What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-13 compared with 2026-05-15 · 177 added, 120 removed, 246 unchanged (55% of the section changed)

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The following discussion and analysis of the results of operations and financial condition of Hyperion DeFi, Inc.

(“Hyperion DeFi” the “Company,” “we,” “us” and “our”) as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 should be read in conjunction with our unaudited condensed financial statements and the notes thereto included in this Quarterly Report on Form 10-Q as well as our financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”).

(“Hyperion DeFi” the “Company,” “we,” “us” and “our”) as of June 30, 2026 and for the three and six months ended June 30, 2026 and 2025 should be read in conjunction with our unaudited condensed financial statements and the notes thereto included in this Quarterly Report on Form 10-Q as well as our financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”).

Forward Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements.

The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of 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”).

The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Such forward-looking statements include our estimates regarding expenses, future revenue, capital requirements and our need for additional financing and other financial items;

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is the first U.S.

publicly listed company building a long-term strategic treasury of Hyperliquid’s native token, HYPE.

publicly listed company building on Hyperliquid.

Hyperion DeFi is working to provide its shareholders with simplified exposure to the Hyperliquid ecosystem, which we believe to be one of the highest revenue-generating blockchains in the world, according to information provided by various blockchain data tracking sources, including Artemis Analytics and DefiLlama.

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The Company has also historically conducted research and development activities related to its proprietary Optejet User Filled Device, designed to work with a variety of topical ophthalmic liquids, including artificial tears and lens rewetting products.

Management expects that substantially all assets and operations related to Optejet will be wound down during the second quarter of 2026.

Substantially all operations related to Optejet have been wound down as of June 30, 2026.

In July 2026, the Company sold all its right, title, and interest to intellectual property associated with the Optejet and the Company’s pharmaceutical development program to Arctic Vision (Hong Kong) Limited in exchange for a $100,000 release of indebtedness.

The Company does not anticipate any material proceeds or future economic benefit from the Optejet or the small number of associated ophthalmic technology assets held by the Company as of June 30, 2026.

HYPE Treasury

Hyperliquid is a layer one (“L1”) blockchain engineered for transparent high-frequency finance.

Hyperliquid is L1 blockchain engineered for transparent high-frequency finance.

The blockchain hosts fully on-chain perpetual futures and spot order books, with every order, cancel, trade and liquidation occurring within 70 millisecond block times and offering up to 200,000 transactions per second, resulting in near-instant trade settlement.

The Hyperliquid blockchain also hosts the HyperEVM, a general-purpose smart contract platform that, like Ethereum, supports permissionless decentralized financial applications such as perpetual futures trading platforms.

Perpetual futures are a type of cryptocurrency derivative contract that allows traders to speculate on the price of an asset without owning the underlying asset itself.

Hyperliquid supports non-custodial trading via its performant HyperCore order books, with perpetual futures trading for a range of both digital assets and tokenized real-world assets such as Bitcoin (BTC), Ether (ETH), equities, and commodities driving its utilization.Perpetual futures are a type of cryptocurrency derivative contract that allows traders to speculate on the price of an asset without owning the underlying asset itself.

Unlike traditional futures contracts, perpetual futures have no expiration date, allowing traders to hold positions indefinitely, as long as they meet margin requirements.

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users can stake HYPE to earn staking rewards, use staked HYPE inventory to reduce their trading fees, use HYPE to conduct transactions on the HyperEVM, and use HYPE as collateral on various decentralized finance (“DeFi”) applications.

Our HAUS agreement with Felix, one of the earliest HyperEVM protocols, is one such example, in which staked HYPE tokens can enable additional on-chain utility.

Our HAUS agreement with Silhouette is one such example, in which staked HYPE tokens can enable additional on-chain utility.

HYPE is the native token of Hyperliquid.

The initial total supply of HYPE was set at 1 billion, which has been subsequently reduced to approximately 956 million as of April 30, 2026, as further described below, with 31% of the initial total supply issued in November 2024, and 38.88% of the initial total supply reserved for future community emissions.

The initial total supply of HYPE was set at 1 billion, which has been subsequently reduced to approximately 954 million as of July 31, 2026, as further described below, with 31% of the initial total supply issued in November 2024, and 38.88% of the initial total supply reserved for future community emissions.

Hyperliquid has a unique network mechanism that autonomously purchases and removes HYPE tokens from circulation and moves them into an assistance fund (the “Assistance Fund”).

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Approximately 99% of daily fees are allocated to this mechanism, which creates consistent open market demand for the token.

As of April 2026, approximately 44 million HYPE have been acquired by the Assistance Fund.

As of July 2026, approximately 46 million HYPE have been acquired by the Assistance Fund.

In December 2025, the Hyperliquid Foundation initiated a network-wide validator governance vote to formally recognize all HYPE tokens held in the Assistance Fund system address as permanently burned.

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however, the required seven-day unlocking period may limit the Company’s liquidity while its HYPE remains staked.

In addition, all HiHYPE, kHYPE, and kmHYPE owned by the Company (each defined below), and other future liquid staked HYPE that may be potentially owned by the Company, will be subject to the same seven-day unlocking period.

In addition, all HiHYPE, kHYPE, and kmHYPE owned by the Company, and other future liquid staked HYPE that may be potentially owned by the Company, will be subject to the same seven-day unlocking period.

The Company anticipates that it will have sufficient cash and cash equivalents to cover its operating expenses and any debt obligations during these periods.

The Company initialized the staking process on July 1, 2025, and as of March 31, 2026, it had approximately 992,826 HYPE native staked directly to the Kinetiq x Hyperion validator, described further below.

Staking was the primary revenue generation strategy for the Company in the three months ended March 31, 2026.

Key Metrics of Hyperliquid and HYPE as of April 30, 2026

The Company initialized the staking process on July 1, 2025, and as of June 30, 2026, it had approximately 634,379 HYPE native staked directly to the Kinetiq x Hyperion validator, described further below.

Staking was the primary revenue generation strategy for the Company in the three and six months ended June 30, 2026.

Key Metrics of Hyperliquid and HYPE as of July 31, 2026

● Ranked #7 market cap among circulated cryptocurrencies (excluding stablecoins)

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● The Hyperliquid token’s maximum supply is 954 million, of which the circulating supply is 253 million, corresponding to a market capitalization outstanding of approximately $14 billion

● Monthly trading volume on Hyperliquid exceeded $185 billion in the thirty days ended April 30, 2026

● Trading volume on Hyperliquid exceeded $195 billion in the thirty days ended July 31, 2026

● Cumulative Hyperliquid fees have exceeded $1.4 billion since inception

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The accumulation of HYPE is the first step in a broader DeFi monetization roadmap that continues to accelerate.

