Note 4: Investment in Equity Interest

As of June 30, 2025, the Company owned 6,857,132 shares of YFE. At the time of the initial investment in 2021, it was determined that based on the Company’s 29% ownership in YFE, the Company had significant influence over the entity. Therefore, under the equity method of accounting, the Company elected to account for the investment at fair value under the fair value option. Under the fair value option, the investment is remeasured and recorded at fair value each reporting period, with the change recorded through earnings. As of June 30, 2025, the fair value of the investment was determined to be $10.8 million recorded within noncurrent assets on the Company’s consolidated balance sheet. The fair value as of June 30, 2025 decreased by net $5.7 million, as compared to December 31, 2024. The net decrease is comprised of the net impact of a decrease in YFE’s stock price, and the effect of foreign currency remeasurement from EURO to USD. The total change in fair value is recorded within Other Income (Expense), net on the Company’s consolidated statement of operations. As of June 30, 2025 and December 31, 2024, the Company’s ownership in YFE was 44.8%. On July 14, 2025, the Company sold 1,500,000 YFE shares for total proceeds of €750,000 as part of its ongoing strategy to optimize its portfolio of assets. Subsequently, the Company’s ownership in YFE decreased to 34.98%.