$USBC

USBC, Inc.

CIK:0001074828|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

OPERATING EXPENSES

RESEARCH AND DEVELOPMENT EXPENSES

$ 57,352

$ 238,612

$ 275,548

$ 656,819

Selling, general and administrative expense

^[1]

16,372,883

1,015,733

27,821,947

2,805,048

Total operating expenses

16,430,235

1,254,345

28,097,495

3,461,867

OPERATING LOSS

(16,430,235)

(1,254,345)

(28,097,495)

(3,461,867)

OTHER INCOME (EXPENSE), NET

Interest income

14,581

1,409

25,884

3,940

Interest expense

(219,583)

(275,665)

(233,750)

(1,649,710)

Change in fair value of digital assets

(9,705,974)

(29,710,439)

Other derivative income, net

671,391

2,228,110

Provision for credit losses

(354,446)

(2,531,270)

Total other expense, net

(9,594,031)

(274,256)

(30,221,465)

(1,645,770)

LOSS BEFORE INCOME TAXES

(26,024,266)

(1,528,601)

(58,318,960)

(5,107,637)

Income tax benefit

(5,235,692)

(11,975,617)

NET LOSS

(20,788,574)

(1,528,601)

(46,343,343)

(5,107,637)

Deemed dividends on Series C, D and H preferred stock

(2,158,161)

(2,181,823)

Net loss attributable to common stockholders, basic

(20,788,574)

(3,686,762)

(46,343,343)

(7,289,460)

Net loss attributable to common stockholders, diluted

$ (20,788,574)

$ (3,686,762)

$ (46,343,343)

$ (7,289,460)

Basic loss per share (in dollars per share)

$ (0.05)

$ (0.55)

$ (0.12)

$ (1.52)

Diluted loss per share (in dollars per share)

$ (0.05)

$ (0.55)

$ (0.12)

$ (1.52)

Weighted average shares of common stock outstanding- basic (in shares)

^[2]

388,144,429

6,672,777

388,144,334

4,780,564

Weighted average shares of common stock outstanding- diluted (in shares)

^[2]

388,144,429

6,672,777

388,144,334

4,780,564

[1]	Includes approximately $3.3 million and $6.3 million of costs incurred pursuant to service agreements with affiliated entities for the three and six months ended June 30, 2026, respectively.
[2]	Information pertaining to the number of shares outstanding and per share data gives retroactive effect to a 1 for 40 reverse stock split that became effective on February 19, 2025.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

CASH FLOWS USED IN OPERATING ACTIVITIES:

Net loss

$ (46,343,343)

$ (5,107,637)

Adjustments to reconcile net loss to net cash used in Operating activities

Depreciation and amortization

6,184

14,325

Loss on disposal of fixed assets

^[1]

22,363

Stock based compensation - stock option grants

11,212,099

593,681

Provision for credit losses

2,531,270

Amortization of operating lease right-of-use asset

64,475

55,709

Issuance of common stock for services

176,000

Interest expense for default of convertible notes

748,600

Amortization of debt issuance costs

654,110

Change in fair value of digital assets

29,710,439

Other derivative income, net

(2,228,110)

Deferred income taxes

(11,975,617)

Interest income on note receivable

(3,452)

Changes in operating assets and liabilities:

Prepaid expenses

(332,917)

Operating lease right-of-use liability

(40,917)

(47,441)

Derivative liabilities

(356,224)

Digital assets - receivable, net

(1,198,991)

Derivative assets

2,231,659

Accounts payable - trade and accrued expenses

1,475,676

197,204

Other long-term assets

125,000

NET CASH USED IN OPERATING ACTIVITIES

(15,225,406)

(2,590,449)

CASH FLOWS USED IN INVESTING ACTIVITIES:

Purchase of USDC

(10,000,000)

Liquidation of USDC

10,000,000

Draws on note receivable

(225,000)

NET CASH USED IN INVESTING ACTIVITIES:

(225,000)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from draws on loan payable

15,000,000

Proceeds from debt offering

200,000

Proceeds from Original Issuance Notes

246,000

Proceeds from issuance of common stock for stock option exercise

330

Proceeds from At The Market common stock offering

1,284,623

NET CASH PROVIDED BY FINANCING ACTIVITIES

15,000,330

1,730,623

NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

(450,076)

(859,826)

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period

4,092,308

1,032,329

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period

3,642,232

172,503

Supplemental disclosures of cash flow information:

Interest paid

127,500

2,000

Income taxes paid

Supplemental disclosure of non-cash investing and financing activities:

Deemed dividends on Series C, D and H Preferred Stock

2,181,823

Common stock issued for debt payment

1,358,597

Premiums received in digital assets from treasury trading strategy

1,875,425

Conversion of notes payable into Series H convertible preferred stock

$ 0

$ 583,794

[1]	Represents the net book value of fixed assets sold in connection with the March 27, 2026 divestiture transaction. See Note 13.

CONSOLIDATED BALANCE SHEETS - USD ($)

Jun. 30, 2026

Dec. 31, 2025

CURRENT ASSETS:

Cash and cash equivalents

$ 2,982,232

$ 4,092,308

Restricted cash

660,000

Prepaid expenses

624,091

291,174

Note receivable, net

48,452

Derivative assets and digital assets receivable, net

248,105

2,410,043

Total current assets

4,562,880

6,793,525

OTHER ASSETS

Digital assets

58,113,455

86,637,784

Deferred tax asset

3,664,237

Other non-current assets

146,599

239,621

TOTAL ASSETS

66,487,171

93,670,930

CURRENT LIABILITIES:

Accounts payable - trade

^[1]

3,069,064

1,988,049

Accrued expenses (1)

^[1]

1,670,547

1,095,885

Loan payable

15,000,000

Current portion of operating lease right-of-use liability

90,083

84,712

Derivative liabilities

152,798

509,022

Total current liabilities

19,982,492

3,677,668

NON-CURRENT LIABILITIES:

Operating lease liability, net of current portion

103,818

150,106

Deferred tax liability

8,311,381

Total liabilities

20,086,310

12,139,155

COMMITMENTS AND CONTINGENCIES (Note 14)

STOCKHOLDERS' EQUITY

Common stock

388,144

Additional paid in capital

282,901,721

271,689,292

Accumulated deficit

(236,889,004)

(190,545,661)

Total stockholders' equity

46,400,861

81,531,775

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 66,487,171

$ 93,670,930

[1]	Includes approximately $1.0 million payable for costs incurred pursuant to service agreements with affiliated entities as of June 30, 2026. See Note 13.