As part of its broader onchain engagement strategy, on October 27, 2025 the Company entered into a Joint Validator Operators Agreement with Kinetiq Research Pte.

Ltd (“Kinetiq”) and Pier Two Pty Ltd (“Pier Two”), that established a co-branded Hyperliquid validator, referred to as “Kinetiq x Hyperion”.

Validator operations are further supported by infrastructure provided by Pier Two, an institutional staking services provider.

Under this agreement, staking commissions and other validator-level rewards are allocated among Hyperion (50%), Kinetiq (25%) and Pier Two (25%), with specific overrides for referred delegations.

As part of its broader on-chain engagement strategy, on October 27, 2025 the Company entered into a Joint Validator Operator’s Agreement with Kinetiq and MAVAN, that established a co-branded Hyperliquid validator, referred to as “Kinetiq x Hyperion”.

Validator operations are further supported by infrastructure provided by MAVAN, an institutional staking services provider.

Under this agreement, staking commissions and other validator-level rewards are allocated among Hyperion (50%), Kinetiq (25%) and MAVAN (25%), subject to overrides including referred delegations.

On April 6, 2026, the Company, Kinetiq, and MAVAN agreed to amend the revenue-sharing allocation solely for validator commissions earned on tokens delegated through Kinetiq’s front-end portal to the following allocation:

Hyperion (25%), Kinetiq (50%), and MAVAN (25%).

By running the joint validator, the Company can directly access HYPE staking yield in addition to supporting Hyperliquid’s network stability and security.

Our Kinetiq x Hyperion validator has experienced rapid growth and has over 10 million in delegated HYPE as of April 30, 2026, (including HYPE tokens owned by the Company), HYPE holdings are required to participate in ecosystem governance, and we aim to support the growth of the Hyperliquid ecosystem.

Our Kinetiq x Hyperion validator has experienced rapid growth and has over approximately 7 million in delegated HYPE as of July 31, 2026, (including HYPE tokens owned by the Company), HYPE holdings are required to participate in ecosystem governance, and we aim to support the growth of the Hyperliquid ecosystem.

The Company currently stakes a majority of its HYPE tokens as part of its broader participation in the Hyperliquid ecosystem.

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These strategies are made possible through technical infrastructure unique to Hyperliquid, which can deploy staked HYPE across various utilities in the Hyperliquid ecosystem, such as significantly reduced trading fees and the ability to support new non-crypto markets on the Hyperliquid platform, both of which the Company has productized and offered to clients as services.

More recently, in the three months ended December 31, 2025, the Hyperliquid network implemented the Hyperliquid Improvement Proposal 3 (“HIP-3”) upgrade, which enables any user with 500,000 HYPE staked at a deployer address to launch a custom on-chain perpetual futures market for non-crypto assets such as equities, commodities and indices.

In October 2025, the Hyperliquid network implemented the Hyperliquid Improvement Proposal 3 (“HIP-3”) upgrade, which enables any user with 500,000 HYPE staked at a deployer address to launch a custom on-chain perpetual futures market for non-crypto assets such as equities, commodities and indices.

In July 2026, Hyperliquid Labs announced the Hyperliquid Improvement Proposal 4 (“HIP-4”) upgrade, which is expected to enable any user with 500,000 HYPE staked at a deployer address to launch custom on-chain outcome markets such as prediction markets, options, and other binary-resolution financial instruments.

As of August 10, 2026, HIP-4 remains in a testing phase and is not yet launched to end-users.

These network upgrades expand both Hyperliquid’s product suite and its potential user base, further establishing it as a premier on-chain destination for financial activity.

To support HIP-3, the Company provided Felix with the HYPE required to launch a perpetual futures market and earns a share of the fees earned from trading activity through its HAUS agreement, described in more detail below.

This perpetual futures market is operated and maintained by Felix and is accessible only to non-U.S.

Because the perpetual futures market is not currently subject to regulation by the U.S.

Commodity Futures Trading Commission and perpetual futures are not permitted for unrestricted trading in the United States, this perpetual futures market is operated outside the United States and is not made available to or marketed to U.S.

To support HIP - 3, the Company provided Felix Foundation (“Felix”) with the HYPE required to launch a perpetual futures market and received a share of the fees earned from trading activity through its HAUS agreement;

in June 2026, the HAUS agreement was terminated and this perpetuals exchange was wound down.

This perpetual futures market was operated and maintained by Felix outside the United States, and was not made available or marketed to U.S.

On July 15, 2026, Hyperion DeFi entered into a HAUS agreement with Skew, pursuant to which we supplied 500,000 HYPE tokens to support custom markets on Hyperliquid’s permissionless infrastructure.

The Company will be entitled to earn a portion of the trading fees generated on these markets as income, plus 100% of staking rewards.

On August 10, 2026, the Company entered into a HAUS Agreement with Bursa.

The Company agreed to supply 500,000 HYPE tokens to support custom markets on Hyperliquid’s permissionless infrastructure.

The Company will be entitled to earn fees from Bursa plus 100% of staking rewards.

Beyond engaging with Hyperliquid’s flagship exchange product, users can also deploy HYPE into the HyperEVM for various strategies such as lending and liquidity provisioning.

The Company is the first public company on HyperEVM, staking a significant portion of its native HYPE into Kinetiq’s uniquely designed institutional HYPE (“iHYPE”) product.

This enabled the Company to earn staking yield on its HYPE while also gaining access to a unique liquid receipt token, Hyperion institutional HYPE (“HiHYPE”), which is used for various on-chain and off-chain strategies.

This enabled the Company to earn staking yield on its HYPE while also gaining access to a unique liquid receipt token, HiHYPE, which is used for various on-chain and off-chain strategies.

The Company has also earned kPoints, a participation-based incentive that qualified the Company to receive a portion of the airdrop of Kinetiq’s KNTQ token (the governance token of the Kinetiq liquid staking protocol).

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The Company will periodically evaluate additional custody infrastructure providers to support operational flexibility as its HYPE strategy evolves.

In addition to security infrastructure, Anchorage Digital, through which the Company maintains an account, provides certain enterprise-level insurance policies that apply to assets held in its custodial accounts, including crime insurance with a $100 million limit, general liability coverage with a $4 million limit, cyber and technology errors and omissions coverage with a $1 million limit, and other standard liability coverages.

standard liability coverages.

Currently, the Company self-custodies all its digital assets, and digital assets that the Company self-custodies are not covered by these insurance policies.

