development plans, any commercialization efforts and any other operations. We may not be able to secure financing on favorable terms, or at all, to meet our future capital needs. In addition, even if we are able to obtain sufficient funding to commence our business operations, we may need to pursue additional financing in the future to make expenditures and/or investments to support the growth of our business. In addition, we may require additional capital to pursue our business objectives and respond to new competitive pressures, pay extraordinary expenses or fund our growth, including through acquisitions. Additional funding, however, may not be available when required on terms that are acceptable to us, or at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when it is required, our ability to commence and grow our proposed business operations, to support our business and to respond to business challenges could be significantly limited. To fund our business plan going forward, we intend to raise funds from investors by issuing common stock, preferred stock and/or debt securities. 15 Results of Operations for the Three Months Ended June 30, 2026 and 2025 The following table summarizes our results of operations for the three months ended June 30, 2026 and 2025: Three Months Ended June 30, Change 2026 2025 Dollar Percentage Revenues $ — $ — $ — — % Operating Expenses Professional fees 210,000 81,000 129,000 159.3 Equity-based compensation 315,000 (145,000 ) 460,000 317.2 General and administrative 15,000 12,000 3,000 25.0 Payroll and related expense 247,000 187,000 60,000 32.1 Amortization of gas reservation fee 160,000 — 160,000 100.0 Total operating expenses $ 947,000 $ 135,000 $ 812,000 601.5 % Other (expenses) income Interest income $ 54,000 $ 1,000 $ 53,000 5,300.0 % Financing costs (54,000 ) (55,000 ) (1,000 ) (1.8 ) Financing costs – related party (488,000 ) (75,000 ) 413,000 550.7 Abandoned project costs — (4,581,000 ) (4,581,000 ) (100.0 ) Total other expense $ (488,000 ) $ (4,710,000 ) $ (4,222,000 ) (89.6 )% Revenues For the three months ended June 30, 2026 and 2025, we had no revenues. Operating Expenses Professional fees Professional fees increased to $210,000 for the three months ended June 30, 2026 from $81,000 for the three months ended June 30, 2025, an increase of approximately $129,000, or 159.3%. The increase was primarily attributable to (i) an increase in legal fees of approximately $94,000, (ii) an increase in consulting fees of approximately $31,000, and (iii) political contributions of $30,000, partially offset by (iv) decreases in accounting, filing and transfer agent fees aggregating approximately $1,000 and (v) geologist costs of approximately $25,000 incurred during 2025 that did not recur in 2026. Equity-based compensation Equity-based compensation increased to $315,000 for the three months ended June 30, 2026 from a credit of $(145,000) for the three months ended June 30, 2025, an increase of approximately $460,000. The equity-based compensation expense for the three months ended June 30, 2026 included approximately $285,000 recognized upon the achievement of the first performance milestone of our performance-based stock options in May 2026, with the remaining $30,000 related to time-based equity awards issued in prior years. The credit for the three months ended June 30, 2025 resulted from the reversal of previously recognized compensation expense in connection with the forfeiture of stock options held by terminated employees and consultants. General and administrative General and administrative expenses increased to $15,000 for the three months ended June 30, 2026 from $12,000 for the three months ended June 30, 2025, an increase of approximately $3,000, or 25.0%, with no individually material changes. Payroll and related cost Payroll and related cost increased to $247,000 for the three months ended June 30, 2026 from $187,000 for the three months ended June 30, 2025, an increase of approximately $60,000, or 32.1%. The increase was primarily attributable to the employment agreement entered into with our Chief Executive Officer in March 2026 and increased staffing to support our expanded development activities. 16 Amortization of gas reservation fee For the three months ended June 30, 2026, we recognized amortization of the gas reservation fee of $160,000 related to the reservation fee paid under the Supply Agreement we entered into in April 2026. There was no comparable cost during the three months ended June 30, 2025. Other (expenses) income Interest income Interest income increased to $54,000 for the three months ended June 30, 2026 from $1,000 for the three months ended June 30, 2025, an increase of approximately $53,000. The increase was attributable to interest earned on higher average cash balances following our receipt of $15,000,000 of proceeds from the issuance of a promissory note to a related party in April 2026. Financing costs Financing costs decreased to $54,000 for the three months ended June 30, 2026 from $55,000 for the three months ended June 30, 2025, a decrease of approximately $1,000, or 1.8%, with no material change between periods. Financing costs – related party Financing costs – related party increased to $488,000 for the three months ended June 30, 2026 from $75,000 for the three months ended June 30, 2025, an increase of approximately $413,000, or 550.7%. The increase was attributable to interest on, and amortization of the debt discount associated with, the $16,000,000 promissory note issued to a related party in April 2026, as compared to lower average related party borrowings outstanding during the three months ended June 30, 2025. Abandoned project costs During the three months ended June 30, 2025, we recorded abandoned project costs of approximately $4,581,000 in connection with our decision to abandon our planned data center project in Imperial County, California. There were no comparable costs during the three months ended June 30, 2026. Results of Operations for the Six Months Ended June 30, 2026 and 2025 The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025: Six Months Ended June 30, Change 2026 2025 Dollar Percentage Revenues $ — $ — $ — — % Operating Expenses Professional fees 316,000 177,000 139,000 78.5 Equity-based compensation 637,000 (103,000 ) 740,000 718.4 General and administrative 16,000 13,000 3,000 23.1 Payroll and related expenses 414,000 268,000 146,000 54.5 Amortization of gas reservation fee 160,000 — 160,000 100.0 Total operating expenses $ 1,543,000 $ 355,000 $ 1,188,000 334.6 % Other (expenses) income Interest income $ 55,000 $ 2,000 $ 53,000 2,650.0 % Financing costs (108,000 ) (77,000 ) 31,000 40.3 Financing costs – related party (649,000 ) (75,000 ) 574,000 765.3 Abandoned project costs — (4,581,000 ) (4,581,000 ) (100.0 ) Total other expense $ (702,000 ) $ (4,731,000 ) $ (4,029,000 ) (85.2 )% 17 Revenues For the six months ended June 30, 2026 and 2025, we had no revenues. Operating Expenses Professional fees Professional fees increased to $316,000 for the six months ended June 30, 2026 from $177,000 for the six months ended June 30, 2025, an increase of approximately $139,000, or 78.5%. The increase was primarily attributable to (i) an increase in legal fees of approximately $81,000, (ii) an increase in consulting fees of approximately $49,000, (iii) an increase in filing fees of approximately $9,000, and (iv) political contributions of $30,000, partially offset by (v) a decrease in accounting fees of approximately $8,000 and (vi) geologist costs of approximately $25,000 incurred in 2025 that did not recur in 2026. Equity-based compensation Equity-based compensation increased to $637,000 for the six months ended June 30, 2026 from a credit of $(103,000) for the six months ended June 30, 2025, an increase of approximately $740,000. The equity-based compensation expense for the six months ended June 30, 2026 included $260,000 related to the stock option issued to our Chief Executive Officer as a signing bonus pursuant to his employment agreement executed in March 2026, approximately $285,000 recognized upon the achievement of the first performance milestone of our performance-based stock options in May 2026, and the remaining $92,000 related to time-based equity awards issued in prior years. The credit for the six months ended June 30, 2025 resulted from the reversal of previously recognized compensation expense in connection with the forfeiture of stock options held by terminated employees and consultants. General and administrative General and administrative expenses increased to $16,000 for the six months ended June 30, 2026 from $13,000 for the six months ended June 30, 2025, an increase of approximately $3,000, or 23.1%, with no individually material changes. Payroll and related cost Payroll and related cost increased to $414,000 for the six months ended June 30, 2026 from $268,000 for the six months ended June 30, 2025, an increase of approximately $146,000, or 54.5%. During the six months ended June 30, 2025, we incurred total payroll costs of approximately $497,000, of which approximately $229,000 was capitalized as project development cost and the remaining $268,000 was expensed. On a gross basis, the 2026 payroll cost decreased by approximately $83,000 compared to the 2025 payroll cost, primarily due to a decrease in headcount; following the abandonment of the Imperial County project in 2025, no payroll costs were capitalized during 2026. Amortization of gas reservation fee For the six months ended June 30, 2026, we recognized amortization of the gas reservation fee of $160,000 related to the reservation fee paid under the Supply Agreement we entered into in April 2026. There was no comparable cost during the six months ended June 30, 2025. Other (expenses) income Interest income Interest income increased to $55,000 for the six months ended June 30, 2026 from $2,000 for the six months ended June 30, 2025, an increase of approximately $53,000. The increase was attributable to interest earned on higher average cash balances following our receipt of $15,000,000 of proceeds from the issuance of a promissory note to a related party in April 2026. 18 Financing costs Financing costs increased to $108,000 for the six months ended June 30, 2026 from $77,000 for the six months ended June 30, 2025, an increase of approximately $31,000, or 40.3%. The increase was attributable to a higher average balance of convertible debentures outstanding during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Financing costs – related party Financing costs – related party increased to $649,000 for the six months ended June 30, 2026 from $75,000 for the six months ended June 30, 2025, an increase of approximately $574,000. The increase was attributable to interest on, and amortization of the debt discounts associated with, the related party notes payable outstanding during 2026, including the $16,000,000 promissory note issued to a related party in April 2026, as compared to minimal related party borrowings during the six months ended June 30, 2025. Abandoned project costs During the six months ended June 30, 2025, we recorded abandoned project costs of approximately $4,581,000 in connection with our decision to abandon our planned data center project in Imperial County, California. There were no comparable costs during the six months ended June 30, 2026. Liquidity and Capital Resources Our working capital (deficit) as of June 30, 2026 and December 31, 2025 was as follows: As of June 30, 2026 December 31, 2025 Current assets $ 10,708,000 $ 