Annual report [Section 13 and 15(d), not S-K Item 405]

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.26.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
shares in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Cash flows from operating activities:    
Net loss $ (78,994,000) $ (51,409,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation 6,259,000 2,976,000
Depreciation and amortization 10,338,000 70,000
Amortization of debt discounts and paid-in-kind interest 1,729,000 1,260,000
Change in fair value of 10% convertible notes 20,604,000  
Fair value remeasurement of crypto assets (171,000)  
Loss on sale of crypto assets 567,000  
Fair value of equity warrants in interest expense 16,657,000  
NYIAX 595,000  
Loss reserve 925,000  
Debt Extinguishment 5,804,000  
Change in fair value of warrant liability (19,000) 29,120,000
Changes in operating assets and liabilities:    
Accounts receivable (539,000) (55,000)
Related party receivable (30,000,000)  
Unbilled accounts receivable (1,411,000)  
Inventories 1,145,000 1,119,000
Crypto assets 10,272,000  
Prepaid expenses and other current assets (1,025,000) (349,000)
Prepaid software (2,319,000)  
Other assets (3,752,000) 93,000
Accounts payable 7,438,000 (228,000)
Due to related party 2,448,000  
Accrued liabilities 7,221,000 (41,000)
Other liabilities 2,618,000 (82,000)
Net cash used in operating activities (23,610,000) (17,526,000)
Cash flows from investing activities:    
Issuance of note receivable   (423,000)
Deposit for business combination (1,000,000) (1,000,000)
Payments for business acquisition (6,500,000)  
Purchases of property and equipment (380,000) (35,000)
Purchases of intangible assets   99,000
Net cash used in investing activities (7,880,000) (1,557,000)
Cash flows from financing activities:    
Proceeds from issuance of notes payable 27,533,000  
Proceeds from issuance of common stock, net of offering costs 4,763,000  
Proceeds from issuance of common stock in connection with warrant exercise   8,063,000
Proceeds from issuance of common stock, prefunded warrants and warrants, net of issuance costs   19,558,000
Proceeds from issuance of short-term loan, net of issuance costs   600,000
Proceeds from exercise of warrants   714,000
Repurchase of Series B preferred stock   (6,266,000)
Repurchase of short term loan   (667,000)
Issuance of securities in Big Lake transaction 2,500,000  
Repayment of convertible note payable, related party (2,943,000)  
Payments on short-term debt (1,316,000)  
Other equity issuances 250,000  
Repurchase of common stock warrants (623,000)  
Net cash provided by financing activities 30,164,000 22,002,000
Net decrease in cash and cash equivalents (1,326,000) 2,919,000
Cash and cash equivalents as of beginning of period 3,330,000 411,000
Cash and cash equivalents as of end of period 2,004,000 3,330,000
Supplemental disclosure of cash flow information:    
Cash paid for interest 874,000 274,000
Cash paid for income taxes 4,000 4,000
Noncash Investing and Financing Activities:    
Reclassification of liability warrants to equity warrants   41,851,000
Issuance of warrant liability in connection with financing   8,701,000
Deemed dividend on conversion of Series B preferred stock and repurchase of Series B preferred stock   5,842,000
Derecognition of Series B preferred stock liability warrants   824,000
Issuance of stock-based compensation to vendors   600,000
Warrant exercise in connection with loan settlement   333,000
Issuance of common stock in connection with Series B preferred stock   325,000
Unpaid financings issuance costs   269,000
Issuance of common stock and convertible note payable in connection with the acquisition of intangible assets   92,000,000
Unpaid intangible assets acquisition costs   476,000
Cashless exercise of warrants   587,000
Reclassification of equity warrants to liability warrants   645,000
Cumulative effect of adoption of ASU 2020-06   $ 116,000
Common Stock issued in exchange for crypto assets 117,664,000  
Convertible notes issued for CSI acquisition 9,718,000  
Non cash common shares issued in CSI acquisition $ 10,282,000  
Issuance of common stock to NYIAX 4,895  
Issuance of warrants with the 2025 Notes $ 16,657,000  
Issuance of common stock for waiver shares 5,449,000  
Common stock issued for intangibles 3,485,000  
EOS conversion    
Noncash Investing and Financing Activities:    
Issuance of common stock from non-cash conversion of convertible notes 3,100,000  
CSI Convertible Notes    
Noncash Investing and Financing Activities:    
Issuance of common stock from non-cash conversion of convertible notes 5,209,000  
10% Note conversions    
Noncash Investing and Financing Activities:    
Issuance of common stock from non-cash conversion of convertible notes $ 47,960,000