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HYPE Creation

The circulating supply of HYPE is approximately 255 million tokens as of April 30, 2026.

The circulating supply of HYPE is approximately 253 million tokens as of July 31, 2026.

The first token generation event occurred on November 29, 2024, with approximately 310 million tokens created and circulated.

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Approximately 238 million HYPE tokens are reported to be vesting to core contributors of the Hyperliquid blockchain beginning November 29, 2025 and continuing over a multi-year vesting schedule.

The amounts reported to have been vested include approximately 1.75 million HYPE in November 2025, 1.2 million HYPE in December 2025, 140,000 HYPE in January 2026, 173,000 HYPE in February 2026, 333,000 HYPE in March 2026, and 422,000 HYPE in April 2026.

The initial total supply of HYPE was set at 1 billion, which has been subsequently reduced to approximately 956 million as of April 30, 2026 due to purchases by the Assistance Fund, which are deemed permanently burned.

The initial total supply of HYPE was set at 1 billion, which has been subsequently reduced to approximately 954 million as of July 31, 2026 due to purchases by the Assistance Fund, which are deemed permanently burned.

HYPE Acquisition and Sale Process

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When we determine that the Company has excess capital available to deploy, we work with institutional digital asset trading venues and counterparties to acquire HYPE from institutional sellers.

Our HYPE acquisition process is designed to maximize the quantity of HYPE that we acquire with the capital that we have, while minimizing market impact and execution risk.

While we have never sold any of our HYPE tokens as of May 13, 2026, in the event that we do so, we would anticipate only selling our HYPE tokens to institutional counterparties and trading venues.

Our HYPE acquisition process is designed to maximize the quantity of HYPE that we acquire with the capital that we have, while minimizing market impact and execution risks.

While the Company plans to hold its digital assets (including its HYPE tokens) as part of a long-term treasury strategy, and deploy its assets for productive purposes, the Company’s management has the discretion and ability to sell its digital assets.

From time to time the Company has sold, and may continue to sell, its digital assets based upon the Company’s liquidity needs, market conditions, and other factors.

The Company only sells its digital assets to institutional counterparties and trading venues.

HYPE Token Custody

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HyperEVM and Protocol Partnerships

HyperEVM is a general-purpose Ethereum Virtual Machine (EVM) execution layer natively integrated into the Hyperliquid Layer-1 blockchain.

HyperEVM is a general-purpose Ethereum Virtual Machine (EVM) execution layer natively integrated into the Hyperliquid L1 blockchain.

It provides a high-performance, Ethereum-compatible smart contract environment that operates directly alongside Hyperliquid’s on-chain trading engine, HyperCore, while sharing the same consensus and validator set.

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In February 2026, the Company launched in partnership with the Rysk protocol an Institutional Volatility Income Vault (“IVIV”).

Rysk is an on-chain volatility income protocol that enables established options strategies such as covered calls and cash-secured puts to be executed fully on-chain, making volatility income more accessible and composable while potentially reducing counterparty risk versus over-the-counter (“OTC”) option execution.

During the three months ended March 31, 2026, the Company has begun executing options on the price of HYPE within the IVIV, and anticipates future third-party monetization opportunities from the partnership.

In March 2026, the Company launched a partnership with Hyperlend, Inc.

(“HyperLend”), including a Private Pool Participation Agreement and a Revenue-Sharing Agreement.

HyperLend is a privately held fintech company founded in 2024 that develops a decentralized, blockchain-based money-market platform designed to facilitate the lending and borrowing of digital assets.

During the three and six months ended June 30, 2026, the Company executed options on the price of HYPE within the IVIV, and anticipates future third-party monetization opportunities from the partnership.

In March 2026, the Company launched a partnership with HyperLend, including a Private Pool Participation Agreement and a Revenue-Sharing Agreement.

HyperLend is a privately held fintech company that develops a decentralized, blockchain-based money-market platform designed to facilitate the lending and borrowing of digital assets.

Operating on an EVM blockchain, the company’s platform enables users to deposit crypto assets, earn interest, and obtain collateralized loans through smart contracts that emphasize real-time execution and on-chain transparency.

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The staking reward rate formula is inspired by Ethereum’s model, where the reward rate is inversely proportional to the square root of total HYPE staked.

As of April 30, 2026, the annual reward rate is approximately 2.1% per year (net rate after validator commission, which varies among individual validators).

As of July 31, 2026, the annual reward rate is approximately 2.1% per year (net rate after validator commission, which varies among individual validators).

Rewards are accrued continuously (every minute) and are automatically distributed and compounded daily with automatic redelegation to the staked validator.

This means that Hyperion DeFi’s staking balance grows automatically, without requiring manual intervention or claiming transactions.

Hyperion DeFi operates a dedicated validator node on Hyperliquid in partnership with Kinetiq and Pier Two, under its Kinetiq x Hyperion Joint Validator Operator Agreement.

Hyperion DeFi operates a dedicated validator node on Hyperliquid in partnership with Kinetiq and MAVAN, under its Kinetiq x Hyperion Joint Validator Operator’s Agreement.

Through the Kinetiq x Hyperion validator, Hyperion DeFi participates directly in Hyperliquid’s consensus and block production.

The validator receives validator rewards proportional to its total delegated stake, generates validator commission income from HYPE stakers who delegate to it, and contributes to Hyperliquid Network decentralization by operating a professional validator node.

As noted above, the Company currently stakes a majority of its HYPE tokens.

As noted above, the Company currently stakes substantially all of its HYPE tokens.

Staking provides revenues to the Company in the form of staking yields, but can create liquidity challenges given that staked tokens are not sellable until a seven-day un-staking queue is completed.

The Company anticipates having sufficient cash, cash equivalents, and USDH stablecoin (which is a US dollar-pegged stablecoin native to the Hyperliquid ecosystem), to cover its operating expenses and any debt payments.

The Company anticipates having sufficient cash and cash equivalents to cover its operating expenses and any debt payments.

HYPE Liquid Staking

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instead, users retain cryptographic control and can verify that their HYPE is staked to designated validators on HyperCore at all times.

On November 27, 2025 we received 1,918,478.78 KNTQ through the Kinetiq token generation event of that date, and as of March 31, 2026, all of the Company’s KNTQ tokens have been deposited into liquid staking activities in exchange for sKNTQ LSTs (as defined below).

In addition, we secured the right to stake 28,888 liquid staking “kmHYPE” tokens with Markets by Kinetiq, a decentralized exchange enabled by Hyperliquid’s HIP-3.

The Company owns 28,888 kmHYPE as of March 31, 2026.