295,000 Current liabilities 2,598,000 3,095,000 Working capital (deficit) $ 8,110,000 $ (2,800,000 ) Our working capital improved from a working capital deficit of $2,800,000 as of December 31, 2025 to working capital of $8,110,000 as of June 30, 2026, an improvement of approximately $10,910,000. The improvement was primarily attributable to (i) an increase of $10,402,000 in our cash and cash equivalents, primarily resulting from the $15,000,000 of proceeds received from the issuance of a promissory note to a related party in April 2026, and (ii) the cancellation of $739,000 of related party notes payable, net of discounts, that were previously classified as current liabilities, in exchange for the $16,000,000 promissory note, which is classified as a non-current liability, partially offset by (iii) an increase of $215,000 in our accounts payable and accrued expenses and an increase of $27,000 in the carrying value of our convertible debentures due to the amortization of debt discounts. Cash Flows for the six months ended June 30, 2026 and 2025 Six Months Ended June 30, 2026 2025 Net cash used in operating activities $ (765,000 ) $ (227,000 ) Net cash used in investing activities (3,833,000 ) (464,000 ) Net cash provided by financing activities 15,000,000 465,000 Change in cash and cash equivalents during the period 10,402,000 (226,000 ) Cash and cash equivalents, beginning of period 287,000 286,000 Cash and cash equivalents, end of period $ 10,689,000 $ 60,000 19 Cash Flows from Operating Activities Cash used in operating activities increased to approximately $765,000 for the six months ended June 30, 2026 from approximately $227,000 for the six months ended June 30, 2025, an increase of approximately $538,000. The increase was predominantly related to the increases in our professional fees, payroll and related cost and other operating expenses during the six months ended June 30, 2026 to support our expanded development activities. Cash Flows from Investing Activities Cash used in investing activities increased to approximately $3,833,000 for the six months ended June 30, 2026 from approximately $464,000 for the six months ended June 30, 2025, an increase of approximately $3,369,000. The increase was attributable to the payment of the $3,833,000 reservation fee under the natural gas supply agreement entered into in April 2026, whereas the prior year period included approximately $464,000 of development costs related to the abandoned Imperial County project. Cash Flows from Financing Activities Cash provided by financing activities increased to $15,000,000 for the six months ended June 30, 2026 from approximately $465,000 for the six months ended June 30, 2025, an increase of approximately $14,535,000. The 2026 amount reflects the $15,000,000 advanced by an entity related to a significant shareholder and board member in connection with the issuance of the $16,000,000 promissory note in April 2026, whereas the 2025 amount consisted of $250,000 of proceeds from notes payable – related party and $225,000 of proceeds from the issuance of convertible debentures, net of $10,000 of issuance costs. Liquidity and Material Cash Requirements For the six months ended June 30, 2026, we funded our operations with our existing cash reserves and the proceeds from the issuance of a promissory note to an entity that is related to a significant shareholder and board member. As of June 30, 2026, we had cash and cash equivalents of approximately $10,689,000, with convertible debentures in the aggregate principal amount of $1,635,000 that mature in December 2026 and a related party promissory note in the amount of $16,000,000 that matures in April 2028. It is anticipated that we will incur expenses in the implementation of our business plan described above, and such expenses will require substantial financing to complete the development of the property for a data center operation and to achieve our goals. While we received net proceeds in the amount of $15,000,000 from the issuance of our debt securities in April 2026 to fund our business plan going forward, as of date of the filing of this Report, we have expended approximately $3,833,000 for the payment of the reservation fee to our natural gas supplier and have deposited $6,000,000 as security for a letter of credit that we have delivered under our natural gas supply agreement. Once we secure suitable land for our master-planned data center campus, we expect to expend the remaining net proceeds of approximately $5,100,000 over the next 12 months to complete the zoning and permitting process for the land we acquire, and the required design, engineering and regulatory studies for our planned gas power plant and campus layout, as well as for working capital for salaries, regulatory reporting and other miscellaneous expenses. In order to start the construction phase of our planned campus, we intend to raise additional funds from investors by issuing common stock, preferred stock and/or debt securities. We are currently in discussions with several potential funding sources. However, there can be no assurance that we will be able to successfully raise additional funds when required, if at all. The failure to obtain this necessary capital when needed on acceptable terms, or at all, could force us to delay, limit, reduce or terminate our development plans, any commercialization efforts or other operations. We may not be able to secure financing on favorable terms, or at all, to meet our future capital needs. In addition, even if we are able to obtain sufficient funding to commence our business operations, we may need to pursue additional financing in the future to make expenditures and/or investments to support the growth of our business and may require additional capital to pursue our business objectives and respond to new competitive pressures, pay extraordinary expenses or fund our growth, including through acquisitions. Additional funds, however, may not be available when we need them on terms that are acceptable to us, or at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to commence our proposed business operations, to continue to grow and support our business and to respond to business challenges could be significantly limited. 