Company: CBLO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001882781-25-000042
Chunk: 4

Company: C2 Blockchain, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 4
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 to unadjusted quoted
prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The
three levels of the fair value hierarchy are described below:

-
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or
liabilities.

-
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets
or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g.,
interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

-
Level 3 - Inputs that are both significant to the fair value measurement and unobservable.  

Fair
value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September
30, 2025. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term
nature of these instruments. These financial instruments include accrued expenses.

Related
Parties 

The Company follows ASC
850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

Cryptocurrency Assets 

The Company’s digital assets consist solely
DOG, the native Runecoin built on the Bitcoin blockchain (“DOG”).

Crypto assets within the scope of ASC 350-60
Intangibles—Goodwill and Other—Crypto Assets(“ASC 350-60):

DOG tokens have been determined to fall within
the scope of ASC 350-60. The company reflects crypto assets held at fair value on the consolidated balance sheets within the Cryptocurrency
Assets line item. Changes in the fair value of crypto assets are recognized in income, reflected within the change in fair value of cryptocurrency
assets within the consolidated statement of operations.

In determining the fair value of digital assets in accordance
with ASC 820, Fair Value Measurement (“ASC 820”). The Company utilizes Kraken as the principal market as it
is the exchange on which the Company primarily acquires and custodies its DOG holdings.

Share-Based
Compensation

ASC
718, “Compensation – Stock Compensation”, prescribes accounting and reporting standards for all share-based
payment transactions in which employee services are