The Company has received and may continue to receive additional digital assets from issuers and participants active in the Hyperliquid ecosystem.

HYPE Asset Use Service (HAUS)

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The agreement was terminated in January 2026.

On October 28, 2025, Hyperion DeFi entered into a HAUS agreement with Felix, pursuant to which we supply HYPE inventory to support custom markets and derivative trading strategies.

The Company is entitled to earn a portion of the trading fees generated on these markets as income.

On October 28, 2025, Hyperion DeFi entered into a HAUS agreement with Felix, pursuant to which we supplied 500,000 HYPE tokens to support custom markets on Hyperliquid’s permissionless infrastructure.

The Company was entitled to earn a portion of the trading fees generated on these markets as income.

The agreement was terminated in June 2026.

On November 19, 2025, the Company entered into a Temporary Use Agreement with Native Markets.

Under this agreement, 300,000 of the Company’s HYPE tokens are staked at a deployer address to meet certain requirements of the Hyperliquid blockchain which unlocks more favorable economics for the USDH stablecoin.

In return, the Company receives a fee for the use of its tokens by Native Markets, Inc., and the Company is entitled to receive all staking rewards on the tokens.

Under this agreement, 300,000 of the Company’s HYPE tokens were staked at a deployer address to meet certain requirements of the Hyperliquid blockchain which unlocked more favorable economics for the USDH stablecoin.

In return, the Company received fees for the use of its tokens by Native Markets, Inc., and the Company was entitled to receive all staking rewards on the tokens.

The agreement was terminated in June 2026.

On March 18, 2026, Hyperion DeFi entered into a HAUS agreement with Silhouette.

The Company linked 100,000 of its owned and staked HYPE tokens to the trading wallet of Silhouette, allowing Silhouette to receive reduced trading fees on the Hyperliquid decentralized exchange, and entitling the Company to earn a portion of those fee savings as income, plus 100% of staking rewards.

On July 15, 2026, Hyperion DeFi entered into a HAUS agreement with Skew, pursuant to which we supplied 500,000 HYPE tokens to support custom markets on Hyperliquid’s permissionless infrastructure.

The Company will be entitled to earn a portion of the trading fees generated on these markets as income, plus 100% of staking rewards.

On August 10, 2026, the Company entered into a HAUS Agreement with Bursa.

The Company agreed to supply 500,000 HYPE tokens to support custom markets on Hyperliquid’s permissionless infrastructure.

The Company will be entitled to earn fees from Bursa plus 100% of staking rewards.

Hyperliquid Governance

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Through April 2026, Hyperion DeFi was also developing the proprietary Optejet User Filled Device (the “Optejet UFD”), which is designed to work with a variety of topical ophthalmic liquids, including artificial tears and lens rewetting products.

The Optejet UFD is especially useful in chronic front-of-the-eye diseases due to its ease of use, enhanced safety and tolerability, and potential for superior compliance versus standard eye drops.

Together, these benefits may result in higher treatment compliance and better outcomes for patients and providers.

The ergonomic and functional design of the Optejet UFD allows for horizontal drug delivery and eliminates the need to tilt the head back or the manual dexterity to squeeze a bottle to administer medications.

Drug is delivered in a microscopic array of droplets that is comfortable and matches the amount of fluid that the front of the eye can hold.

The precise delivery of a low-volume columnar spray by the Optejet UFD helps ensure instillation success while minimizing contamination risk with a non-protruding nozzle and self-closing shutter.

In clinical trials, the Optejet UFD has demonstrated that its targeted delivery achieves a high rate of successful administration, with 98% of sprays being accurately delivered upon first attempt compared to the established rate reported with traditional eye drops of approximately 50%.

A more physiologically appropriate volume of medication in the range of seven to ten microliters is delivered by the Optejet UFD, which is approximately one-fifth of the 35 to 50 microliter dose typically delivered in a single eye drop.

Lower volume of medication exposes the ocular surface to less active ingredients and preservatives, potentially reducing ocular stress and surface damage and improving tolerability.

The lower volume also minimizes the potential for drug to enter systemic circulation, with the goal of avoiding some common side effects that are related to overdosing of the eye.

We anticipate substantially all of the Company’s assets and operations related to the Optejet to be wound down in the second quarter of 2026.

Substantially all of the Company’s operations related to the Optejet have been wound down as of June 30, 2026.

The company executed a non-binding letter of intent to monetize the Optejet UFD in the first quarter of 2026, which was subsequently terminated in April 2026.

The Company is pursuing other paths to monetize the remaining assets which may not result in material proceeds or future economic benefit to the Company.

The Private Placement

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We used the net proceeds from the Private Placement to build a reserve of HYPE.

In connection with the Private Placement, we entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with the purchasers, which provided that the Company would register the resale of the shares of common stock issuable upon conversion of the Series A Preferred Stock and exercise of the warrants.

The Company filed a registration statement with the SEC pursuant to the Registration Rights Agreement on July 18, 2025.

upon conversion of the Series A Preferred Stock and exercise of the warrants.

The Company filed a registration statement with the SEC pursuant to the Registration Rights Agreement on July 18, 2025, which was declared effective by the SEC on January 9, 2026.

Chardan acted as placement agent for us in connection with the Private Placement.

Pursuant to the Engagement Letter, dated as of June 17, 2025, as compensation for its services, we issued to Chardan 307,692 shares of Series A Preferred Stock (convertible into up to 923,076 shares of common stock) and warrants to purchase up to 1,846,153 shares of common stock at an exercise price of $3.25 per share.

At-The-Market Offering

At-The-Market Program

On November 14, 2025, the Company entered into a Sales Agreement with Cantor Fitzgerald & Co.

and Chardan with respect to the Company’s at-the-market offering program.

The new agreement, among other things, increases the aggregate offering from $100 million to $500 million and increased the total fees payable to the two sales agents from 3.0% to 4.0%.

During the three months ended March 31, 2026 and 2025, the Company received approximately $6.7 million and $5.7 million in proceeds, respectively, net of offering costs of $0.3 million and $0.2 million, respectively, from the sale of 1,859,993 and 1,127,100 shares of its common stock, respectively.

The new agreement, among other things, increases the aggregate offering amount from $100 million to $500 million and increased the total fees payable to the two sales agents from 3.0% to 4.0%.

During the three months ended June 30, 2026 and 2025, the Company received approximately $1.8 million and $2.6 million in proceeds, respectively, net of offering costs of $0.1 million and $0.1 million, respectively, from the sale of 492,783 and 1,323,389 shares of its common stock, respectively, under its at-the-market program.