20 Going Concern The unaudited condensed consolidated financial statements included in this filing have been prepared on a going concern basis, which implies that our company will continue to realize its assets and discharge its liabilities and commitments in the normal course of business. We are presently in the development stage and, apart from our cash balances, have only limited assets. We have not generated revenues in the last two fiscal years, have never paid any dividends and we are unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of our company as a going concern is dependent upon: (i) continued financial support from our shareholders; (ii) our ability to continue raising necessary debt or equity financing to achieve our operating objectives; and (iii) our ability to acquire assets and establish a business or merge or otherwise acquire business opportunities. Our independent auditors included an explanatory paragraph in their report on our financial statements for the year ended December 31, 2025 regarding concerns about our ability to continue as a going concern. In addition, our financial statements contain further note disclosures in this regard. The implementation of our business plan is dependent upon our ability to continue raising sufficient new capital from equity or debt markets in order to fund our on-going operating losses and real estate acquisition activities. The issuance of additional equity securities could result in a significant dilution in the equity interests of our current stockholders. Application of Critical Accounting Policies The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures of our company. Although these estimates are based on management’s knowledge of current events and actions that our company may undertake in the future, actual results may differ from such estimates. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of our company and our wholly-owned subsidiary from the formation date. All material intercompany transactions and balances have been eliminated in consolidation. Debt and Debt Discounts In accordance with ASC 470-20, Debt with Conversion and Other Options , we first allocate the cash proceeds of any notes we sell with warrants between the notes and any warrants on a relative fair value basis. Proceeds are then allocated to the conversion feature. We account for debt discounts originating in connection with conversion features that remain embedded in the related notes in accordance with ASC 470-20. These costs are classified on the balance sheet as a direct deduction from the debt liability. We amortize these costs over the term of our debt agreements as financing cost in the unaudited condensed consolidated statement of operations. Stock-Based Compensation We account for our stock-based compensation under ASC 718, “ Compensation – Stock Compensation ” using the fair value based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. We use the fair value method for equity instruments granted to non-employees and use the BSM model for measuring the fair value of options. The stock-based fair value compensation is determined as of the date of the grant (measurement date) and is recognized over the vesting periods. Recent Accounting Pronouncements Our management reviewed all recently-issued accounting standard updates (“ASUs”) not yet adopted by our company and does not believe the future adoption of any such ASUs may be expected to cause a material impact on our unaudited condensed consolidated financial condition or the results of our operations. Off-Balance Sheet Arrangements We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial position, revenues and expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders. 21 Item 3. Quantitative and Qualitative Disclosures about Market Risk Not required under Regulation S-K for smaller reporting companies. Item 4. Controls and Procedures. Evaluation of Disclosure Controls and Procedures As of the end of the period covered by this Quarterly Report, our Chief Executive Officer and Chief Financial Officer (our “Certifying Officers”), conducted evaluations of our disclosure controls and procedures. As defined under Sections 13a - 15(e) and 15d - 15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the term “disclosure controls and procedures” means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (“SEC”). Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including the Certifying Officers, to allow timely decisions regarding required disclosures. Based on their evaluation, the Certifying Officers concluded that, as of June 30, 2026, our disclosure controls and procedures were not effective. The material weakness related to internal control over financial reporting that was identified at June 30, 2026 was that we did not have sufficient personnel staffing in our accounting and financial reporting department. As a result, we were not able to achieve adequate segregation of duties and were not able to provide for adequate review of the financial statements. This control deficiency could result in a reasonable possibility that material misstatements of the financial statements will not be prevented or detected on a timely basis. However, our management believes that the material weakness identified does not result in the restatement of any previously reported financial statements or any other related financial disclosure, and management does not believe that the material weakness had any effect on the accuracy of our financial statements included as part of this Quarterly Report. We will continue to monitor and evaluate the effectiveness of our disclosure controls and procedures and our internal controls over financial reporting on an ongoing basis and are committed to taking action and implementing additional enhancements or improvements, as necessary and as funds allow. Changes in internal control over financial reporting. There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Limitations on the Effectiveness of Internal Controls Readers are cautioned that our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud and material error. An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our control have been detected. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any control design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. 22 PART II - OTHER INFORMATION Item 1. Legal Proceedings We know of no material active or pending legal proceeding against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. Item 1A. Risk Factors We are a small reporting company, as defined by Rule 12b-2 of the Exchange Act, and are not required to provide the information under this item. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Sales of Unregistered Securities There have been no sales of unregistered securities within the reporting period covered by this report that would be required to be disclosed pursuant to Item 701 of Regulation S-K, except as follows: On April 23, 2026, SFO IDF LLC, a company owned and controlled by a trust established for the benefit of certain family members of Sean Fontenot, a director of our company, the trustees of which are independent and not affiliated with Mr. Fontenot (“SFO IDF”), entered into a letter agreement for a loan to the Company in the amount of $15,000,000, agreed to refinance the outstanding notes payable held by SFO IDF in the aggregate principal amount of $1,000,000 that bore interest at the rate of 10% per annum and were to mature on June 30, 2026 by cancelling such notes in their entirety, in exchange for a promissory note in the principal amount of $16,000,000 that bears interest at the rate of 8% per annum that matures on April 30, 2028 and a six-year warrant to purchase up to 6,000,000 shares of the Company’s common stock with an exercise price of $0.50 per share. The promissory note and warrant were issued in reliance upon exemptions from registration provided by Section 4(a)(2) of the Securities Act, and Rule 506 of Regulation D promulgated thereunder, as the transactions did not involve any public offering. No placement agent was engaged in connection with these sales, and no fees or commissions were paid. Repurchases of Shares or of Company Equity Securities None. Item 3. Default Upon Senior Securities None. Item 4. Mine Safety Disclosures. Not applicable. Item 5. Other Information None 23 Item 6. Exhibits The following documents are filed as a part of this report or incorporated herein by reference: Exhibit Number Description 3.1 Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to our Quarterly Report of Form 10-Q filed on May 15, 2024). 3.2 Amendment dated June 30, 2026 to Restated Articles of Incorporation (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on July 7, 2026). 3.3 Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to our Current Report on Form 8-K filed on July 7, 2026). 4.1 8% Promissory Note dated April 23, 2026 of our company issued to SFO IDF LLC (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on April 29, 2026) 10.1 TerraVolt Holdings, Inc. 2021 Equity Incentive Plan, as amended. 10.2 Consulting Agreement dated as of October 10, 2018 between our company and DSS Consulting Corporation (incorporated by reference to Exhibit 10.12 to our Annual Report on Form 10-K filed on March 31, 2022). 10.3 Employment Agreement dated as of June 19, 2023 between our company and Joel D. Stone (incorporated by reference to Exhibit 10.3 to our Annual Report on Form 10-K filed on March 31, 2026). 10.4 Warrant dated December 6, 2023 of our company issued to M1 Advisors LLC (incorporated by reference to Exhibit 10.4 to our Annual Report on Form 10-K filed on April 2, 2025). 10.5 Warrant dated February 12, 2024 of our company issued to SFO IDF LLC (incorporated by reference to Exhibit 10.5 to our Annual Report on Form 10-K filed on April 9, 2024. 10.6 Warrant dated December 15, 2024 of our company issued to SFO IDF LLC (incorporated by reference to Exhibit 10.6 to our Annual Report on Form 10-K filed on April 2, 2025). 10.7 Warrant dated April 23, 2026 of our company issued to SFO IDF LLC (incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed on April 29, 2026) 31.1 Certification of the Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of the Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32 Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*** 101.ins** Inline XBRL Instance Document 101.xsd** Inline XBRL Taxonomy Extension Schema Document 101.cal** Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.def** Inline XBRL Taxonomy Extension Definition Linkbase Document 101.lab** Inline XBRL Taxonomy Extension Label Linkbase Document 101.pre** Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) ** Furnished. Not filed. Not incorporated by reference. Not subject to liability. *** A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. 24 SIGNATURES Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: August 14, 2026 TerraVolt Holdings, Inc. By: /s/ Joel D. Stone Name: Joel D. Stone Title: Chief Executive Officer By: /s/ Dean S Skupen Name: Dean S Skupen Title: Chief Financial Officer 25