During the six months ended June 30, 2026 and 2025, the Company received approximately $8.5 million and $8.2 million in proceeds, respectively, net of offering costs of $0.4 million and $0.3 million, respectively, from the sale of 2,352,776 and 2,450,489 shares of its common stock, respectively, under its at-the-market program.

May 2026 Public Equity Issuance

On May 7, 2026, the Company closed a public offering of 2,777,778 common shares and received approximately $8.9 million in net proceeds.

On May 13, 2026, the Company sold an additional 132,249 shares of the Company’s common stock, resulting in approximately $0.4 million in net proceeds to the Company.

Fourth Amendment of the Avenue Loan

On June 17, 2025, the Company and the Lenders (as defined below) entered into the Fourth Amendment (the “Fourth Amendment”) to Supplement to the Loan and Security Agreement (the “Avenue Loan”) with Avenue Venture Opportunities Fund, L.P., (“Avenue 1”) and Avenue Venture Opportunities Fund, L.P.

On June 17, 2025, the Company and the Lenders (as defined below) entered into the Fourth Amendment (the “Fourth Amendment”) to the Avenue Loan with Avenue Venture Opportunities Fund, L.P., (“Avenue 1”) and Avenue Venture Opportunities Fund, L.P.

II, (“Avenue 2”), (together “Avenue” or the “Lenders”).

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The provision of services related to transaction validation on the Hyperliquid blockchain network (through both staking rewards and commission income) is an output of our ordinary activities.

We recognize revenue by applying the guidance in Accounting Standards Codification 606, Revenue from Contracts with Customers .

We recognize revenue by applying the guidance in ASC 606.

HYPE earned from validator operations, in the form of staking rewards and commission income, are recognized as revenue when we satisfy our performance obligations (i.e., successfully validate blocks or transactions as determined by the protocol).

The HYPE earned are non-cash consideration and therefore measured at fair value at the inception of each contract.

The Company participates in Hyperliquid blockchain validation activities through its arrangements with third-party validator operators, Kinetiq and Pier Two.

The Company participates in Hyperliquid blockchain validation activities through its arrangements with third-party validator operators, Kinetiq and MAVAN.

While we obtained unilateral control over the private keys beginning on December 15, 2025, the ongoing operation, maintenance, and performance of validator infrastructure, and the process of validation are conducted by our third-party validator operators.

Given the Company does not perform the primary validating activities, the Company’s performance obligation is limited to delegating and arranging for validation services.

Therefore, for the three months ended March 31, 2026, the Company has determined it acts as an agent under ASC 606.

Therefore, during the six months ended June 30, 2026, the Company has determined it acts as an agent under ASC 606.

Revenue is recognized on a net basis, representing the portion of blockchain rewards retained by the Company after amounts owed to third-party validator operators and third-party token delegators.

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Revenue was previously earned from the sale of our ophthalmological products.

However, we have ceased our sales efforts with respect to our ophthalmological products and had no revenue from sales of such products during the three months ended March 31, 2026.

However, we have ceased our sales efforts with respect to our ophthalmological products and had no revenue from sales of such products during the six months ended June 30, 2026.

Cost of sales consisted of the cost of the production of the ophthalmological products that were sold.

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Research and development expenses consist primarily of internal salaries, benefits and non-cash stock-based compensation expenses incurred in connection with the research and development of our Optejet UFD device.

We anticipate substantially all of the Company’s assets and operations related to the Optejet to be wound down in the second quarter of 2026.

Substantially all of the Company’s assets related to Optejet have been written off and operations related to the Optejet have been wound down as of June 30, 2026.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of payroll and related expenses, legal and other professional services, insurance expense, and non-cash stock-based compensation expense.

We anticipate that our selling, general and administrative expenses will decrease in the short term as requirements to support our research and development and commercial activities decline and in light of our decision to wind down our operations related to the Optejet, as well as a decline in our near term funding requirements following the closing of the Private Placement in June 2025 and subsequent establishment of our treasury strategy.

Our selling, general and administrative expenses have decreased in the short term as requirements to support our research and development and commercial activities declined and in light of our decision to wind down our operations related to the Optejet, as well as a decline in our near term funding requirements following the closing of the Private Placement in June 2025 and subsequent establishment of our treasury strategy.

Gains and Losses in Connection with Digital Assets

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Results of Operations

For the Three Months Ended March 31, 2026 Compared with the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025

Revenue and Cost of Revenue

Revenue for the three months ended March 31, 2026 totaled approximately $0.2 million, entirely from digital assets, driven mostly by the Company’s staking and validating activities.

Revenue for the three months ended June 30, 2026 totaled approximately $0.4 million, entirely from digital assets, driven mostly by the Company’s staking and validating activities.

The Company earned no revenue in the three months ended June 30, 2025.

Research and Development Expenses

Research and development expenses for the three months ended March 31, 2026 totaled approximately $0.3 million, a decrease of approximately $0.4 million, or 57%, as compared to approximately $0.7 million recorded for the three months ended March 31, 2025.

Research and development expenses for the three months ended June 30, 2026 totaled approximately $0.1 million, a decrease of approximately $0.6 million, or 91%, as compared to approximately $0.7 million recorded for the three months ended June 30, 2025.

The decrease primarily resulted from decreases in salaries and benefits and non-cash stock-based compensation that was due to the layoffs that occurred after the termination of our CHAPERONE study and slowdown of our commercial operations relating to our ophthalmology product development.

Management expects that substantially all assets and operations related to Optejet will be wound down during the second quarter of 2026.

We anticipate that our research and development expenses will decline after the Optejet operations are discontinued.

Substantially all of the Company’s operations related to Optejet have been wound down as of June 30, 2026.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the three months ended March 31, 2026 totaled approximately $4.5 million, an increase of approximately $2.1 million, or 88%, as compared to $2.4 million recorded for the three months ended March 31, 2025.

The increase primarily resulted from increases in professional fees and general and administrative compensation expenses as new executives were hired and professional expenses were incurred in connection with the digital assets strategy commencing in the three months ended June 30, 2025.

Selling, general and administrative expenses for the three months ended June 30, 2026 totaled approximately $3.9 million, a decrease of approximately $3.8 million, or 49%, as compared to $7.7 million recorded for the three months ended June 30, 2025.

The decrease primarily resulted from professional fees and general and administrative compensation expenses incurred in the three months ended June 30, 2025 as new executives were hired and professional expenses were incurred in connection with the execution of our digital assets strategy.

Impairment of Right of Use Assets

In the three months ended June 30, 2026, the Company recognized a $57,773 impairment to its right of use assets in connection with its office located in Laguna Hills, California.

The location was the primary nexus of operations related to the Optejet, and the impairment was in connection with the wind down of all Optejet-related activity in the three months ended June 30, 2026.

The Company’s lease of the Laguna Hills, California office space is through July, 2027.

There was no impairment to right of use assets in the three months ended June 30, 2025.

Gains and Losses in Connection with Digital Assets

In the three months ended March 31, 2026, unrealized gains on digital assets totaled approximately $11.0 million, primarily due to an increase in the price of HYPE.

In the three months ended March 31, 2026, realized gains on digital assets totaled approximately $3.6 million, primarily due to the derecognition of HYPE LSTs used as collateral for OTC HYPE Options (transferring into digital intangible assets receivable) at a fair value in excess of prior carrying value.

In the three months ended March 31, 2026, unrealized gains on digital assets receivable totaled approximately $0.4 million, primarily due to an increase in the fair value of digital intangible assets used as collateral for OTC HYPE Options.

In the three months ended March 31, 2026, impairment loss on digital intangible assets and totaled approximately $1.2 million.

There were no gains or losses in connection with digital assets for the three months ended March 31, 2025.

In the three months ended June 30, 2026, unrealized gains on digital assets totaled approximately $16.9 million, primarily due to an increase in the price of HYPE.

In the three months ended June 30, 2026, realized gains on digital assets and digital assets receivable totaled approximately $17.9 million, primarily due to to derecognitions of HYPE digital assets and digital assets receivable above the Company’s basis.

In the three months ended June 30, 2026, unrealized losses on digital intangible assets receivable totaled approximately $0.4 million, primarily due to a decrease in the price of HYPE following when the assets were recognized as receivables.

In the three months ended June 30, 2026, impairment loss on digital intangible assets totaled approximately $0.8 million.

There were no gains or losses in connection with digital assets for the three months ended June 30, 2025.

Provision for Credit Losses and Allowance for Credit Loss

In the three months ended March 31, 2026, the Company recorded a provision for credit losses of $181,443 related to its digital assets receivable, primarily driven by an increase in the price of HYPE and therefore an increased value of the receivable.

As of March 31, 2026, digital assets receivable totaled $10.4 million, which is net of $108,321 unamortized nonrefundable upfront fee and $586,774 allowance for credit losses.

In the three months ended March 31, 2026, the Company recorded a provision for credit losses of $323,067 related to the Company’s digital intangible assets receivable as it collateralized OTC HYPE Options with LSTs.

As of March 31, 2026, digital intangible assets receivable totaled $8.9 million, which is net of $323,067 allowance for credit losses.

There was no provision for credit losses in the three months ended March 31, 2025 or allowance for credit loss as of March 31, 2025.

On June 3, 2026, all outstanding digital assets receivable were returned to the Company, and the Company does not have any allowance for credit losses for digital assets receivable as of June 30, 2026.

In the three months ended June 30, 2026, the Company recorded a full recovery of previous credit loss provisions of $586,774 related to its digital assets receivable held as of March 31, 2026.

As of June 30, 2026, the Company does not have any OTC HYPE options or digital intangible assets receivable outstanding.

In the three months ended June 30, 2026, the Company recorded a full recovery of previous credit loss provisions of $323,068 related to its digital intangible assets receivable held as of March 31, 2026.

There were no credit losses recognized in the three months ended June 30, 2026.

There was no provision for credit losses in the three months ended June 30, 2025 or allowance for credit loss as of June 30, 2025.

Gains and Losses in Connection with OTC HYPE Options

The Company operates an OTC options strategy on the price of HYPE to mitigate risk and enhance yield on its digital asset treasury.

In the three months ended March 31, 2026, the Company executed out-of-the-money covered call option agreements that are sold against and collateralized by HYPE owned by the Company (including liquid staking tokens such as HiHYPE and kHYPE), as well as cash secured put agreements on the price of HYPE sold and secured by the Company’s cash, USDC, and USDH.

In the three months ended March 31, 2026, the Company’s Net gains on derivative instruments totaled $39,401.

As of March 31, 2026, the Company’s outstanding OTC HYPE covered call contracts referenced 250,000 HYPE with strike prices ranging from $45.0 to $48.3 and maturities extending through April 30, 2026.

These contracts resulted in a derivative liability of $215,606 as of March 31, 2026.

There were no gains or losses in connection with OTC HYPE Options for the three months ended March 31, 2025.

In the three months ended June 30, 2026, the Company executed out-of-the-money covered call option agreements that are sold against and collateralized by HYPE owned by the Company (including liquid staking tokens such as HiHYPE and kHYPE), as well as cash secured put agreements on the price of HYPE sold and secured by the Company’s cash, USDC, and, through May 2026, USDH.

In the three months ended June 30, 2026, the Company’s Net gains on derivative instruments totaled approximately $0.1 million.

As of June 30, 2026, there are no outstanding OTC HYPE options.

There were no gains or losses in connection with OTC HYPE options for the three months ended June 30, 2025.

Other Income (Expense)

Total other income for the three months ended March 31, 2026 was $108,431, compared to total other expense of $452,840 for the three months ended March 31, 2025.

Total other income for the three months ended March 31, 2026 primarily consisted of $244,167 of interest income (including $198,957 amortization of a nonrefundable upfront fee received in November 2025 in connection with the Company’s digital assets receivable), partially offset by $225,869 interest expense primarily related to the Avenue Loan and $90,133 other income.

Total other expense for the three months ended March 31, 2025 primarily consisted of $581,499 interest expense related to the Avenue Loan, partially offset by $89,623 extinguishment of liabilities, $35,349 interest income (primarily from Treasury bills), and $3,687 other income.

Total other expense for the three months ended June 30, 2026 was approximately $0.1 million, compared to total other expense of approximately $0.3 million for the three months ended June 30, 2025.

Total other income for the three months ended June 30, 2026 primarily consisted of $0.2 million interest income (including approximately $0.1 million amortization of a nonrefundable upfront fee received in November 2025 in connection with the Company’s digital assets receivable), partially offset by $0.2 million interest expense primarily related to the Avenue Loan.

Net other expense for the three months ended June 30, 2025 primarily consisted of approximately $0.5 million of interest expense, partially offset by $0.2 million of net other income.

For the Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025

Revenue and Cost of Revenue

Revenue for the six months ended June 30, 2026 totaled approximately $0.6 million, entirely from digital assets, driven mostly by the Company’s staking and validating activities.

Revenue for the six months ended June 30, 2025 totaled $14,720, partially offset by cost of revenues of $48, all from the sales of our ophthalmological products.

Research and Development Expenses

Research and development expenses for the six months ended June 30, 2026 totaled approximately $0.3 million, a decrease of approximately $1.0 million, or 74%, as compared to approximately $1.3 million recorded for the six months ended June 30, 2025.

The decrease primarily resulted from decreases in salaries and benefits and non-cash stock-based compensation that was due to the layoffs that occurred after the termination of our CHAPERONE study and winding down of our commercial operations relating to our ophthalmology product development.

Substantially all of the Company’s assets and operations related to the Optejet have been wound down as of June 30, 2026.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the six months ended June 30, 2026 totaled approximately $8.4 million, a decrease of approximately $1.6 million, or 16%, as compared to $10.1 million recorded for the six months ended June 30, 2025.

The decrease primarily resulted from professional fees and general and administrative compensation expenses incurred in the six months ended June 30, 2025, as new executives were hired and professional expenses were incurred in connection with the execution of our digital assets strategy.

Impairment of Right of Use Assets

In the six months ended June 30, 2026, the Company recognized a $57,773 impairment to its right of use assets in connection with its office located in Laguna Hills, California.

The location was the primary nexus of operations related to the Optejet, and the impairment was in connection with the wind down of all Optejet-related activity in the six months ended June 30, 2026.

The Company’s lease of the Laguna Hills, California office space is through July, 2027.

There was no impairment to right of use assets in the six months ended June 30, 2025.

Gains and Losses in Connection with Digital Assets

In the six months ended June 30, 2026, unrealized gains on digital assets totaled approximately $27.9 million, primarily due to an increase in the price of HYPE.

In the six months ended June 30, 2026, realized gains on digital assets and digital assets receivable totaled approximately $21.5 million, primarily due to derecognitions of HYPE digital assets and digital assets receivable above the Company’s basis.

In the six months ended June 30, 2026, impairment loss on digital intangible assets totaled approximately $2.0 million.

There were no gains or losses in connection with digital assets for the six months ended June 30, 2025.

Provision for Credit Losses and Allowance for Credit Loss

In the six months ended June 30, 2026, the Company recorded a full recovery of previous credit loss provisions of $405,331 related to its digital assets receivable held as of December 31, 2025.

There were no realized credit losses in the six months ended June 30, 2026.

There was no provision for credit losses in the six months ended June 30, 2025 or allowance for credit loss as of June 30, 2025.

Gains and Losses in Connection with OTC HYPE Options

The Company operates an OTC options strategy on the price of HYPE to mitigate risk and enhance yield on its digital asset treasury.

In the six months ended June 30, 2026, the Company executed out-of-the-money covered call option agreements that are sold against and collateralized by HYPE owned by the Company (including liquid staking tokens such as HiHYPE and kHYPE), as well as

cash secured put agreements on the price of HYPE sold and secured by the Company’s cash, USDC, and, through May 2026, USDH.

In the six months ended June 30, 2026, the Company’s net gains on derivative instruments totaled approximately $0.2 million.

There were no gains or losses in connection with OTC HYPE Options for the six months ended June 30, 2025.

Other Income (Expense)

Total other income for the six months ended June 30, 2026 was approximately $0.1 million, compared to total other expense of approximately $0.8 million for the six months ended June 30, 2025.

Total other income for the six months ended June 30, 2026 primarily consisted of $0.5 million interest income (including approximately $0.3 million amortization of a nonrefundable upfront fee received in November 2025 in connection with the Company’s digital assets receivable), partially offset by $0.5 million interest expense primarily related to the Avenue Loan and $0.1 million other income.

Net other expense for the six months ended June 30, 2025 primarily consisted of approximately $1.1 million of interest expense, partially offset by $0.2 million of other income and a $0.1 million gain on debt extinguishment.

Liquidity and Capital Resources

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Since inception, we have experienced negative cash flows from operations and our operations have primarily been funded by proceeds received in equity and debt financings.

At March 31, 2026, our accumulated deficit since inception was approximately $231.8 million.

As of March 31, 2026, we had a cash and cash equivalents balance of approximately $7.4 million, working capital surplus of approximately $4.3 million and stockholders’ equity of approximately $58.5 million.

As of March 31, 2026 and December 31, 2025, we had approximately $9.0 million and approximately $8.3 million, respectively, of principal payable on debt outstanding.

During the three months ended March 31, 2026 and 2025, our sources and uses of cash were as follows:

Net cash used in operating activities for the three months ended March 31, 2026 was approximately $4.2 million, which includes net income of $8.8 million, decreased by the $13.7 million net non-cash impact of digital asset and derivative instrument activity and $1.5 million of net cash related to changes in the levels of operating assets and liabilities, partially offset by $2.2 million of other non-cash expenses.

Net cash used in operating activities for the three months ended March 31, 2025 was approximately $4.4 million, which includes cash used to fund a net loss of $3.5 million, increased by $1.7 million of net cash related to changes in the levels of operating assets and liabilities, partially offset by approximately $0.8 million of non-cash expenses.

Net cash used in investing activities for the three months ended March 31, 2026 was approximately $1.5 million, which was related to the purchase of HYPE digital assets.

There was no net cash used in investing activities for the three months ended March 31, 2025.

Net cash provided by financing activities for the three months ended March 31, 2026 totaled approximately $6.6 million, which was primarily attributable to net proceeds from the sale of common stock in our “at-the-market” offering.

Net cash provided by financing activities for the three months ended March 31, 2025 totaled approximately $6.3 million, which was primarily attributable to $5.7 million of net proceeds from the sale of common stock in our “at-the-market” offering and approximately $0.9 million of net proceeds from the induced exercise of stock warrants, partially offset by $0.2 million of repayments of notes payable and $0.2 million of debt modification issuance costs.

On May 7, 2026, the Company closed a public offering of 2,777,778 common shares and received approximately $8.7 million in net proceeds.

On May 13, 2026, pursuant to the Company’s grant to Chardan of a 30-day option to purchase up to 416,666 additional shares under the previously announced Underwriting Agreement, the Company issued, and Chardan purchased, 132,249 shares of the Company’s common stock, resulting in approximately $0.4 million in net proceeds to the Company.

We believe that our existing cash and cash equivalents as of March 31, 2026 will enable us to fund our operating expenses and capital expenditure requirements for at least the next 12 months.

As of June 30, 2026, our accumulated deficit since inception was approximately $200.8 million.

As of June 30, 2026, we had a cash and cash equivalents balance of approximately $9.6 million, working capital surplus of approximately $7.4 million and stockholders’ equity of approximately $102.0 million.

As of June 30, 2026 and December 31, 2025, we had approximately $8.9 million and approximately $8.3 million, respectively, of principal payable on debt outstanding.

During the six months ended June 30, 2026 and 2025, our sources and uses of cash were as follows:

Net cash used in operating activities for the six months ended June 30, 2026 was approximately $7.1 million, which includes net income of $39.8 million, decreased by the $48.9 million net non-cash impact of digital asset and derivative instruments and $2.1 million of net cash used by changes in the levels of operating assets and liabilities, partially offset by $4.1 million of other non-cash expenses.

Net cash used in operating activities for the six months ended June 30, 2025 was approximately $7.9 million, which includes cash used to fund a net loss of $12.2 million, reduced by $6.8 million of net non-cash expenses, plus $2.5 million of net cash used by changes in the levels of operating assets and liabilities.

Net cash used in investing activities for the six months ended June 30, 2026 was approximately $7.0 million, which was related to $8.9 million in purchases of digital assets, $2.4 million in sales of digital assets, $2.5 million in purchases of USDC, and $2.0 million proceeds from sales of USDC.

Net cash used in investing activities for the six months ended June 30, 2025 was approximately $45.5 million, which was primarily related to the purchase of HYPE digital tokens.

Net cash provided by financing activities for the six months ended June 30, 2026 totaled approximately $17.4 million, of which $9.3 million was attributable to the May 2026 public equity issuance (net of $1.1 million issuance costs) and $8.5 million was attributable to net proceeds from the sale of common stock in our “at-the-market” program (net of $0.4 million issuance costs), partially offset by $0.2 million repayment of notes payable and $0.2 million in payments to taxing authorities in connection with shares directly withheld from employees.

Net cash provided by financing activities for the six months ended June 30, 2025 totaled approximately $58.8 million, which was primarily attributable to $49.4 million of net proceeds from the sale of Series A Preferred Stock and warrants in the Private Placement (net of $0.6 million issuance costs), $8.2 million of net proceeds from the sale of common stock in our “at-the-market”

offering (net of $0.3 million issuance costs) and $3.0 million of net proceeds from the exercise of stock warrants partially offset by $1.5 million from the repayment of notes payable.

We believe that our existing cash and cash equivalents as of June 30, 2026 will enable us to fund our operating expenses and capital expenditure requirements for at least the next 12 months.

Our financial condition is substantially dependent on the market price and liquidity of HYPE tokens, which are subject to extreme volatility and limited trading venues.

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We may require proceeds from sales of digital assets in order to fund ongoing operations, but we may be constrained in our ability to do so by unstaking queue protocols, illiquid trading platforms, or other factors.

USDH is Hyperliquid’s native stablecoin which powers gas-free payments and enables noncustodial financial primitives.

As part of its regular operations, the Company began adopting USDH as a method of settling certain digital assets transactions as purchasing HYPE digital assets or receiving fees for its temporary HAUS agreements.

USDH is accounted for as a financial instrument that can be redeemed one USDH for one U.S.

USDH was Hyperliquid’s native stablecoin which powered gas-free payments and enabled noncustodial financial primitives.

As part of its regular operations, the Company previously adopted USDH as a method of settling certain digital assets transactions as purchasing HYPE digital assets or receiving fees for its temporary HAUS agreements.

USDH was accounted for as a financial instrument that could be redeemed one USDH for one U.S.

dollar on demand from the issuer.

The Company holds $55,656 USDH on its balance sheet within prepaid expenses and other current assets as of March 31, 2026 and $81,422 as of December 31, 2025.

The Company did not own any USDH as of March 31, 2025.

The Company previously held $81,422 USDH on its balance sheet within prepaid expenses and other current assets as of December 31, 2025.

On May 14, 2026, Native Markets announced plans to cease supporting the USDH stablecoin and encouraged all holders to convert into USDC stablecoin or cash.

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(“Coinbase”) the rights to USDH’s brand assets, and Coinbase announced its plan to become the official deployer of USDC as an aligned quote asset on Hyperliquid.

The Company intends to convert all its USDH into USDC stablecoin or cash in the near future.

Underlying USDH-referenced activity supported by the Company’s HAUS agreements and Hyperion Rysk Vault Shares will be modified to no longer have dependencies upon USDH in the near future.

As of March 31, 2026, the Company’s assets which reference USDH or have underlying activity fully or partially denominated in USDH include $55,656 USDH stablecoin, approximately $1.6 million Hyperion Rysk Vault Shares, approximately $10.4 million digital assets receivable, and approximately $22.0 million HYPE digital assets in connection with HAUS Agreements.

In the three months ended June 30, 2026, the Company converted all its USDH into USDC stablecoin or cash, modified underlying USDH-referenced activity supported by the Company’s Hyperion Rysk Vault Shares to no longer have dependencies upon USDH, terminated its HAUS agreements with Felix and Native Markets (both of which were related to USDH activity), and no longer anticipates borrowing USDH pursuant to its a Private Pool Participation Agreement with HyperLend.

The Company does not hold any USDH as of June 30, 2026, nor does it have any underlying USDH exposure in its digital asset activity.

USD Coin (“USDC”) is a U.S.

dollar–denominated payment stablecoin issued by Circle Internet Group, Inc., which the Company uses to settle certain digital asset transactions, including purchases of HYPE, contracts under its OTC options strategy, and fees received under its temporary HAUS agreements.

USDC is accounted for as a financial instrument that can be redeemed one USDC for one U.S.

dollar on demand from the issuer and is not within the scope of ASC 350-60.

The Company presents USDC within “Prepaid expenses and other current assets”.

The Company held USDC of $2,121,483 as of June 30, 2026 and $132,589 as of December 31, 2025, none of which was pledged, locked or deployed.

Contractual Obligations and Commitments

During the next twelve months we have commitments to pay (a) $2.5 million to settle our March 31, 2026 accounts payable, accrued expenses and other current liabilities;

During the next twelve months we have commitments to pay (a) $2.3 million to settle our June 30, 2026 accounts payable, and accrued expenses a;

(b) $0.4 million relating to our non-cancelable operating lease commitments;

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These events, such as the interruption in telecommunications or internet services, cyber-related terrorist acts, civil disturbances, war or other catastrophes, could also negatively affect the digital asset economy in one or more jurisdictions.

Moreover, foreign laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance of one or more digital assets by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the digital asset economy in the United States and globally.

Moreover, foreign laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance

of one or more digital assets by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the digital asset economy in the United States and globally.

Off-Balance Sheet Arrangements

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis