# EDGAR Filing Document

**Accession Number:** 0001740742
**File Stem:** 0001829126-26-003043
**Filing Date:** 2026-4
**Character Count:** 430948
**Document Hash:** 304ff237d48ce224e4e64529c35c7e92
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001829126-26-003043.hdr.sgml**: 20260401

**ACCESSION NUMBER**: 0001829126-26-003043

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 91

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260401

**DATE AS OF CHANGE**: 20260401

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Unicoin Inc.
- **CENTRAL INDEX KEY:** 0001740742
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 474360035
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56276
- **FILM NUMBER:** 26829190

**BUSINESS ADDRESS:**
- **STREET 1:** 228 PARK AVE SOUTH 16065
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10003
- **BUSINESS PHONE:** 2122160001

**MAIL ADDRESS:**
- **STREET 1:** 228 PARK AVE SOUTH 16065
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10003

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TransparentBusiness, Inc.
- **DATE OF NAME CHANGE:** 20180515

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K**

**(Mark One)**

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________ to ________**.

**Commission File Number: 000-56276**

**Unicoin Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **47-4360035** |
| (State or other jurisdiction of<br> incorporation or organization) | (IRS Employer<br> Identification No.) |

---

**228 Park Ave South 16065**

**New York, New York**

(Address of principal executive offices)

(Registrant's telephone number, including area code) **(212) 216-0001**

Securities registered pursuant to Section 12(b) of the Act:

NONE

Securities registered pursuant to Section 12(g) of the Act:

**Common Stock, par value $0.001 per share**

(Title of class)

Indicate by a check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There is no established trading market for the registrant's common stock and therefore the aggregate market value of the registrant's common stock held by non-affiliates cannot be determined.

As of April 1, 2026, there were 742,179,936 shares of the Registrant's common stock outstanding.

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **Item** | **Description** | **Page** |
| [CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS](#a_001) | [CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS](#a_001) | ii |
| [PART I](#a_002) | [PART I](#a_002) | [PART I](#a_002) |
| [Item 1.](#a_003) | [BUSINESS](#a_003) | 1 |
| [Item 1A.](#a_004) | [RISK FACTORS](#a_004) | 9 |
| [Item 1B.](#a_005) | [UNRESOLVED STAFF COMMENTS](#a_005) | 29 |
| [ITEM 1C.](#a_006) | [CYBERSECURITY](#a_006) | 29 |
| [Item 2.](#a_007) | [pROPERTIES](#a_007) | 29 |
| [Item 3.](#a_008) | [LEGAL PROCEEDINGs](#a_008) | 29 |
| [Item 4.](#a_009) | [MINE SAFETY DISCLOSURE](#a_009) | 30 |
| [PART II](#a_010) | [PART II](#a_010) | [PART II](#a_010) |
| [Item 5.](#a_011) | [MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASE OF EQUITY SECURITIES](#a_011) | 31 |
| [Item 6.](#a_012) | [RESERVED](#a_012) | 33 |
| [Item 7.](#a_013) | [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_013) | 34 |
| [Item 7A.](#a_014) | [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#a_014) | 49 |
| [Item 8.](#a_015) | [FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#a_015) | F-1 |
| [Item 9.](#a_016) | [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#a_016) | 50 |
| [Item 9a.](#a_017) | [CONTROLS AND PROCEDURES](#a_017) | 50 |
| [Item 9B.](#a_018) | [OTHER INFORMATION](#a_018) | 51 |
| [Item 9C.](#a_019) | [DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#a_019) | 51 |
| [PART III](#a_020) | [PART III](#a_020) | [PART III](#a_020) |
| [Item 10.](#a_021) | [DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](#a_021) | 52 |
| [Item 11.](#a_022) | [EXECUTIVE COMPENSATION](#a_022) | 54 |
| [Item 12.](#a_023) | [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](#a_023) | 56 |
| [Item 13.](#a_024) | [CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](#a_024) | 57 |
| [Item 14.](#a_025) | [PRINCIPAL ACCOUNTING FEES AND SERVICES](#a_025) | 57 |
| [PART IV](#a_026) | [PART IV](#a_026) | [PART IV](#a_026) |
| [Item 15.](#a_027) | [FINANCIAL STATEMENTS AND EXHIBITS](#a_027) | 58 |
| [Item 16.](#a_028) | [FORM 10-K SUMMARY](#a_028) | 58 |
| [SIGNATURES](#a_029) |  | 59 |

---

i

**CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS**

This Annual Report on Form 10-K of Unicoin Inc. contains forward-looking statements that are subject to risks and uncertainties. All statements contained in this prospectus other than statements of historical fact, including statements regarding our future financial performance, our growth strategy, our objectives for future operations and industry trends, are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "can," "may," "intend," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," the negative of these terms, and other comparable terminology that convey uncertainty of future events or outcomes. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business and in the industry in which we operate. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance, or achievements expressed or implied by the forward-looking statements, including those factors discussed under "Risk Factors." Forward-looking statements include, but are not limited to, statements regarding:

● the success or failure of Management's efforts to implement the Company's plan of operation;

● the ability of the Company to fund its operating expenses;

● the ability of the Company to compete with other companies that have a similar plan of operation;

● the effect of changing economic conditions impacting our plan of operation; and

● the ability of the Company to meet the other risks as may be described in future filings with the SEC.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this prospectus.

These forward-looking statements reflect our management's beliefs and views with respect to future events and are based on estimates and assumptions as of the date of this prospectus and are subject to risks and uncertainties. You should refer to the "Risk Factors" section of this prospectus for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. We cannot assure you that the forward-looking statements in this Annual Report on Form 10-K will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

The forward-looking statements made in this Annual Report on Form 10-K relate only to events as of the date hereof. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this prospectus to conform these statements to actual results or to changes in our expectations, except as required by law.

You should read this Annual Report on Form 10-K and the documents that we reference in it and have filed as exhibits to the registration statement of which Annual Report on Form 10-K forms a part completely and with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect. We qualify all of the forward-looking statements in this Annual Report on Form 10-K by these cautionary statements.

Additionally, the following discussion regarding our financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes included in this Annual Report on Form 10-K.

ii

**PART I**

**Item 1.** **BUSINESS**

Unicoin Inc. is a technology company that is strategically positioned to capture a significant share of the rapidly growing digital assets and cryptocurrency market by addressing its most pressing challenges:

- Extreme volatility

- Lack of transparency and compliance

- Absence of investor-friendly brands

We file annual, quarterly and other periodic reports, proxy statements and other information with the SEC. You can read our SEC filings over the Internet at the SEC's website at <u>www.sec.gov</u>.

The cryptocurrency market achieved a $3 trillion valuation in 2021 and the cryptocurrency market is poised for further growth. The firm believes the previous cryptocurrency growth was driven by cryptocurrencies becoming mainstream payment methods and the increasing entry of institutional investors into the market. However, this financial market sector still lacks brands that fully resonate with institutional and traditional investors.

As governments, major financial institutions, and large corporations have been refraining from issuing their coins, the vacuum was filled by parody coins, including dog, cat, monkey, and frog coins. In 2021, two dog coins (Dogecoin and Shiba Inu coin) reached a combined valuation of $132B. Unicoin aspires to exceed this figure by establishing itself as a leading and enduring brand appealing to institutional and traditional investors.

Unicoin Inc. does not promise to perform any "essential managerial efforts" related to increasing the value of unicoins.

We also use proprietary technology to drive our TaaS (as defined below) businesses.

**History and Organization**

Unicoin Inc. was incorporated in Delaware on June 22, 2015, under the name "Transparent Business, Inc." On October 6, 2022, we changed our name to "Unicoin Inc." Our principal executive offices are located at 228 Park Avenue South 16065, New York, NY 10003 and our phone number is (844) 384-5069.

Unicoin Inc. is an operating and holding company with a principal focus on the digital asset and media sectors. While the Company historically managed a Software as a Service ("SaaS") platform for the monitoring and management of remote workforces, its strategic direction is now centered on its underlying ecosystem. As a holding company, Unicoin Inc. wholly owns SheWorks!, a Talent as a Service ("TaaS") company.

While the Company historically managed a Software as a Service ("SaaS") platform for the monitoring and management of remote workforces, its strategic direction is now centered on its underlying ecosystem.

In addition to its talent platforms, Unicoin Inc. maintains a controlling interest in Unicorns, Inc., the media company responsible for the Unicorn Hunters show. As of April 1, 2026, the Company's ownership interest in Unicorns, Inc. is 71.88%.

Effective December 31, 2025, Unicoin Inc. elected not to further extend the divestiture agreement with the original sellers of ITSQuest, Inc., a regional staffing agency in which the Company had held a 51% majority interest since November 2020. Under the terms of the original Share Exchange Agreement, the Company's failure to achieve specific milestones by the expiration date triggered the formal transfer of the equity interest back to the original sellers. Management determined that a further negotiation for extension was not in the Company's strategic interest. This conclusion was based on an internal assessment that the traditional staffing model of ITSQuest constitutes a non-core asset that lacks sufficient synergy with the Company's proprietary technology and brand equity. By allowing the divestiture to proceed, Unicoin Inc. intends to reallocate its capital and management resources exclusively toward high-growth digital assets and media-driven opportunities across its primary markets.

The organization chart below shows the operating subsidiaries and the interests held in them by the Company:

![](img_001.jpg)

*Subsidiaries Outside of the United States*

Outside of the United States, the Company has recently formed subsidiaries for purposes of holding specific parcels of real estate. These "real estate subsidiaries" include Unicoin LATAM C.A. (organized in Venezuela). Each real estate subsidiary's sole purpose and business is to hold real estate.

Operations in these entities from formation through the date of this consolidated financial statements were de minimis.

*Non-Subsidiary, but Affiliated Entities Outside the United States*

**140 R.E. Properties Inc.**

140 R.E. Properties Inc. is a company organized under the laws of the Philippines. Unicoin Inc. does not currently hold any equity interest in, or have any binding contractual agreement with, 140 R.E. Properties Inc. At present, there is no formal arrangement granting Unicoin Inc. any economic rights or interests in the assets or operations of 140 R.E. Properties Inc. To better safeguard Unicoin Inc.'s potential rights and strategic objectives in the region, Unicoin Inc., with the assistance of local counsel, is also exploring a potential restructuring of 140 R.E. Properties Inc.

**UH Properties Inc.**

While Unicoin Inc does not hold any ownership interest in UH Properties Inc. (a company organized under the laws of the Philippines), it may be entitled to receive an economic interest from properties currently owned or acquired in the future by UH Properties, pursuant to a partnership agreement which provides that Unicoin Inc. will own one hundred percent (100%) of all investments within the Philippines. Under the terms of the agreement, all profits and losses shall be borne by UH Properties Inc., the domestic Philippine corporation created to manage such investments.

**Unicorns Media Group Ltd.**

While the Company does not hold any ownership interest in Unicorns Media Group Ltd (a company organized under the laws of the United Kingdom), the Company's subsidiary, Unicorns Inc., may be entitled to receive economic benefits pursuant to a licensing agreement between Unicorns Inc. and Unicorns Media Group Ltd. Pursuant to the terms of the licensing agreement, Unicorns Inc. is entitled to seventy percent (70%) of the revenues generated by Unicorns Media Group Ltd in connection with show productions, including revenues from advertisements, sponsorships, ticket sales, merchandising, and distribution. Unicoin Inc. owns 71.88% of the outstanding shares of Unicorns Inc., and may therefore indirectly benefit from the revenues received by Unicorns Inc. under the licensing arrangement.

**Unicoin International Inc.**

Unicoin Inc. and Unicoin International Inc. ("UII"), a corporation established under the laws of Panama, are affiliated (through common ownership as Alex Konanykhin and Silvina Moschini each own 50% of UII) but distinct legal entities, with UII operating as an affiliate of Unicoin. In support of UII's operations and marketing efforts, Unicoin may provide various services and operational support—including marketing, advisory, investor relations, IT infrastructure, and the sharing of personnel and office resources—pursuant to a contractual services and support agreement. Under the agreement, UII compensates Unicoin for these services and may also, at its discretion and subject to applicable law. Although the two entities may collaborate closely and share resources, UII maintains operational and legal independence from Unicoin, and the shared personnel remain solely employed or contracted by Unicoin, not by UII. This collaborative arrangement is structured to enhance efficiency while preserving each party's separate corporate identity and regulatory compliance obligations.

**Token Structure**

In addition to the businesses it operates through its subsidiaries, the Company tokenized a token called unicoin ("unicoins" or "tokens"). While earlier statements contemplated the potential for unicoins to be supported by reference to certain assets, the Company is currently reassessing this approach in light of evolving regulatory guidance from the U.S. Securities and Exchange Commission. The Company has reviewed and updated its approach to the unicoin token structure in light of evolving regulatory commentary and internal strategic considerations. While prior communications referenced the potential for unicoins to be "asset-backed" or collateralized, the Company has clarified that it does not intend to collateralize the tokens or tie them to any specific pool of assets. Instead, the Company uses the term "asset-backed" in a general, commercial sense—consistent with its ordinary dictionary meaning—to reflect the Company's intent to use token-related proceeds to invest in equity and other assets expected to support long-term token value. This characterization is not intended to imply collateralization, guaranteed redemption rights, or that unicoins represent ownership interests in such assets. The Company plans to further clarify this terminology in future offering documents and marketing materials to ensure transparency and investor understanding.

**Business Overview**

*SaaS and TaaS Legacy Business*

Unicoin was originally a SaaS company engaged in providing workforce management software in order to better monitor and manage a remote workforce. However, the legacy operations of our SaaS business are currently being phased out of our operations through customer attrition, and are no longer the focus of our efforts.

Unicoin's wholly owned subsidiary SheWorks!, a TaaS platform, is, we believe, an asset that can operate independently or in conjunction with the Company's SaaS software. SheWorks! is a talent exchange focused on connecting women seeking freelance or employment opportunities with companies looking for freelancers or employees to fill their needs. Our Yandiki platform (now a part of SheWorks!) is also a talent exchange and platform that connects freelance talent with companies looking for leaner, more transparent ways of carrying out remote contractual work. Nevertheless, SheWorks! is currently not the focus of our operations and is being phased out through customer attrition.

*Unicorns*

Unicorns produced a reality television/streaming show called Unicorn Hunters that showcases private companies seeking to obtain publicity for their private offerings by appearing on the show and attempting to raise capital by advertising their exempt offerings to a wide audience.

Currently, revenue consideration generally consists of the fair value of equity shares, stock options or warrants committed from companies that have appeared on the Unicorn Hunters show. Non-cash consideration is recognized at the estimated fair value at or near the date of contract execution. All rights to Unicorn Hunters content, including all recordings and logos, are owned by Unicorns Inc.

The Company follows the following 10-point criteria when we evaluate companies to be part of the Unicorn Hunters show:

&nbsp;&nbsp;&nbsp;&nbsp;1. Innovative Idea: A unicorn company typically starts with a unique and disruptive idea that solves a significant problem or meets an unmet need in the market.

&nbsp;&nbsp;&nbsp;&nbsp;2. Scalable Business Model: The company must have a business model that can scale rapidly and efficiently, allowing it to grow exponentially.

&nbsp;&nbsp;&nbsp;&nbsp;3. Strong Leadership: A unicorn company is led by visionary and capable leaders who can navigate challenges, make strategic decisions, and inspire a high-performing team.

&nbsp;&nbsp;&nbsp;&nbsp;4. Market Potential: The company must operate in a large and growing market with significant opportunities for expansion and revenue generation.

&nbsp;&nbsp;&nbsp;&nbsp;5. Product-Market Fit: The company's product or service must resonate with customers and offer a compelling value proposition that differentiates it from competitors.

&nbsp;&nbsp;&nbsp;&nbsp;6. Rapid Growth: Unicorns experience rapid and sustained growth, often achieving high revenue and user/customer numbers within a short period.

&nbsp;&nbsp;&nbsp;&nbsp;7. Funding and Investment: Securing substantial funding from venture capitalists, private equity firms, or other investors is crucial for a company to fuel its growth and reach unicorn status.

&nbsp;&nbsp;&nbsp;&nbsp;8. Talent Acquisition: Attracting and retaining top talent is essential for a unicorn company to build a skilled and dedicated workforce that can drive innovation and growth.

&nbsp;&nbsp;&nbsp;&nbsp;9. Global Expansion: Successful unicorns often expand their operations beyond their home market, targeting international customers and establishing a global presence.

&nbsp;&nbsp;&nbsp;&nbsp;10. Adaptability and Resilience: Unicorns must be adaptable to changing market dynamics, customer preferences, and technological advancements. They should also demonstrate resilience in the face of challenges and setbacks.

*Unicoins*

Unicoin Inc. developed a token called unicoin ("unicoins" or "tokens"). We intend to mint a total of 25 billion unicoins. A portion of the minted unicoins will be retained by us; accordingly, the value of these retained unicoins could benefit our stockholders. As of April 1, 2026, we have sold unicoin presale certificates ("Certificates") to acquire up to approximately 1.9 billion unicoins and raised approximately $46.8 million. We sold and issued certificates up to approximately 0.7 billion non-security utility issuance of approximately $7.8 million. We have also agreed to issue Certificates for up to approximately 3.3 billion unicoins through our deferred payment plans (approximately 194 million of which have been issued). Through these deferred payment programs, we are contractually entitled to future installment payments of $569 million (which, if not made, will result in us retaining collateral contributed to us to secure a portion of the payment obligations). Additionally, we have issued Certificates for approximately (i) 726 million unicoins to our stockholders, (ii) 522 million unicoins as discretionary compensation payments to insiders, including employees, (iii) 279 million unicoins to service providers and influencers, (iv) 22 million unicoins to the founders of our affiliate, ITSQuest, and (v) 1.21 billion unicoins through real estate transactions (of which 1.145 billion are cancelable or in an escrow arrangement pending tokenization and title transfer). The Company intends to make unicoins a network token on SafeBets.world, a risk-free prediction platform.

We may accept certain cryptocurrencies, such as Ether (ETH), USD Coin (USDC), and Tether (USDT) among others, as payment for the purchase of unicoins. Upon future liquidity needs, the Company could pay a vendor for goods or services or convert the digital assets to a fiat currency, using the proceeds for general business operational purposes.

On August 28, 2024, we notified our existing investors that we were postponing the initial coin offering ("ICO") of unicoins to conduct a thorough review of our public statements, offering materials and our business in general. We conducted a thorough review of our compliance with applicable regulatory requirements with the assistance of a leading national law firm. We will engage outside legal counsel, as needed and when possible, to support our continued efforts and plans for the launch of unicoins.

*Real Estate Subsidiaries*

Outside of the United States, we have recently formed wholly owned or controlled subsidiaries for purposes of holding specific parcels of real estate. These "real estate subsidiaries" include Unicoin LATAM C.A. (organized in Venezuela). Each real estate subsidiary's sole purpose and business is to hold and/or manage real estate. We may create in the future additional wholly owned or controlled subsidiaries for holding specific parcels of real estate in the United States and outside of the United States.

**Business Organization**

Operating segments are defined as components of an enterprise, in which separate financial information is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company evaluates operating results based on measures of performance, including revenues and profit (loss). The Company currently operates in the three reporting segments: TaaS, Unicorn Hunters and SaaS.

**Our Strategy**

Through our Unicorns subsidiary, we seek to make Unicorn Hunters the most widely watched business program and bring democratization and transparency to the pre-IPO fundraising process, while building the Unicoin Inc. brand and increasing shareholder value.

Going forward, we expect our remote workforce management business to produce lower returns than those we deem achievable through Unicorn Hunters and unicoin.

**Legal Proceedings**

We may from time to time be involved in various claims and legal proceedings of a nature we believe are normal and are incidental to our business. These matters may include product liability, intellectual property, employment, personal injury caused by our employees, and other general claims.

On December 10, 2024, we received a "Wells Notice" from the staff of the U.S. Securities and Exchange Commission (the "SEC"), indicating that the SEC staff had made a preliminary determination to recommend that the SEC file an enforcement action against us. The proposed action would allege violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 thereunder, as well as Sections 5 and 17(a) of the Securities Act of 1933, as amended (the "Securities Act"). The SEC staff further advised that any such enforcement action could involve a civil injunctive proceeding or other action permitted by law and could seek remedies including injunctive relief, disgorgement, pre-judgment interest, civil monetary penalties, and other relief.

Also on December 10, 2024, Alex Konanykhin, our Chief Executive Officer and Chairman of our board of directors, Silvina Moschini, one of our directors and the Chief Executive Officer of our subsidiary Unicorns, Inc., Alejandro Dominguez, our Chief Investment Officer, and Richard Devlin, our former Senior Vice President and General Counsel, each received Wells Notices from the SEC staff. These Wells Notices similarly indicated a preliminary determination to recommend enforcement actions against such individuals alleging violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Sections 5 and 17(a) of the Securities Act. In addition, in the case of Mr. Konanykhin and Ms. Moschini, the SEC staff indicated that the proposed enforcement action could allege violations as controlling persons under Section 20(a) of the Exchange Act. The SEC staff advised these individuals that remedies sought could include injunctive relief, disgorgement, pre-judgment interest, civil monetary penalties, officer and director bars, limitations on activities, and other relief within the SEC's authority.

Wells Notices are not formal allegations or findings of wrongdoing. Rather, they provide recipients with an opportunity to make a submission to the SEC staff before a final recommendation is made to the SEC or the SEC votes on whether to authorize an enforcement action. We and the named individuals submitted responses to the Wells Notices, as previously disclosed in our Current Report on Form 8-K filed on December 17, 2024.

On May 20, 2025, following the Wells Notice process, the SEC filed a civil enforcement action against Unicoin Inc. and certain individuals, including Alex Konanykhin, Silvina Moschini, Richard Devlin, and Alejandro Dominguez, in the United States District Court for the Southern District of New York. The action is captioned *Securities and Exchange Commission v. Unicoin Inc. f/k/a TransparentBusiness, Inc., et al.*, Case No. 1:25-cv-4245 (S.D.N.Y.). The SEC's complaint alleges violations of various provisions of the federal securities laws in connection with our offer and sale of digital assets, including unicoin tokens, as well as alleged material misstatements and omissions in communications with investors. The SEC is seeking injunctive relief, disgorgement of proceeds, civil monetary penalties, officer and director bars, and other equitable relief.

We believe the claims asserted by the SEC are without merit and intend to vigorously defend against the allegations. Nevertheless, this matter may result in financial liability, restrictions on future capital-raising efforts, reputational harm, and increased costs and diversion of management attention, and could materially affect our business, operations, and prospects.

We are not presently a party to any other legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

**Smaller Reporting Company**

The Company is a "smaller reporting company" as defined in Rule 12b-2 under the Exchange Act. There are certain exemptions available to us as a smaller reporting company, including: (1) not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (2) scaled executive compensation disclosures; and (3) the requirement to provide only two years of audited financial statements, instead of three years. As long as we maintain our status as a "smaller reporting company", these exemptions will continue to be available to us.

**Emerging Growth Company**

As a public company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" under the Jumpstart our Business Start-ups Act of 2012 (the "JOBS Act"). An emerging growth company may take advantage of certain reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies and can avail itself of various exemptions such as an exemption from Section 404(b) of the Sarbanes-Oxley Act of 2002 and Section 14(a) and (b) of the Exchange Act.

As an emerging growth company, we:

● are not required to obtain an attestation and report from our auditors on our management's assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

● are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives (commonly referred to as "compensation discussion and analysis");

● are not required to obtain a non-binding advisory vote from our stockholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on-frequency" and "say-on-golden-parachute" votes);

● are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

● may present only two years of audited financial statements and only two years of related Management's Discussion & Analysis of Financial Condition and Results of Operations ("MD&A"); and

● are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act. Emerging growth companies may elect to defer compliance with new or revised accounting standards until private companies are required to comply. Emerging growth companies must make a one-time irrevocable election to apply all new or revised accounting standards at the same date required of non-emerging growth companies or defer adoption until private company compliance dates.

We intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under §107 of the JOBS Act.

Certain of these reduced reporting requirements and exemptions were already available to us due to the fact that we also qualify as a "smaller reporting company" under SEC rules. For instance, smaller reporting companies are not required to obtain an auditor attestation and report regarding management's assessment of internal control over financial reporting; are not required to provide a compensation discussion and analysis; are not required to provide a pay-for-performance graph or Chief Executive Officer pay ratio disclosure; and may present only two years of audited financial statements and related MD&A disclosure.

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions for up to five years after our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act, or such earlier time that we no longer meet the definition of an emerging growth company. In this regard, the JOBS Act provides that we would cease to be an "emerging growth company" if we have more than $1.235 billion in annual revenues, have more than $700 million in market value of our Common stock held by non-affiliates, or issue more than $1 billion in principal amount of non-convertible debt over a three-year period. We would cease to be an emerging growth company on the last day of the fiscal year following the date of the fifth anniversary of our first sale of common equity securities under an effective registration statement or a fiscal year in which we have $1.235 billion in gross revenues. Further, under current SEC rules we will continue to qualify as a "smaller reporting company" for so long as we have a public float (i.e., the market value of common equity held by non-affiliates) of less than $250 million as of the last business day of our most recently completed second fiscal quarter.

***Employees***

As of the day of this Annual Report on Form 10-K, we had 9 employees. We also utilize consultants and temporary service providers who are not our employees, as necessary. None of our employees are represented by a labor union or are subject to collective-bargaining agreements and we believe we have good relationships with our employees.

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| **Item 1A.** | **RISK FACTORS** |

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*Investment in our securities involve a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K, including our consolidated financial statements and related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations", before investing in our securities. If any of the following risks are realized, in whole or in part, our business, financial condition, and results of operations could be materially and adversely affected. In that event, the market value of our securities could decline, and you could lose part or all of your investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair the operation of our business.* 

<u>**Risks Related to Our Business**</u>

***We have a history of losses and may not achieve profitability in the near term or at all.***

If we increase our SaaS and TaaS subscriber and user base, we cannot provide any assurance that our subscribers will maintain their subscription or use our services for any period of time. We expect that our operating expenses will increase as we invest in marketing efforts, hire contractors and employees, and continue to invest in the marketing and development of our product and services. These efforts may be costlier than we expected, and our revenue may not increase sufficiently to offset these expenses. We may continue to take action and make investments that do not generate optimal short- or medium-term financial results and may even result in increased operating losses in the short or medium term with no assurance that we will eventually achieve the intended long-term benefits or profitability. Further, producing television series is both risky and costly, and we cannot provide any assurance that we will successfully syndicate the Unicorn Hunters show or obtain any positive equity value from the issuers featured on the show. These factors, among others set out in this "Risk Factors" section or elsewhere in this Annual Report on Form 10-K, may negatively affect our ability to achieve profitability in the near or medium term, if at all.

***We may fail to compete effectively in the market in which we operate.***

We face competition from similar software-as-a-service providers, talent-as-a-service providers and media distribution companies. The failure to compete effectively could materially and adversely affect our business, financial condition and our results of operations. There are many providers of services that offer similar functionality, and competition will likely evolve. Our TaaS competitors also offer talent-finding products, some of which are industry-specific. The television, entertainment and streaming video markets are highly competitive, and there are multiple well-established players in this market who may compete against us or have a higher likelihood of gaining viewership for new productions that our Unicorns subsidiary is able to achieve for the Unicorn Hunters show. Our main SaaS competitors primarily include companies that offer project management software, time-tracking software or cloud-based team collaboration software. Our competitors may have greater access to financial and marketing resources than we do and/or, may be able to capitalize on brand recognition in ways that we may not be able to, or offer lower subscription fees with which we may not be able to compete.

***We have a limited operating history.***

We have a short operating history upon which to evaluate the viability and sustainability of our platform and services. We achieved only modest revenues. As our businesses expand, our historical results may not be indicative of our future performance, and you should consider our future prospects in light of the risks and uncertainties of early-stage companies operating in the fast-evolving industries of technology, remote work and streaming media. Some of these risks and uncertainties relate to our ability to:

● Anticipate and adapt to changing user preferences;

● Increase awareness of our brands;

● Anticipate and adapt to changing preferences in the TaaS marketplace;

● Gain viewership and therefore revenues from Unicorns' media assets;

● Continue to develop additional or successful episodes of the Unicorn Hunters show;

● Adapt to competitive market conditions;

● Attract and retain qualified personnel and contractor services.

If we are unsuccessful in addressing any of these risks and uncertainties, our business, financial condition and results of operations may be materially and adversely affected.

***We need additional capital but may not be able to obtain it on favorable terms or at all.***

We need additional cash capital resources to fund future growth and development of our businesses necessary to achieve our vision and strategy, including developing the Unicorn Hunters show and expanding strategic partnership arrangements. There can be no assurance that financing will be available in a timely manner or in amounts or on terms acceptable to us, or at all. Any failure to raise needed funds on terms favorable to us, or at all, could severely restrict our liquidity as well as have a material adverse effect on our business, financial condition and results of operations. Moreover, any issuance of equity or equity-linked securities could result in significant dilution to our existing shareholders.

***Although our financial statements have been prepared on a going concern basis, we must raise additional capital to fund our operations in order to continue as a going concern.***

Our independent registered public accounting firm for the fiscal years ended December 31, 2025 and 2024, included an explanatory paragraph in their opinion that accompany our audited consolidated financial statements as of and for the years ended December 31, 2025 and 2024, indicating that our current liquidity position raises substantial doubt about our ability to continue as a going concern. If we are unable to improve our liquidity position, we may not be able to continue as a going concern. Our ability to raise the capital needed to improve our financial condition may be hindered by our increasing obligations which may deter investors from purchasing our equity securities, debt instruments or unicoin rights. The consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern.

***Unicorn Hunters is as-yet-unproven as a media asset or as a method of marketing our products, which may not be successful, and may be a drain on our management and financial resources.***

Streaming and television media and production are highly competitive industries in which our management team has limited experience. There can be no assurance that Unicorn Hunters, the business reality series being produced by Unicorns, will achieve sufficient paid memberships, viewership, or syndication and merchandising revenues to be profitable. In such case, Unicorns may be unable to repay the amounts drawn on its line of credit provided by Unicoin Inc. to produce the first season of the Unicorn Hunters show, and we could incur a loss on the operation of Unicorns. If we produce a second season of Unicorn Hunters prior to generating profit from season one, it will cause an additional drain on our financial resources and the availability of management and other personnel who participate in the production of the show. Finally, if Unicorn Hunters is not successful, we will not be able to fulfil our goal of using Unicoin Inc.'s sponsorship of the show as a means to increase Unicoin Inc.'s brand awareness and awareness of our other products and services.

***Our strategy of acquiring equity stakes in private companies featured on Unicorn Hunters may not enhance shareholder value for an extended period of time, if at all.***

We plan to require, as a fee for appearing on the Unicorn Hunters show, approximately 5% to 10% equity stakes (or options or warrants to acquire the same) in some or all the companies featured in future episodes. Any such equity acquired will be illiquid and may be difficult to value. When acquired, there will be no public market for such warrants, options or the shares underlying such warrants or options, and there can be no guarantee that a market for such securities will ever develop. If a secondary market or exit opportunity does develop, we cannot be assured that the price at which such securities can be sold will meaningfully contribute to shareholder value for Unicoin Inc. shareholders, or that such value will be in line with our estimates.

***We have identified material weaknesses in our internal control over financial reporting. If we fail to develop and maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in Unicoin Inc.***

A material weakness is a deficiency or combination of deficiencies in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of a company's financial statements would not be prevented or detected on a timely basis. These deficiencies could result in additional material misstatements to its financial statements that could not be prevented or detected on a timely basis. As of the year ended December 31, 2025, we have identified un-remediated material weaknesses in connection with our (i) entity-level controls (ii) information technology general controls and segregation of duties and (iii) equity accounting primarily related to issuance of stock to investors. This resulted from a lack of necessary business processes, internal controls, record retention policy, and adequate number of qualified personnel within our accounting function.

The material weaknesses will not be considered remediated until management designs and implements effective controls that operate for a sufficient period of time and management has concluded, through testing, that these controls are effective.

We cannot assure you that the measures will be sufficient to avoid potential future material weaknesses. Accordingly, there could continue to be a possibility that a material misstatement of our financial statements would not be prevented or detected on a timely basis.

***We and certain of our current and former directors and officers received Wells Notices from the SEC staff, and the SEC has since commenced a civil enforcement action against us and such individuals, the outcome of which could materially and adversely affect our business, financial condition, results of operations, prospects, and reputation.***

On December 10, 2024, we, along with Alex Konanykhin, our Chief Executive Officer and Chairman of our board of directors, Silvina Moschini, one of our directors and Chief Executive Officer of our subsidiary Unicorns, Inc., Alejandro Dominguez, our Chief Investment Officer, and Richard Devlin, our former Senior Vice President and General Counsel, received Wells Notices from the staff of the U.S. Securities and Exchange Commission (the "SEC"). The Wells Notices indicated that the SEC staff had made a preliminary determination to recommend that the SEC bring an enforcement action against us and each such individual in connection with alleged violations of the federal securities laws. On December 31, 2024, we and the named individuals submitted Wells submissions to the SEC staff responding to the matters described in the Wells Notices.

While the Wells Notice was not a formal charge or an adjudication on the merits, as a result of the matters described in the Wells Notices, on May 20, 2025, the SEC filed a civil enforcement action against Unicoin Inc. and certain individuals, including Messrs. Konanykhin, Dominguez, and Devlin and Ms. Moschini, in the United States District Court for the Southern District of New York. The action is captioned *Securities and Exchange Commission v. Unicoin Inc. f/k/a TransparentBusiness, Inc., et al.*, Case No. 1:25-cv-4245 (S.D.N.Y.).

The SEC's complaint alleges violations of various provisions of the federal securities laws in connection with our offer and sale of digital assets, including unicoin tokens, as well as alleged material misstatements and omissions in communications with investors. The SEC is seeking injunctive relief, disgorgement of proceeds, civil monetary penalties, officer and director bars, and other equitable relief. We believe the claims asserted by the SEC are without merit and intend to vigorously defend against the allegations.

However, the outcome of this matter is inherently uncertain. If the SEC were to prevail on some or all of its claims, we could be subject to substantial monetary penalties or disgorgement obligations, which could exceed our ability to pay, as well as injunctions or other remedies that could restrict our current or future business activities, capital-raising efforts, or the service of our directors or officers. In addition, this matter could result in increased regulatory scrutiny, diversion of management's time and attention, significant legal and professional expenses, and reputational harm, any of which could materially and adversely affect our business, financial condition, results of operations, cash flows, and prospects.

***Unicoins may or may not be deemed a security by regulators.***

Unicoins are designed to qualify as a utility token. Nevertheless, updated regulations and guidance from the SEC may necessitate that the utilities and rights associated with Unicoins may need to be modified. Unicoins, including the utility for which they will be used, are subject to modification by our management as we more fully explore the market opportunities, our need for capital, regulatory and legislative changes, and technological needs and limitations. We can make no assurances that any modifications or adjustments to our plan of operations for unicoins will be more beneficial than our original intentions, and therefore the future value and/or utility of unicoins may decline.

***We accept payments for investments in our securities or unicoin rights in the form of cryptocurrencies, including Ether, which could cause the value of those investments to fluctuate.***

The prices of blockchain assets such as Ether have historically been subject to dramatic fluctuations and are highly volatile. Therefore, the value initially received upon an investment using cryptocurrencies could fluctuate, causing the value of such investments to be more or less than originally received as we hold onto such blockchain assets. The value of blockchain assets and fluctuations in the price of blockchain assets could materially and adversely affect our business and the value of an investment in our common stock.

***We currently generate significant revenue from a limited number of key customers and the loss of any of our key customers may harm our business, results of operations and financial results.***

A small number of customers account for a large share of our revenue and accounts receivable. The following table summarizes the Company's revenues from customers that contributed to at least 10% of total revenues:

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|:---|:---|:---|
| | **Revenues<br> as a % of<br>Total Revenues** | **Revenues<br> as a % of<br>Total Revenues** |
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| <br>**Customer Reference** | **2025** | **2024** |
| Customer A (a TAAS customer) | 26% | 13% |
| Customer B (a TAAS customer) | 25% | 34% |

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The following table summarizes the Company's accounts receivable from customers that contributed to at least 10% of total accounts receivable, net:

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|:---|:---|:---|
| | **Accounts Receivable<br>as a % of<br> Accounts Receivable, net** | **Accounts Receivable<br>as a % of<br> Accounts Receivable, net** |
| <br>**Customer Reference** | **December 31,<br>2025** | **December 31,<br>2024** |
| Customer A (a TAAS customer) | 25% | 14% |
| Customer B (a TAAS customer) | 18% | 27% |
| Customer C (a TAAS customer) | 20% | 15% |

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TaaS contracts with these customers (similar to contracts with other TaaS customers) are for a duration of less than a year. Each contract is a straightforward time and materials arrangement to provide professional services with monthly billings. The Company's TaaS operations could be adversely affected if management is not able to obtain significant new customers and retain existing customers.

***There are multiple cryptocurrencies in various stages of development with the name Unicoin or a similar variant of Unicoin. Investors may be confused as to which cryptocurrency or digital asset is the one offered by the Company.***

Despite the distinguishing characteristics of similarly named cryptocurrency projects, such as the "central bank cash reserve currency" being developed by the Digital Currency Monetary Authority (the "DCMA"), also called "Unicoin," there remains a risk of investor confusion in the marketplace. We have had initial discussions about trademark coverage with the owner of the DCMA's cryptocurrency, also called "Unicoin," although we cannot guarantee that we will come to a favorable resolution with the DCMA on this issue and cannot determine its materiality at this time. Despite the different structure, target audience and features of the DCMA's coin and other similarly named coins, there remains a risk that potential investors may select the wrong "Unicoin" when attempting to purchase unicoins on an exchange after tokenization.

***The Company's business is exposed to the potential misuse of digital assets and malicious actors.***

The security procedures and operational infrastructure of the Company and may be breached due to the actions of outside parties, error or malfeasance of an employee of the Company, or otherwise, and, as a result, an unauthorized party may obtain access to the Company's digital asset accounts, private keys, data or tokens. Additionally, outside parties may attempt to fraudulently induce employees of the Company to disclose sensitive information in order to gain access to the infrastructure of the Company. As the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently, or may be designed to remain dormant until a predetermined event, and often are not recognized until launched against a target, the Company may be unable to anticipate these techniques or implement adequate preventative measures. If an actual or perceived breach of the Company's digital assets account occurs, the market perception of the effectiveness of its security protocols could be harmed and the value of the Company's common stock could be materially adversely affected. As an example, as discussed in Note 5, the Company concluded that certain digital assets were misappropriated by an unknown and unauthorized outside party that bypassed the Company's security procedures and operational infrastructure. The Company is currently exploring its legal options; however, has been determined it will not be able to recover those assets.

***We will need to implement strict finance and accounting systems, procedures and controls to operate our business.***

We will be required to comply with a variety of reporting, accounting and other rules and regulations. Compliance with these requirements will be expensive. We will need to implement strict finance and accounting systems, procedures and controls to satisfy our reporting requirements and these requirements may increase our costs and require additional management time and resources. If our internal controls have undetected weaknesses or our internal control over financial reporting is determined to be ineffective, such failure could cause investors to lose confidence in our reported financial information, negatively affect the market price of unicoins (and our common stock) and adversely impact our business and financial condition.

***Global or regional health pandemics or epidemics could negatively impact our business, financial position and results of operations.***

The emergence, severity, magnitude and duration of global or regional pandemics, epidemics or other health crises are uncertain and difficult to predict. A pandemic, epidemic or contagious disease outbreak that affects humans or the food supply, such as the avian flu impact on poultry and egg production could impact our business operations, demand for our products and services, in-stock positions, costs of doing business, access to inventory, supply chain operations, the extent and duration of measures to try to contain the spread of a virus or other disease (such as travel bans and restrictions, quarantines, shelter-in-place orders, limitations on large gatherings, business and government shutdowns and other restrictions on retailers), our ability to predict future performance, exposure to litigation and our financial performance, among other things. In the event of any global or regional health crisis, customer demand for certain products may fluctuate, customer behaviors may change and consumer disposable income could be negatively impacted, which may challenge our ability to anticipate and/or adjust inventory levels to meet that demand. These risks and their impacts are difficult to predict and could otherwise disrupt and adversely affect our operations and our financial performance.

To the extent that a future pandemic, epidemic or contagious disease outbreak occurs, such events may also heighten other risks described in this Item 1A, including but not limited to those related to consumer behavior and expectations, competition, our reputation, implementation of strategic initiatives, cybersecurity threats, payment-related risks, technology systems disruption, supply chain disruptions, labor availability and cost, and litigation and regulatory requirements.

<u>**Risk Related to Our Management and Control Persons**</u>

***We depend on key personnel, the loss of any of whom could be detrimental to our business.***

Our success depends to a significant degree upon the continued contributions of certain key personnel, including co-founders Alex Konanykhin and Silvina Moschini, who would be difficult to replace. If any of our key personnel were to cease employment with us, our operating results could suffer. We also believe that our future success depends, in large part, upon our ability to attract and retain highly skilled managerial, operational and marketing personnel. Competition for such personnel is intense, and we cannot provide assurance that we will be successful in attracting and retaining such personnel.

***The concentration of our capital stock ownership with insiders will likely limit your ability to influence corporate matters.***

Our executive officers, directors, and several stockholders and their affiliated entities together beneficially own a majority of our outstanding common stock. In particular, as of December 31, 2025, Silvina Moschini, our Chief Strategy Officer and our Unicorns, Inc. Chief Executive Officer, and Alex Konanykhin, Chairman of the Board of Directors and our Chief Executive Officer, together beneficially own 72.28% of our outstanding common stock. As a result, these stockholders, if they act together or in a block, could have significant influence over most matters that require approval by our stockholders, including the election of directors and approval of significant corporate transactions, even if other stockholders oppose them. This concentration of ownership might also have the effect of delaying or preventing a change of control of our company that other stockholders may view as beneficial.

***Certain provisions of our Bylaws provide our Chairman and Chief Executive Officer with control over the Board and grant them discretion over total director compensation.***

Our Bylaws provide that our directors have no voting rights during their initial one-year term. As a result of this provision and recent director resignations, our Chairman and Chief Executive Officer is currently the only director with voting rights and thereby controls the Board. In addition, our Bylaws permit the Chairman and Chief Executive Officer, at his discretion, to pay bonuses to directors in recognition of their contributions to the growth of the Company. This provision may result in the Chairman and Chief Executive Officer granting a bonus to himself or to other directors, which gives them discretion over total compensation for each director.

<u>**Risks Related to our Unicoin Offering**</u>

***We may not be able to successfully execute our business strategy if we are deemed to be an investment company under the Investment Company Act of 1940.***

In general, under the Investment Company Act, a U.S. company that does not qualify to use one of the "private investment company" (or other specialized) exemptions from investment company status, that has made (or proposes to make) a public offering of its securities and that is, or holds itself out as being, engaged primarily in the business of investing, reinvesting or trading in securities must register, and is subject to regulation, as an investment company under that Act. In addition, in general, investment company status may apply (again, unless a specialized exemption is available) because a company owns "investment securities" (essentially, non-controlling interests in other companies' securities or controlling interests in companies that have the characteristics of an investment company) constituting more than 40% of the value of the investing company's unconsolidated assets (disregarding U.S. government securities and "cash items"). The future activities of our Unicorn Hunters show, which is intended to develop a diversified portfolio of startup and emerging growth companies, is likely to cause us or one or more of our subsidiaries to be considered an investment company.

We may accept certain cryptocurrencies, such as Ether (ETH) and USD Coin (USDC) among others, as payment for the purchase of unicoins. The Company intends to hold these cryptocurrencies without converting into fiat currencies, in custodial wallets through Gemini. If these assets constitute more than 40% of the value of the Company's unconsolidated assets (disregarding U.S. government securities and "cash items"), the Company may need to register and operate as an investment company.

If the Company were deemed to be an "investment company" under the Investment Company Act, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business. The Investment Company Act contains substantive legal requirements that regulate the manner in which an "investment company" is permitted to conduct its business activities. If we or one of our subsidiaries are deemed to be, and are required to register as, an investment company under the Investment Company Act, our activities may be restricted, including limitations on our ability to borrow, limitations on our capital structure, limitations on our ability to issue additional common stock, restrictions on acquisitions of interests in associated companies, prohibitions on transactions with affiliates, restrictions on specific investments. In addition, we may have imposed upon us burdensome requirements, including compliance with governance, reporting, record keeping, voting, proxy disclosure and other statutory requirements and related rules and regulations. If and when we are deemed to be an investment company, we would need to arrange our structure and future operations accordingly in order to comply with the foregoing restrictions and requirements. Compliance with the requirements of the Investment Company Act applicable to registered investment companies will add significant costs to our operations and could have a negative impact on our consolidated revenues and cost of operations. If we were ever deemed to be in noncompliance with the Investment Company Act, we could also be subject to various penalties, including administrative or judicial proceedings that might result in censure, fine, civil penalties, cease-and-desist orders or other adverse consequences, as well as private rights of action, any of which could materially adversely affect our business and the price of our common stock.

***We have no operating history in blockchain and tokens, and therefore valuation of the Certificates and unicoins is difficult.***

Our operations to date have consisted of developing, marketing and selling our SaaS and TaaS services and the Unicorn Hunters show. Accordingly, we have no operating history in the blockchain and token industries upon which an evaluation of our prospects and future performance with respect to unicoins can be made.

We believe that the value of unicoins will be influenced by the supply of unicoins, the market's perception of the Unicoin's value and the liquidity for unicoins on a secondary market. The original purchase price of certificates evidencing the right to receive unicoins and the underlying unicoins may not be indicative of the market price of unicoins after they have been made available for trading on a market. There is also no assurance that the market price of unicoins will not decline below their original purchase price.

***The application of distributed ledger technology and reliance on third-party blockchains is novel and untested and may contain inherent flaws or limitations.***

Blockchain is an emerging technology that offers new capabilities which are not fully proven in use. There are limited examples of the application of distributed ledger technology. In most cases, software used by blockchain asset issuing entities will be in an early development stage and still unproven. As with other novel software products, the computer code underpinning the unicoins and Ethereum blockchain may contain errors, or function in unexpected ways. Insufficient testing of smart contract code, as well as the use of external code libraries, may cause the software to break or function incorrectly.

If we discover errors or unexpected functionalities in the unicoin smart contract after it has been deployed, we may make a determination that the unicoin smart contract is defective and that its use should be discontinued. Although we intend to replace the unicoins and the unicoin smart contract with a new token using a new smart contract, we may be required to take certain measures, such as freezing digital wallet addresses so that such wallets cannot transfer unicoins, which may disrupt trading in unicoins. Such a determination and our subsequent deployment of a new smart contract and replacement token could have a material effect on the value of any investment in our business.

In addition, since the token utilized the Ethereum-based blockchain, transactions on that blockchain may require a "gas fee," which is a fee payable in ETH, for verifying a transaction. Further, the cost to tokenize and list unicoins on a trading platform consists of multiple due diligence, technical and setup fees, which are presently unknown, but expected to be between $250 thousand and $1,000 thousand.

Such fees will vary, depending upon the exchange platform chosen and the number of unicoin rights holders to be onboarded onto a platform. The variable amount of gas fees and other expenses presents an undetermined expense for investors and/or the company, which may have an adverse effect on the eventual market value for our unicoins and could negatively impact their liquidity.

The creation and operation of digital platforms for the public trading of blockchain assets will be subject to potential technical, legal and regulatory constraints. There is no warranty that the process for receiving, use and ownership of blockchain assets will be uninterrupted or error-free and there is an inherent risk that the software, network, blockchain assets and related technologies and theories could contain undiscovered technical flaws or weaknesses, the cryptographic security measures that authenticate transactions and the distributed ledger could be compromised, and breakdowns and trading halts could cause the partial or complete inability to use or loss of blockchain assets.

Risks associated with the distributed ledger technology could affect our business directly or the market for blockchain assets generally. In either case, the occurrence of these events could have a materially adverse effect on an investment in the Company.

***Because we rely on third-party blockchain technologies, users of Unicoin could be subject to blockchain protocol risks.***

Reliance upon other third-party blockchain technologies to create our platform subjects us and our customers to the risk of ecosystem malfunction, unintended function, unexpected functioning of, or attack on, the providers' blockchain protocol, which may cause our platform to malfunction or function in an unexpected manner, including, but not limited to, slowdown or complete cessation in functionality of the platform.

***The unicoins project may ultimately fail, for technical, operational, commercial, regulatory or any other reasons.***

It is possible that despite the reasonable endeavors of such persons and their advisors, the unicoin project may fail, e.g., if insufficient funds are received during the unicoin fundraising effort, if unicoins are not ultimately launched on multiple exchanges, or if there are technical, operational, commercial, regulatory or any other reasons.

***We cannot guarantee that the trading demand for unicoins will be sufficient to sustain a liquid market, or that Company activity will not negatively affect trading demand.***

Unicoins currently trade on the Uniswap platform, and we are working to get unicoins on other platforms. However, there is no assurance that unicoins will benefit from trader demand, and no assurance that current holders of unicoins will be able to sell their holdings at favorable terms.

We may, in the future, take certain steps, including utilizing investor awareness campaigns, press releases, road shows and conferences to increase awareness of our business. We may need to compensate consultants with cash and/or unicoins. There can be no assurance that there will be any awareness generated or that the results of any efforts will result in any impact on unicoin trading volume, or that compensating consultants with unicoins will not result in negative impacts to their trading price.

***Blockchain is a nascent and rapidly changing technology and there remains relatively small use of blockchain networks and blockchain assets in the retail and commercial marketplace. The slowing or stopping of the development or acceptance of blockchain networks may adversely affect an investment in our Company.***

The development of blockchain networks is a new and rapidly evolving industry that is subject to a high degree of uncertainty. Factors affecting the further development of the blockchain industry include:

● continued worldwide growth in the adoption and use of blockchain networks and assets;

● the maintenance and development of the open-source software protocol of blockchain networks;

● changes in consumer demographics and public tastes and preferences;

● the popularity or acceptance of the Bitcoin or Ethereum networks;

● the availability and popularity of other forms or methods of buying and selling goods and services, including new means of using fiat currencies;

● government and quasi-government regulation of blockchain networks and assets, including any restrictions on access, operation and use of blockchain networks and assets; and

● the general economic environment and conditions relating to blockchain networks and assets.

Our business model is dependent on continued investment in and development of the blockchain industry and related technologies. If investments in the blockchain industry become less attractive to investors or innovators and developers, or if blockchain networks and assets do not gain public acceptance or are not adopted and used by a substantial number of individuals, companies and other entities, then it would have a material adverse impact on our prospects and our operations.

***The application of distributed ledger technology remains relatively novel and untested and may contain inherent flaws or limitations.***

Blockchain, while becoming more prevalent in today's economy, is still an emerging technology that offers new capabilities which are not fully proven in use. There are limited examples of the application of distributed ledger technology. In most cases, software used by blockchain asset issuing entities will be in an early development stage and still unproven. As with other novel software products, the computer code underpinning unicoins and Ethereum blockchain may contain errors, or function in unexpected ways. Insufficient testing of smart contract code, as well as the use of external code libraries, may cause the software to break or function incorrectly. Any error or unexpected functionality may cause a decline in the value of unicoins after their issuance and result in substantial losses to purchasers of Certificates and the underlying unicoins.

If we discover errors or unexpected functionalities in the unicoin smart contract after it has been deployed, we may make a determination that the unicoin smart contract is defective and that its use should be discontinued. We may be required to take certain measures, such as freezing digital wallet addresses so that such wallets cannot transfer unicoins, which may disrupt trading in unicoins. Such a determination and our subsequent deployment of a new smart contract and replacement token could have a material effect on the value of any investment in our common stock or our business.

The creation and operation of digital platforms for the public trading of blockchain assets will be subject to potential technical, legal and regulatory constraints. There is no guaranty that the process for receiving, use and ownership of blockchain assets will be uninterrupted or error-free and there is an inherent risk that the software, network, blockchain assets and related technologies and theories could contain undiscovered technical flaws or weaknesses, the cryptographic security measures that authenticate transactions and the distributed ledger could be compromised, and breakdowns and trading halts could cause the partial or complete inability to use or loss of blockchain assets.

Risks associated with the distributed ledger technology could affect our business directly or the market for blockchain assets generally. In either case, the occurrence of these events could have a materially adverse effect on the Company.

***The open-source structure of blockchain software means that blockchain networks may be susceptible to malicious cyber-attacks or may contain exploitable flaws, which may result in security breaches and the loss or theft of blockchain assets.***

Most blockchain networks operate based on some form of open-source software. An open-source project is not represented, maintained or monitored by an official organization or authority. Because of the nature of open-source software projects, it may be easier for third parties not affiliated with the issuer to introduce weaknesses or bugs into the core infrastructure elements of the blockchain network. This could result in the corruption of the open-source code which may result in the loss or theft of blockchain assets.

Blockchain networks may be the target of malicious attacks seeking to identify and exploit weaknesses in the software. Such events may result in a loss of trust in the security and operation of blockchain networks and a decline in user activity which could have a negative impact on the Company.

***Each blockchain network, including the Ethereum network, is dependent upon its users and contributors, and actions taken, or not taken, by the users or contributors of a blockchain network could damage its reputation and the reputation of blockchain networks generally.***

Developers and other contributors to blockchain network protocols generally maintain or develop those blockchain networks, including the verification of transactions on such networks. Because the networks are decentralized, these contributors are generally not directly compensated for their actions. Therefore, most blockchain networks provide that such contributors receive awards and transfer fees for recording transactions and otherwise maintaining the blockchain network. Such fees are generally paid in the blockchain asset of that network.

The security and integrity of blockchain assets, including the value ascribed to blockchain assets, relies on the integrity of the underlying blockchain networks. Unicoins are issued with the ERC-20 standard. Transfer costs will include exchange fees of the individual exchanges on which unicoin may be traded. Neither the unicoin rights nor the tokenized unicoins grant any intellectual property rights to holders.

***The prices of blockchain assets are extremely volatile. Fluctuations in the price of Bitcoin, Ether and/or other blockchain assets could materially and adversely affect the Company and the value of unicoins.***

The prices of blockchain assets such as Bitcoin and Ether have historically been subject to dramatic fluctuations and are highly volatile. As relatively new products and technologies, blockchain assets have only recently become accepted as a means of payment for goods and services, and such acceptance and use remains limited. Conversely, a significant portion of demand for blockchain assets is generated by speculators and investors seeking to profit from the short- or long-term holding of blockchain assets.

In addition, some blockchain industry participants have reported that a significant percentage of blockchain asset trading activity is artificial or non-economic in nature and may represent attempts to manipulate the price of certain blockchain assets. Trading platforms or blockchain assets may seek to inflate demand for a specific blockchain assets, or blockchain assets generally, which could increase the volatility of that asset or blockchain asset trading prices generally.

The market price of these blockchain assets, as well as other blockchain assets that may be developed in the future, may continue to be highly volatile. A lack of expansion, or a contraction of adoption and use of blockchain assets, may result in increased volatility or a reduction in the price of blockchain assets.

Several additional factors may influence the market price of blockchain assets, including, but not limited to:

● Global blockchain asset supply;

● Global blockchain asset demand, which can be influenced by the growth of retail merchants' and commercial businesses' acceptance of blockchain assets like cryptocurrencies as payment for goods and services, the security of online blockchain asset trading platforms and digital wallets that hold blockchain assets, the perception that the use and holding of blockchain assets is safe and secure, and the regulatory restrictions on their use;

● Changes in the software, software requirements or hardware requirements underlying the blockchain networks;

● Changes in the rights, obligations, incentives, or rewards for the various participants in blockchain networks;

● The cost of trading and transacting in blockchain assets, and whether such costs may become fixed or standardized;

● Investors' expectations with respect to the rate of inflation;

● Interest rates;

● Currency exchange rates, including the rates at which blockchain assets may be exchanged for fiat currencies;

● Fiat currency withdrawal and deposit policies of blockchain asset trading platforms and liquidity on such platforms;

● Interruptions in service or other failures of major blockchain asset trading platforms;

● Investment and trading activities of large investors, including private and registered funds, that may directly or indirectly invest in blockchain networks or blockchain assets;

● Monetary policies of governments, trade restrictions, currency devaluations and revaluations;

● Regulatory measures, if any, that affect the use of blockchain assets;

● The maintenance and development of the open-source software utilized in blockchain networks;

● Global or regional political, economic or financial events and situations; or

● Expectations among blockchain network participants that the value of such blockchain assets will soon change.

A decrease in the price of a single blockchain asset may cause volatility in the entire blockchain industry and may affect other blockchain assets. For example, a security breach that affects investor or user confidence in Ether or Bitcoin may affect the industry as a whole and may also cause the price of other blockchain assets to fluctuate.

The value of blockchain assets and fluctuations in the price of blockchain assets could materially and adversely affect our business and investment in the Company.

***The regulatory regimes governing blockchain technologies, blockchain assets and the purchase and sale of blockchain assets, including tokens such as unicoins, are uncertain, and new regulations or policies may materially adversely affect the development of blockchain networks and the use of blockchain assets.***

Initially, it was unclear how distributed ledger technologies, blockchain assets and the businesses and activities utilizing such technologies and assets would fit into the current web of government regulation. As blockchain networks and blockchain assets have grown in popularity and in market size, international, federal, state and local regulatory agencies have begun to clarify their position regarding the sale, purchase, ownership and trading of blockchain assets.

Regulation of the trading of blockchain assets has evolved significantly over the past several years. On November 16, 2018, the Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets issued the Statement on Digital Asset Securities Issuance and Trading, confirming the applicability of the federal securities law framework to new and emerging technologies, such as blockchain assets. The Statement summarized the SEC's stance on actors and institutions that sell tokens in initial offerings or develop and facilitate the secondary market for tokens, which is that market participants must still adhere to the SEC's well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain. Although the Statement provides additional guidance to participants in the blockchain asset marketplace, in general the regulation of blockchain assets under the current regulatory framework applicable to currencies or securities remains in its early stages and is subject to uncertainty.

In addition, various legislative and executive bodies in the United States and in other countries have shown that they intend to adopt legislation to regulate the sale and use of blockchain assets. Such legislation may vary significantly among jurisdictions, which may subject participants in the blockchain trading marketplace to different and perhaps contradictory requirements. As of March 2024, thirty-nine states, Puerto Rico and the District of Columbia have addressed legislation regarding cryptocurrency, digital or virtual currencies and other digital assets in the 2024 legislative session, according to the National Conference of State Legislators.

New or changing laws and regulations or interpretations of existing laws and regulations, in the United States and elsewhere, may materially and adversely impact the development and growth of blockchain networks and the adoption and use of blockchain assets. The imposition of restrictions on all blockchain assets, or certain blockchain assets, could affect the value, liquidity and market price of blockchain assets subject to heightened regulation, by limiting access to marketplaces or exchanges on which to trade such blockchain assets, or imposing restrictions on the structure, rights and transferability of such blockchain assets. Some governments may seek to ban transactions in blockchain assets altogether.

The Company may be prevented from entering, or it may be required to cease operations in, a jurisdiction that makes it illegal or commercially unviable or undesirable to operate in such jurisdiction. Enforcement, or the threat of enforcement, may also drive a critical mass of participants and trading activity away from regulated markets, and toward unregulated exchanges. Although it is impossible to predict the positions that will be taken by certain governments, any regulatory changes affecting blockchain assets could be substantial and materially adverse to the development and growth of our business and investment in the Company.

<u>**Risks Related to Our Industry**</u>

***We rely upon the internet infrastructure, cloud service providers and telecommunications networks in the markets in which we operate.***

Our product and services are provided as a software-as-a-service and talent-as-a-service, meaning that we contract with third-party providers to host our application and platform. While we take every precaution and use best-in class providers, our business depends on the performance and reliability of our third-party cloud service providers in the markets where we operate. There are risks inherent in all cloud computing that if our platform were affected, could affect the availability of our service or negatively impact our subscribers. Key risks include:

● Unauthorized access to or leaks of our customer data;

● Security risks in the technology itself;

● Unauthorized access to or leaks of our proprietary technology;

● Inability to set or reinforce security policy;

● Application or system performance; and

● Provider's business continuity and disaster readiness.

In the event of a technology breakdown by our service provider, our subscribers may experience disruptions or failures of, or other problems with use of our platform. In addition, the Internet infrastructure in emerging markets where we operate may hold higher risks of failure.

***Any interruptions or delays in services from third parties, including data center hosting facilities, cloud computing platform providers and other hardware and software vendors, or our inability to adequately plan for and manage service interruptions or infrastructure capacity requirements, could impair the delivery of our services and harm our business.***

We currently serve our customers from third-party data center hosting facilities and cloud computing platform providers located in the United States, Canada and the United Kingdom. We also rely on computer hardware purchased or leased from, software licensed from, and cloud computing platforms provided by, third parties to offer our services, including database software, hardware and data from a variety of vendors. Any damage to, or failure of our systems generally, including the systems of our third-party platform providers, could result in interruptions in our services. As we increase our reliance on these third-party systems, our exposure to damage from service interruptions may increase. Interruptions in our services may cause us to issue credits or pay penalties, cause customers to make warranty or other claims against us or to terminate their subscriptions and adversely affect our attrition rates and our ability to attract new customers, all of which would reduce our revenue. Our business would also be harmed if our customers and potential customers believe our services are unreliable.

Infrastructure capacity requirements may exceed our expectation such that we experience significant strains on our data center capacity, resulting in our customers experiencing performance degradation or service outages that may subject us to financial liabilities and harm our business. As we add data-centers and capacity and continue to utilize cloud computing platform providers, we may move or transfer our data and our customers' data. Despite precautions taken during this process, any unsuccessful data transfers may impair the delivery of our services, which may damage our business.

***We may not have adequate sources of recovery if the digital assets held by us are lost, stolen or destroyed due to third-party digital asset services, which could have a material adverse effect on our business, financial condition and results of operations.***

Certain digital assets owned by us are currently held or have previously been held by Coinbase or Gemini. We believe that the security procedures that Coinbase and Gemini utilize, such as dual authentication security at Coinbase, secured facilities, segregated accounts and cold storage, are reasonably designed to safeguard our digital assets from theft, loss, destruction or other issues relating to hackers and technological attack. Nevertheless, the security procedures cannot guarantee the prevention of any loss due to a security breach, software defect or act of God that may be borne by us. In addition, Coinbase's and Gemini's limited liability under their services agreements with us may limit our ability to recover losses relating to our digital assets. If such digital assets are lost, stolen or destroyed under circumstances rendering a third party liable to us, it is possible that the responsible third party may not have the financial resources or insurance sufficient to satisfy any or all of our claims against the third party, or have the ability to retrieve, restore or replace the lost, stolen or destroyed digital assets due to governing network protocols and the strength of the cryptographic systems associated with such digital assets. To the extent that we are unable to recover on any of our claims against any such third party, such loss could have a material adverse effect on our business, financial condition, and results of operations.

***The popularity of content is difficult to predict and can change rapidly, and low public acceptance of the Unicorn Hunters show could adversely affect our results of operations.***

The anticipated revenues derived from the sale, distribution and licensing of television and streaming programming, and our ability to acquire our desired portfolio of private equities, depend primarily on widespread public acceptance of the Unicorn Hunters show, which is difficult to predict and can change rapidly. We have invested and must continue to invest substantial amounts in the production and marketing of the Unicorn Hunters show before we learn whether it will reach anticipated levels of popularity with consumers and potential investors. The popularity of the Unicorn Hunters show depends on many factors, only some of which are within our control. Examples include the popularity, quality and amount of competing content (including, in addition to traditional competitors in media and entertainment, locally-produced content internationally and other business-related programming, some of which have large and growing subscriber/user bases and are significantly increasing their programming investments), our ability to maintain or develop strong brand awareness and target key audiences, and our ability to successfully anticipate (and timely adapt to) changes in consumer tastes in the many countries and territories in which we operate. Low public acceptance of the Unicorn Hunters could adversely affect its results of operations and therefore the overall value of Unicoin Inc.

***We may be subject to reputational harm, regulatory scrutiny, and financial losses due to the unauthorized use of our brand and the emergence of fraudulent websites and scams impersonating our company.***

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We have become aware of an increasing number of fake websites, phishing schemes, and other scams that falsely represent themselves as being affiliated with Unicoin Inc. These fraudulent activities often mimic our branding, trademarks, or website design to mislead consumers, divert traffic, or solicit unauthorized investments. Such scams can result in consumer confusion, reputational damage, and potential legal exposure, especially if victims mistakenly associate their losses with our business.

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Despite our ongoing efforts to monitor, report, and remove such fraudulent content, we may be unable to fully prevent these activities or mitigate their impact. Any failure to detect or address these impersonation efforts promptly may erode trust in our brand, reduce user engagement, and lead to regulatory or law enforcement investigations. In addition, any public association with these scams, even if we are not responsible for them, may materially and adversely affect our reputation, operations, and financial condition.

***Privacy concerns and laws such as the European Union's General Data Protection Regulation, evolving regulation of cloud computing, cross-border data transfer restrictions and other domestic or foreign regulations may limit the use and adoption of our services and adversely affect our business.***

Regulation related to the provision of services over the Internet is evolving, as federal, state and foreign governments continue to adopt new, or modify existing, laws and regulations addressing data privacy and the collection, processing, storage, transfer and use of data. In some cases, data privacy laws and regulations, such as the European Union's ("EU") General Data Protection Regulation ("GDPR") that took effect in May 2018, could impose new obligations directly on us as both a data controller and a data processor, as well as on many of our customers. In addition, domestic data privacy laws, such as the California Consumer Privacy Act ("CCPA") which took effect in January 2020, continue to evolve and could expose us to further regulatory burdens. Further, laws such as the EU's proposed e-Privacy Regulation are increasingly aimed at the use of personal information for marketing purposes, and the tracking of individuals' online activities.

These laws may require us to make additional changes to our services to enable Unicoin Inc. or our customers to meet the new legal requirements and may also increase our potential liability exposure through higher potential penalties for non-compliance. These new or proposed laws and regulations are subject to differing interpretations and may be inconsistent among jurisdictions. These and other requirements could reduce demand for our services, require us to take on more onerous obligations in our contracts, restrict our ability to store, transfer and process data or, in some cases, impact our ability or our customers' ability to offer our services in certain locations, to deploy our solutions, to reach current and prospective customers, or to derive insights from customer data globally. For example, ongoing legal challenges in Europe to the mechanisms allowing companies to transfer personal data from the European Economic Area to the United States could result in further limitations on the ability to transfer data across borders, particularly if governments are unable or unwilling to reach new or maintain existing agreements that support cross-border data transfers, such as the EU-U.S. and Swiss-U.S. Privacy Shield framework. Additionally, certain countries have passed or are considering passing laws requiring local data residency. The costs of compliance with, and other burdens imposed by, privacy laws, regulations and standards may limit the use and adoption of our services, reduce overall demand for our services, make it more difficult to meet expectations from or commitments to customers, lead to significant fines, penalties or liabilities for noncompliance, impact our reputation, or slow the pace at which we close sales transactions, any of which could harm our business.

Furthermore, the uncertain and shifting regulatory environment and trust climate may cause concerns regarding data privacy and may cause our customers or our customers' customers to resist providing the data necessary to allow our customers to use our services effectively. Even the perception that the privacy of personal information is not satisfactorily protected or does not meet regulatory requirements could inhibit sales of our products or services and could limit adoption of our cloud-based solutions.

***If we fail to anticipate or identify significant Internet-related and other technology trends and developments early enough, or if we do not devote appropriate resources to adapting to such trends and developments, our business could be harmed.***

If we are unable to develop enhancements to and new features for our existing or new services that keep pace with rapid technological developments, our business could be harmed. The success of enhancements, new features and services depends on several factors, including the timely completion, introduction and market acceptance of the feature, service or enhancement by customers, administrators and developers, as well as our ability to seamlessly integrate all of our service offerings and develop adequate selling capabilities in new markets. Failure in this regard may significantly impair our revenue growth as well as negatively impact our operating results if the additional costs are not offset by additional revenues. In addition, because our services are designed to operate over various network technologies and on a variety of operating systems and computer hardware and software platforms using a standard browser, we will need to continuously modify and enhance our services to keep pace with changes in Internet-related hardware, software, communication, browser, and database technologies, as well as continue to maintain and support our services on legacy systems. We may not be successful in either developing these modifications and enhancements or in bringing them to market in a timely manner. Furthermore, uncertainties about the timing and nature of new network platforms or technologies, or modifications to existing platforms or technologies, could increase our research and development or service delivery expenses. Any failure of our services to operate effectively with future network platforms and technologies could reduce the demand for our services, result in customer dissatisfaction and harm our business.

***Our ability to deliver our services is dependent on the development and maintenance of the infrastructure of the Internet by third parties.***

The Internet's infrastructure is comprised of many different networks and services that are highly fragmented and distributed by design. This infrastructure is run by a series of independent third-party organizations that work together to provide the infrastructure and supporting services of the Internet under the governance of the Internet Corporation for Assigned Numbers and Names ("ICANN") and the Internet Assigned Numbers Authority, now under the stewardship of ICANN.

The Internet has experienced a variety of outages and other delays as a result of damages to portions of its infrastructure, denial-of-service attacks or related cyber incidents, and it could face outages and delays in the future. These outages and delays could reduce the level of Internet usage or result in fragmentation of the Internet, resulting in multiple separate Internets. These scenarios are not under our control and could reduce the availability of the Internet to us or our customers for delivery of our Internet-based services. Any resulting interruptions in our services or the ability of our customers to access our services could result in a loss of potential or existing customers and harm our business.

In addition, certain countries have implemented (or may implement) legislative and technological actions that either do or can effectively regulate access to the Internet, including the ability of Internet Service Providers to limit access to specific websites or content. These actions could potentially limit or interrupt access to our services from certain countries or Internet Service Providers, impede our growth, result in the loss of potential or existing customers and harm our business.

***Sales to customers outside the United States expose us to risks inherent in international operations.***

We sell our services throughout the world and are subject to risks and challenges associated with international business. We intend to continue to expand our international sales efforts. The risks and challenges associated with sales to customers outside the United States or those that can affect international operations generally, include:

● localization of our services, including translation into foreign languages and associated expenses;

● regulatory frameworks or business practices favoring local competitors;

● evolving domestic and international tax environments;

● foreign currency fluctuations and controls, which may make our services more expensive for international customers and could add volatility to our operating results;

● compliance with multiple, conflicting, ambiguous or evolving governmental laws and regulations, including employment, tax, privacy, anti-corruption, import/export, antitrust, data transfer, storage and protection, and industry-specific laws and regulations, and our ability to identify and respond timely to compliance issues when they occur;

● regional data privacy laws and other regulatory requirements that apply to outsourced service providers and to the transmission of our customers' data across international borders, which grow more complex as we scale and expand into new markets;

● treatment of revenue from international sources, intellectual property considerations and changes to tax codes, including being subject to foreign tax laws and being liable for paying withholding income or other taxes in foreign jurisdictions;

● different pricing environments;

● natural disasters, acts of war, terrorism, pandemics or security breaches; and

● regional economic and political conditions.

Any of these factors could negatively impact our business and results of operations. The above factors may also negatively impact our ability to successfully expand into emerging market countries, where it can be costly and challenging to establish and maintain operations, including hiring and managing required personnel, and difficult to promote our brand, and where we may not otherwise succeed.

***Weakened global economic conditions may adversely affect our industry, business and results of operations.***

Our overall performance depends in part on worldwide economic and geopolitical conditions. The United States and other key international economies have experienced cyclical downturns from time to time in which economic activity was impacted by falling demand for a variety of goods and services, restricted credit, poor liquidity, reduced corporate profitability, volatility in credit, equity and foreign exchange markets, bankruptcies and overall uncertainty with respect to the economy. These economic conditions can arise suddenly, and the full impact of such conditions can remain uncertain. In addition, geopolitical developments, such as potential trade wars, can increase levels of political and economic unpredictability globally and increase the volatility of global financial markets. Moreover, these conditions can affect the rate of information technology spending and could adversely affect our customers' ability or willingness to purchase our services, delay prospective customers' purchasing decisions, reduce the value or duration of their subscription contracts, or affect attrition rates, all of which could adversely affect our future sales and operating results. These conditions may also limit the overall willingness or ability of employers to hire additional staff, contractors or freelancers, and could decrease the willingness of investors to invest in the securities of private companies, such as those featured on our Unicorn Hunters show. All of these conditions could adversely affect our future sales and operating results. Also, the broader consequences in the current conflict between Russia and Ukraine, which may include further embargoes, regional instability and geopolitical shifts; airspace bans relating to certain routes, or strategic decisions to alter certain routes; and potential retaliatory action by the Russian government against companies, and the extent of the conflict on our business and operating results cannot be predicted. We may incur expenses or delays relating to such events outside of our control, which could have a material adverse impact on our business, operating results and financial condition.

***Our operating results have and will significantly fluctuate, including due to the highly volatile nature of crypto.***

Due to the highly volatile nature of the cryptoeconomy and the prices of crypto assets, which have experienced and continue to experience significant volatility, our operating results may fluctuate significantly from quarter to quarter in accordance with market sentiments and movements in the broader cryptoeconomy. Our operating results may fluctuate significantly as a result of a variety of factors, many of which are unpredictable and in certain instances are outside of our control.

In view of the rapidly evolving nature of our business and the cryptoeconomy, periodic comparisons of our operating results may not be meaningful, and you should not rely upon them as an indication of future performance. Quarterly and annual expenses reflected in our financial statements may be significantly different from historical or projected rates. Our operating results in one or more future quarters may fall below the expectations of securities analysts and investors, which may impact the price of our common stock significantly.

***Due to unfamiliarity and some negative publicity associated with crypto asset platforms, confidence or interest in crypto asset companies may decline.***

Crypto asset companies are relatively new. Many of our competitors are unlicensed, unregulated, operate without supervision by any governmental authorities, and do not provide the public with significant information regarding their ownership structure, management team, corporate practices, cybersecurity, and regulatory compliance. As a result, customers and the general public may lose confidence or interest in crypto asset companies, similar to us.

Since the inception of the cryptoeconomy, numerous crypto asset companies have been sued, investigated, or shut down due to fraud, manipulative practices, business failure, and security breaches. In many of these instances, customers of these companies were not compensated or made whole for their losses. Similar companies like us are more appealing targets for hackers and malware, and may also be more likely to be targets of regulatory enforcement actions. For example, in May 2019, Binance, one of the world's largest platforms, was hacked, resulting in losses of approximately $40 million, and in February 2021, Bitfinex settled a long-running legal dispute with the State of New York related to Bitfinex's alleged misuse of over $800 million of customer assets. Most recently the collapse of FTX in the fourth quarter of 2022 drove additional credit related bankruptcies. These events, among others, contributed to an overall market capitalization decline and resulted in a loss of confidence in the broader cryptoeconomy, adverse reputational impact to crypto asset companies, increased negative publicity surrounding crypto more broadly, heightened scrutiny by regulators and lawmakers and a call for increased regulations of crypto assets and crypto asset companies.

***We may be subject to risks related to talent classification in our TaaS businesses in various jurisdictions***.

While our terms of service for users of our TaaS services limit all sourced talent to the classification of independent contractor, we cannot be assured that local regulations in all countries into which we place or from which we secure talent will agree with our classification. Therefore, we face the risk that certain jurisdictions will treat our sourced talent as employees of our users/customers, which will subject us to increased regulatory burdens, increased costs, and possibly misclassification penalties. Such classification disputes, or an undesired result of such disputes, could cause our TaaS businesses to become less profitable or unprofitable, or could limit the geographic diversity from which we source talent.

<u>**Other Risk Factors**</u>

***We have historically failed to provide current and timely disclosure as a reporting company under Section 12 under the Exchange Act.***

We are required to provide current and timely disclosure, including financial information, as a reporting company under Section 12 under the Exchange Act. We did not timely file our Quarterly Reports on Form 10-Q for the periods ended March 31, 2022, June 30, 2022, September 30, 2022 and March 31, 2025. While these reports were outstanding, investors and shareholders did not have complete and current business and financial information about the Company, including unaudited quarterly financial information. As such, there was inadequate public information available about the Company to properly evaluate its common stock or the prospects of the Company at the time such reports were outstanding. While future compliance with all reporting requirements is a top priority of our current management, no assurances can be provided, given our limited operating history and our inability to comply with reporting requirements in the past, that we will be able to comply with our reporting obligations in the future. Failure to comply with reporting obligations subjects us to possible regulatory action by the SEC, which could adversely affect our business and our results of operations.

***We are an "emerging growth company" and a "smaller reporting company," and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our Common Stock less attractive to investors.***

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and may remain an emerging growth company for up to five years. For so long as we remain an emerging growth company, we are permitted and plan to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended ("Sarbanes-Oxley"), not being required to comply with any requirement for a supplement to the auditor's report providing additional information about the audit and the financial statements, reduced disclosure obligations regarding executive compensation and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. As a result, the information we provide stockholders will be different than the information that is available with respect to other public companies.

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this exemption, and, therefore, while we are an emerging growth company, we will not be subject to the new or revised accounting standards at the same time that they become applicable to other public companies that are not emerging growth companies. As a result of this election, our financial statements may not be comparable to those of other public companies that comply with new or revised accounting pronouncements as of public company effective dates. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.

We are also a "smaller reporting company," meaning that the market value of our stock held by non-affiliates plus the proposed aggregate amount of gross proceeds to us as a result of this Offering is less than $700 million and our annual revenue is less than $100 million during the most recently completed fiscal year. We may continue to be a smaller reporting company after this Offering if either (i) the market value of our stock held by nonaffiliates is less than $250 million or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

We cannot predict whether investors will find our Common Stock less attractive if we rely on these exemptions. If some investors find our Common Stock less attractive as a result, there may be a less active trading market for our Common Stock and our stock price may be more volatile.

***Obligations associated with being a public company will require significant resources and management attention.***

As a public company, we are subject to certain reporting requirements, including those of the Exchange Act, which require that we timely file annual, quarterly and current reports with respect to our business and financial condition. The obligations of being a public company in the United States require significant expenditures and will place significant demands on our management and other personnel, including costs resulting from public company reporting obligations under the Exchange Act and the rules and regulations regarding corporate governance practices, including those under the Sarbanes-Oxley Act of 2002, as amended ("Sarbanes-Oxley") and the Dodd-Frank Wall Street Reform and Consumer Protection Act. These rules require the establishment and maintenance of effective disclosure and financial controls and procedures and internal control over financial reporting among many other complex rules that are often difficult to implement, monitor and maintain compliance with. Moreover, the reporting requirements, rules and regulations will make some activities more time-consuming and costly, particularly after we are no longer deemed an "emerging growth company" or "smaller reporting company." In addition, we expect these rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. Our management and other personnel will need to devote a substantial amount of time to ensure that we comply with all of these requirements and to keep pace with new regulations, otherwise we may fall out of compliance and risk becoming subject to litigation, among other potential problems. Compliance with these rules and regulations could also make it more difficult for us to attract and retain qualified members of our Board of Directors.

In addition, we will be required to, among other things, institute more comprehensive financial reporting and disclosure compliance procedures and establish new internal policies, including those relating to disclosure controls and procedures. These rules and regulations, and any future changes thereto, will increase our legal and financial compliance costs compared to our prior operations and will require significant time and attention from our management team.

***Our actual results of operations may not meet our guidance and investor expectations, which would likely cause our share price to decline.***

From time to time, we may release guidance in our earnings releases, earnings conference calls, or otherwise, regarding our future performance that represent our management's estimates as of the date of release. If given, this guidance, which will include forward-looking statements, will be based on projections prepared by our management. Projections are based upon a number of assumptions and estimates that, while presented with numerical specificity, are inherently subject to significant business, economic, and competitive uncertainties and contingencies, many of which are beyond our control. The principal reason that we expect to release guidance is to provide a basis for our management to discuss our business outlook with analysts and investors. With or without our guidance, analysts and investors may publish expectations regarding our business, financial condition, and results of operations. We do not accept any responsibility for any projections or reports published by any such third parties. Guidance is necessarily speculative in nature, and it can be expected that some or all of the assumptions of the guidance furnished by us will not materialize or will vary significantly from actual results. If our actual performance does not meet or exceed our guidance or investor expectations, the value of our Common Stock may decline.

***We do not expect to declare or pay any dividends on our Common Stock for the foreseeable future.***

We do not intend to pay cash dividends on our Common Stock for the foreseeable future. Consequently, investors must rely on sales of their shares after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Any future determination to pay dividends will be at the discretion of our board of directors and subject to, among other things, our compliance with applicable law, and depending on, among other things, our business prospects, financial condition, results of operations, cash requirements and availability, capital expenditure needs, the terms of any preference equity securities we may issue in the future, covenants in the agreements governing any current or future indebtedness, other contractual restrictions, industry trends, and any other factors or considerations our board of directors may regard as relevant. Furthermore, our ability to pay dividends on our Common Stock will depend on our receipt of cash distributions and dividends from our direct and indirect subsidiaries, which may be similarly impacted by, among other things, the terms of any preferred equity securities these subsidiaries may issue in the future, debt agreements, other contractual restrictions, and provisions of applicable law.

---

| | |
|:---|:---|
| **Item 1** **B.** | **U** **NRESOLVED STAFF COMMENTS** |

---

The requirements for Item 1B. "Unresolved Staff Comments" are not applicable to the Company, as it is not an accelerated filer, a large accelerated filer (each as defined in Rule 12b-2 of the Exchange Act) or a well-known seasoned issuer (as defined in Rule 405 of the Securities Act).

---

| | |
|:---|:---|
| **ITEM 1C.** | **CYBERSECURITY** |

---

We operate in the technology sector, which is subject to various cybersecurity risks that could adversely affect our business, financial condition, and results of operations, including intellectual property theft, fraud, violation of privacy laws, other litigation and legal risk, and reputational risk. We have implemented a risk-based approach to identify and assess the cybersecurity threats that could affect our business and information systems. We use various tools and methodologies to manage cybersecurity risks that are tested on a regular cadence to the best of our ability.

Our business depends on the availability, reliability, and security of our information systems, networks, data, and intellectual property. Any disruption, compromise, or breach of our systems or data due to a cybersecurity threat or incident could adversely affect our operations, research, product development, and competitive position. They may also result in a breach of our contractual obligations or legal duties to protect the privacy and confidentiality of our stakeholders. Such a breach could expose us to business interruption, future lost revenue, ransom payments, remediation costs, liabilities to affected parties, cybersecurity protection costs, lost assets, litigation, regulatory scrutiny and actions, and reputational harm.

Our Chief Information Officer works with others in our information technology department (IT) to assess any reasonably foreseeable internal and external risks to our information systems, including the likelihood of malware, ransomware, cyber espionage, and any other cybersecurity threats. Through these risk assessments, management seeks to determine the likelihood of, and potential damage that could result from, such risks, and the sufficiency of existing systems and safeguards in place to manage them. Our IT continually monitors our systems for any attempted unauthorized entries or breaches. Information gathered from these processes enables our IT to make any necessary adjustments to our systems and address any identified gaps in existing safeguards.

Our IT also provides guidance and support with respect to protecting our information systems from these various threats.

The Company is currently in the process of implementing a more formalized cybersecurity program.

**Item 2.** **DESCRIPTION OF PROPERTY**

The Company has facilities in Nevada, New York, New Mexico, and Texas. These facilities have leases that expire on various dates through 2029 and are subject to periodic changes. We believe that our existing facilities are well-maintained and in good operating condition.

---

| | |
|:---|:---|
| **ITEM** **3.** | **LEGAL PROCEEDINGS** |

---

We may from time to time be involved in various claims and legal proceedings of a nature we believe are normal and are incidental to our business. These matters may include product liability, intellectual property, employment, personal injury caused by our employees, and other general claims. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

On December 10, 2024, we received a "Wells Notice" from the staff of the U.S. Securities and Exchange Commission (the "SEC"), indicating that the SEC staff had made a preliminary determination to recommend that the SEC file an enforcement action against us. The proposed action would allege violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 thereunder, as well as Sections 5 and 17(a) of the Securities Act of 1933, as amended (the "Securities Act"). The SEC staff further advised that any such enforcement action could involve a civil injunctive proceeding or other action permitted by law and could seek remedies including injunctive relief, disgorgement, pre-judgment interest, civil monetary penalties, and other relief.

Also on December 10, 2024, Alex Konanykhin, our Chief Executive Officer and Chairman of our board of directors, Silvina Moschini, one of our directors and the Chief Executive Officer of our subsidiary Unicorns, Inc., Alejandro Dominguez, our Chief Investment Officer, and Richard Devlin, our former Senior Vice President and General Counsel, each received Wells Notices from the SEC staff. These Wells Notices similarly indicated a preliminary determination to recommend enforcement actions against such individuals alleging violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Sections 5 and 17(a) of the Securities Act. In addition, in the case of Mr. Konanykhin and Ms. Moschini, the SEC staff indicated that the proposed enforcement action could allege violations as controlling persons under Section 20(a) of the Exchange Act. The SEC staff advised these individuals that remedies sought could include injunctive relief, disgorgement, pre-judgment interest, civil monetary penalties, officer and director bars, limitations on activities, and other relief within the SEC's authority.

Wells Notices are not formal allegations or findings of wrongdoing. Rather, they provide recipients with an opportunity to make a submission to the SEC staff before a final recommendation is made to the SEC or the SEC votes on whether to authorize an enforcement action. We and the named individuals submitted responses to the Wells Notices, as previously disclosed in our Current Report on Form 8-K filed on December 17, 2024.

On May 20, 2025, following the Wells Notice process, the SEC filed a civil enforcement action against Unicoin Inc. and certain individuals, including Alex Konanykhin, Silvina Moschini, Richard Devlin, and Alejandro Dominguez, in the United States District Court for the Southern District of New York. The action is captioned *Securities and Exchange Commission v. Unicoin Inc. f/k/a TransparentBusiness, Inc., et al.*, Case No. 1:25-cv-4245 (S.D.N.Y.). The SEC's complaint alleges violations of various provisions of the federal securities laws in connection with our offer and sale of digital assets, including unicoin tokens, as well as alleged material misstatements and omissions in communications with investors. The SEC is seeking injunctive relief, disgorgement of proceeds, civil monetary penalties, officer and director bars, and other equitable relief.

We believe the claims asserted by the SEC are without merit and intend to vigorously defend against the allegations. Nevertheless, this matter may result in financial liability, restrictions on future capital-raising efforts, reputational harm, and increased costs and diversion of management attention, and could materially affect our business, operations, and prospects.

Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

**Item 4.** **mine safety disclosures**

Not applicable.

**PART II**

**Item 5.** **MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASE OF EQUITY SECURITIES**

(a) Market Information.

Our Common Stock is not trading on any stock exchange.

(b) Holders.

As of the date of this Annual Report on Form 10-K, there are approximately 4,614 holders of our Common Stock.

(c) Dividends.

We have not paid any cash dividends to date and do not anticipate or contemplate paying dividends in the foreseeable future. It is the present intention of our management to utilize all available funds for the development of our business.

(d) Issuer Purchase of Equity Securities

None.

(e) Recent Sales of Unregistered Equity Securities

<u>Capital Raising Transactions - Common Stock</u>

---

| | | | |
|:---|:---|:---|:---|
| **Price** | **Common Stock<br> Shares Issued** | **Dates** | **Exemption** |
| Various | 82913692 \* | 5/1/18 to 5/31/20 | Section 4(a)(2) |
| $0.10 | 44150000 | 1/8/19 to 2/3/20 | Rule 506(c); Reg. S |
| $0.20 | 22306525 | 5/1/20 to 8/2/20 | Rule 506(c); Reg. S |
| $0.30 | 7398278 | 8/3/20 to 8/23/20 | Rule 506(c); Reg. S |
| $0.60 | 7598831 | 8/24/20 to 10/5/22 | Rule 506(c); Reg. S |
| $1.00 | 7485660 | 10/6/20 to 6/30/23 | Rule 506(c); Reg. S |
| $2.00 | 9158529 | 12/1/20 to 3/31/23 | Rule 506(c); Reg. S |
| $3.00 | 1877856 | 7/31/21 to 3/31/23 | Rule 506(c); Reg. S |
| $4.00 | 1114607 | 12/1/20 to 3/31/23 | Rule 506(c); Reg. S |
| $0.40 | 5280029 | 5/1/24 to 3/31/26 | Rule 506(c); Reg. S |
| $1.00 | 1541965 | 5/22/24 to 10/31/24 | Rule 506(c); Reg. S |
| $1.00 | 1938706 | 2/1/25 to 10/31/25 | Rule 506(c); Reg. S |
| $2.00 | 114650 | 4/1/25 to 3/31/26 | Rule 506(c); Reg. S |

---

\* Convertible Notes. All notes have converted. Original total face amount of $2,097,000 and accrued interest of $307,682 into 82,913,691 shares, for an average conversion price of $0.13.

<u>Common Stock Shares Issued in Exchange for Other Securities - ITSQuest, Inc. Acquisition</u>

---

| | | | |
|:---|:---|:---|:---|
| **Fair Value on<br> Date of Issuance<br> or Release from Escrow** | **Common Stock<br> Shares Issued** | **Dates** | **Exemption** |
| $0.19 | 6500000 | 11/25/20 | Section 4(a)(2) |
| $0.39 | 1500000 | 12/28/22 | Section 4(a)(2) |

---

<u>Capital Raising Transaction - Debt</u>

On May 24, 2021, we commenced a private placement of debt securities, in the form of short-term unsecured promissory notes. Amounts sold through the day of this Annual Report on Form 10-K are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Minimum Price** | **Total Amount Sold** | **Interest Rate** | **Dates** | **Exemption** |
| $1000 | $1216000 | 20.0% | 6/3/21 to 12/31/21 | Rule 506(c); Reg. S |
| $1000 | $80100 | 20.0% | 1/26/22 to 12/31/22 | Rule 506(c); Reg. S |
| $1000 | $136000 | 20.0% | 4/17/23 to 7/31/23 | Rule 506(c); Reg. S |
| $1000 | $2380782 | 20.0% | 7/29/25 to 12/30/25 | Rule 506(c); Reg. S |
| $1000 | $25168 | 20.0% | 1/1/26 to 3/20/26 | Rule 506(c); Reg. S |

---

\* Through the day of this Annual Report on Form 10-K, the outstanding balance on these Unsecured Notes amounts to $1,622 thousand.

<u>Capital Raising Transaction - Offering of Unicoin Rights</u>

On February 7, 2022, we commenced a private placement of rights to receive unicoins, in the form of a Token Purchase Agreement or Unicoin Grant Agreement. Amounts sold to accredited investors or issued to service providers through the day of this Annual Report on Form 10-K are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Price per<br> Unicoin Right\*** | **Total Number of<br> Unicoin Rights Sold\*\*** | **Dates\*\*\*** | **Exemption** |
| $0.0014 | 462000000 | 9/1/24 to 12/31/24 | Rule 506(c); Reg. S |
| $0.0057 | 747600 | 9/1/24 to 9/30/24 | Rule 506(c); Reg. S |
| $0.01 | 1370202780 | 2/24/22 to 3/20/26 | Rule 506(c); Reg. S |
| $0.017 | 77690886 | 4/1/22 to 3/31/24 | Rule 506(c); Reg. S |
| $0.02 | 78811400 | 8/1/24 to 3/20/26 | Rule 506(c); Reg. S |
| $0.03 | 713333 | 3/1/24 to 3/31/25 | Rule 506(c); Reg. S |
| $0.04 | 52940000 | 8/1/24 to 9/30/25 | Rule 506(c); Reg. S |
| $0.05 | 57067533 | 3/12/22 to 6/30/25 | Rule 506(c); Reg. S |
| $0.05 | 243626226 | 5/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.055 | 29867260 | 9/1/22 to 7/31/2025 | Rule 506(c); Reg. S |
| $0.06 | 4502500 | 8/1/24 to 9/30/25 | Rule 506(c); Reg. S |
| $0.07 | 19200000 | 4/1/23 to 12/31/24 | Rule 506(c); Reg. S |
| $0.08 | 5565000 | 4/1/23 to 12/31/25 | Rule 506(c); Reg. S |

---

---

| | | | |
|:---|:---|:---|:---|
| **Price per<br> Unicoin Right\*** | **Total Number of<br> Unicoin Rights Sold\*\*** | **Dates\*\*\*** | **Exemption** |
| $0.089 | 30395447 | 12/1/22 to 12/31/24 | Rule 506(c); Reg. S |
| $0.09 | 12370000 | 8/1/24 to 9/30/25 | Rule 506(c); Reg. S |
| $0.10 | 129886501 | 3/18/22 to 9/30/25 | Rule 506(c); Reg. S |
| $0.101 | 7190181 | 3/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.11 | 5865000 | 4/1/23 to 9/30/25 | Rule 506(c); Reg. S |
| $0.12 | 234000 | 5/1/23 to 12/31/24 | Rule 506(c); Reg. S |
| $0.122 | 6636946 | 6/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.13 | 125000 | 9/1/24 to 9/30/24 | Rule 506(c); Reg. S |
| $0.14 | 1415000 | 4/1/23 to 9/30/24 | Rule 506(c); Reg. S |
| $0.15 | 168333 | 3/1/24 to 9/30/25 | Rule 506(c); Reg. S |
| $0.16 | 160000 | 1/1/25 to 3/31/25 | Rule 506(c); Reg. S |
| $0.18 | 100000 | 9/1/22 to 9/30/2025 | Rule 506(c); Reg. S |
| $0.19 | 27500 | 1/12/24 to 12/31/24 | Rule 506(c); Reg. S |
| $0.20 | 12500395 | 9/8/22 to 3/20/26 | Rule 506(c); Reg. S |
| $0.30 | 1619794 | 9/1/22 to 9/30/25 | Rule 506(c); Reg. S |
| $0.35 | 1236314 | 6/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.36 | 1899741 | 3/1/24 to 12/31/24 | Rule 506(c); Reg. S |
| $0.373 | 3813247 | 9/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.395 | 5518212 | 9/1/24 to 6/30/25 | Rule 506(c); Reg. S |
| $0.40 | 5261323 | 11/2/22 to 6/30/25 | Rule 506(c); Reg. S |
| $0.459 | 1063134 | 10/31/23 to 6/30/25 | Rule 506(c); Reg. S |
| $0.493 | 2553776 | 4/1/23 to 6/30/25 | Rule 506(c); Reg. S |
| $0.50 | 8111831 | 3/1/23 to 12/31/25 | Rule 506(c); Reg. S |
| $0.52 | 9334 | 9/1/22 to 9/30/24 | Rule 506(c); Reg. S |
| $0.75 | 8871997 | 4/1/24 to 3/20/26 | Rule 506(c); Reg. S |
| $0.01 | 729875000 | 1/1/26 to 3/20/26 | Rule 506(c); Reg. S |
| $0.05 | 10586000 | 1/1/26 to 3/20/26 | Rule 506(c); Reg. S |

---

\* The price per unicoin right was determined by a tiered pricing schedule based on volume. Each transaction on each of these issuances had at least a certain number of unicoin rights issued at the specified price.

\*\* unicoin rights issued as a non-cash distribution to shareholders and as discretionary compensation to employees are not included in this table. Refer to Note 7 – Unicoin rights financing obligation for details regarding the issuance of those unicoin rights.

\*\*\* The date represents when the unicoin right transaction was accounted by the company for the investor's purchase. The price was agreed at a previous date when the investor subscribed to such price with a commitment to purchase soon after. In the future, there might be additional transactions funded at each of these prices listed.

Pursuant to the five-year deferred payment plan and ten-year prepaid plan discussed in Note 7 – Unicoin rights financing obligation of "Notes to Consolidated Financial Statements," included in Item 8 of this Annual Report on Form 10-K, we are reporting the following transactions up to the date of this report:

- *Five-Year Deferred Payment Plan* – through the date hereof, investors signed agreements to purchase 3,278 million unicoins.

*Ten-Year Prepaid Plan* – through the date hereof, investors paid have paid $926 thousand for the future purchase of unicoins pursuant to the ten-year plan.

**Item 6.** **RESERVED**

**Item 7.** **MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. This discussion and other parts of this Annual Report on Form 10-K contain forward-looking statements, such as those relating to our plans, objectives, expectations, intentions, and beliefs, which involve risks and uncertainties. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" included elsewhere in this Annual Report on Form 10-K. Our historical results are not necessarily indicative of the results that may be expected for any period in the future.*

**Overview**

Unicoin Inc. (hereinafter the "Company", "Unicoin", "we", "us", or "our") was incorporated in the state of Delaware on June 22, 2015. In 2008, our SaaS platform was developed by KMGi, the precursor to Unicoin, as an internal tool for monitoring and managing computer-based work for the purpose of improving efficiency of both remote and on-site employees and eliminating overbilling by contractors. The SaaS platform has been in use since 2009, initially under the name TransparentBilling, serving KMGi's internal operations. With clients of all sizes in multiple countries around the world, and over 30,000 registered individual users of our remote talent platform, Unicoin Inc. brings together an end-to-end solution to manage distributed teams in a transparent and efficient way.

Unicoin Inc. is an operating and holding company. As an operating company, Unicoin Inc. manages its SaaS (Software-as-a-Service) software business which provides for simple and seamless monitoring and management of remote or work-from-home employees. Unicoin Inc. has also launched a token project in early 2022, as a complementary business to its Unicorns, Inc. (hereinafter "Unicorns" or "Unicorn Hunters") subsidiary. As a holding company, Unicoin Inc. wholly owns SheWorks!, a Talent-as-a-Service ("TaaS") operating company and platform. As a holding company, from November 2020 through December 2025, Unicoin Inc. was the majority owner of a traditional staffing agency, ITSQuest, with a regional presence in the U.S. Southwest. Finally, as a holding company, Unicoin Inc. also became the majority owner in 2021 of Unicorns Inc., a media production company producing Unicorn Hunters, a business and investing reality show.

**Key Factors and Measures We Use to Evaluate Our Business**

**Sources of Revenue**

The Company primarily derives its revenues from three revenue streams:

&nbsp;&nbsp;&nbsp;&nbsp;1. *Subscription Revenue* (Software-as-a-Service or "SaaS") – which is comprised of fees from customers accessing the Company's all-in-one cloud-based solution to manage remote workers ("software platform").

&nbsp;&nbsp;&nbsp;&nbsp;2. *Staffing Revenue* (Talent-as-a-Service or "TaaS") – whereby enterprise customers are connected to individuals who are able to assist them in projects.

&nbsp;&nbsp;&nbsp;&nbsp;3. *Unicorns Revenue* – which generally represents the fair value of private company stock options or warrants, committed to be granted to the Company, as consideration for the right to present and promote those private companies on the Unicorn Hunters show.

*SaaS Revenue.* For SaaS contracts, the typical subscription term is one year or less and the Company generally invoices its customers at the start of the subscription period when access to the software platform is provided. Amounts that have been invoiced are recorded in accounts receivable and deferred revenue and revenue is recognized over the subscription period.

*TaaS Revenue.* For TaaS contracts, the Company's staffing contracts are typically for a duration of less than a year and are either on a fixed hourly rate basis or on a fixed cost basis billed upon satisfaction of respective milestones. The Company typically invoices its customers at the end of each month in cases where the contracts involve billing based on fixed hourly rates and/or once a milestone is reached. An over-time method is used to measure progress because the Company's obligation is to provide continuous service over the contractual period when fixed hourly rate billing is involved. For time-and-materials contracts, revenue from contracts with customers is recognized in the amount to which the Company has a right to invoice, when the services are rendered by the Company's remote workers in such cases. For milestone-based contracts, revenue is recognized over time using an output method based upon milestones achieved. Revenue is recognized once a milestone is reached for an amount of the transaction price that is proportionate to the total milestones in the contract. Milestones reached represent work performed and thereby best depicts the transfer of control to the customer.

*Unicorns Revenue*. For Unicorns contracts, customers are billed when an episode is distributed for broadcast or streaming. The promise to the customer is fulfilled and revenue is recognized for the entire transaction price when an episode is distributed on the Unicorn Hunters website.

**Gross Profit**

We define gross profit as the difference between total revenue and cost of revenue.

For the SaaS and TaaS segments, cost of revenue includes salaries, and personnel compensation costs, associated with the Company's website hosting and other costs including providing technical support, materials, and supplies. For Unicorns, cost of revenue includes salaries and personnel compensation costs as noted for SaaS and TaaS but also includes third party costs for production team, celebrity hosts and travel. The Company evaluates if Unicorn Hunters show production costs are expected to be recovered. Costs are capitalized if expected to be recovered and otherwise are expensed as incurred. Any capitalized costs are expensed when the related show is distributed on the Unicorn Hunters website.

**Operating Expenses**

Research and development costs are related to maintaining and improving the Company's software platform and primarily consist of personnel-related costs, including salaries and bonuses, benefits and stock-based compensation expense. Research and development costs related to internal use software are not material and are expensed as they are incurred.

Sales and marketing costs principally consist of third-party marketing, advertising, and branding in addition to compensation and benefits of the Company's own marketing personnel. Sales, marketing and advertising costs are expensed as incurred.

General and administrative costs primarily consist of compensation, employee benefits, and stock-based compensation related to executive management, finance, administration and human resources, facility costs, professional service fees, and other general overhead costs.

**Economic and Labor Trends**

Demand for our talent pool, consultants and growth of placement services are dependent upon general economic and labor trends. We believe that the Company is well positioned in the current macroeconomic environment, particularly as economies continue to reopen and demand for services increase. We expect greater geographical work flexibility and the legacy of the coronavirus pandemic to continue and help drive business growth as travel restrictions may be slow to be lifted.

**Evolving Technology**

The ability to respond in time to technology trends and new developments is a key determinant of our business and operational performance.

**Dynamic and Evolving Technology**

The ability to respond in time to technology trends and new developments is a key determinant of our business and operational performance. We have a clearly focused technology roadmap, combined with the forward-looking outlook of the Unicorn Hunters show, that introduces new functionality and features from our audience, thereby ensuring a dynamic and evolving experience. We believe this will widen our platform's appeal to new customers, while expanding our potential opportunities for investment, resulting in greater revenue growth.

**ITSQuest Divestiture & Financial Recast** 

Effective December 31, 2025, Unicoin Inc. elected not to further extend the divestiture agreement with the original sellers of ITSQuest, a regional staffing agency in which the Company had held a 51% majority interest since November 2020. Under the terms of the original Share Exchange Agreement, the Company's failure to achieve specific milestones by the expiration date triggered the formal transfer of the equity interest back to the original sellers. Management determined that a further negotiation for extension was not in the Company's strategic interest. This conclusion was based on an internal assessment that the traditional staffing model of ITSQuest constitutes a non-core asset that lacks sufficient synergy with the Company's proprietary technology and brand equity. By allowing the divestiture to proceed, Unicoin Inc. intends to reallocate its capital and management resources exclusively toward high-growth digital assets and media-driven opportunities across its primary markets.

Consequently, management has retrospectively recasted Unicoin's historical financial statements for the 2024 and 2025 fiscal years, reclassifying all financial results associated with ITSQuest into discontinued operations.

**Significant Related Party Transactions**

As of December 31, 2025 and 2024, the total fair value of unicoin rights issued to related parties amounted to $4,815 thousand and $4,337 thousand, respectively.

**Results of Operations**

The following table summarizes key components of our results of operations for the periods indicated, both in dollars and as a percentage of our sales.

We derived the consolidated statements of operations for fiscal 2025 and fiscal 2024 from our consolidated financial statements, respectively. Furthermore, our consolidated statements of operations include the post-acquisition period activity for Unicorns. Our historical results are not necessarily indicative of the results that may be expected in the future.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **% of**<br> **Total Revenue** | **2024** | **% of**<br> **Total Revenue** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Staffing revenues | $2390840 | 99% | $2481067 | 99% |
| &nbsp;&nbsp;&nbsp;Subscription revenues | 26404 | 1% | 32549 | 1% |
| &nbsp;&nbsp;&nbsp;Unicorns revenues | 38 | 0% | 2676 | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenues | 2417282 | 100% | 2516292 | 100% |
| Cost of Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Staffing cost of revenues | 1993420 | 82% | 1954448 | 78% |
| &nbsp;&nbsp;&nbsp;Subscription cost of revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Unicorns cost of revenues | 30300 | 1% | 128415 | 5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Cost of Revenues | 2023720 | 84% | 2082863 | 83% |
| GROSS PROFIT | 393562 | 16% | 433429 | 17% |
| OPERATING COSTS AND EXPENSES |  |  |  |  |
| General and administrative | 7856135 | 325% | 19788291 | 786% |
| Sales and marketing | 741873 | 31% | 13703994 | 545% |
| Research and development | 174376 | 7% | 12511 | 0% |
| Cost of contract amendment | - | - | 790000 | 31% |
| TOTAL OPERATING COSTS AND EXPENSES | 8772384 | 363% | 34294796 | 1363% |
| LOSS FROM OPERATIONS | (8378822) | (347)% | (33861367) | (1346)% |
| Interest income (expense), net | (208247) | (9)% | (196533) | (8)% |
| Other income (expense), net | (366174) | (15)% | (1988506) | (79)% |
| LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (8953243) | (370)% | (36046406) | (1433)% |
| &nbsp;&nbsp;&nbsp;Income tax expense | (1127) | 0% | (69373) | (3)% |
| NET LOSS FROM CONTINUING OPERATIONS | (8954370) | (370)% | (36115779) | (1435)% |
| &nbsp;&nbsp;&nbsp;Net Income from Discontinued Operations | 184040 | 8% | 543938 | 22% |
| &nbsp;&nbsp;&nbsp;Loss from Divestiture of Discontinued Operations | (4891712) | (202)% | - | 0% |
| NET LOSS | (13662042) | (565)% | (35571841) | (1414)% |
| Less: net loss attributable to the noncontrolling interest | (268654) | (11)% | (617190) | (25)% |
| NET LOSS ATTRIBUTABLE TO UNICOIN INC. | $(13393388) | (554)% | $(34954651) | (1389)% |

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**Revenues**

The following table presents our revenue for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** | **Change ($)** | **Change (%)** |
| TAAS revenues | $2390840 | $2481067 | $(90227) | (4)% |
| SAAS revenues | 26404 | 32549 | (6145) | (19)% |
| Unicorns revenues | 38 | 2676 | (2638) | (99)% |
| **Total Revenues** | $**2417282** | $**2516292** | $**(99010)** | **(4)%** |

---

Total revenues decreased by $99 thousand, or 4%, to $2,417 thousand in 2025.

*TaaS.* TAAS revenues decreased by $90 thousand, or (4)%, to $2,391 thousand in 2025 and comprised 99% of our total revenues.

*SaaS.* Our SaaS business is currently being phased out of our operations through customer attrition, and are no longer the focus of our efforts.

*Unicorns.* Unicorn did not release any episodes of Unicorns in 2025.

**Cost of Revenues**

The following table presents our cost of revenues for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|  | **2025** | **2024** | **Change ($)** | **Change (%)** |
| TAAS cost of revenues | $1993420 | 1954448 | 38972 | 2% |
| SAAS cost of revenues |  |  |  | 0% |
| Unicorns cost of revenues | 30300 | 128415 | (98115) | (76)% |
| Total Cost of Revenues | $2023720 | $2082863 | $(59143) | (3)% |

---

Total cost of revenues decreased by $59 thousand, or 3%, to $2,024 thousand in 2025.

*TaaS.* TAAS cost of revenues increased by $39 thousand, or 2%, to $1,993 thousand.

*Unicorns.* Unicorns cost of revenues for the year ended December 31, 2025 was $30 thousand, compared to $128 thousand for the year ended December 31, 2024. No revenue generating Unicorn Hunters episode released in the year ended December 31, 2025. The Company did not capitalize any costs of revenues for the years ended December 31, 2025 and 2024, in relation to any undistributed episodes, based on the uncertainty as to whether the costs of such episodes was recoverable during the Company's start-up phase.

**General and administrative**

General and administrative expenses decreased by $12,722 thousand, or 62%, to $7,856 thousand for the twelve months ended December 31, 2025, compared to $20,578 thousand for the year ended December 31, 2024. This decrease was primarily attributable to the decrease of $6,956 thousand in transaction losses recorded in the prior year related to the reacquisition of Unicoin Rights from investors under the five-year deferred payment plan, which utilized previously acquired Unicoin Rights as consideration. The year-over-year decrease was further driven by reductions of $1,227 thousand in accounting, tax, and professional fees, $1,182 thousand in expenses paid with Unicoin Rights, and $1,177 thousand in legal fees.

**Sales and marketing**

Sales and marketing expenses decreased by $12,962 thousand, or 95%, to $742 thousand for the year ended December 31, 2025. This decrease was primarily driven by a $10,083 thousand reduction in sales and marketing expenses paid using Unicoin Rights as consideration, as well as a $2,593 thousand decrease in recurring marketing expenses.

**Research and development**

Research and development expenses increased by $163 thousand, or 1294%, to $174 thousand. Research and development mainly consist of personnel related costs such as salaries and benefits. Internally developed software costs for internal use are not material and are expensed as they are incurred.

**Cost of contract amendment**

Cost of contract amendment was $0 thousand, for the year ended December 31, 2025, compared to $790 thousand, for the year ended December 31, 2024. This cost reflects the fair value of the consideration given to the former owners of ITSQuest, during the year ended December 31, 2024, in exchange for extending the contingent divestiture provision, as discussed in Note 7 – Unicoin rights financing obligation of "Notes to Consolidated Financial Statements," included in Item 8 of this Annual Report on Form 10-K.

**Interest income (expense), net**

Net interest expense increased by $12 thousand, or 6%, to $208 thousand for the year ended December 31, 2025, compared to $197 thousand for the year ended December 31, 2024. This increase was primarily attributable to the issuance of unsecured notes during the fourth quarter of the year ended December 31, 2025.

**Other income (expense), net**

Other net expenses decreased by $1,622 thousand to $366 thousand for the year ended December 31, 2025. During the year ended December 31, 2025, the Company recorded impairment charges of $624 thousand related to its investment in land and $580 thousand related to its mining rights assets.

**Provision for Income Taxes**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **Change ($)** | **Change (%)** |
| Income tax benefit (expense) | $(1127) | $(69373) | $68246 | (98)% |
| Effective tax rate | (0.01)% | (0.19)% |  |  |

---

The Company's effective tax rate was (0.01)% and (0.19)% for the years ended December 31, 2025 and 2024, respectively. The Company records a full valuation allowance against its deferred income tax assets, as it continues to conclude that it is more likely than not that such assets will not be realized. The Company's deferred tax assets primarily relate to net operating loss carryforwards.

**Net income (losses) attributable to the noncontrolling interest**

Net losses attributable to noncontrolling interests decreased by $349 thousand, or (56)%, to $(269) thousand for the year ended December 31, 2025. Noncontrolling interest partners in ITSQuest were allocated income of $90 thousand and $267 thousand for the years ended December 31, 2025 and 2024, respectively, while noncontrolling interest partners in Unicorns were allocated losses of $(255) thousand and $(884) thousand for the years ended December 31, 2025 and 2024, respectively. Noncontrolling interest partners in Unicoin International were allocated losses of $(104) thousand and $0 thousand for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, noncontrolling interests in ITSQuest (immediately prior to its divestiture on December 31, 2025), Unicorns, and Unicoin International represented ownership interests of 49%, 28.12%, and 100%, respectively, compared to ownership interests of 49% and 28.12% in ITSQuest and Unicorns, respectively, as of December 31, 2024.

**Net income (losses) attributable to the noncontrolling interest**

Net income from discontinued operations was $184 thousand for the year ended December 31, 2025, compared to $544 thousand for the year ended December 31, 2024, and reflects the operating results of ITSQuest through the date of divestiture. In connection with the automatic divestiture of ITSQuest on December 31, 2025, the Company recognized a loss on divestiture of $4,892 thousand, which primarily reflects the derecognition of ITSQuest's net assets, including goodwill, with no consideration received. As a result, discontinued operations had a significant unfavorable impact on net loss for the year ended December 31, 2025.

**Liquidity and Capital Resources**

Our primary future uses of cash will be to fund working capital requirements and expenditures of Unicorns.

We had cash and cash equivalents of $1,238 thousand available as of December 31, 2025. Based on currently available capital resources (cash and cash equivalents on hand as of December 31, 2025), we estimate that at our current cash "burn rate", the Company will not be able to operate for more than two months. For the company to maintain operations for at least twelve months, we would need to receive further equity or debt financing of approximately $7,421 thousand. For the period from January 1, 2026 through the date of this Annual Report on Form 10-K, we have received cash and cryptocurrency funding of $5,335 thousand, $25 thousand private placement unsecured notes and $5,310 thousand non-security utility issuance. However, given the impact of the economic downturn on the U.S. and global financial markets, the Company may be unable to access further equity or debt financing when needed. In addition, the Company has recorded a significant financing obligation that we believe the Company would be required to pay in the event the unicoins have not been made tradeable on crypto exchanges and there remains significant uncertainty as to if, and when, it may be made tradeable on crypto exchanges may occur. There can be no assurance that the Company will be able to obtain additional liquidity when needed or under acceptable terms, if at all. Our auditors have included an explanatory paragraph in their audit opinion, included as part of our Annual Report on Form 10-K for the year ended December 31, 2025, that our current liquidity position raises substantial doubt about our ability to continue as a going concern for the next twelve months unless we obtain additional capital. The Company anticipates that such conditions will continue to exist until either significant financing has been obtained and/or the uncertainty surrounding the launch of the unicoin has been resolved.

From January 1, 2025 through December 31, 2025, the Company issued unicoin rights to investors and service providers in exchange of consideration consisting of cash $2,508 thousand and incurred operating expenses paid with unicoin rights with a fair value of $336 thousand, together amounting to approximately $2,844 thousand.

Through December 31, 2025, the Company has recorded a financing obligation of $112.9 million associated with unicoin rights issued to date which represents the Company's estimate of what it would be obligated to pay in the event the unicoin is never launched. Although it is the Company's intention to ultimately launch the unicoin and settle unicoin rights obligations by issuing unicoins to rights holders, there are aspects of the launch process, including certain regulatory approvals of the Unicoin, that may be outside of the Company's control. If the Company fails to launch the unicoin, its intent would be to pay for the unicoin rights financing obligations using cash flows from its existing operations and/or through future debt or equity financing. In order to be able to pay the financing obligation using cash from operations or to achieve financing at terms acceptable to the Company, the Company will have to achieve substantial additional revenue growth and positive cash flows from operations or achieve substantial growth in its existing private company investment values and experience one or more exits or other liquidity transactions associated with its private company investments. There can be no assurance that the Company will achieve these successes prior to events or circumstances that lead to a future conclusion that the unicoin will not be able to be launched. If one or more of these factors leading to positive growth in the Company's liquid resources do not occur prior to a conclusion that the Company will fail to launch the Unicoin, the financing obligation to holders of unicoin rights may need to be settled for a fraction of the recorded obligation, or in the worst case, there may be no funds available to settle the obligation.

As part of the agreement in which the Company received 50,000,001 shares of Unicorns stock, the Company extended an initial line of credit to Unicorns in the amount of $10,000 thousand to fund production of the Unicorn Hunters show and related expenses. Further additional ongoing funding has been provided by Unicoin Inc. to Unicorns, since the initial line of credit, to fund the production-related expenses of Unicorn Hunters show. This intercompany loan, which is eliminated in consolidation, net amounted to $28,758 thousand and $27,113 thousand as of December 31, 2025 and 2024, respectively. Beyond the initial $10,000 thousand line of credit, the Company does not have any contractual commitments to fund the operations of Unicorns. However, it is the Company's intention to continue funding the operations of Unicorns, until Unicorns begins generating sufficient cash flows to sustain its own business operations without using additional funding from the Company.

**Summary of Cash Flows**

***Year Ended December 31, 2025 compared with Year Ended December 31, 2024***

The following table sets forth our cash flows for the periods indicated:

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| | | |
|:---|:---|:---|
| | **Year Ended**<br> **December 31,** | **Year Ended**<br> **December 31,** |
| <br>**(In thousands)** | **2025** | **2024** |
| Cash flows used in continuing operations: |  |  |
| &nbsp;&nbsp;&nbsp;Net cash used in operating activities | $(6551) | $(8970) |
| &nbsp;&nbsp;&nbsp;Net cash used in investing activities | (3020) | (333) |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 6897 | 4721 |
| Net increase (decrease) in cash and cash equivalents from continuing operations | (2674) | (4582) |
| Cash flows from discontinued operations | 1314 | 718 |
| Net increase (decrease) in cash and cash equivalents | $(1360) | $(3864) |

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**Cash Used in Operating Activities**

Cash flows used in operating activities increased by $2,419 thousand to $(6,551) thousand for the year ended December 31, 2025, compared to $(8,970) thousand for the year ended December 31, 2024. Net cash used in operating activities for the year ended December 31, 2025, was due to our net loss from continuing operations of $(8,954) thousand, offset by non-cash items of $1,336 thousand and an increase in operating assets net of liabilities of $1,067 thousand. Net cash used in operating activities for the year ended December 31, 2024, was due to our net loss from continuing operations of $(36,116) thousand, offset by non-cash items of $21,872 thousand and an increase in operating assets net of liabilities of $5,274 thousand.

**Cash Used in Investing Activities**

Net cash flows used in investing activities increased by $2,687 thousand to $3,020 thousand for the year ended December 31, 2025. The increase in net cash used in investing activities was primarily due to $3,020 thousand transferred to ITSQuest in connection with the divestiture, partially offset by a $330 thousand decrease in net purchases of digital assets.

**Cash Provided by Financing Activities**

Net cash flows provided by financing activities increased by $2,176 thousand to $6,897 thousand for the year ended December 31, 2025, compared to $4,721 thousand for the year ended December 31, 2024. This increase was primarily driven by a $1,085 thousand increase in net proceeds from the sales and repurchases of Unicoin Rights and $2,301 thousand in proceeds from the issuance of short-term debt, partially offset by a $1,394 thousand decrease in proceeds from the issuance of common stock.

**Cash and Cash Equivalents**

We maintain cash with several high credit quality financial institutions. Temporary cash investments with original maturities of 90 days or less are considered cash equivalents. Temporary cash investments are stated at cost, which approximates fair value. These investments are not subject to significant market risk. We maintain our cash and cash equivalents in bank accounts which, at times, exceed the federally insured limits. We have not experienced any losses in such accounts.

**Critical Accounting Policies and Estimates**

Our consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Actual results may differ from these estimates. To the extent that there are material differences between these estimates and our actual results, our future financial statements will be affected.

**Going Concern**

These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

The Company incurred net losses from continuing operations of $(8,954) thousand and $(36,116) thousand for the years ended December 31, 2025 and 2024, respectively. Total income (loss) from discontinued operations, including the divestiture of discontinued operations, amounted to $(4,708) thousand and $544 thousand for the years ended December 31, 2025 and 2024, respectively. The Company had net cash used in operating activities of $(6,551) thousand and $(8,970) thousand for the years ended December 31, 2025 and 2024, respectively. The Company had an accumulated deficit of $(179,724) thousand and $(166,330) thousand as of December 31, 2025 and 2024, respectively, and expects to incur additional significant losses in the future.

These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's long-term success is dependent upon its ability to successfully raise additional capital, market its existing services, increase revenues, and, ultimately, to achieve profitable operations.

The Company is evaluating strategies to obtain the required additional funding for future operations. These strategies may include, but are not limited to, issuing unicoin rights, obtaining equity financing, issuing debt, or entering other financing arrangements, and restructuring of operations to grow revenues and decrease expenses. However, in view of uncertainties in U.S. and global financial markets, the Company may be unable to access further equity or debt financing when needed. As such, there can be no assurance that the Company will be able to obtain additional liquidity when needed or under acceptable terms, if at all.

The consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern.

**Variable Interest Entity**

The Company's policy is to consolidate all subsidiaries or other entities in which it has a controlling financial interest. The consolidation guidance under ASC 810 "Consolidation" ("ASC 810") requires an analysis to determine if an entity should be evaluated for consolidation under the voting interest entity ("VOE") model or the variable interest model ("VIE"). Under the VOE model, controlling financial interest is generally defined as majority ownership of voting interests. The consolidated financial statements include the accounts of all subsidiaries or other entities in which the Company has a direct or indirect controlling financial interest.

The Company assesses all entities in which it has a significant economic, ownership or other financial interest for consolidation on a case-by-case basis depending on the specific facts and circumstances surrounding each entity. Pursuant to ASC 810, the Company first evaluates whether it holds a variable interest in an entity. The Company considers all economic interests, including proportionate interests through related parties, to determine if such interests are considered a variable interest.

For any entity where the Company has determined that it does hold a variable interest, the Company performs an assessment to determine whether it qualifies as a variable interest entity ("VIE"). The Company consolidates a VIE if it is the primary beneficiary having the power to direct the activities that most significantly affect the economic performance of the VIE as well as the obligation to absorb losses and the right to receive benefits that could be significant to the VIE.

Management evaluated whether Unicorns meets the criteria for classification as a VIE or as VOE and concluded that Unicorns meets the criteria of a VIE. Management further concluded that the Company is the primary beneficiary of Unicorns because the Company has the power to direct the activities that most affect its economic performance and further has the obligation to absorb losses and the right to receive benefits that could be significant to the VIE. Accordingly, the Company is required to consolidate Unicorns as a VIE.

Management evaluated whether UII meets the criteria for classification as a VIE or as VOE and concluded that UII meets the criteria of a VIE. Management further concluded that the Company is the primary beneficiary of UII because the Company has the power to direct the activities that most affect its economic performance and further has the obligation to absorb losses and the right to receive benefits that could be significant to the VIE. Accordingly, the Company is required to consolidate UII as a VIE.

As of December 31, 2025 and 2024, UII did not hold any assets. As of December 31, 2025 and 2024, UII had liabilities of $109 thousand and $6 thousand, respectively, related to operating payments made by Unicoin on behalf of UII. These intercompany balances were eliminated in consolidation. The total expenses incurred by UII for the years ended December 31, 2025 and 2024 amounted to approximately $103 thousand and $6 thousand.

**Use of Estimates**

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions in the consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include: the valuation of unicoin rights and the related embedded feature, the valuation of non-cash consideration received from Unicorns customers and the associated revenue recognition; valuation of investments in private companies; assessments of the recoverability of accounts receivable and determination of the fair value of certain stock awards issued. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgements about the carrying values of assets and liabilities. Actual results could differ materially from those estimates.

**Accounts Receivable**

Accounts receivable consist of receivables from sale or renewal of SaaS subscriptions to its software platform or TaaS staffing arrangements. The Company records a receivable for its SaaS segment when customer access to the software platform is provided. For the TaaS segment, receivables are recorded when the Company has a right to invoice and are typically invoiced on a monthly basis. Typical cash payment terms provide that customers pay within 30 days of invoicing.

As more fully discussed in the Revenue Recognition section below, accounts receivable for Unicorns generally consists of commitments from companies, that have appeared on the Unicorn Hunters show, to issue stock options or warrants to the Company. These options or warrants typically have a term of five to ten years and are recorded at their estimated fair values. Unicorns invoices customers when an episode is distributed for broadcast or streaming. Receipt of the option or warrant certificates is handled on a case-by-case basis in accordance with each customer agreement. Unicorns receivables are classified as current because the underlying option or warrant certificates are generally received within one year of invoicing.

Subsequent to receipt of these option or warrant certificates, the related receivables are reclassified to investments in privately-held companies, a long-term asset account. The Company does not charge interest for past due accounts and does not require any collateral for its receivables. As more fully discussed in the Revenue Recognition section below, Unicorns non-cash consideration is recorded at fair value as determined at, or near the date of contract inception. As permitted by a practical expedient provision in ASC 606 "Revenue Recognition," the Company does not adjust Unicorns contract consideration for the effects of a significant financing component if, at contract inception, management expects the period between time of service and payment to be less than one year.

**Allowance for Doubtful Accounts**

The Company evaluates the collectability of its accounts receivable based on a combination of factors. Where the Company is aware of circumstances that may impair a specific customer's ability to meet its financial obligations, the Company records a specific allowance against amounts due. The Company writes off a receivable and charges it against its recorded allowance when all collection efforts are exhausted without success. Amounts are included as a component of general and administrative expenses on the accompanying consolidated statements of operations. For Unicorns, revenue and receivables are generally in the form of commitments from companies, that have appeared on the Unicorn Hunters show, to issue stock options or warrants to the Company.

Accounts receivable are recorded at the invoiced amount, net of allowance for expected credit losses. The Company's primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the accounts receivable balance to the estimated net realizable value. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted for current market conditions, the Company's customers' financial condition, the amount of any receivables in dispute, the current receivables aging, current payment terms and expectations of forward-looking loss estimates.

The allowance for doubtful accounts related to Unicorns non-cash receivables is subject to uncertainty because the fair value of the underlying private company options, warrants or shares could change subsequent to the initial determination of fair value and before receipt of the related option, warrant or share certificates. In addition, unforeseen circumstances could arise after contract inception which could impact the customer's intent or ability to pay. Because the value of any one of the receivables associated with Unicorn's contracts may be material, changes such as these could have a material effect on the Company's future financial condition, results of operations and cash flows.

As discussed in the Investments in Privately-Held Companies section below, the fair value of options or warrants of private companies, held upon settlement of such receivables, may fluctuate subsequent to receipt resulting in charges or gains to the Company's consolidated statements of operations in future periods.

**Investments in Privately-Held Companies**

In accordance with ASC 321 "Investments-Equity Securities" ("ASC 321"), equity securities for which the Company has no significant influence (generally less than a 20% ownership interest), and which do not have readily determinable fair values, are accounted for using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or a similar investments of the same issuer. Gains and losses on investments in equity securities are recognized in the consolidated statements of operations.

The Company regularly reviews such equity securities for impairment based on a qualitative assessment which includes, but is not limited to (i) significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee, (ii) significant adverse changes in the regulatory, economic or technological environment of the investee and (iii) significant adverse changes in the general market condition of either the geographical area or the industry in which the investee operates, (iv) a bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment, (v) factors that raise significant concerns about the investee's ability to continue as a going concern such as negative cash flows from operations, working capital deficiencies, or non-compliance with statutory capital requirements or debt covenants. If an equity security is impaired, an impairment loss is recognized in the consolidated statements of operations (as other income (expense), net) equal to the difference between the fair value of the investment and its carrying amount. If such impairment is determined prior to receiving options or warrants to be received as consideration for Unicorns customer contracts, the related loss on impairment is reflected as bad debt expense.

**Digital Assets**

The Company has accepted digital assets including Ether (ETH), USD Coin (USDC), and Tether (USDT) as consideration from certain investors in exchange for equity, debt or unicoin rights issued by the Company.

The Company records the initial cost basis at their original purchase prices or the then-current quoted market prices (e.g., if received in an exchange rather than purchase transaction) and presents all digital assets held as a result of these transactions as indefinite-lived intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other, except USD Coin. Fair value of the Company's digital assets is determined in accordance with ASC 820, "Fair Value Measurement" ("ASC 820"), based on quoted prices on the active exchange(s) that we have determined is the principal market for such assets (Level 1 inputs). The Company has ownership and control of its digital assets and utilizes INX and/or Coinbase, third-party custodians, to secure its holdings and facilitate transactions.

The Company's accounting policies for intangible assets and financial assets provide that USD Coin ("USDC") meets the definition of a financial asset and, accordingly, is measured at fair value. USDC is classified within prepaid expenses and other current assets based on its nature and liquidity.

In addition, the Company's impairment assessment methodology for digital assets reflects that impairment is recognized when the carrying value exceeds fair value, consistent with ASC 350-30-35-19. Under this methodology, impairment losses are measured based on the lowest quoted market price of one unit of a digital asset on an active exchange since acquisition, and once recognized, the adjusted carrying amount becomes the asset's new accounting basis. Management evaluated the potential impact of applying this methodology to prior periods and determined that any differences would have been immaterial.

The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted prices on active exchanges, indicate that it is more likely than not that our digital assets are impaired. In determining if an impairment has occurred, we consider the quoted price of the digital asset. If the then-current carrying value of a digital asset exceeds the fair value so determined, an impairment loss has occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the price determined.

Impairment losses are recognized within loss from operations in the consolidated statements of operations in the period in which the impairment is identified. The impaired digital assets are written down to their fair values at the time of impairment and this new cost basis is not adjusted upward for any subsequent increase in fair value. Gains are not recorded until realized upon sale, at which point they are recorded within loss from operations in the consolidated statements of operations. In determining the gain to be recognized upon sale, we calculate the difference between the sales price and carrying value of the digital assets sold immediately prior to sale.

The Company uses digital assets as payment to vendors for goods or services from time to time. The Company computes resulting gains or losses by subtracting the then-current carrying value from the realized proceeds or the fair value of cryptocurrencies on the goods or services transaction date, or the fair value of the goods or services received in exchange for cryptocurrencies, if more readily determinable. Such transactions are processed by the Company's digital assets custodian. The transfer of control and transaction date are based on the transaction date as indicated in reports from the custodian. Gains and losses are determined separately for each digital asset purchase in accordance with the first in first out (FIFO) method of accounting.

**Operating Segments**

Our reportable segments consist of SaaS, TaaS and Unicorn Hunters. We determine our operating segments based on how the chief operating decision maker ("CODM") manages the business, allocate resources, make operating decisions and evaluate operating performance. The Company's CODM is the Chief Executive Officer. Our CODM reviews financial information presented on a consolidated basis accompanied by information about revenue and cost of revenue by services type along with gross profit for purposes of allocating resources and evaluating financial performance, as such we have disclosed segment information up to gross profit for each operating segment. Furthermore, our revenues are derived from the United States and foreign countries which includes the South American and Europeans regions ("Foreign countries").

**Unicoin Rights Financing Obligation**

The Company accounts for unicoin rights by recording a liability representing the amount management believes the Company would be obligated to pay or refund (i.e., the amount holders have a right to claim and would likely be awarded in settlement) for fair value exchanged (i.e., in the form of cash or services) for rights to receive unicoins in the future in the event the unicoin is never launched. As of December 31, 2025, any amounts received for unicoin rights are not considered equity or revenue, management determined that 100% of the obligation is a liability to be settled by through the issuance of unicoins, or through other means if unicoins are never issued. The obligation to settle this liability through the exchange of a fixed number of unicoins, when and if all contingencies are resolved and unicoins are launched, represents an embedded feature that may result in additional charges to the Company's consolidated statement of operations upon settlement.

**Revenue Recognition**

The Company recognizes revenue in accordance with ASC 606 which requires revenue to be recorded in a manner which depicts the transfer of goods or services to customers at amounts that reflect the consideration the Company expects to receive in exchange for those goods or services. Under ASC 606, revenue is recognized when obligations under the terms of a contract with a customer are satisfied; this occurs with the transfer of control of the Company's goods or services.

The Company primarily derives its revenues from three revenue streams:

&nbsp;&nbsp;&nbsp;&nbsp;1. *Subscription Revenue* (Software-as-a-Service or "SaaS") – which is comprised of fees from customers accessing the Company's all-in-one cloud-based solution to manage remote workers ("software platform").

2. *Staffing Revenue* (Talent-as-a-Service or "TaaS") – whereby enterprise customers are connected to individuals who are able to assist them in projects.

3. *Unicorns Revenue* – which generally represents the fair value of private company stock options or warrants, committed to be granted to the Company, as consideration for the right to present and promote those private companies on the Unicorn Hunters show.

The Company accounts for revenue contracts with customers through the following five steps: (i) identification of the contract, or contracts, with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligation in the contract, and (v) recognition of revenue when, or as, the Company satisfies a performance obligation. The Company's subscription service arrangements and Unicorns agreements are non-cancellable and do not contain refund-type provisions. Certain service agreements include cancelation clauses and there is a right of refund provided to the customer. The Company estimates and maintains a reserve for expected customer refunds. These estimates involve inherent uncertainties and management judgment. As of December 31, 2025 and 2024 no such reserves were recorded.

The Company's customers include government institutions, a Fortune 500 Company, and small businesses. At contract inception, the Company assesses the product offerings in its contracts to identify performance obligation(s) that are distinct. A performance obligation is distinct when the customer can benefit from it on its own or together with other resources that are readily available and when it is separately identifiable from other items in the contract. Historically, costs to obtain a contract have not been significant.

To identify its performance obligation(s), the Company considers all the promises in the contract for SaaS, TaaS or Unicorns Services. The Company has concluded there to be a single performance obligation in each of these services. For SaaS arrangements, the primary obligation is the license issuance to the customer to access the Company's workforce platform. For TaaS arrangements, the primary performance obligation is services provided to the customer by the professional resulting in hours accrued or milestones reached. For Unicorns arrangements, the primary performance obligation is to provide customers with publicity and exposure through appearance on the Unicorn Hunters show which occurs when an episode is distributed for broadcast or streaming.

The transaction price is the total amount of consideration the Company expects to be entitled to in exchange for the service offerings in a contract. At the inception of the contract, the transaction price is known for all the services in the contracts. For SaaS contracts the transaction price is based on the number of licenses sold. TaaS contracts are based on the contracted service hours. Some contracts have a form of variable consideration, for example discounts on licenses sold that exceed certain volumes, or TaaS remote talent projects with a 10% discount for long term engagements that could impact the base transaction price of our services in contracts with the customers. The Company estimates variable consideration and adjusts the transaction price at the time of contract signing.

Revenue and accounts receivable for Unicorns generally consists of the fair value of stock options, warrants or shares of common stock committed from companies that have appeared on the Unicorn Hunters show. Contract consideration is fixed at contract inception and has historically been received in one of two forms; 1) either a pre-determined number of stock options, warrants or shares or 2) options or warrants or shares representing a specific percentage of the customer's common stock outstanding as of a particular point in time. Other key terms specified in customer contracts include the exercise price and the duration or term of the options or warrants. The options or warrants underlying the commitments typically have a term of five to ten years and accounts receivable are recorded at the estimated fair value of such options or warrants as determined at contract inception. The estimated fair value of stock options and warrants, expected to be received as consideration, is dependent on the fair value of the underlying equity of each privately held presenting company.

The fair value of such underlying private company equity is determined based on (i) the valuation indicated in a recent round of financing (ii) a recent pre-existing third-party valuation report or (iii) a new third-party valuation report as of or near the date of contract inception. Third-party valuation reports consider factors such as recent financing rounds, third-party financing transactions, discounted cash flow analyses and market-based information, including comparable transactions, trading multiples and other factors based on facts and circumstances specific to each privately held presenting company. For non-cash consideration in the form of stock options or warrants of the presenting company, the Company, with assistance from third-party valuation advisors, determines the fair value of such consideration using the Black-Scholes option pricing model which, in addition to the fair value of underlying stock, considers the term of the stock options or warrants, exercise price, volatility, interest rate and dividend yield. These are Level 3 estimates under the fair value hierarchy because they involve significant unobservable inputs. The valuation of stock options or warrants committed by Unicorns customers requires management judgment due to the absence of an observable market price for those options or warrants.

Under ASC 606, the total transaction price is allocated to each performance obligation in the contract. As noted above, each contract in each segment contains only one performance obligation. Accordingly, the total transaction price for all Company contracts relates a to the single performance obligation and no allocation is required.

Revenue is recognized upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. If the consideration promised in a contract includes a variable amount, for example, a discount for the subscription to access the software platform or for long term staffing engagements, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.

For SaaS contracts, the typical subscription term is one year or less and the Company generally invoices its customers at the start of the subscription period when access to the software platform is provided. Amounts that have been invoiced are recorded in accounts receivable and deferred revenue and related revenue is recognized over the subscription period. For TaaS contracts, the Company's staffing contracts are typically for a duration of less than a year and are either on a fixed hourly rate basis or on a fixed cost basis billed upon satisfaction of respective milestones. For Unicorns contracts, customers are billed when an episode is distributed for broadcast or streaming.

The Company typically invoices its customers at the end of each month in cases where the contracts involve billing based on fixed hourly rates and/or once a milestone is reached. An over-time method is used to measure progress because the Company's obligation is to provide continuous service over the contractual period when fixed hourly rate billing is involved. For time-and-materials contracts, revenue from contracts with customers is recognized in the amount to which the Company has a right to invoice, when the services are rendered by the Company's remote workers in such cases. For milestone-based contracts, revenue is recognized over time using an output method based upon milestones achieved. Revenue is recognized once a milestone is reached for an amount of the transaction price that is proportionate to the total milestones in the contract. Milestones reached represent work performed and thereby best depicts the transfer of control to the customer. For Unicorns contracts, the promise to the customer is fulfilled and revenue is recognized for the entire transaction price when an episode is distributed on the Unicorn Hunters website.

Revenue from TaaS arrangements is recorded on a gross basis, as principal, rather than on a net basis, as agent. The Company concluded that it is the principal in these arrangements because the Company contracts separately with customers and service providers, is responsible for directing service providers to meet the agreed upon customer specifications, has discretion to establish pricing for services provided to end customers and bears the primary risks related to billing, collection and customer satisfaction.

*Deferred Revenue*

Deferred revenue represents amounts that have been prepaid in advance of revenue recognition. Deferred revenue is recognized as revenue when transfer of control to customers has occurred or as services are being provided. The Company generally invoices customers in monthly installments for the TaaS business and for SaaS, business customers are invoiced at the start of the contract period therefore timing differences and deferred revenue can occur in the SaaS and TaaS segments. As noted above, Unicorns invoicing and revenue recognition both occur at the time an episode is distributed on the Unicorn Hunters website therefore there is no deferred revenue recorded for the Unicorn Hunters segment.

The Company had deferred revenue of $1 thousand and $4 thousand as of December 31, 2025 and December 2024, respectively. The amount of revenue recognized in fiscal 2025 and 2024 that was included in deferred revenue at the beginning of the periods was $4 thousand and $5 thousand, respectively.

*Remaining Performance Obligation*

In accordance with ASC 606, the Company is required to include disclosures on its remaining performance obligations as of the end of the current reporting period. Due to the nature of the contracts in the Company's businesses, these reporting requirements are not applicable. Most of the Company's remaining contracts meet certain exceptions as defined in ASC 606. For the Company's contracts that pertain to these exceptions: (i) the remaining performance obligations primarily relates to the provision of access to the software platform for its subscribers; and (ii) the estimated duration of these performance obligations is less than one year or ranges from the remaining of the current calendar year to the next calendar year.

**Income Taxes**

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period in which the change was enacted. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if management has determined that it is more likely than not that such assets will not be realized. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. The Company is subject to examinations by federal and state authorities for the income tax periods that remain open. In the event that a taxing jurisdiction levies an assessment in the future, it is possible the assessment could have a material adverse effect on the consolidated financial condition or results of operations.

The consolidated financial statement recognition of the benefit for a tax position is dependent upon the benefit being more likely than not to be sustainable upon audit by the applicable tax authority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that is greater than 50% likely of being realized upon ultimate settlement. In the event that the Internal Revenue Service ("IRS") or another taxing jurisdiction levies an assessment in the future, it is possible the assessment could have a material adverse effect on the consolidated financial condition or results of operations. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. The Company recognizes interest and penalties related to income tax matters in income tax expense.

**Off-Balance Sheet Arrangements**

As of December 31, 2025 and 2024, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Securities Act of 1934.

**Recently Issued and Adopted Accounting Standards**

Refer to Note 2 of "Notes to Consolidated Financial Statements," included in Item 8 of this Annual Report on Form 10-K for details.

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| | |
|:---|:---|
| **Item 7a.** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK** |

---

Market risk is the risk associated with the effect of changes in market factors on the value of the assets and liabilities held on our consolidated balance sheets, including interest rate risk, foreign currency exchange risk, prices of digital assets and credit risk.

***Interest Rate Risk***

We had cash and cash equivalents from continuing operations of $1,238 thousand and $893 thousand available as of December 31, 2025 and December 31, 2024, respectively, which consists of cash on hand and temporary cash investments with original maturities of three months or less, which are unrestricted as to withdrawal and use. Temporary cash investments are stated at cost, which approximates fair value. These investments are not subject to significant market risk. The Company maintains its cash and cash equivalents in bank accounts which, at times, exceed the federally insured limits. The Company has not experienced any losses in such accounts.

***Foreign Currency Exchange Risk***

Our reporting currency is the United States dollar. The functional currency of our foreign subsidiaries is the U.S. dollar. The majority of our sales are currently denominated in U.S. dollars, although we also have sales internationally. Therefore, our revenue is not currently subject to significant foreign currency risk, but that may change in the future. Our operating expenses are denominated in the currencies of the countries in which our operations are located, which is primarily in the United States. Our consolidated results of operations and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates and may be adversely affected in the future due to changes in foreign exchange rates. To date, we have not entered into any hedging arrangements with respect to foreign currency risk or other derivative financial instruments, although we may choose to do so in the future. We do not believe a 10% increase or decrease in the relative value of the U.S. dollar would have a material impact on our operating results.

***Market price risk of digital assets***

The Company has accepted digital assets as consideration from certain investors in exchange for equity, debt or unicoin rights issued by the Company. The Company's primary purpose for the digital assets is to use as payment to its vendors for goods or services and for general business operational purposes. Accordingly, the digital asset price risk could adversely affect our operating results. Our future profitability may depend upon the market price of such digital assets. There is no assurance that market price for digital assets will reflect historical trends. A decline in market price for digital assets could in the future could have an adverse effect on our earnings, the carrying value of our digital assets and our future cash flows. This may also affect our liquidity and our ability to meet our ongoing obligations.

***Credit Risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents and accounts receivable. The Company's cash and cash equivalents are held in accounts with major financial institutions, and, at times, exceed federally insured limits. We have not experienced any losses on our deposits of cash and cash equivalents, and accounts are monitored by management to mitigate risk. We are exposed to credit risk in the event of default by the financial institutions holding our cash and cash equivalents or an event of default by the issuers of the corporate debt securities we hold.

**Item 8.** **FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

UNICOIN INC. AND SUBSIDIARIES

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (KREIT AND CHIU CPA LLP, PCAOB Firm ID: 6651)](#f_001) | F-2 |
| CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 and 2024: |  |
| &nbsp;&nbsp;&nbsp;[Consolidated Balance Sheets](#f_002) | F-3 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Operations and Comprehensive Loss](#f_003) | F-4 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Stockholders' Equity (Deficit)](#f_004) | F-5 |
| &nbsp;&nbsp;&nbsp;[Consolidated Statements of Cash Flows](#f_005) | F-6 |
| &nbsp;&nbsp;&nbsp;[Notes to Consolidated Financial Statements](#f_006) | F-8 |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Board of Directors and Stockholders

Unicoin Inc. and Subsidiaries

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Unicoin Inc. and subsidiaries (the "Company") as of December 31, 2025, and 2024, and the related consolidated statements of operations and comprehensive loss, stockholders' equity (deficit) and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.

**Going Concern** 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered continued negative cash flows and losses from operations that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the entity's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Kreit and Chiu CPA LLP

We have served as Unicoin Inc.'s auditor since 2022.

Los Angeles, California

April 1, 2026

**UNICOIN INC.**

**CONSOLIDATED BALANCE SHEETS**

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| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1238462 | $893249 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables payable in cash | 219973 | 244999 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 550022 | 997233 |
| &nbsp;&nbsp;&nbsp;Assets from discontinued operations | - | 15204720 |
| TOTAL CURRENT ASSETS | 2008457 | 17340201 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 13057 | 24140 |
| &nbsp;&nbsp;&nbsp;Investments in land | 58975 | 683979 |
| &nbsp;&nbsp;&nbsp;Mining rights |  | 580000 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 5389 | 85653 |
| &nbsp;&nbsp;&nbsp;Investments in privately-held companies | 7865528 | 8163528 |
| &nbsp;&nbsp;&nbsp;Other assets | 3900 | 3200 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | - | 19172 |
| TOTAL ASSETS | $9955306 | $26899873 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $1135345 | $2228835 |
| &nbsp;&nbsp;&nbsp;Non-cash payables | 11500 | 52050 |
| &nbsp;&nbsp;&nbsp;Income tax payable | 2648 | 1821 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 4217819 | 3400589 |
| &nbsp;&nbsp;&nbsp;Accrued payroll liabilities | 514174 | 467896 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 1039 | 3940 |
| &nbsp;&nbsp;&nbsp;Short-term debt | 2305782 | 100000 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities, current |  | 20335 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 562299 | 562299 |
| &nbsp;&nbsp;&nbsp;Liabilities from discontinued operations | - | 5797168 |
| TOTAL CURRENT LIABILITIES | 8750606 | 12634933 |
| &nbsp;&nbsp;&nbsp;Unicoin rights financing obligation | 112923853 | 109910781 |
| TOTAL LIABILITIES | 121674459 | 122545714 |
| STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value; 1,000,000,000 authorized; 783,690,180 and 781,065,752 issued; 742,165,436 and 739,614,045 outstanding, net of treasury stock at December 31, 2025 and 2024, respectively | 783690 | 781066 |
| &nbsp;&nbsp;&nbsp;Treasury stock, at cost; 41,524,744 and 41,451,707 shares at December 31, 2025 and 2024, respectively | (4088694) | (4074110) |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 77021362 | 74714958 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (179723505) | (166330117) |
| TOTAL UNICOIN INC. STOCKHOLDERS' DEFICIT | (106007147) | (94908203) |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest | (5712006) | (737638) |
| TOTAL STOCKHOLDERS' DEFICIT | (111719153) | (95645841) |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $9955306 | $26899873 |

---

*See accompanying notes which are an integral part of these consolidated financial statements.*

**UNICOIN INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

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| | | |
|:---|:---|:---|
|  | **Years Ended<br>December 31,** | **Years Ended<br>December 31,** |
|  | **2025** | **2024** |
| REVENUES | $2417282 | $2516292 |
| COST OF REVENUES | 2023720 | 2082863 |
| GROSS PROFIT | 393562 | 433429 |
| OPERATING COSTS AND EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 7856135 | 19788291 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 741873 | 13703994 |
| &nbsp;&nbsp;&nbsp;Research and development | 174376 | 12511 |
| &nbsp;&nbsp;&nbsp;Cost of contract amendment | - | 790000 |
| TOTAL OPERATING COSTS AND EXPENSES | 8772384 | 34294796 |
| LOSS FROM OPERATIONS | (8378822) | (33861367) |
| &nbsp;&nbsp;&nbsp;Interest income (expense), net | (208247) | (196533) |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | (366174) | (1988506) |
| LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (8953243) | (36046406) |
| &nbsp;&nbsp;&nbsp;Income tax (expense) benefit | (1127) | (69373) |
| NET LOSS FROM CONTINUING OPERATIONS | (8954370) | (36115779) |
| Less: Net income from discontinued operations | 184040 | 543938 |
| Less: Loss from divestiture of discontinued operations | (4891712) | - |
| NET LOSS | $(13662042) | $(35571841) |
| Less: net income (loss) attributable to the noncontrolling interest | (268654) | (617190) |
| NET LOSS ATTRIBUTABLE TO UNICOIN INC. | $(13393388) | $(34954651) |
| Net loss per share from continuing operations, basic and diluted | $(0.01) | $(0.05) |
| Net loss per share from discontinued operations and divestiture of discontinued operations, basic and diluted | $(0.01) | $0.00 |
| Net loss per share attributable to Unicoin Inc., basic and diluted | $(0.02) | $(0.05) |
| Weighted average common shares outstanding used to compute basic and diluted loss per share | 741608124 | 735982489 |

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*See accompanying notes which are an integral part of these consolidated financial statements.*

**UNICOIN INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | **Treasury Stock** | **Treasury Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br>Paid-In**<br>**Capital** | **Shares** | **Amount** | **Accumulated**<br>**Deficit** | **Unicoin Inc.<br>Stockholders'**<br> **Equity**<br>**(Deficit)** | **Unicoin Inc.<br>Noncontrolling**<br>**Interest** | **Total<br>Stockholders'<br>Equity**<br>**(Deficit)** |
| **Balance as of December 31, 2023** | 773232422 | $773233 | $72999935 | (40912140) | $(3880025) | $(131375466) | $(61482323) | $(1463525) | $(62945848) |
| Issuance of common stock | 6814994 | 6815 | 3644362 |  |  |  | 3651177 |  | 3651177 |
| Stock-based compensation expense |  |  | 153483 |  |  |  | 153483 |  | 153483 |
| Issuance of common stock upon release of restricted stock units | 78336 | 78 | (78) |  |  |  |  |  |  |
| Repurchase of common stock |  |  |  | (539567) | (194085) |  | (194085) |  | (194085) |
| Exercise of stock options and warrants | 940000 | 940 | (165) |  |  |  | 775 |  | 775 |
| Ownership interest increase in Unicorns Inc. |  |  | (2082579) |  |  |  | (2082579) | 1343077 | (739502) |
| Net loss | - | - | - | - | - | (34954651) | (34954651) | (617190) | (35571841) |
| **Balance as of December 31, 2024** | 781065752 | $781066 | $74714958 | (41451707) | $(4074110) | $(166330117) | $(94908203) | $(737638) | $(95645841) |
| Issuance of common stock | 2043356 | 2043 | 2138116 |  |  |  | 2140159 |  | 2140159 |
| Stock-based compensation expense | 543000 | 543 | 162491 |  |  |  | 163034 |  | 163034 |
| Issuance of common stock upon release of restricted stock units | 38072 | 38 | (38) |  |  |  |  |  |  |
| Repurchase of common stock |  |  |  | (73037) | (14584) |  | (14584) |  | (14584) |
| Ownership interest decrease in Unicoin International |  |  | 5835 |  |  |  | 5835 | (5835) |  |
| Ownership interest decrease in itsQuest Inc. |  |  |  |  |  |  |  | (4699879) | (4699879) |
| Net loss |  |  |  |  |  | (13393388) | (13393388) | (268654) | (13662042) |
| **Balance as of December 31, 2025** | 783690180 | $783690 | $77021362 | (41524744) | $(4088694) | $(179723505) | $(106007147) | $(5712006) | $(111719153) |

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*See accompanying notes which are an integral part of these consolidated financial statements.*

**UNICOIN INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

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| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2025** | **2024** |
| Net loss and Comprehensive Loss | $(13662042) | $(35571841) |
| Plus: Net income from discontinued operations | (184040) | (543938) |
| Plus: Loss from divestiture of discontinued operations | 4891712 | - |
| Net loss from continuing operations | (8954370) | (36115779) |
| Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Gain on Accounts Payable Settlement | (1139202) |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 163033 | 153483 |
| &nbsp;&nbsp;&nbsp;Operating expenses paid with Unicoin rights | 335916 | 12443767 |
| &nbsp;&nbsp;&nbsp;Net operating expenses paid with digital assets, net of customer payments with digital assets | 348921 | 341994 |
| &nbsp;&nbsp;&nbsp;Transaction (gain) loss on reacquisition of Unicoin Rights | (14352) | 6694634 |
| &nbsp;&nbsp;&nbsp;Impairment of investments in privately held companies | 298000 | 1973000 |
| &nbsp;&nbsp;&nbsp;Impairment and write-off of digital assets | 99 | 183558 |
| &nbsp;&nbsp;&nbsp;Realized loss on disposal of digital assets | 61045 |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 11084 | 10351 |
| &nbsp;&nbsp;&nbsp;Credit loss expense | 48500 |  |
| &nbsp;&nbsp;&nbsp;Impairment in Land for Investment and Mining Rights | 1203748 |  |
| &nbsp;&nbsp;&nbsp;Non-cash operating lease expense | 19770 | 61781 |
| &nbsp;&nbsp;&nbsp;Interest income from the five-year deferred payment plan | (700) | 9300 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables payable in cash | (23475) | (14555) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 91493 | (50813) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (37795) | (16492) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (549287) | 1370892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and accrued payroll liabilities | 1482256 | 3860449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (2902) | (1427) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (20933) | (62921) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 127752 | 189171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (6551399) | (8969607) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities – discontinued operations | 1314524 | 717456 |
| CASH FLOWS USED IN INVESTING ACTIVITIES: |  |  |
| Cash transferred to ITSQuest related to divestiture | (3019484) |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment |  | (3002) |
| &nbsp;&nbsp;&nbsp;Sale of digital assets and USD Coin, net of proceeds from sales | 232118 |  |
| &nbsp;&nbsp;&nbsp;Purchase of digital assets and USDC | (232118) | (329856) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (3019484) | (332858) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities – discontinued operations |  |  |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of private placement unsecured notes | 2301478 |  |
| &nbsp;&nbsp;&nbsp;Payment of short-term debt | (75000) | (209200) |
| &nbsp;&nbsp;&nbsp;Net proceeds from sales and repurchases of Unicoin Rights | 2508456 | 1423896 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 2162670 | 3556973 |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock | (991) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options and warrants |  | 775 |
| &nbsp;&nbsp;&nbsp;Repayment of related party loan payable | - | (51398) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 6896613 | 4721046 |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (1359746) | (3863963) |
| CASH AND CASH EQUIVALENTS—Beginning of period | 2598208 | 6462171 |
| CASH AND CASH EQUIVALENTS—End of period | $1238462 | $2598208 |

---

*See accompanying notes which are an integral part of these consolidated financial statements.*

**UNICOIN INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2025** | **2024** |
| **Supplemental disclosures of cash flow information:** |  |  |
| Cash paid for interest | $15000 | $86010 |
| Cash paid for income taxes | $10000 | $94556 |
| **Non-cash investing and financing activity:** |  |  |
| &nbsp;&nbsp;&nbsp;Change in non-controlling interest upon increase in ownership of Unicorns, Inc. | $- | $1343077 |
| &nbsp;&nbsp;&nbsp;Market value of digital assets and USD Coin received as proceeds from issuance of common stock | $22664 | $94204 |
| &nbsp;&nbsp;&nbsp;Market value of digital assets received as proceeds from sales of unicoin rights | $65526 | $229948 |
| &nbsp;&nbsp;&nbsp;Receipt (i.e., "collection") of private company equity securities | $- | $1509528 |
| &nbsp;&nbsp;&nbsp;Recognition of operating lease right-of-use assets and operating lease liabilities in relation to new operating leases | $- | $31899 |
| &nbsp;&nbsp;&nbsp;Investment in land and mining rights in exchange of unicoin rights | $- | $1263979 |
| &nbsp;&nbsp;&nbsp;Change in additional paid-in capital upon increase in ownership of Unicorns, Inc | $- | $2082579 |
| &nbsp;&nbsp;&nbsp;Expenses paid by related party on behalf of the Company | $51787 | $13992 |
| &nbsp;&nbsp;&nbsp;Ownership interest decrease in Unicoin International | $5835 | $- |
| &nbsp;&nbsp;&nbsp;Repurchase of Unicorns common stock in exchange for unicoin rights | $- | $194085 |

---

*See accompanying notes which are an integral part of these consolidated financial statements.*

**UNICOIN INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 – ORGANIZATION AND OPERATIONS**

**Description of Business**

Unicoin Inc. ("Unicoin" or the "Company") is a Delaware corporation incorporated in 2015. The Company operates a Software-as-a-Service ("SaaS") and Talent-as-a-Service ("TaaS") platform through a wholly owned subsidiary and, until December 31, 2025, also held a majority interest in a staffing agency (ITSQuest, Inc.). In addition, the Company is the majority owner of Unicorns, Inc., a media production company that produces *Unicorn Hunters*, a business and investing reality show.

We have begun exploring possible service providers and exchanges which can assist with the tokenization of the unicoins and eventual launch of the unicoins. As of the date of these consolidated financial statements, we have not issued any unicoins and there is no assurance as to whether, or at what amount, or on what terms, unicoins will be available to be issued, if ever.

On August 28, 2025, the Company notified its existing investors that it had postponed its initial coin offering of unicoins in order to conduct a thorough review of its public statements, offering materials and its business in general. The Company conducted a thorough review of its compliance with applicable regulatory requirements with the assistance of a leading national law firm.

On December 31, 2025, the Company divested its controlling interest in ITSQuest pursuant to the terms of the Share Exchange Agreement, resulting in the loss of control and deconsolidation of ITSQuest as of that date. Accordingly, ITSQuest's results of operations are presented as discontinued operations for the year ended December 31, 2025, and the prior-year comparative period has been recast for consistency. Refer to Note 11 — Discontinued Operations for additional information.

*Subsidiaries Outside of the United States*

Outside of the United States, the Company has formed a subsidiary for the purposes of holding specific parcels of real estate. This "real estate subsidiary" includes Unicoin LATAM C.A. (organized in Venezuela).Operations in this entity from formation through the date of these consolidated financial statements was de minimis.

**Unicorns Media Group Ltd.**

While the Company does not hold any ownership interest in Unicorns Media Group Ltd (a company organized under the laws of the United Kingdom), the Company's subsidiary, Unicorns Inc., may be entitled to receive economic benefits pursuant to a licensing agreement between Unicorns Inc. and Unicorns Media Group Ltd. Pursuant to the terms of the licensing agreement, Unicorns Inc. is entitled to seventy percent (70%) of the revenues generated by Unicorns Media Group Ltd in connection with show productions, including revenues from advertisements, sponsorships, ticket sales, merchandising, and distribution. Unicoin Inc. owns 71.88% of the outstanding shares of Unicorns Inc., and may therefore indirectly benefit from the revenues received by Unicorns Inc. under the licensing arrangement.

**Unicoin International Inc.**

Unicoin Inc. and Unicoin International Inc. ("UII"), a corporation established under the laws of Panama, are affiliated (through common ownership as Alex Konanykhin and Silvina Moschini each own 50% of UII) but distinct legal entities, with UII operating as an affiliate of Unicoin. Unicoin provides various services and operational support—including marketing, advisory, investor relations, IT infrastructure, and the sharing of personnel and office resources—pursuant to a contractual services and support agreement. Under the agreement, UII compensates Unicoin for these services and may also, at its discretion and subject to applicable law, provide UIT tokens as further consideration. Although the two entities collaborate closely and share resources, UII maintains operational and legal independence from Unicoin, and the shared personnel remain solely employed or contracted by Unicoin, not by UII. This collaborative arrangement is structured to enhance efficiency while preserving each party's separate corporate identity and regulatory compliance obligations.

**Token Structure**

In addition to the businesses it operates through its subsidiaries, the Company tokenized a token called unicoin. While earlier statements contemplated the potential for unicoins to be supported by reference to certain assets, the Company is currently reassessing this approach in light of evolving regulatory guidance from the U.S. Securities and Exchange Commission. The Company has reviewed and updated its approach to the unicoin token structure in light of evolving regulatory commentary and internal strategic considerations. While prior communications referenced the potential for unicoins to be "asset-backed" or collateralized, the Company has clarified that it does not intend to collateralize the tokens or tie them to any specific pool of assets. Instead, the Company uses the term "asset-backed" in a general, commercial sense—consistent with its ordinary dictionary meaning—to reflect the Company's intent to use part of the token-related proceeds to invest in equity and other assets expected to support long-term token value. This characterization is not intended to imply collateralization, guaranteed redemption rights, or that unicoins represent ownership interests in such assets. The Company plans to further clarify this terminology in future offering documents and marketing materials to ensure transparency and investor understanding.

**Business Organization**

Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. The Company evaluates operating results based on measures of performance, including revenues and gross profit (loss). The Company currently operates in the following three reporting segments: SaaS, TaaS and Unicorn Hunters. Refer to Note 16 – Segment Information. The legacy operations of the SaaS business are currently being phased out of operations through customer attrition, and are no longer the focus of the Company's efforts.

**Going Concern**

These consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

The Company incurred net losses from continuing operations of $(8,954) thousand and $(36,116) thousand for the years ended December 31, 2025 and 2024, respectively. Total income (loss) from discontinued operations, including the divestiture of discontinued operations, amounted to $(4,708) thousand and $544 thousand for the years ended December 31, 2025 and 2024, respectively. The Company had net cash used in operating activities of $(6,551) thousand and $(8,970) thousand for the years ended December 31, 2025 and 2024, respectively. The Company had an accumulated deficit of $(179,724) thousand and $(166,330) thousand as of December 31, 2025 and 2024, respectively, and expects to incur additional significant losses in the future.

These conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's long-term success is dependent upon its ability to successfully raise additional capital, market its existing services, increase revenues, and, ultimately, to achieve profitable operations.

The Company is evaluating strategies to obtain the required additional funding for future operations. These strategies may include, but are not limited to, issuing unicoin rights, obtaining equity financing, issuing debt, or entering into other financing arrangements, and restructuring of operations to grow revenues and decrease expenses. However, in view of uncertainties in the U.S. and global financial markets, the Company may be unable to access further equity or debt financing when needed. As such, there can be no assurance that the Company will be able to obtain additional liquidity when needed or under acceptable terms, if at all.

The consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis of Presentation**

The accompanying consolidated financial statements have been prepared in accordance with GAAP and include the accounts of the Company, its wholly owned subsidiaries, SheWorks! and Yandiki (for periods prior to its June 2024 merger with SheWorks!), as well as ITSQuest (subject to discussions in Note 11 – Discontinued Operations) and Unicorns. These entities are consolidated in accordance with Accounting Standards Codification ("ASC") 810, *Consolidations* ("ASC 810"). All significant intercompany accounts and transactions have been eliminated in consolidation. For ITSQuest, which prior to divestiture was a 51% owned, and Unicorns, which is 71.88% and 66.67% owned as of December 31, 2025 and December 31, 2024, respectively, the minority interests are reflected in the consolidated financial statements as non-controlling interests ("NCI").

On February 21, 2025, the Company's majority owned subsidiary, Unicorns, issued 5,000,000 common stock shares to an Executive Producer for the Unicorn Hunters show. This issuance was compensation in connection with the completion of Season 1 of the Unicorn Hunters show. This transaction decreased the Company's ownership interest from 66.67% to 62.50%.

On March 11, 2024, Moe Vela sold his entire ownership in Unicorns of 7,500,000 common stock shares to the Company, in exchange for 1,500,000 unicoin rights. This transaction increased the Company's ownership interest from 62.50% to 71.88%. The Company paid Moe Vela with unicoin rights valued at $740 thousand.

These transactions were accounted for under the guidance of ASC 810- Consolidations by recording a change in the non-controlling interest of $1,343 thousand, which represents the increase in the Company's share of the carrying value of Unicorns net assets. The $2,083 thousand excess of carrying value of Unicorns net assets over the fair value of the unicoin rights paid in consideration was recorded to Additional Paid-In-Capital during the year ended December 31, 2024.

**Variable Interest Entity**

The Company's policy is to consolidate all subsidiaries or other entities in which it has a controlling financial interest. The consolidation guidance under ASC 810 "Consolidation" ("ASC 810") requires an analysis to determine if an entity should be evaluated for consolidation under the voting interest entity ("VOE") model or the variable interest model ("VIE"). Under the VOE model, controlling financial interest is generally defined as majority ownership of voting interests. The consolidated financial statements include the accounts of all subsidiaries or other entities in which the Company has a direct or indirect controlling financial interest.

The Company assesses all entities in which it has a significant economic, ownership or other financial interest for consolidation on a case-by-case basis depending on the specific facts and circumstances surrounding each entity. Pursuant to ASC 810, the Company first evaluates whether it holds a variable interest in an entity. The Company considers all economic interests, including proportionate interests through related parties, to determine if such interests are considered a variable interest.

For any entity where the Company has determined that it does hold a variable interest, the Company performs an assessment to determine whether it qualifies as a VIE. The Company consolidates a VIE if it is the primary beneficiary having the power to direct the activities that most significantly affect the economic performance of the VIE as well as the obligation to absorb losses and the right to receive benefits that could be significant to the VIE.

Management evaluated whether Unicorns, Inc. ("Unicorns") meets the criteria for classification as a variable interest entity ("VIE") or a voting interest entity ("VOE") and concluded that Unicorns meets the definition of a VIE because it does not have sufficient equity at risk to finance its activities without additional financial support.

Management further concluded that the Company is the primary beneficiary of Unicorns because the Company has the power to direct the activities that most significantly affect Unicorns' economic performance, including decisions related to financing, production activities, and strategic direction, and because the Company has the obligation to absorb losses and the right to receive benefits that could be significant to Unicorns. Accordingly, the Company consolidates Unicorns as a VIE.

As of December 31, 2025 and 2024, Unicorns had total assets of approximately $9,005 thousand and $8,248 thousand, respectively, consisting primarily of cash and cash equivalents of $1,101 thousand and $0 thousand, respectively, and investments in privately held companies of $7,859 thousand and $8,157 thousand, respectively. As of December 31, 2025 and 2024, Unicorns had total liabilities of approximately $172 thousand and $152 thousand, respectively, consisting primarily of accounts payable, accrued expenses, accrued payroll-related liabilities, and income tax payable. Intercompany balances and transactions between the Company and Unicorns have been eliminated in consolidation.

During the years ended December 31, 2025 and 2024, Unicorns generated revenues of approximately $0 thousand and $3 thousand, respectively, and incurred operating expenses of approximately $579 thousand and $973 thousand, respectively, and impairment loss of $298 thousand and $1,973 thousand, respectively, resulting in net losses of approximately $908 thousand and $3,142 thousand, respectively.

Unicorns does not generate sufficient cash flows on a standalone basis and relies on funding provided by the Company to finance its operations, including the production and ongoing costs associated with the *Unicorn Hunters* show.

The Company's maximum exposure to loss as a result of its involvement with Unicorns is limited to the carrying amounts of Unicorns' consolidated net assets and the funding provided to Unicorns through intercompany arrangements. As part of the agreement pursuant to which the Company acquired a majority ownership interest in Unicorns, the Company extended an initial line of credit of $10,000 thousand, and outstanding intercompany funding provided by the Company to Unicorns amounted to $28,758 thousand and $27,113 thousand as of December 31, 2025 and 2024, respectively, which were eliminated in consolidation. Beyond these arrangements, the Company is not contractually required to provide additional financial support to Unicorns, although it may elect to do so in the future.

Upon the initial consolidation of Unicorns, no gain or loss was recognized. There were no changes in facts or circumstances during the periods presented that affected the Company's conclusion that it is the primary beneficiary of Unicorns.

Management evaluated whether UII meets the criteria for classification as a variable interest entity ("VIE") or a voting interest entity ("VOE") and concluded that UII meets the definition of a VIE primarily because it does not have sufficient equity at risk to finance its activities without additional financial support. Management further concluded that the Company is the primary beneficiary of UII because it has the power to direct the activities that most significantly affect UII's economic performance through operational decision-making and also has the obligation to absorb losses and the right to receive benefits that could be significant to UII. These conclusions require significant judgment, including the assessment of decision-making authority, the nature of shared services, and the Company's exposure to UII's operating results.

UII was established to support the Company's international activities related to international business development and token-related initiatives. Despite the affiliation, Unicoin and UII are separate legal entities, with UII operating as an affiliate of Unicoin. Unicoin provides operational support to UII, including marketing, advisory, investor relations, IT infrastructure, and shared personnel and office resources. Although the entities collaborate closely and share resources, UII maintains operational and legal independence from Unicoin, and shared personnel remain solely employed or contracted by Unicoin. UII does not generate sufficient cash flows on a standalone basis and relies on Unicoin to fund its operations. UII does not have any third-party creditors, and any obligations incurred by UII do not provide recourse to the general credit of Unicoin.

As of December 31, 2025 and 2024, UII did not hold any assets. As of December 31, 2025 and 2024, UII had liabilities of $109 thousand and $6 thousand, respectively, related to operating payments made by Unicoin on behalf of UII. These intercompany balances were eliminated in consolidation. The total expenses incurred by UII for the years ended December 31, 2025 and 2024 amounted to approximately $103 thousand and $6 thousand. UII does not generate sufficient cash flows on a standalone basis and relies on Unicoin to fund its operations, and UII does not have any third-party creditors whose claims provide recourse to the general credit of Unicoin.

The Company's maximum exposure to loss as a result of its involvement with UII is limited to the amounts of operating expenses and other obligations funded on UII's behalf. The Company has not provided, and is not contractually required to provide, any additional financial or other support to UII beyond funding its operating activities. There were no changes in facts or circumstances during the periods presented that affected the Company's determination that it is the primary beneficiary of UII. UII has not issued voting equity interests that would alter the consolidation analysis under ASC 810.

**Use of Estimates**

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions in the consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include: the valuation of unicoin rights and the related embedded feature, valuation of investments in private companies; valuation of land and other real estate received in exchange for unicoin rights; assessments of the recoverability of accounts receivable and determination of the fair value of certain stock awards issued. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgements about the carrying values of assets and liabilities. Actual results could differ materially from those estimates.

**Cash and Cash Equivalents**

Cash and cash equivalents consist of cash and money market funds with original maturities of three months or less when acquired. Cash equivalents are stated at cost, which approximates fair value. These investments are not subject to significant market risk. The Company maintains its cash and cash equivalents in bank accounts which, at times, exceed the federally insured limits. As of December 31, 2025 and 2024, the Company had $864 thousand and $604 thousand of cash in excess of the FDIC insured amount, respectively. The bank at which the Company had deposits that exceed FDIC limits is not in receivership or under the control of the FDIC. The Company has not experienced any losses in such accounts.

**Accounts Receivable**

Accounts receivable consist of receivables from sale or renewal of SaaS subscriptions to its software platform or TaaS staffing arrangements. The Company records a receivable for its SaaS segment when customer access to the software platform is provided. For the TaaS segment, receivables are recorded when the Company has a right to invoice and are typically invoiced on a monthly basis. Typical cash payment terms provide that customers pay within 30 days of invoicing.

As more fully discussed in the Revenue Recognition section below, accounts receivable for Unicorns generally consists of commitments from companies that have appeared on the Unicorn Hunters show, to issue stock options, warrants or shares to the Company. These options or warrants typically have a term of five to ten years and are recorded at their estimated fair values. Unicorns invoices customers when an episode is distributed for broadcast or streaming. Receipt of the option or warrant certificates is handled on a case-by-case basis in accordance with each customer agreement. Unicorns receivables are classified as current because the underlying option or warrant certificates are expected to be received within one year of release or distribution of each related episode.

Subsequent to receipt of these option, warrant or share certificates, the related receivables are reclassified to investments in privately-held companies, a long-term asset account. The Company does not charge interest for past due accounts and does not require any collateral for its receivables. As more fully discussed in the Revenue Recognition section below, Unicorns non-cash consideration is recorded at fair value as determined at, or near the date of contract inception. As permitted by a practical expedient provision in ASC 606 "Revenue Recognition," the Company does not adjust Unicorns contract consideration for the effects of a significant financing component if, at contract inception, management expects the period between time of service and payment to be less than one year.

**Allowance for Doubtful Accounts**

The Company evaluates the collectability of its accounts receivable based on a combination of factors. Where the Company is aware of circumstances that may impair a specific customer's ability to meet its financial obligations, the Company records a specific allowance against amounts due. The Company writes off a receivable and charges it against its recorded allowance when all collection efforts are exhausted without success. Amounts are included as a component of general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered. For Unicorns, revenue and receivables are generally in the form of commitments from companies, that have appeared on the Unicorn Hunters show, to issue stock options or warrants to the Company.

Accounts receivable is recorded at the invoiced amount, net of allowance for expected credit losses. The Company's primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the accounts receivable balance to the estimated net realizable value. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted for current market conditions, the Company's customers financial condition, the amount of any receivables in dispute, the current receivables aging, current payment terms and expectations of forward-looking loss estimates.

The allowance for doubtful accounts related to Unicorns non-cash receivables is subject to uncertainty because the fair value of the underlying private company options, warrants or shares could change subsequent to the initial determination of fair value and before receipt of the related option, warrant or share certificates. In addition, unforeseen circumstances could arise after contract inception which could impact the customer's intent or ability to pay. Because the value of any one of the receivables associated with Unicorn's contracts may be material, changes such as these could have a material effect on the Company's future financial condition, results of operations and cash flows.

During the years ended December 31, 2025 and 2024, the Company incurred bad debt expense of $12 thousand and $9 thousand, respectively.

As discussed in the Investments in Privately-Held Companies section below, the fair value of options or warrants of private companies, held upon settlement of such receivables, may fluctuate subsequent to receipt resulting in charges or gains to the Company's consolidated statements of operations and comprehensive loss in future periods.

**Investments in Privately-Held Companies**

In accordance with ASC 321 "Investments-Equity Securities" ("ASC 321"), equity securities for which the Company has no significant influence (generally less than a 20% ownership interest), and which do not have readily determinable fair values, are accounted for using the measurement alternative which is at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Gains and losses on investments in equity securities are recognized in the consolidated statements of operations and comprehensive loss.

The Company regularly reviews such equity securities for impairment based on a qualitative assessment which includes, but is not limited to (i) significant deterioration in the earnings performance, credit rating, asset quality or business prospects of the investee, (ii) significant adverse changes in the regulatory, economic or technological environment of the investee and (iii) significant adverse changes in the general market condition of either the geographical area or the industry in which the investee operates, (iv) a bona fide offer to purchase, an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment, (v) factors that raise significant concerns about the investee's ability to continue as a going concern such as negative cash flows from operations, working capital deficiencies, or non-compliance with statutory capital requirements or debt covenants. If an equity security is impaired, an impairment loss is recognized in the consolidated statements of operations and comprehensive loss equal to the difference between the fair value of the investment and its carrying amount. If such impairment is determined prior to receiving options or warrants to be received as consideration for Unicorns customer contracts, the related loss on impairment is reflected as bad debt expense.

As discussed in Note 4, as of December 31, 2024, the Company had non-cash receivables consisting of options and warrants to purchase common stock in privately-held companies. The options and warrants underlying these non-cash receivables are subject to significant fluctuations in market values. As of December 31, 2025 all related warrant certificates have been received and these accounts receivable have been reclassified to investments in privately-held companies in the Company's consolidated balance sheet.

**Property and Equipment**

Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is provided for by the straight-line method over the estimated useful lives of the related assets. Gains and losses on depreciable assets retired or sold are recognized in the consolidated statements of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred. Depreciation expense for the years ended December 31, 2025 and 2024, amounted to $11 thousand and $10 thousand, respectively.

**Digital Assets**

The Company has accepted digital assets including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), USD Coin (USDC), Bitcoin Cash (BCH), Tether (USDT) and Wrapped Ethereum (WETH) as consideration from certain investors in exchange for equity, debt or unicoin rights issued by the Company. The Company records the initial cost basis at their original purchase prices or at their then-current quoted market prices (e.g., when received in an exchange rather than purchase transaction) and presents all digital assets held as a result of these transactions as indefinite-lived intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other, except USDC (refer to Note 3 – Fair Value Measurement, for details of accounting policy regarding USDC). Fair value of the Company's digital assets is determined in accordance with ASC 820, "Fair Value Measurement" ("ASC 820"), based on quoted prices on the active exchange(s) that we have determined is the principal market for such assets (Level 1 inputs). The Company has ownership and control of its digital assets and utilizes INX and/or Coinbase, third-party custodians, to secure its holdings and facilitate transactions.

During the year ended December 31, 2024, the Company has revised its impairment loss assessment methodology for digital assets to record write-downs to the lowest market price of one unit of digital asset quoted on the active exchange since acquiring the digital asset. This revision would be consistent with the requirements of ASC 350-30-35-19, which indicates impairment exists whenever carrying value exceeds fair value. It also indicates that after an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. Management assessed the potential difference in impairment loss that would have resulted in prior periods if this impairment methodology had been applied retroactively, noting the amounts were immaterial.

Impairment losses are recognized within loss from operations in the consolidated statements of operations and comprehensive loss in the period in which the impairment is identified. The impaired digital assets are written down to their fair values at the time of impairment and this new cost basis is not adjusted upward for any subsequent increase in fair value. Gains are not recorded until realized upon sale, at which point they are recorded within loss from operations in the consolidated statements of operations and comprehensive loss. In determining the gain to be recognized upon sale, we calculate the difference between the sales price and carrying value of the digital assets sold immediately prior to sale.

The Company uses digital assets as payment to vendors for goods or services from time to time. The Company computes resulting gains or losses by subtracting the then-current carrying value from the realized proceeds or the fair value of cryptocurrencies on the goods or services transaction date, or the fair value of the goods or services received in exchange for cryptocurrencies, if more readily determinable. Such transactions are processed by the Company's digital assets custodian. The transfer of control and transaction date are based on the transaction date as indicated in reports from the custodian. Gains and losses are determined separately for each digital asset purchase in accordance with the first in first out (FIFO) method of accounting.

**Derivative Financial Instruments**

The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives, as defined by ASC 815, Derivatives and Hedging ("ASC 815"). Under ASC 815, derivative financial instruments that are accounted for as liabilities are initially recorded at fair value and are then revalued at each reporting date, with changes in the fair value reported in the consolidated statements of operations and comprehensive loss. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the accompanying consolidated balance sheets as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within twelve months of the consolidated balance sheets date. The Company did not have any significant derivative instruments during the years ended December 31, 2025 or 2024.

**Common Stock Warrants**

The Company has issued common stock warrants to individuals who provided referrals to accredited investors that resulted in sales of common stock in connection with the Company's various funding rounds. Warrants issued by the Company are evaluated as either equity-classified or liability-classified instruments based on an assessment of the warrant's specific terms and applicable authoritative guidance pursuant to ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815. The assessment considers whether the warrants are freestanding financial instruments, meet the definition of a liability, and whether the warrants meet the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company's own equity and whether the warrant holders could potentially require "net cash settlement" in a circumstance outside of the Company's control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, was conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. As of December 31, 2025 and December 31, 2024, all of the Company's outstanding warrants were classified as equity in accordance with ASC 815-40.

**Leases**

The Company accounts for leases in accordance with ASC 842. ASC 842 generally requires an entity to recognize on its balance sheet operating and finance lease liabilities and corresponding right-of-use ("ROU") assets, as well as to recognize the associated operating lease expenses in its consolidated statements of operations. The Company policy is to not capitalize leases with a term of 12 months or less on its consolidated balance sheets.

**Revenue Recognition**

The Company recognizes revenue in accordance with ASC 606 which requires revenue to be recorded in a manner which depicts the transfer of goods or services to customers at amounts that reflect the consideration the Company expects to receive in exchange for those goods or services. Under ASC 606, revenue is recognized when obligations under the terms of a contract with a customer are satisfied; this occurs with the transfer of control of the Company's goods or services.

The Company primarily derives its revenues from three revenue streams:

&nbsp;&nbsp;&nbsp;&nbsp;1. *Subscription Revenue* (Software-as-a-Service or "SaaS") – which is comprised of fees from customers accessing the Company's all-in-one cloud-based solution to manage remote workers ("software platform").

2. *Staffing Revenue* (Talent-as-a-Service or "TaaS") – whereby enterprise customers are connected to individuals who are able to assist them in projects.

3. *Unicorns Revenue* – which generally represents the fair value of private company stock options or warrants, committed to be granted to the Company, as consideration for the right to present and promote those private companies on the Unicorn Hunters show.

The Company accounts for revenue contracts with customers through the following five steps: (i) identification of the contract, or contracts, with a customer, (ii) identification of the performance obligations in the contract, (iii) determination of the transaction price, (iv) allocation of the transaction price to the performance obligation in the contract, and (v) recognition of revenue when, or as, the Company satisfies a performance obligation. The Company's subscription service arrangements and Unicorns agreements are non-cancellable and do not contain refund-type provisions. Certain service agreements include cancelation clauses and there is a right of refund provided to the customer. The Company estimates and maintains a reserve for expected customer refunds. These estimates involve inherent uncertainties and management judgment. As of December 31, 2025 and 2024 no such reserves were recorded.

The Company's customers include government institutions, a Fortune 500 Company, and small businesses. At contract inception, the Company assesses the product offerings in its contracts to identify performance obligation(s) that are distinct. A performance obligation is distinct when the customer can benefit from it on its own or together with other resources that are readily available and when it is separately identifiable from other items in the contract. Historically, costs to obtain a contract have not been significant.

To identify its performance obligation(s), the Company considers all the promises in the contract for SaaS, TaaS or Unicorns Services. The Company has concluded there to be a single performance obligation in each of these services. For SaaS arrangements, the primary obligation is the license issuance to the customer to access the Company's workforce platform. For TaaS arrangements, the primary performance obligation is services provided to the customer by the professional resulting in hours accrued or milestones reached. For Unicorns arrangements, the primary performance obligation is to provide customers with publicity and exposure through appearance on the Unicorn Hunters show which occurs when an episode is distributed for broadcast or streaming.

The transaction price is the total amount of consideration the Company expects to be entitled to in exchange for the service offerings in a contract. At the inception of the contract, the transaction price is known for all the services in the contracts. For SaaS contracts the transaction price is based on the number of licenses sold. TaaS contracts are based on the contracted service hours. Some contracts have a form of variable consideration, for example discounts on licenses sold that exceed certain volumes, or TaaS remote talent projects with a 10% discount for long term engagements that could impact the base transaction price of our services in contracts with the customers. The Company estimates variable consideration and adjusts the transaction price at the time of contract signing.

Revenue and accounts receivable for Unicorns generally consists of the fair value of stock options, warrants or shares of common stock committed from companies that have appeared on the Unicorn Hunters show. Contract consideration is fixed at contract inception and has historically been received in one of two forms: 1) either a pre-determined number of stock options, warrants or shares or 2) options or warrants or shares representing a specific percentage of the customer's common stock outstanding as of a particular point in time. Other key terms specified in customer contracts include the exercise price and the duration or term of the options or warrants. The options or warrants underlying the commitments typically have a term of five to ten years and accounts receivable are recorded at the estimated fair value of such options or warrants as determined at contract inception. The estimated fair value of stock options and warrants, expected to be received as consideration, is dependent on the fair value of the underlying equity of each privately held presenting company.

The fair value of such underlying private company equity is determined based on (i) the valuation indicated in a recent round of financing (ii) a recent pre-existing third-party valuation report or (iii) a new third-party valuation report as of or near the date of contract inception. Third-party valuation reports consider factors such as recent financing rounds, third-party financing transactions, discounted cash flow analyses and market-based information, including comparable transactions, trading multiples and other factors based on facts and circumstances specific to each privately held presenting company. For non-cash consideration in the form of stock options or warrants of the presenting company, the Company, with assistance from third-party valuation advisors, determines the fair value of such consideration using the Black-Scholes option pricing model which, in addition to the fair value of underlying stock, considers the term of the stock options or warrants, exercise price, volatility, interest rate and dividend yield. These are Level 3 estimates under the fair value hierarchy because they involve significant unobservable inputs. The valuation of stock options or warrants committed by Unicorns customers requires management judgment due to the absence of an observable market price for those options or warrants.

Under ASC 606, the total transaction price is allocated to each performance obligation in the contract. As noted above, each contract in each segment contains only one performance obligation. Accordingly, the total transaction price for all Company contracts relates to the single performance obligation and no allocation is required.

Revenue is recognized upon transfer of control of promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those services. If the consideration promised in a contract includes a variable amount, for example, a discount for the subscription to access the software platform or for long term staffing engagements, the Company includes an estimate of the amount it expects to receive for the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.

For SaaS contracts, the typical subscription term is one year or less and the Company generally invoices its customers at the start of the subscription period when access to the software platform is provided. Amounts that have been invoiced are recorded in accounts receivable and deferred revenue and related revenue is recognized over the subscription period. For TaaS contracts, the Company's staffing contracts are typically for a duration of less than a year and are either on a fixed hourly rate basis or on a fixed cost basis billed upon satisfaction of respective milestones. For Unicorns' contracts, customers are billed when an episode is distributed for broadcast or streaming.

The Company typically invoices its customers at the end of each month in cases where the contracts involve billing based on fixed hourly rates and/or once a milestone is reached. An over-time method is used to measure progress because the Company's obligation is to provide continuous service over the contractual period when fixed hourly rate billing is involved. For time-and-materials contracts, revenue from contracts with customers is recognized in the amount to which the Company has a right to invoice, when the services are rendered by the Company's remote workers in such cases. For milestone-based contracts, revenue is recognized when the milestones are achieved. Revenue is recognized once a milestone is reached for an amount of the transaction price that is proportional to the total milestones in the contract. Milestones reached represent work performed and thereby best depicts the transfer of control to the customer. For Unicorns' contracts, the promise to the customer is fulfilled and revenue is recognized for the entire transaction price when an episode is distributed on the Unicorn Hunters website.

Revenue from TaaS arrangements is recorded on a gross basis, as principal, rather than on a net basis, as agent. The Company concluded that it is the principal in these arrangements because the Company contracts separately with customers and service providers, is responsible for directing service providers to meet the agreed upon customer specifications, has discretion to establish pricing for services provided to end customers and bears the primary risks related to billing, collection and customer satisfaction.

*Deferred Revenue*

Deferred revenue represents amounts that have been prepaid in advance of revenue recognition. Deferred revenue is recognized as revenue when transfer of control to customers has occurred or as services are being provided. The Company generally invoices customers in monthly installments for the TaaS business and for SaaS, business customers are invoiced at the start of the contract period therefore timing differences and deferred revenue can occur in the SaaS and TaaS segments. As noted above, Unicorns invoicing and revenue recognition both occur at the time an episode is distributed on the Unicorn Hunters website therefore there is no deferred revenue recorded for the Unicorn Hunters segment.

The Company had deferred revenue of $1 thousand and $4 thousand as of December 31, 2025 and December 2024, respectively. The amount of revenue recognized in fiscal 2025 and 2024 that was included in deferred revenue at the beginning of the periods was $4 thousand and $5 thousand, respectively.

*Remaining Performance Obligation*

In accordance with ASC 606, the Company is required to include disclosures on its remaining performance obligations as of the end of the current reporting period. Due to the nature of the contracts in the Company's businesses, these reporting requirements are not applicable. Most of the Company's remaining contracts meet certain exceptions as defined in ASC 606. For the Company's contracts that pertain to these exceptions: (i) the remaining performance obligations primarily relates to the provision of access to the software platform for its subscribers; and (ii) the estimated duration of these performance obligations is less than one year or ranges from the remaining of the current calendar year to the next calendar year.

**Cost of Revenue**

For the SaaS and TaaS segments, cost of revenue includes salaries, and personnel compensation costs, associated with the Company's website hosting and other costs including providing technical support, materials, and supplies. For Unicorns, cost of revenue includes salaries and personnel compensation costs as noted for SaaS and TaaS but also includes third party costs for production team, celebrity hosts and travel. The Company evaluates if Unicorn Hunters show production costs are expected to be recovered. Costs are capitalized if expected to be recovered and otherwise are expensed as incurred. Any capitalized costs are expensed when the related show is distributed on the Unicorn Hunters website. No production costs were capitalized during the years ended December 31, 2025 or 2024 because of uncertainty about recovery of such costs during the Company's early stages.

**General and Administrative Expense**

General and administrative costs primarily consist of compensation, employee benefits, and stock-based compensation related to executive management, finance, administration and human resources, facility costs, professional service fees, and other general overhead costs.

**Sales and Marketing Expense**

Sales and marketing costs principally consist of third-party marketing, advertising, and branding in addition to compensation and benefits of the Company's own marketing personnel. Sales, marketing and advertising costs are expensed as incurred. During the years ended December 31, 2025 and 2024, the Company incurred marketing/advertising expenses of $243 thousand and $11,495 thousand, respectively, of which $49 thousand and $8,708 thousand were paid for by exchanging unicoin rights with such fair value.

**Research and Development Expense**

Research and development costs are related to maintaining and improving the Company's software platform and primarily consist of personnel-related costs, including salaries and bonuses, benefits and stock-based compensation expense. Research and development costs related to internal use software are not material and are expensed as they are incurred.

**Stock-Based Compensation Expense**

The Company measures and records stock-based compensation expense related to stock awards and stock options awarded to certain officers, directors, employees and consultants based on the grant date fair value of the award under ASC 718, Stock Compensation ("ASC 718"). The Company estimates the fair value of each stock option at the grant date using the Black-Scholes option-pricing model. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period, of the individual option, generally equal to the vesting period.

**Income Taxes**

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations and comprehensive loss in the period in which the change was enacted. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets if management has determined that it is more likely than not that such assets will not be realized. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. The Company is subject to examinations by federal and state authorities for the income tax periods that remain open. In the event that a taxing jurisdiction levies an assessment in the future, it is possible the assessment could have a material adverse effect on the consolidated financial condition or results of operations.

The consolidated financial statement recognition of the benefit for a tax position is dependent upon the benefit being more likely than not to be sustainable upon audit by the applicable tax authority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that is greater than 50% likely of being realized upon ultimate settlement. In the event that the Internal Revenue Service ("IRS") or another taxing jurisdiction levies an assessment in the future, it is possible the assessment could have a material adverse effect on the consolidated financial condition or results of operations. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. The Company recognizes interest and penalties related to income tax matters in income tax expense.

**Net Loss per Share**

Net loss per common share is computed pursuant to ASC 260-10, Earnings Per Share ("ASC 260"). Basic net loss per share is computed by dividing net loss by the weighted average number of common stock shares outstanding. For each of the years ended December 31, 2025 and 2024, the Company had securities outstanding that could potentially dilute net loss per share, but the shares from the assumed conversion or exercise of these securities were excluded in the computation because the effect would have been anti-dilutive.

**Contingent Liabilities**

The Company accounts for contingent liabilities in accordance with the ASC 450, Contingencies ("ASC 450"). This guidance requires management to assess potential contingent liabilities that may exist as of the date of the consolidated financial statements to determine the probability and amount of loss that may have occurred, which inherently involves an exercise of judgment. A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed in the notes to the consolidated financial statements.

**Risks and Uncertainties**

The Company is subject to a number of risks that are similar to those which other companies of similar size in its industry are facing, including, but not limited to, the need for additional capital (or financing) to fund operations, competition from substitute products and services from larger companies, protection of proprietary technology, dependence on key customers, dependence on key individuals, and risks associated with changes in information technology.

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and accounts receivable. The Company's cash and cash equivalents are held in accounts with major financial institutions, and, at times, exceed federally insured limits. As of December 31, 2025 and 2024, the Company had $864 thousand and $604 thousand of cash in excess of the FDIC insured amount, respectively. The bank at which the Company had deposits that exceed FDIC limits is not in receivership or under the control of the FDIC. The Company has not experienced any losses in such accounts.

In addition, as discussed in Note 4, as of December 31, 2024 the Company had non-cash receivables consisting of options and warrants to purchase common stock in small privately-held companies. The options and warrants underlying these non-cash receivables are subject to significant fluctuations in market values. As of December 31, 2025 all related option and warrant certificates have been received and these accounts receivable have been reclassified to investments in privately-held companies in the Company's consolidated balance sheets.

As discussed above and in Note 5, the Company has accepted digital assets as consideration from certain investors in exchange for equity, debt or unicoin rights issued by the Company. Digital asset market values are subject to significant fluctuations based on supply and demand for such digital assets and other factors. The Company can either hold, sell, or use digital assets as payment to vendors. Digital asset price risk could adversely affect future operating results including earnings, cash flows and the Company's ability to meet its ongoing obligations.

The following table summarizes the Company's revenues from customers that contributed to at least 10% of total revenues:

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| | | |
|:---|:---|:---|
| | **Revenues<br> as a % of<br> Total Revenues** | **Revenues<br> as a % of<br> Total Revenues** |
| | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** |
| <br>**Customer Reference** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;Customer A | 26% | 13% |
| &nbsp;&nbsp;&nbsp;Customer B | 25% | 34% |
| &nbsp;&nbsp;&nbsp;Customer C | 16% | 12% |
| &nbsp;&nbsp;&nbsp;Customer D | 10% | - \* |

---

\* Revenue from this customer did not amount to 10% or more of total revenues during the period reported.

The following table summarizes the Company's accounts receivable from customers that contributed to at least 10% of total accounts receivable, net:

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| | | |
|:---|:---|:---|
| | **Accounts Receivable<br> as a % of<br> Accounts Receivable, net** | **Accounts Receivable<br> as a % of<br> Accounts Receivable, net** |
| <br>**Customer Reference** | **December 31,<br> 2025** | **December 31,<br> 2024** |
| &nbsp;&nbsp;&nbsp;Customer A | 25% | 14% |
| &nbsp;&nbsp;&nbsp;Customer B | 18% | 27% |
| &nbsp;&nbsp;&nbsp;Customer C | 20% | 15% |
| &nbsp;&nbsp;&nbsp;Customer D | 16% | - \* |

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\* Accounts Receivable from this customer did not amount to 10% or more of Accounts Receivable as of the period reported.

**Financial Instruments – Credit Losses**

The Company adopted Accounting Standards Update ("ASU") 2016-13, *Financial Instruments – Credit Losses* (Topic 326): *Measurement of Credit losses on financial instruments* later codified as Accounting Standard codification ("ASC") 326 ("ASC 326"), effective January 1, 2024, using a modified retrospective approach. The guidance introduces a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. There was no significant impact on the date of adoption of ASC 326.

Under ASC 326, accounts receivable are recorded at the invoiced amount, net of allowance for expected credit losses. The Company's primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the accounts receivable balance to the estimated net realizable value. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors. In establishing any required allowance, management considers historical losses adjusted for current market conditions, the Company's customers' financial condition, the amount of any receivables in dispute, the current receivables aging, current payment terms and expectations of forward-looking loss estimates.

All provisions for the allowance for doubtful accounts are included as a component of general and administrative expenses on the accompanying consolidated statements of operations and comprehensive loss. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. Subsequent recoveries of amounts previously written off are credited to earnings in the period recovered.

The allowance for doubtful accounts related to Unicorns non-cash receivables is subject to uncertainty because the fair value of the underlying private company options, warrants or shares could change subsequent to the initial determination of fair value and before receipt of the related option, warrant or share certificates. In addition, unforeseen circumstances could arise after contract inception which could impact the customer's intent or ability to pay. Because the value of any one of the receivables associated with Unicorn's contracts may be material, changes such as these could have a material effect on the Company's future financial condition, results of operations and cash flows.

Since the inception of Unicorn Hunters, the Company has recognized revenue in connection with seven Unicorn Hunters agreements. The total revenue amount related to these agreements was $10,130 thousand to-date. As of December 31, 2025 and 2024, Unicorn Hunters non-cash receivables were $0 and $0 thousand, respectively and represented 0% and 0% of total receivables, respectively. In addition, these receivables represented 0% and 0% of total assets as of December 31, 2025 and 2024, respectively.

The Company reviews each outstanding customer's non-cash receivable balance with management of the private company customer, and records an allowance for doubtful accounts if either of the following are noted:

&nbsp;&nbsp;&nbsp;&nbsp;a. A specific milestone, equity financing or other event has occurred that is a clear indication that there has been a material change in the enterprise value of the private company customer since the original recording of the Unicorns accounts receivable balance and before the Company has received the underlying stock option, warrants or shares certificates.

&nbsp;&nbsp;&nbsp;&nbsp;b. The Company's review identifies facts and circumstances that have substantially changed either the private company customers' intent or its ability to issue the stock option, warrants or shares certificates due in satisfaction of their related accounts receivable balance.

To date, the Company has not recorded any bad debt expense or allowance for doubtful accounts related to Unicorn Hunters non-cash receivables and the Company has not experienced any fluctuations or significant matters that would require recording a material allowance for doubtful accounts in any period to date.

As of December 31, 2025 and 2024, the Company had an allowance for doubtful accounts balance of $0 thousand and $5 thousand, respectively. For the year ended December 31, 2025 and 2024, the Company recorded bad debt expense of $12 thousand and $0 thousand, respectively. These amounts were related to trade receivables payable in cash.

**Effect of Recently Adopted Accounting Pronouncements**

In November 2024, the FASB issued Accounting Standards Update ("ASU") 2024-07, Segment Reporting—Improvements to Reportable Segment Disclosures (Topic 280), which will require public companies to provide more transparency in both quarterly and annual reports about the expenses they incur from revenue generating reportable business segments. In addition, the ASU requires that a public entity disclose significant segment expenses that are regularly provided to the chief operating decision maker, an amount for other segment items by reportable business segment, including a description of its composition, and the primary measures of a business segment's profit or loss in assessing segment performance. This ASU is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. The Company implemented the updated guidance as of December 31, 2024, which resulted in the incorporation of new segment disclosures, as noted in Note 16 - Segment Information. Also, the implementation of ASU 2024-07, did not have an impact on other disclosures to the consolidated financial statements.

**Recently Issued Accounting Pronouncements**

In December 2024, the FASB issued ASU No. 2024-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* (ASU 2024-09), which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This guidance will be effective for the annual periods beginning the year ended December 31, 2026. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In June 2022, the FASB issued ASU No. 2022-03, *Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820),* which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined. The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. This authoritative guidance will be effective for us in the first quarter of fiscal 2026, with early adoption permitted. We are currently evaluating the effect of this new guidance on our consolidated financial statements.

In December 2024, the FASB issued ASU 2024-08, *Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets,* which seeks to provide financial statement users with more decision-useful information about the underlying economics of crypto assets, and a reporting entity's financial position. The amendment requires an entity to present crypto assets at fair value on the consolidated balance sheet, present these assets separate from other intangible assets, and record changes from remeasurements of crypto assets separately from changes in carrying amounts from other intangible assets on the income statement. The amendment also requires entities to disclose by crypto asset the name, fair value, cost basis, and number of units, as well as changes crypto holdings over the periods presented. Although early adoption is permitted, the new guidance becomes effective on January 1, 2026, and should be applied using a modified retrospective transition method with a cumulative-effect adjustment recorded to the opening balance of retained earnings as of the beginning of the year of adoption. We are currently evaluating the effect of this new guidance on our consolidated financial statements.

**NOTE 3 – FAIR VALUE MEASUREMENT**

The Company measures the fair value for financial instruments under ASC 820. ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosures about fair value measurements.

To increase consistency and comparability in fair value measurements, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels, as follows:

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| | |
|:---|:---|
| Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities. |
| Level 2 | Significant other inputs that are directly or indirectly observable in the marketplace. |
| Level 3 | Assets and liabilities whose significant value drivers are unobservable. |

---

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company's market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment.

The Company has revised its Intangible Assets and Financial Assets accounting policies to account for USD Coin ("USDC") as a financial asset. As a result, USDC will be measured at fair value in future periods with changes in fair value reported in earnings as they occur. The Company previously reported USDC within Intangible assets, net, and has reclassified USDC to prepaid expenses and other current assets beginning in the third quarter of 2024. The Company's USDC balance as of December 31, 2025 and 2024 amounted to $26 thousand (included within the prepaid and other current assets line item of the consolidated balance sheets) and $44 thousand respectively. Management assessed the balance of USDC in historical periods, noting the change has an immaterial impact on previously reported amounts.

The obligation to settle the Company's unicoin rights liability through the exchange of a fixed number of unicoins, when and if all contingencies are resolved and unicoins are launched, represents an embedded feature that may result in additional charges to the Company's consolidated statements of operations and comprehensive loss upon settlement. The embedded feature was initially valued at $0 and is not expected to fluctuate until the unicoins are launched or probable of launch.

**Assets Measured at Fair Value on a Non-Recurring Basis**

Unicorns accounts receivable generally consist of commitments to issue stock options or warrants from customers which appear on the Unicorn Hunters show. This non-cash consideration is recognized in accounts receivable at the estimated fair values at or near the dates of contract inception using Level 3 inputs. The fair value of these commitments, as well as the options or warrants of private companies, held upon settlement of such receivables, as measured using Level 3 inputs, may fluctuate as discussed in the Company's accounting policy for private company investments, which is included in Note 2. The Company determines the fair value of these items using Level 3 inputs. There are inherent limitations when estimating the fair value of financial instruments, and the fair values reported are not necessarily indicative of the amounts that would be realized in current market transactions.

**NOTE 4 – INVESTMENTS IN PRIVATELY-HELD COMPANIES**

Revenue and accounts receivable for Unicorns generally consists of the fair value of stock options or warrants committed from companies that have appeared on the Unicorn Hunters show. The options or warrants underlying the commitments typically have a term of five to ten years and accounts receivable are recorded at the estimated fair value of such options or warrants as determined at contract inception. Subsequent to issuance of the option or warrant certificates to the Company, the related receivables are reclassified to investments in privately-held companies, a long-term asset account representing investments in private company equity securities or rights to acquire private company equity securities.

The Company's non-cash receivables and the underlying investments in privately-held companies do not have readily determinable fair values. Their initial cost (i.e., estimated fair value at or near contract inception) is subsequently adjusted to fair value on a nonrecurring basis based on observable price changes from orderly transactions of identical or similar securities of the same issuer or upon impairment. These investments are classified within Level 3 of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights and obligations related to these securities. These valuations require management judgment due to the absence of an observable market price and lack of liquidity.

During the year ended December 31, 2025, the Company identified impairment indicators for two private-company investments and recorded impairment charges totaling $298 thousand, representing the full carrying value of those investments. The impairment charges were recorded within other income (expense), net in the consolidated statements of operations and comprehensive loss. As of December 31, 2025, the Company had not recorded any additional impairment or bad debt expense related to its remaining long-term investments in private companies or non-cash receivables.

During the year ended December 31, 2024, the Company received option and warrant certificates from five customers with an aggregate carrying value and estimated fair value of $1,510 thousand. Upon receipt, these amounts were reclassified from Unicorn Hunters non-cash receivables to investments in privately held companies.

**NOTE 5 – INTANGIBLE ASSETS - DIGITAL ASSETS**

The Company records the initial cost basis of digital assets at their original purchase price or the then-current quoted market prices (e.g., if received in an exchange rather than through purchase) and presents all digital asset holdings as indefinite-lived intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other, except USD Coin. The Company performs an analysis to identify whether events or changes in circumstances, principally decreases in the quoted prices on active exchanges, indicate that it is more likely than not that our digital assets are impaired. In determining if an impairment has occurred, we consider the quoted price of the digital asset. If the then current carrying value of a digital asset exceeds the fair value so determined, an impairment loss has occurred with respect to those digital assets in the amount equal to the difference between their carrying values and the prices determined.

The Company has revised its impairment loss assessment methodology for digital assets to record write-downs to the lowest market price of one unit of digital asset quoted on the active exchange since acquiring the digital asset (i.e., on a daily basis rather than quarterly). This revision is consistent with the requirements of ASC 350-30-35-19, which indicates impairment exists whenever carrying value exceeds fair value. It also indicates that after an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. Management assessed the potential difference in impairment loss that would have resulted in prior periods if this daily impairment methodology had been applied retroactively, noting the amounts were immaterial.

During the years ended December 31, 2025 and 2024, the Company received digital assets as consideration from investors for the purchases of unicoin rights, common stock and private placement unsecured notes issued by the Company. These digital assets included Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Tether (USDT) and Wrapped Ethereum (WETH). Unicoin rights are more fully discussed in Note 7. The Company utilized $419 thousand and $358 thousand of its digital asset holdings for vendor payments during the years ended December 31, 2025 and 2024, respectively.

During the years ended December 31, 2025 and 2024, the Company recorded $0 thousand and $15 thousand, respectively, of impairment losses on such digital assets. Impairment losses are included in operating expenses in the consolidated statements of operations and comprehensive loss. During the year ended December 31, 2025, there was $60 thousand of realized gain on disposal of digital assets.

The table below summarizes the carrying values and activity for the Company's digital asset holdings as of and for the year ended December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **December 31,<br>2025** | **December 31,<br>2024** |
| Bitcoin (BTC) | $- | $78399 |
| Ethereum (ETH) | 3468 | 7254 |
| Tether (USDT) | 1921 | - |
| &nbsp;&nbsp;&nbsp;Total | $5389 | $85653 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2025** | **Bitcoin** | **Ethereum** | **Tether** | **USD Coin\*** | **WETH** | **Total** |
| Beginning balance | $78398 | $7255 | $- | $- | $- | $85653 |
| &nbsp;&nbsp;&nbsp;Received as consideration in sales of unicoin rights |  | 1397 | 41619 | 65526 |  | 108542 |
| &nbsp;&nbsp;&nbsp;Vendors payments |  | (5137) | (64875) | (348921) |  | (418933) |
| &nbsp;&nbsp;&nbsp;Received as consideration in sales of common stock |  |  |  | 22664 |  | 22664 |
| &nbsp;&nbsp;&nbsp;Received as consideration of high yield notes |  | 7303 | 13392 | 10600 |  | 31295 |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of digital assets | (144498) | (7255) | (441434) | 232118 |  | (361069) |
| &nbsp;&nbsp;&nbsp;Realized gain on disposal/sale of digital assets | 66682 | 166 | (5126) | (1410) |  | 60312 |
| &nbsp;&nbsp;&nbsp;Impairments |  | (96) | (4) |  |  | (99) |
| &nbsp;&nbsp;&nbsp;Fees and other | (582) | (166) | 458347 | (19424) | - | 477024 |
| Ending balance | $- | $3468 | $1921 | $- | $- | $5389 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year Ended December 31, 2024** | **Bitcoin** | **Ethereum** | **Tether** | **USD Coin** | **WETH** | **Total** |
| Beginning balance | $4 | $958 | $- | $- | $292 | $1254 |
| &nbsp;&nbsp;&nbsp;&nbsp;Received as consideration in sales of unicoin rights | (4094) | 18680 | 1965 | 213397 |  | 229948 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vendors payments | (28337) |  |  | (329933) |  | (358270) |
| &nbsp;&nbsp;&nbsp;&nbsp;Received as consideration in sales of common stock |  |  |  | 94204 |  | 94204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of digital assets | 103445 |  |  | 226411 |  | 329856 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairments | (8968) | (6208) |  |  |  | (15176) |
| &nbsp;&nbsp;&nbsp;&nbsp;Write-off | (1051) | (6168) | (1965) | (158906) | (292) | (168382) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fees and other | 17399 | (7) | - | (45173) | - | (27781) |
| Ending balance | $78398 | $7255 | $- | $- | $- | $85653 |

---

The table above includes all balances presented within the Company's intangible assets line item on the consolidated balance sheets, based on quoted prices on active exchanges. The table also includes a separate column reflecting transactions involving USD Coin ("USDC"), which is not presented as an intangible asset on the balance sheet. Because the Company routinely engages in transactions involving both digital assets accounted for as intangible assets and USDC, this column has been included to provide additional transparency. USDC is classified within prepaid expenses and other current assets, and the total balances of USDC as of December 31, 2025 and 2024 were $26 thousand and $44 thousand, respectively.

**NOTE 6 – DEBT**

As of December 31, 2025 and 2024 the Company held short-term debt of $2,306 thousand and $100 thousand, respectively. The Company did not hold any long-term debt as of December 31, 2025 or 2024. The short-term debt bears interest at a rate of 20.0% per annum, payable at maturity, and matures one year from issuance unless the holder elects to extend the maturity for an additional year. Prepayment is not permitted.

The short-term debt generally ranks pari-passu relative to other unsecured obligations. As of December 31, 2025, $2,306 thousand of short-term debt was outstanding and payable during the year ended December 31, 2026 to the extent holders do not elect to extend one additional year.

Interest expense on short-term debt of $82 thousand and $39 thousand was incurred during the years ended December 31, 2025 and 2024, respectively, and was recorded as accrued expenses in the consolidated balance sheet. No significant third-party financing costs were incurred because the Company managed the issuance of the short-term debt internally, without use of an underwriter or trustee. Based on their short duration, the fair value of the short-term debt as of December 31, 2025 approximates their carrying amounts.

**NOTE 7 – UNICOIN RIGHTS FINANCING OBLIGATION**

As of December 31, 2025 and through the filing date of these consolidated financial statements, the Company has not issued any unicoins and there is no assurance as to whether, or at what amount, or on what terms, unicoins will be available to be issued, if ever.

The Company offered rights to receive unicoins upon tokenization ("unicoin rights" or "rights") pursuant to the terms and conditions set forth in a confidential private placement memorandum initially dated February 2022, as amended from time to time (the "Offering"). The Offering was conducted pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"), including Section 4(a)(2) thereof and Rule 506(c) thereunder. Each U.S.-domiciled investor that participated in the Offering was required to be an "accredited investor," as defined in Rule 501 of the Securities Act. The Company does not plan to issue any additional unicoin rights.

The Company accounted for unicoin rights as a liability representing the amount that management believed the Company would be obligated to pay or refund in the event unicoin tokens were not launched, which is the amount holders would have had a right to claim and would likely have been awarded in settlement. The liability reflected management's estimate of the obligation associated with the fair value of consideration received for the rights to receive unicoins in the future. The Company concluded that it had a legal or contractual obligation to refund amounts originally paid by investors if holders' reasonable expectation to receive unicoins was not achieved and therefore recorded a liability for such amounts.

There are currently 75,980 total holders of unicoin rights listed in the Company's registry (not accounting for duplication for individuals who invested more than once), including the holders of free coins, and 6,490 purchasers worldwide. Of these, 1,748 are US Citizen investors (26.93% of purchasers), and 4,742 (73.07% of holders) are non-US citizens or were not verified. Note that non-accredited holders or those not verified are either non-US Persons who purchased pursuant to Regulation S, or were given unicoin rights for free, and thus were not sold unicoin rights.

As of December 31, 2025 and 2024, the Company has issued rights to acquire 7.2 billion and 7.1 billion unicoins, respectively. As of December 31, 2025 and 2024 the outstanding financing obligation related to unicoin rights was $112,924 thousand and $109,911 thousand, respectively. The obligation to settle this liability through the exchange of a fixed number of unicoins, when and if all contingencies are resolved and unicoins are launched, represents an embedded feature that may result in additional charges to the Company's consolidated statements of operations and comprehensive loss upon settlement. Although the Company intends to do so, if it is unable to launch the unicoin & deliver them to Unicoin rightsholders, there can be no assurance that the Company can generate sufficient funds through operations, or through financing transactions on terms acceptable to the Company in order to settle the unicoin rights financing obligation. Due to the currently undetermined rights of unicoin holders, the significant nature of required regulatory approvals and the likely registration required prior to unicoins achieving liquidity (all of which have aspects whose success is outside of the Company's control), management initially concluded that the value of the embedded feature is de minimis and will likely remain de minimis until the unicoin is probable of regulatory approval and launch. Accordingly, the embedded feature was initially valued at $0 and is not expected to fluctuate until the unicoin is launched or probable of launch. The expected fair value measurement of the embedded feature was based on significant inputs not observable in the market and represent Level 3 measurements within the fair value measurement hierarchy. Level 3 fair market values were determined using a variety of information, including estimated future cash flows.

During the years ended December 31, 2025 and 2024, the Company paid operating expenses to employees and service providers by issuing unicoin rights with a fair value of $336 thousand and $12,444 thousand, respectively.

The following table summarizes the components of the unicoin rights financing obligation recorded on the Company's consolidated balance sheet as of December 31, 2025 and 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Outstanding Unicoin Rights and<br>Related Financing Obligation** | **Outstanding Unicoin Rights and<br>Related Financing Obligation** | **Outstanding Unicoin Rights and<br>Related Financing Obligation** | **Outstanding Unicoin Rights and<br>Related Financing Obligation** |
| | | **December 31, <br>2025** | **December 31, <br>2025** | **December 31,<br>2024** | **December 31,<br>2024** |
| <br>**Nature/Category of Unicoin**<br>**Right Holder** | <br>**Form of Consideration** | **Units** | **Amount** | **Units** | **Amount** |
| Sales to Investors | Cash, Digital Assets and Treasury Stock | 1907940360 | $46718121 | 1850019968 | $43551938 |
| Unicoin Inc. Shareholders | Non-Cash Dividends | 726189126 | 72619 | 727725875 | 72773 |
| Employee, Contractors, Directors | Discretionary Compensation | 522395275 | 52240 | 521771178 | 52177 |
| Service Providers, Influencers and Employees | Services and Employee Labor | 277939246 | 37382565 | 273733579 | 37048661 |
| &nbsp;&nbsp;&nbsp;Subtotal |  | 3434464007 | $84225545 | 3373250600 | $80725549 |
| ITSQuest Contingent Divestiture Amendment | Contract Amendment | 22000000 | 2570000 | 22000000 | 2570000 |
| Five-Year Deferred Payment Plan | Cash | 3280015501 | 22488204 | 3260484068 \* | 22963296 |
| Ten-Year Prepaid Plan | Cash | 7714046 | 2196422 | 8337046 \* | 2206998 |
| Asset Swap and related commission | Land | 464896751 | 1443682 | 464896751 | 1444938 |
| &nbsp;&nbsp;&nbsp;Total |  | 7209090305 | $112923853 | 7128968465 | $109910781 |

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\* Unicoin rights certificates for Units under the Five-Year Deferred Payment Plan and the Ten-Year Prepaid Plan will not be issued until the purchase transaction is completed under the terms discussed in the explanatory sections below for "Five-Year Deferred Payment Plan" and "Ten-Year Prepaid Plan".

*Sales to Investors*

As of December 31, 2025 and 2024, the unicoin rights financing obligation associated with sales to Investors amounted to $46,718 thousand and $43,552 thousand, respectively. The cumulative amounts were received from completed cash and non-cash sales of unicoin rights in the Company's various financing rounds at prices ranging from $0.01 to $0.75. Although there are no stated legal rights requiring the Company to return amounts received from investors, management believes the holders of unicoin rights have a reasonable right to either 1) receive the number of unicoins specified in their unicoin rights agreement upon the future launch of the unicoin or 2) a refund of the amount invested in anticipation of the future and launch of unicoins. Therefore, all amounts received from sales to Investors have been recorded as a unicoin rights financing obligation.

*Dividend Issued to Shareholders*

The Company declared and issued a non-cash dividend of unicoin rights, on a pro-rata basis, to all shareholders of record as of the dividend declaration date of February 10, 2022. This non-cash dividend was the initial issuance of unicoin rights, prior to finalizing any plan to market and sell rights in connection with any of the Company's financing rounds, and at the time of the pro-rata distribution, management and the Board had not yet ascribed a value to such rights. As a result, the Company has ascribed a de minimis value to all unicoin rights issued to shareholders on February 10, 2022. As of December 31, 2025 and 2024, the unicoin rights financing obligation associated non-cash dividend of unicoin rights amounted to $73 thousand and $73 thousand respectively.

*Discretionary Payments to Employees, Contractors and Directors*

The Company has issued unicoin rights to certain employees, Board members and external contractors/consultants as discretionary awards. These unicoin rights were issued on a discretionary basis and do not indicate that employees, Board members or contractors/consultants are being rewarded with a specific value attributable to past or future services rendered by such individuals. The unicoin rights were also not issued as a replacement for, or in lieu of, cash or equity awards due under any type of pre-determined bonus or other incentive plan that quantifies a value that the holders are entitled to as a result of their services or performance. The Company believes that, because of the nature of these discretionary awards (i.e., nothing of specific value was exchanged to the Company in return), together with the legal disclaimer of any obligation to launch the unicoin within the terms of the unicoin rights agreement, on a per unicoin right basis, the amount that holders would be entitled to if the unicoin is not ultimately launched is de minimis in relation to the actual fair value per unicoin right. As of December 31, 2025 and 2024, the unicoin rights financing obligation associated with discretionary payments to employees, contractors and directors amounted to $52 thousand and $52 thousand, respectively.

*Issued to Service Providers, Influencers and Employees*

The Company has issued unicoin rights in exchange for services from advertising agencies, marketing firms and other vendors. Also, the Company has issued unicoin rights as part of the compensation package negotiated with certain employees. The related contracts for these third-party providers and employees specify the value provided, as negotiated by these parties, and the number of unicoin rights accepted as compensation for the dollar value of those services.

Similar to investors, service providers exchanged a specified, negotiated value relating to services provided to the Company in exchange for unicoin rights and have the right to receive either 1) the negotiated number of unicoins upon launch, or 2) payment of cash equivalent to the value of services provided. In addition, from time to time the Company engages Influencers to promote unicoins and/or the Unicorn Hunters show in exchange for unicoin rights. The form of Influencer engagement may include promoting Unicoin in a social media post, making brief reference in a speech, posting about Unicoin on a website or any other media form.

These contracts do not specify the value of services rendered by the Influencer nor the specific format of engagement required. Because an "engagement" can represent something as simple as brief mention in a speaking engagement, or posting on a social media account, etc. management determined there is very little effort involved by the Influencer in order to perform services in a manner consistent with the contractual terms. As of December 31, 2025 and 2024, the unicoin rights financing obligation associated with unicoin rights issued to service providers, influencers and employees amounted to $37,383 thousand and $37,049 thousand, respectively.

*Five-Year Deferred Payment Plan*

In August 2022 the Company began offering a five-year deferred payment plan (the "deferred payment plan") to investors in its ongoing unicoin rights offering. The deferred payment plan permits investors to purchase unicoin rights immediately and pay for such unicoin rights in five equal annual installments, with the first installment due one year after the date of purchase. Purchases through the deferred payment plan requires that investors provide collateral to the Company having a value of at least 20% of the total purchase price of the purchased unicoin rights. Collateral can be in the form of Company common stock owned by the investor, unicoin rights already owned by the investor, cash, digital assets or other assets with a demonstrable value, at the Company's discretion, if such assets can be transferred to the Company or a valid lien on such assets can be secured. Pursuant to the terms of the installment payment plan, both the pledged collateral and the unicoin rights being purchased under the installment plan will be forfeited to the Company if the investor fails to make any of the five annual installment payments.

The following table summarizes the pledged collateral pursuant to the deferred payment plan outstanding as of December 31, 2025 and 2024, based on the estimated fair value of such collateral at the time it was submitted:

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| | | |
|:---|:---|:---|
| | **Estimated Fair Value of<br>Collateral at Date Submitted** | **Estimated Fair Value of<br>Collateral at Date Submitted** |
| <br>**Form of Collateral Received** | **Outstanding as of December 31,<br> 2025** | **Outstanding as of December 31,<br> 2024** |
| Cash | $572506 | $716406 |
| Digital Assets | 97996 | 97996 |
| Non-Unicoin Inc. Stock | 1769980 | 1769980 |
| Unicoin Inc. Shares of Common Stock | 3585668 | 3410556 |
| Unicoin rights | 30452967 | 30970832 |
| Real Estate | 15176914 | 15586914 |
| &nbsp;&nbsp;&nbsp;Total | $51656031 | $52552684 |

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In accordance with U.S. GAAP, only cash and digital assets pledged as collateral were recognized on the Company's consolidated balance sheets because they were deposited in accounts controlled by the Company, while the other forms of collateral received were not recorded as assets of the Company. The fair value of the collateral received by Company were determined as follows:

○ Cash – Fair value is based on the amount of cash received by the Company at the time the collateral was submitted.

○ Digital Assets – Fair value was determined based on quoted prices on active exchanges at the date the digital assets were submitted as collateral. Such amounts are not remeasured at subsequent reporting dates.

○ Non-Unicoin Inc. Stock – Fair value was determined based on quoted prices on active exchanges at the date the shares were submitted as collateral and is not adjusted for changes in market value after submission.

○ Unicoin Inc. Common Stock – Fair value was determined based on the fair value of the Company's common stock at the date the shares were submitted as collateral, with assistance from a third-party valuation firm. The fair value is not subsequently remeasured.

○ Unicoin rights – Fair value was determined based on the estimated fair value of unicoin rights at the date the rights were submitted as collateral, with assistance from a third-party valuation firm. The carrying value remains unchanged after submission.

○ Real Estate – Fair value is determined based on third-party appraisals or price opinions obtained at or near the date the real estate collateral was submitted. The Company does not remeasure the fair value of such collateral at subsequent reporting dates.

*Ten-Year Prepaid Plan*

In November 2022 the Company began offering a ten-year prepaid plan (the "prepaid plan") to investors in its ongoing unicoin rights offering. Under the prepaid plan, the investor remits a cash or digital asset deposit (the "principal") for a period of up to ten years. After the first year (the "maturity date"), the investor can either withdraw the principal or apply it towards the purchase of unicoins at 20 cents per unit. Amounts recorded within the unicoin rights financing obligation were as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Cash Receipts | $1759500 | $1897000 |
| Accrued Interest | 436922 | 309998 |
| Unicoin rights financing obligation, Ten-Year Prepaid Plan | $2196422 | $2206998 |

---

After five years following the deposit (the "interest vesting date"), a portion of these proceeds are entitled to earn cumulative (i.e., non-compounded) interest of 50%, which can either be withdrawn or applied to the purchase of Unicoins. The remaining proceeds did not include a contractual interest rate. Proceeds subject to contractual interest are as follows:

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| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Proceeds subject to interest | $1513000 | $1629500 |
| Exempt from contractual interest | 252500 | 267500 |
| Total | $1765500 | $1897000 |

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Accrued interest under the prepaid plan has been calculated using the straight-line method, which approximates the effective interest method. The financing obligation did not include present value adjustments to account for lower than market interest rate, in relation to those transactions with no contractual interest, as such adjustments would have been immaterial.

*ITSQuest Contingent Divestiture Amendment*

The Company issued a total of 22 million unicoin rights as consideration to the original sellers of ITSQuest in connection with amendments to the share exchange agreement that extended the timeline for achieving certain milestones required to avoid divestiture of ITSQuest. Because the measurement period for the ITSQuest acquisition concluded, at the latest, on November 30, 2021, the amendment to the share exchange agreement did not qualify as an adjustment to the original purchase price allocation. Accordingly, the Company recorded a unicoin rights financing obligation of $790 thousand and $1,780 thousand, during the years ended December 31, 2024 and 2022, respectively, related to the amendment and settlement of the original contingent divestiture provision. The total amount of $2,570 thousand represents the fair value, at the time of issuance and was recorded as cost of contract amendment within operating expenses in the Company's consolidated statement of operations. Now that the divestiture was completed on December 31, 2025, the related unicoin rights remain outstanding, and accordingly, the Company continues to recognize the associated Unicoin Rights Financing Obligation.

*Asset Swap Agreement and Related Commission* 

The Company records assets on the consolidated balance sheets for the fair value (as determined by a third-party specialist) of land and mining rights received in exchange of unicoin rights. The Company recorded investments in land and mining rights assets, and the respective unicoin rights financing obligation from asset swap agreements as of December 31, 2025, as follows:

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| | |
|:---|:---|
|  | **Investment in<br> Land/Unicoin<br> Right Financing<br> Obligation** |
| Eco Club, Venezuela | $1 |
| Vacant Land, California City | 4244 |
| 7R-Ranch, Texas | 54730 |
| Investments in land | 58975 |
| Mining rights asset |  |
| Commissions for asset swap agreements paid with unicoin rights | 180959 |
| Unicoin rights financing obligation from asset swap agreements | $239934 |

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The following items include descriptions of the assets included in the table above:

Eco Club, Venezuela - On October 9, 2024, the Company entered into an asset swap agreement with Cesar Armando Sánchez Roberto, a resident of Venezuela, wherein the Company agreed to provide a total of 1,746,497 unicoin rights in exchange for real estate assets consisting of 175,265 square meters of land, located in Fundo el Chuponal del Sector la Entrada, Municipio Naguanagua Edo Carabobo, Venezuela. In March 2025, the Company completed its due diligence, released 1,746,497 unicoin rights and received the title for the real estate assets.

Vacant Land, California City - On February 9, 2025, the Company entered into an asset swap agreement with Vessa Jenine Rinehart-Phillips, a U.S. Citizen, wherein the Company agreed to provide a total of 747,600 unicoin rights in exchange for real estate assets consisting of vacant land in the city of California City.

Mining rights, Argentina - On August 7, 2024, Unicoin entered into an asset swap agreement with Electroquimica del Neuquen S.A., an Argentine corporation (the "Argentina Seller"), pursuant to which the Argentina seller acquired rights to obtain 420,000,000 unicoin rights from the Company in exchange for the disposition of certain real estate assets described in the asset swap agreement (the "Argentina Real Estate Assets") of the Argentina seller to the Company (the "Argentina Transaction").

On December 20, 2024, a deed of assignment (the "Deed") of rights to explore for copper deposits in the Argentina Real Estate Assets was signed by the Argentina Seller and the Company. According to Argentine law, the Deed is required to be filed with and approved by the State Government, Mining Registry (Provice of Neuquen), for the transfer to be effective. Pursuant to the terms of the Deed, the Argentina Seller was required to register the transfer of ownership of the Argentina Real Estate Assets to the Company with the local mining registry within 10 business days of the execution of the Deed, and as of February 23, 2025, did not do so. On July 23, 2025, the Company formally registered with the Province of Neuquen the transfer of the exploration rights to the Company. Therefore, the Company deems this transaction as executed on July 23, 2025. Because of the contingencies regarding the registration and the fact that management had not become the owner of record until July 23, 2025, management had not previously recorded this transaction on the Company's consolidated balance sheet.

7R-Ranch - Texas - In 2025, Unicoin entered into an asset swap agreement with Randal P. Shaffer, a citizen from the United States, pursuant to which the Randal Investor acquired rights to obtain 153,244 unicoin rights from the Company in exchange for the disposition of certain real estate assets described in the asset swap agreement of the Randal Investor to the Company.

*Unicoin Rights Issued to Related Parties*

The unicoin rights issuances discussed above include a total of 1,287 million unicoin rights valued at $4,815 thousand and 1,191 million unicoin rights valued at $4,337 thousand, which represent the cumulative amounts issued to related parties during the year ended December 31, 2025 and 2024. The composition of these is summarized in the following table:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Outstanding Unicoin Rights and<br>Related Financing Obligation** | **Outstanding Unicoin Rights and<br>Related Financing Obligation** | **Outstanding Unicoin Rights and<br>Related Financing Obligation** | **Outstanding Unicoin Rights and<br>Related Financing Obligation** |
| | | **December 31, <br> 2025** | **December 31, <br> 2025** | **December 31,<br> 2024** | **December 31,<br> 2024** |
| <br>**Nature/Category** | <br>**Relationship** | **Units** | **Amount** | **Units** | **Amount** |
| Sales to Investors | Officers and Directors | 54006000 | $46200 | 51006000 | $16200 |
| Unicoin Inc. Shareholders (Dividends) | Officers and Directors | 549753656 | 54975 | 548526464 | 54852 |
| Discretionary Awards | Officers, Directors & their Families | 178244908 | 18317 | 126339548 | 14314 |
| Consideration for Services | Officers, Directors & their Families | 12575404 | 1672818 | 13523333 | 1681697 |
| ITSQuest Contingent Divestiture Amendment | Former Owners of ITSQuest | 22000000 | 2570000 | 22000000 | 2570000 |
| Five-Year Deferred Payment Plan | Officers, Directors & their Families | 469999900 | 452500 | 429333400 | - |
| &nbsp;&nbsp;&nbsp;Total |  | 1286579868 | $4814811 | 1190728745 | $4337063 |

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*Other Matters*

As of December 31, 2025 and 2024, the Company had $1,418 thousand and $63 thousand, respectively, of cash deposits pursuant to completion of the due diligence process required before issuance of unicoin right certificates. This amount is included in other current liabilities on the consolidated balance sheet and in proceeds from sales of unicoin rights on the consolidated statements of cash flows.

*Transaction Loss on Repurchase of Unicoin Rights*

During the years ended December 31, 2025 and 2024, the Company recorded a transaction gain/(loss) on repurchase of unicoin rights amounting to $14 thousand and $(6,941) thousand, respectively.

During the years ended December 31, 2025 and 2024, the transaction gain/(loss) included $14 thousand and $(6842) thousand, respectively, due to investors under the five-year deferred payment plan that paid installments using previously acquired unicoin rights as consideration. This component of the transaction loss results from differences between the fair value of the unicoin rights as of the time of installment under the five-year deferred payment plan compared to the initial acquisition cost of such unicoin rights.

During the years ended December 31, 2025 and 2024, the transaction loss included $0 thousand and $99 thousand, respectively, from repurchased unicoin rights from investors. This component of the transaction loss represented the excess of cash proceeds over the unicoin rights financing obligation that was previously recorded when the investor initially acquired the unicoin rights.

**NOTE 8 – COMMON STOCK**

The Company is authorized to issue 1,000,000,000 shares of common stock with 783,690,180 and 781,065,752 shares of common stock issued and 742,165,436 and 739,614,045 outstanding, net of treasury stock, as of December 31, 2025 and 2024, respectively. Stockholders are entitled to one vote for each share held of record on all matters to be voted on by stockholders. Stockholders have no conversion, pre-emptive, or other subscription rights and there are no sinking fund or redemption provisions applicable to the common stock.

*Issuance of Common Stock*

During the year ended December 31, 2025, the Company raised $2,140 thousand (of which $2,117 thousand was raised in cash) via a series of funding rounds as follows:

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| | | | |
|:---|:---|:---|:---|
| **Common Stock Issuances by Round** | **Shares** | **Weighted Average<br> Price per Share** | **Proceeds** |
| Round 6 | 5000 | $0.40 | $2000 |
| Round 8 | 1938706 | 1.00 | 1938706 |
| Round 9 | 99650 | 2.00 | 199300 |
| &nbsp;&nbsp;&nbsp;Total stock issued | 2043356 |  | $2140006 |

---

During the year ended December 31, 2024, the Company raised $3,651 (of which $3,557 was raised in cash) thousand via a series of funding rounds as follows:

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| | | | |
|:---|:---|:---|:---|
| **Common Stock Issuances by Round** | **Shares** | **Weighted Average<br>Price per Share** | **Proceeds** |
| Round 6 | 5273029 | $0.40 | $2109212 |
| Round 7 | 1541965 | 1.00 | 1541965 |
| &nbsp;&nbsp;&nbsp;Total stock issued | 6814994 |  | $3651177 |

---

All shares were issued from the Company's pool of authorized common stock, which rights and privileges are discussed above and were the same for all shares issued to date. Each funding round was available for a defined period with a specified price per share and did not overlap with other funding rounds. Investors that subscribed during a specific round, locked the pricing offered for that round and Company had a limited time to close on the issuance of shares. Once a funding round was fully subscribed to and committed, management evaluated capital needs and determined the price for the following round.

*Repurchases of Common Stock*

During the years ended December 31, 2025 and 2024, the Company repurchased 73,037 common stock shares and 539,567 common stock shares in exchange for consideration of $15 thousand and $194 thousand, respectively, which were recorded as treasury stock.

Treasury stock is recorded on the consolidated balance sheets at cost and is reflected as an increase to stockholders' deficit.

**NOTE 9 – STOCK-BASED COMPENSATION**

The following table summarizes the source and classification of the Company's stock-based compensation expense:

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| | | | |
|:---|:---|:---|:---|
| **Source of Stock-Based Compensation Expense** | **Classification in the Consolidated <br> Statements of Operations** | **2025** | **2024** |
| Unicorns common stock awards | Cost of revenues | $- | $100000 |
| Restricted stock units | General and administrative | 163033 | 53483 |
| Total Stock-based compensation | Total Stock-based compensation | $163033 | $153483 |

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**Unicorns Common Stock Awards**

On March 14, 2021, Unicorns, a majority-owned subsidiary of the Company, granted Unicorns Common Stock Awards to the executive producers of the Unicorn Hunters TV show. These awards have a grant-date fair value equal to the fair market value of the underlying Unicorns stock on the grant date less present value of expected dividends. During the year ended December 31, 2025 and 2024, the Company recorded stock-based compensation expense within the Cost of Revenues line item of $0 and $100 thousand, respectively, in relation to the vesting of five million Unicorns Common Stock Awards. As of December 31, 2025, five million Unicorns Common Stock Awards remain outstanding and not vested. The total grant-date fair value of the outstanding Unicorns Common Stock Awards amount to $100 thousand, for which no stock-based compensation expense has been recorded as the Company has assessed that is not probable the performance condition is going to be achieved.

**Restricted Stock Units Classified as Equity**

The following table summarizes information about RSUs as of and for the years ended December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **Equity <br> Classified** | **Weighted<br>Average<br>Grant Date<br>Fair Value** |
| Beginning balance - January 1, 2024 | 84862 |  |
| Vested | (78336) |  |
| Ending balance - December 31, 2024 | 6526 | $0.73 |
| Beginning balance - January 1, 2025 | 6526 |  |
| Granted | 551960 |  |
| Vested | (558488) |  |
| Forfeited | 2 |  |
| Ending balance - December 31, 2025 | - | $0.00 |

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The Company recorded $163 thousand and $53 thousand of stock-based compensation expense relating to equity classified RSU's during the years ended December 31, 2025 and 2024, respectively.

**Stock Options**

The following is a summary of stock option activity and related information for the years ended December 31, 2025 and 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br>Shares** | **Weighted<br>Average**<br> **Exercise Price** | **Weighted<br>Average<br>Grant Date<br>Fair Value** | **Weighted<br>Average<br>Remaining<br>Contractual<br>Term (Years)** | **Aggregate<br>Intrinsic Value** |
| Beginning balance January 1, 2024 | 55535881 | $0.031 |  | 5.61 | $18619327 |
| Granted |  |  |  |  |  |
| Exercised | (430000) |  |  |  |  |
| Adjustments | 5000 |  |  |  |  |
| Ending balance December 31, 2024 | 55110881 | $0.031 |  | 4.61 | $14639230 |
| Beginning balance January 1, 2025 | 55110881 | $0.031 |  | 4.61 | $14639230 |
| Granted |  |  |  |  |  |
| Exercised |  |  |  |  |  |
| Adjustments | - | - |  |  |  |
| Ending balance December 31, 2025 | 55110881 | $0.031 |  | 4.61 | $2121886 |
| Vested and exercisable as of December 31, 2025 | 55110881 | $0.031 |  | 4.61 | $2121886 |

---

As of December 31, 2025 and 2024, there was no unrecognized stock-based compensation for stock options because all outstanding shares were fully vested. For the years ended December 31, 2025, and 2024, there was no stock-based compensation for stock options.

**NOTE 10 – WARRANTS**

In connection with the execution of multiple Private Placement Memoranda during the years ended December 31, 2018 and 2017, the Company granted sales commission warrants to purchase shares of the Company's common stock at exercise prices ranging from $0.001 to $1.00 per share with a term of 10 years from the closing date of each offer. These were considered to be share issuance costs and were recognized in Additional Paid in Capital.

Common stock purchase warrants issued and currently outstanding are recorded at their initial fair value and reported in stockholders' equity (deficit) as increases to additional paid-in capital. These warrants were reported as equity, rather than liabilities, since (i) the warrants may not be net-cash settled, (ii) the warrant contractually limits the number of shares to be delivered in a net-share settlement, and (iii) the Company has sufficient unissued common stock shares available to settle outstanding warrants. Subsequent changes in fair value from the warrants' initial fair value are not recognized as long as the warrants continue to be classified as equity. As of December 31, 2025 and 2024 all warrants were classified as equity with a weighted average grant date fair value of $0.01.

The following table summarizes information about the warrants as of and for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Equity<br> Classified** | **Weighted**<br> **Average<br> Grant Date<br> Fair Value** |
| Beginning balance - January 1, 2024 | 10310000 |  |
| Granted |  |  |
| Exercises | (510000) | $0.01 |
| Forfeited | - |  |
| Ending balance - December 31, 2024 | 9800000 | $0.01 |
| Beginning balance - January 1, 2025 | 9800000 |  |
| Granted |  |  |
| Exercises |  |  |
| Forfeited | - |  |
| Ending balance - December 31, 2025 | 9800000 | $0.01 |

---

**NOTE 11 – DISCONTINUED OPERATIONS**

Upon the expiration of the Share Exchange Agreement ("SEA") and the Company's election not to extend the term thereof, the ITSQuest, Inc. ("ITSQuest") business met the criteria for classification as discontinued operations. In accordance with ASC 205-20, Discontinued Operations, the Company evaluated the divestiture of its staffing and human capital management business as a single plan of a strategic shift that has a major effect on the Company's operations and financial results.

Accordingly, the historical results of ITSQuest have been classified as discontinued operations in the Consolidated Statements of Operations and Comprehensive Loss for all periods presented, and the related assets and liabilities have been reclassified as discontinued operations in the Consolidated Balance Sheets. As of December 31, 2025, the Company determined that the automatic transfer of equity back to the original sellers resulted in a loss of control, leading to the deconsolidation of the entity.

**Financial Results of Discontinued Operations:**

The following table summarizes the results of operations for the ITSQuest business for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Total Revenues | $14962182 | $17928288 |
| Cost of Sales | (11988488) | (14330686) |
| Gross Profit | 2973694 | 3597602 |
| Operating Expenses | (2794811) | (2930300) |
| Operating Income (Loss) | 178883 | 667302 |
| Interest Income | 86287 | 37549 |
| Net Income (Loss) from Discontinued Operations | 265170 | 704851 |
| Income Tax | (81130) | (160914) |
| Net Income from Discontinued Operations | 184040 | 543937 |
| Loss from Divestiture of Discontinued Operations | (4891712) | - |
| Total Loss Discontinued Operations and Divestiture of Discontinued Operations, net | $(4707672) | $543937 |

---

The following is a summary of assets and liabilities attributable to discontinued operations, which were included in our historical Consolidated Balance Sheet at December 31:

---

| | |
|:---|:---|
|  | **2024** |
| **ASSETS** |  |
| Cash and equivalents | $1704959 |
| Accounts receivable, net | 1876840 |
| Prepaid and other current assets | 66799 |
| Indemnification asset (\*) | 5196624 |
| Property, Plant and Equipment — Net | 2784 |
| Intangible — Net | 2332506 |
| Right of Asset | 158513 |
| Goodwill | 3865695 |
| Total Assets, discontinued operations | $15204720 |
| LIABILITIES |  |
| Accounts payable and accrued liabilities | $193145 |
| Lease Liability | 101000 |
| Other Liability | 511403 |
| Deferred Tax liability | 4991620 |
| TOTAL LIABILITY | $5797168 |

---

---

| | |
|:---|:---|
| (\*) | The Company was previously the primary obligor for certain historical tax liabilities associated with the ITSQuest business. These obligations, along with the related indemnification rights, were transferred to the sellers upon the effective date of the divestiture. As of December 31, 2025, the Company derecognized a Deferred Tax Liability of $4,991,620 related to a New Mexico Gross Receipts Tax assessment and a corresponding Indemnification Asset of $5,196,624. Because these items were components of the ITSQuest disposal group prior to the loss of control, they are included within the major classes of assets and liabilities of discontinued operations in the 2024 Consolidated Balance Sheet presented above. |

---

The Company recorded a loss on divestiture of $4,892 thousand, which corresponded to the derecognition of ITSQuest's total assets, total liabilities, and noncontrolling interest of $10,217 thousand, $625 thousand, and $4,700 thousand, respectively, as of December 31, 2025, the date of divestiture.

In accordance with ASC 205-20, the Company's policy is to allocate interest expense to discontinued operations only to the extent that the debt is specifically identifiable to the operations of the discontinued component or is required to be repaid as a result of the disposal transaction. For the years ended December 31, 2025 and 2024, the Company determined that no interest expense was attributable to ITSQuest. All outstanding debt and associated interest expenses during these periods related to corporate-level financing facilities held by the Parent, which were not required to be repaid as a result of the divestiture.

**NOTE 12 – COMMITMENTS AND CONTINGENCIES**

**Legal proceedings**

We may from time to time be involved in various claims and legal proceedings of a nature we believe are normal and are incidental to our business. These matters may include product liability, intellectual property, employment, personal injury caused by our employees, and other general claims. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

*Finch, et al. v. Unicoin Inc*. On September 24, 2025, a putative class action complaint (the "Finch complaint") was filed in the United States District Court for the Southern District of New York against Unicoin and certain current and former officers, captioned Finch, et al. v. Unicoin Inc., et al., Case No. 1:25-cv-07939.

The Finch complaint alleges, among other things, violations of New York General Business Law §§ 349 and 350, as well as related claims, in connection with the Company's marketing of Unicoin Rights Certificates. To the Company's knowledge, neither the Company nor any of the individual defendants have yet been served with the complaint.

The Company believes the Finch complaint claims are without merit and intends to defend the matter vigorously. The Company is unable to predict the outcome of this matter or reasonably estimate a range of possible loss, if any, at this time.

*German Arochi, individually and on behalf of all others similarly situated v. Unicoin Inc.* On November 6, 2025, a putative class action complaint (the "Arochi complaint") was filed in the United States District Court for the Southern District of New York against Unicoin and certain current and former officers, captioned German Arochi, individually and on behalf of all others similarly situated v. Unicoin Inc., et al., Case No. 1:25-cv-09273.

The Arochi complaint alleges, among other things, violations of New York General Business Law §§ 349 and 350, as well as related claims or causes of action, in connection with the Company's marketing of Unicoin Rights Certificates. To the Company's knowledge, neither the Company nor any of the individual defendants have yet been served with the complaint.

The Company believes the Arochi complaint claims are without merit and intends to defend the matter vigorously. The Company is unable to predict the outcome of this matter or reasonably estimate a range of possible loss, if any, at this time.

On December 10, 2024, we received a "Wells Notice" from the Staff of the SEC stating that it has made a preliminary determination to recommend that the SEC file an enforcement action against us. This proposed action would allege violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Sections 5 and 17(a) of the Securities Act of 1933. The Staff further advised us that the potential enforcement action may involve a civil injunctive action or other action allowed by law, and may seek remedies that include an injunction, disgorgement, pre-judgment interest, civil money penalties, and such other relief as may be available.

In addition, on December 10, 2024, Alex Konanykhin, our Chief Executive Officer and Chairman of our board of directors, Silvina Moschini, one of our directors and the Chief Executive Officer of our subsidiary Unicorns, Inc., Alejandro Dominguez, our Chief Investment Officer, and Richard Devlin, our former Senior Vice President and General Counsel, each received a "Wells Notice" from the Staff stating that it has made a preliminary determination to recommend that the SEC file an enforcement action against Messrs. Konanykhin, Dominguez and Devlin and Ms. Moschini. This proposed action would allege violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Sections 5 and 17(a) of the Securities Act, as well as, in the case of Mr. Konanykhin and Ms. Moschini, violations of these provisions as a controlling person of us under Section 20(a) of the Exchange Act. The Staff further advised these individuals that the potential enforcement action may involve a civil injunctive action or other action allowed by law, and may seek remedies that include an injunction, disgorgement, pre-judgment interest, civil money penalties, a bar from service as an officer or director and limitations on activities or bars from association and such other relief as may be available.

**The Wells Notices are neither formal allegations nor findings of wrongdoing.** They allow the recipients the opportunity to address the issues raised by Staff before they make an enforcement recommendation to the SEC or the SEC votes on whether to authorize an enforcement action. See our Current Report on Form 8-K filed on December 16, 2024 regarding our response to the Wells Notices which can be found at <u>https://www.sec.gov/ix?doc=/Archives/edgar/data/1740742/000182912625000028/unicoin_8k.htm</u>.

**SEC v. Unicoin Inc., et. al.** On May 20, 2025, the U.S. Securities and Exchange Commission (the "SEC") filed a civil enforcement action against Unicoin Inc. and certain individuals, including its directors Silvina Moschini and Alex Konanykhin, Alejandro Dominguez, and its former General Counsel Richard Devlin in the United States District Court for the Southern District of New York. The action is captioned Securities and Exchange Commission v. Unicoin Inc. f/k/a TransparentBusiness, Inc., et al., Case No. 1:25-cv-4245 (S.D.N.Y.). The complaint alleges violations of various provisions of the federal securities laws in connection with Unicoin's offer and sale of digital assets, including unicoin tokens, as well as alleged material misstatements and omissions in communications with investors. The SEC is seeking injunctive relief, disgorgement of proceeds, civil monetary penalties, officer and director bars, and other equitable relief. We believe the claims are without merit and intend to vigorously defend against the allegations. The litigation may result in financial liability, restrictions on future capital-raising efforts, or reputational harm, and could materially affect Unicoin's business, operations, and prospects.

*Additional Pending Litigation*

In addition to the SEC litigation described above, the following legal matters are currently pending:

**Jovan Tadic v. Unicoin, Inc. and Alex Konanykhin, Superior Court of California, County of Contra Costa, Case No. C24-02710:** Tadic, by assignment from a third party, alleges Unicoin failed to deliver over one million tokens and certain equity interests. The complaint includes claims for breach of contract and alter ego liability and seeks declaratory and monetary relief. The defendants dispute the claims. The matter remains pending. The outcome of this case could result in monetary liability or reputational impact for Unicoin.

**Pickholz v. TransparentBusiness, Inc. et al., United States District Court for the District of New Jersey, Civil Action No. 22-2504 (ES)(JBC):** Michael Pickholz, a former Chief Financial Officer of TransparentBusiness, Inc., asserted claims against TransparentBusiness, Inc. and certain individuals alleging retaliation, equity-related matters, and wage violations, including claims under the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act. On September 26, 2025, the Court dismissed certain claims with prejudice, including claims related to Dodd-Frank retaliation and salary-based allegations, while allowing certain other claims to proceed.

On March 28, 2026, the parties entered into a settlement agreement resolving all claims asserted in the action without any admission of liability or wrongdoing by the defendants. Pursuant to the settlement, the Company agreed to (i) issue or transfer 500,000 shares of common stock, which had a total estimated fair value of approximately $25 thousand as of the settlement date; (ii) issue or transfer 500,000 unicoins, which had a total estimated fair value of approximately $5 thousand as of the settlement date; and (iii) pay $15 thousand to Mr. Pickholz's legal counsel for attorneys' fees and expenses. Upon completion of the settlement obligations, the litigation will be dismissed with prejudice.

We are not presently a party to any other legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

*Litigations that have been settled by the Company*

The following legal matters were settled by the Company during the year ended December 31, 2025:

**BeeFree, LLC v. Unicoin, Inc. and Silvina Moschini, United States District Court for the Southern District of Florida, Case No. 0:24-cv-22408-ALTMAN/LETT:** In September 21, 2024, BeeFree, LLC filed a lawsuit against Unicoin, Inc. and Silvina Moschini. The parties have now entered into a Settlement and Release Agreement dated June 20, 2025, resolving all claims. Under the agreement, Unicoin agreed to pay $200,000 in eight installments through March 2027 and to transfer 350,000 Unicoin tokens to BeeFree within ten days of executing a related purchase agreement. The Company intends to comply fully with the agreement and the matter will be dismissed with prejudice. The settlement resolves all claims related to the case.

**Christopher DiFonzo v. Unicoin, Inc. and Alex Konanykhin, United States District Court for the Southern District of New York, Case No. 25-cv-2600:** Plaintiff alleges that Unicoin and its CEO failed to compensate him for services rendered in connection with cryptocurrency compliance and business development. Claims include breach of contract and failure to reimburse expenses. On October 28, 2025, the Company settled the matter by agreeing to make a cash payment of $39 thousand within 60 days and by issuing 200,000 Unicoin rights to the plaintiff. If Unicoin conducts an ICO issuing more than 25 billion unicoins, it will deliver additional tokens to the plaintiff to maintain the intended proportional ratio of 200 thousand-to-25 billion. This settlement fully resolves all claims in the case. This settlement fully resolves all claims in the case.

**Indemnification Obligations**

The Company has agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person's service as a director or officer, including any action by the Company, arising out of that person's services as the Company's director or officer or that person's services provided to any other company or enterprise at the Company's request. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.

**Asset Swap Agreements**

As of December 31, 2025, and through the filing date of these consolidated financial statements, the Company has signed certain asset swap agreements where consideration consisted of unicoins. Because the unicoin has not been delivered and listed for trading yet, management cannot yet ascertain control over the assets included in such asset swap agreements. Accordingly, management has not recorded these transactions in the consolidated balance sheet. In certain cases, the agreements include project failure or escrow provisions tied to a token launch timeline. Where such conditions have lapsed without fulfillment, the agreements are considered terminated or abandoned in accordance with their terms. Management is currently evaluating next steps, including the legal and accounting implications of such terminations, as well as whether to engage counterparties to renegotiate or revive any of the affected transactions under revised terms. The following represents summaries of each transaction:

● "Restrepo": On July 29, 2024, the Company entered into an asset swap agreement (as amended) with Grupo Spira S.A.S., a company organized under the laws of Colombia, pursuant to which the seller agreed to transfer 100% ownership of certain real estate assets to the Company in exchange for rights to receive 4,340,000 unicoin tokens. Pursuant to the terms of the asset swap agreement, the seller is required to transfer the asset by deed. While due diligence has been completed, the transfer of title has not yet occurred. Accordingly, management has determined that the criteria for recognition of this transaction on the consolidated balance sheet has not been met.

● "Buona Vista": On September 26, 2024, the Company entered into an Asset Swap Agreement (the "Agreement") pursuant to its 140 Program with Victor Raul Montenegro Criado, an individual citizen of Peru, and Villa Paradiso S.A.C., a company organized under the laws of Peru (collectively referred to in this paragraph only as the "Seller"). Under the Agreement, the Seller agreed to transfer 100% of the ownership interest in Buona Vista – Casas Club & Resort S.A.C., a Peruvian entity holding certain real estate assets, to the Company in exchange for rights to receive 61,795,216 unicoin tokens. The unicoin token rights will be issued in three tranches, contingent upon the achievement of specified construction milestones related to the real estate assets. The initial ICO date was set for September 30, 2024, and was subsequently extended to March 30, 2025, pursuant to an amendment dated October 23, 2024. The Company did not proceed with the ICO by the extended deadline of March 30, 2025. Accordingly, on April 23, 2025, the parties executed a second amendment to revive and amend the original Agreement, extending the ICO deadline to December 31, 2025. The Company has instructed local counsel to initiate steps to move the transaction to escrow. As of the date of this report, the transaction has not yet moved to escrow; title to the assets has not transferred, and no unicoin rights have been issued in connection with the transaction. Accordingly, management has determined that the criteria for recognition of this transaction on the consolidated balance sheet has not been met.

● "Bahamas": On January 24, 2024, the Company entered into two Asset Swap Agreements pursuant to its 140 Program to acquire the beneficial interest in two Bahamian entities, Long Island Investments Ltd. and Newport Harbour Ltd. (collectively referred to in this paragraph only as the "Landholding Companies"), which collectively own specified real estate parcels in the Bahamas. In exchange, the Company agreed to issue a total of 1,108,863,283 unicoin rights. On March 25, 2024, the parties executed an amendment clarifying certain rights and obligations, including provisions related to the conversion of the beneficial interest into full legal ownership. Under the Agreements, as amended, the Company obtained a beneficial interest in the Landholding Companies through a trust declaration, with the option to convert its beneficial interest into full legal ownership of the entities. The Agreements also included a rescission clause stipulating that if the unicoin tokens are not created and listed on crypto exchanges within nine months, the Agreements would terminate, and the assets and unicoin rights would revert to the Investors and Company, respectively. The Company did not proceed with the ICO as anticipated under the original Agreements. Accordingly, on September 27, 2024, the parties executed a second amendment extending the ICO deadline to December 31, 2024, and establishing the following interim obligations: (i) Finalize the technical procedures for transferring unicoins to New World Properties SPV Inc.'s crypto wallet; (ii) Facilitate the Company's ongoing due diligence on the Investor Company and the Properties; and (iii) Complete the conversion of beneficial ownership of shares into full legal ownership of the Landholding Companies, thereby granting the Company full control over the Properties. The second amendment further provides that if, by January 30, 2025, the parties are unable to agree on a new ICO date and no regulatory delay is in effect, the Agreement shall be deemed null and void ab initio, releasing all parties from any liabilities or obligations. The Company did not proceed with the ICO by the extended deadline of December 31, 2024. On May 21, 2025, counsel for New World Properties SPV Inc. notified the Company of its withdrawal from representation, citing the pending SEC lawsuit against the Company as one of the reasons for his withdrawal. In the notice, counsel stated its belief that the transaction between Unicoin and the SPV could not proceed to closing under the current circumstances. This withdrawal abruptly halted the progress that had been made between the parties' legal counsel toward finalizing an extension of the transaction deadline and completing the conversion of the Company's beneficial interest into full legal ownership of the Landholding Companies. As a result, the Company must now reengage directly with the relevant investors to assess the status of the transaction and determine whether a path forward remains feasible. However, there is no assurance that the transaction will be consummated.

 Due to the existence of the rescission provision in the agreements, and because the Company has not completed the process of converting beneficial ownership into full legal ownership, management has concluded that the criteria for recognition of this transaction in the consolidated balance sheet have not been met.

● "Greenmall Venezuela": On November 1, 2023, the Company entered into an asset swap agreement with Shine Investment Corp. a company organized under the laws of Panama (referred to in this paragraph only as the "Seller"), pursuant to which the seller agreed to transfer 100% of the ownership interest in Inversiones Inmobiliarias Petroin CA, a Venezuelan entity owning certain real estate assets, to the Company, in exchange for rights to receive 11,496,800 unicoin rights. Under the terms of the asset swap agreement, all corporate documents related to the transaction were deposited in escrow pending the transfer of the consideration to the designated wallet. As of the date of this report, although the agreement remains in effect, the escrow period has lapsed, the escrow agent has returned the corporate documents to the Seller, and the transaction has not been consummated. Accordingly, management has determined that the criteria for recognition of this transaction in the consolidated balance sheet has not been met.

● "Colorado": On October 23, 2023, the Company entered into an Asset Swap Agreement (as amended) with Bart M. Gould and Rozalyn S. Gould, husband and wife residing in the United States (collectively referred to in this paragraph only as the "Sellers"), pursuant to which the Company agreed to acquire certain real estate assets in exchange for 11,564,000 unicoins. On April 23, 2024, the parties amended the Agreement to include a condition requiring that the deed to the assets be released to the Company upon the issuance of the unicoins to the Sellers and their subsequent listing and tradability on a token trading platform or exchange. As of the date of this report, the transaction has not closed, title has not been transferred, and no unicoin rights have been issued in connection with the transaction. Accordingly, management has not met the control criteria for recognition of this transaction in the consolidated balance sheet.

● "Club 51": On October 20, 2023, the Company entered into an asset swap agreement with International Mame Industry SAPI de CV, a company organized under the laws of Mexico, pursuant to which the Company agreed to acquire 20% of the equity interest in the Club 51 business, controlled by International Mame Industry SAPI de CV and its subsidiaries. The Club 51 business, which consists of a series of exclusive business clubs, is currently distributed among multiple entities, and is to be reorganized and consolidated prior to closing, such that the Company is to receive a 20% ownership interest in the Club 51 businesses, in exchange for 100,000,000 unicoins. This transaction remains in the due diligence phase, as the corporate consolidation of the Club 51 entities remains incomplete. Accordingly, management has not met control criteria for recognition of this transaction in the consolidated balance sheet.

● "Antigua": On October 16, 2023, the Company entered into an asset swap agreement with Five Island Lands Trust (referred to in this paragraph only as the "Investor") pursuant to the Company's 140 Program. The agreement provided that the Company, as the issuer of unicoins, warranted that the ICO would be launched on or before November 15, 2023. If the ICO did not occur by the specified date, the Agreement required the parties to negotiate a new ICO date in good faith within 45 days of the original ICO date. The parties were unable to reach an agreement on a new ICO date. While the agreement does not expressly state that the failure to launch by the ICO date would terminate the Agreement, it does provide that "failure to effect the planned ICO" permits the parties to "challenge the agreement." As of the date of this report, the transaction has not closed, title to the assets has not transferred, no unicoin rights have been issued, and the agreement remains subject to potential challenge. Accordingly, management has not met the control criteria for recognition of this transaction in the consolidated balance sheet.

● "Eden Grand Resort": On August 31, 2023 the Company entered into an asset swap agreement with Mr. Mohammad Al Saeed Adnan and Mr. Chai Trongchitnimit, pursuant to which the Company agreed to acquire certain real estate assets in Chonburri, Thailand in exchange for 671,206,755 unicoins. The assets are to be delivered to Genniwine Inc., a corporation organized under the laws of Thailand, of which the Company controls 49% pursuant to a shareholder agreement in which Alex Konanykhin, acting for the Company, receives the full economic benefits of Genniwine. The assets consist of a development project for a 6-story condominium resort which is under construction, with the unicoins payable in three tranches: (i) 34% deliverable at closing and transfer of title to the Property; (ii) 33% deliverable when construction of the structures proposed to be built on the property is 50% complete; and (iii) 33% deliverable when construction of the structures proposed to be built on the property is 100% complete. Deeds to the assets are currently held in escrow pending delivery of unicoin tokens. The escrow arrangement terminates if tokenized coins not delivered by April 30, 2024, but only with notice from the escrow agent that the transaction is terminated, which notice has not yet been provided. Accordingly, management has not met control criteria for recognition of this transaction in the consolidated balance sheet.

● "Finca La Esperanza": On July 27, 2023, the Company entered into an agreement with Eugenio de la Torre (referred to in this paragraph only as the "Investor"), pursuant to which the Company agreed to issue 36,400,000 unicoins rights in exchange for real estate assets consisting of the agricultural farm known as "Finca La Esperanza," located in Cumaribo, Vichada, Colombia. The assets were transferred to the Company by deed on October 23, 2023, and recorded with the local registry in February 2024. The agreement includes a project failure clause, which stipulates that if the unicoin token was not both tokenized and released for trading within 12 months of the agreement date, the transaction would be deemed terminated, requiring each party to return their respective contributions. As the 12-month period has now lapsed without the token being released for trading, the agreement is deemed terminated in accordance with its terms. This triggers reversionary rights: the real estate assets are to be returned to the Investor, and the 36,400,000 unicoins rights are to be returned to the Company. Management is currently evaluating next steps, including the legal and logistical process for effecting the reversals, the accounting implications of the transaction, and whether it may be appropriate to engage the Investor in discussions regarding the potential modification or removal of the clawback provisions under the agreement. Accordingly, management has not met control criteria for recognition of this transaction in the consolidated balance sheet.

● "Thai Villas": On May 5, 2023, the Company entered into an asset swap agreement with M.E. Construction, a company organized under the laws of Thailand, pursuant to which the Company agreed to acquire certain real estate assets in Chonburri, Thailand in exchange for 12,800,000 unicoins. The assets are to be delivered to Genniwine Inc., a corporation organized under the laws of Thailand, of which the Company controls 49% pursuant to a shareholder agreement in which Alex Konanykhin, acting for the Company, receives the full economic benefits of Genniwine. The assets are eight villas under construction, with the unicoins payable in two tranches: (i) 60% payable upon execution of the transaction, and (ii) 40% payable upon completion of construction and delivery of the completed assets to the Company. Deeds to the assets are currently held in escrow pending delivery of unicoin tokens. The escrow arrangement terminates if tokenized coins not delivered by April 30, 2024, but only with notice from the escrow agent that the transaction is terminated, which notice has not yet been provided. Accordingly, management has not met control criteria for recognition of this transaction in the consolidated balance sheet.

**NOTE 13 – RELATED PARTY TRANSACTIONS**

**Unicoin Rights Issued to Related Parties**

As discussed in Note 7, a total of 1,287 million unicoin rights valued at $4,815 thousand and 1,191 million unicoin rights valued at $4,337 thousand were issued to related parties during the year ended December 31, 2025 and 2024, respectively.

**NOTE 14 – INCOME TAXES**

The components of income tax provision are as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Current: |  |  |
| &nbsp;&nbsp;&nbsp;U.S. federal | $- | $67776 |
| &nbsp;&nbsp;&nbsp;U.S. state | 1127 | 1484 |
| &nbsp;&nbsp;&nbsp;Foreign | - | 113 |
| Total current expense | 1127 | 69373 |
| Deferred: |  |  |
| &nbsp;&nbsp;&nbsp;U.S. federal |  |  |
| &nbsp;&nbsp;&nbsp;U.S. state | - | - |
| Total deferred expense | - | - |
| Total income taxes | $1127 | $69373 |

---

The tax effects of temporary differences and tax loss carry forwards that give rise to significant portions of deferred tax assets and liabilities as of December 31, 2025 and 2024 are comprised of the following:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Deferred income tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carry-forwards | $25883114 | $24389883 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 9287630 | 9165818 |
| &nbsp;&nbsp;&nbsp;Impairment of digital assets | 862761 | 570413 |
| &nbsp;&nbsp;&nbsp;Disallowed loss on digital assets | 326723 | 310666 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities |  | 4905 |
| &nbsp;&nbsp;&nbsp;Charitable Contributions | 1216 | 1210 |
| &nbsp;&nbsp;&nbsp;Foreign Currency Gains/Losses | 119 |  |
| &nbsp;&nbsp;&nbsp;Section 174 Costs | 15642 | 20629 |
| &nbsp;&nbsp;&nbsp;Unicoin right transaction gain or loss | 5061723 | 5042696 |
| &nbsp;&nbsp;&nbsp;Stock Based Compensation | 2266771 | 2235300 |
| &nbsp;&nbsp;&nbsp;Capital Loss | 866418 | - |
| Total deferred income tax assets | 44572117 | 41741520 |
| Deferred income tax liability: |  |  |
| &nbsp;&nbsp;&nbsp;Outside basis difference on ITSQuest investment - acquisition equity |  | (458260) |
| &nbsp;&nbsp;&nbsp;Unicorn Hunters unexercised stock options and warrants | (1810200) | (1810200) |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets |  | (4624) |
| &nbsp;&nbsp;&nbsp;Other | (3100) | (5394) |
| Total deferred income tax liability | (1813300) | (2278478) |
| Net deferred tax assets | 42758817 | 39463042 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (42758817) | (39463042) |
| Net deferred income tax liability | $- | $- |

---

The Company has recorded a full valuation allowance against its otherwise recognizable deferred income tax assets as of December 31, 2025 and 2024 with the exception of deferred taxes related to ITSQuest as of December 31, 2024, which was a majority owned company. The Company has determined, after evaluating all positive and negative historical and prospective evidence, that it is more likely than not that the net deferred tax assets will not be realized. During the year ended December 31, 2025, and 2024, there was an increase of $3,295 thousand and $8,096 thousand to the valuation allowance, respectively. The Company's valuation allowance is $42,759 thousand and $39,463 thousand as of December 31, 2025 and 2024, respectively.

As of December 31, 2025, the Company's tax return filing group, Unicoin, Inc. and Subsidiaries had federal net operating loss carry-forwards of approximately $81,615 thousand, of which $275 thousand were generated prior to 2018 and will begin expiring in 2037. The remaining $81,340 thousand can be carried forward indefinitely. As of December 31, 2025, the Company had state net operating loss carry-forwards of approximately $46,515 thousand. The state net operating loss carry-forward will begin expiring in 2038. As of December 31, 2025, the company's majority owned investments in ITSQuest, Inc. and Unicorns, Inc. had federal net operating losses generated after 2018 of $0 and $26,702 thousand, respectively. ITSQuest, Inc. and Unicorns, Inc. had no state operating losses. Unicoin International Inc is incorporated in Panama and generated a net operating loss of $103 thousand.

The following is a reconciliation of the statutory federal income tax rate to our effective tax rate:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Current: |  |  |
| Tax at U.S. statutory rate | $(1858464) | $(7569745) |
| State and local taxes, net of federal benefit\* | 890 | (968533) |
| Effects of Changes in Tax Laws or Rates Enacted in the Current Period |  | 25320 |
| Changes in Valuation Allowance | 2911656 | 8095905 |
| Capital Loss | (866418) |  |
| M&E, Penalties | 4105 | 7847 |
| Stock Issuance Costs | 208703 | 411361 |
| Prior Year Tax True Up |  | 66670 |
| Deferred True Up | (399345) | 435 |
| Other | - | 113 |
| Total income taxes | $1127 | $69373 |

---

As of December 31, 2025, and 2024, we had $118 thousand and $107 thousand, respectively, of unrecognized tax benefits that, if recognized, would not impact the Company's effective tax rate because of the company's net operating loss carryforwards and the related valuation allowance. The total amount of unrecognized tax benefits could change within the next 12 months for a number of reasons, including audit settlements, tax examination activities, and the recognition and measurement considerations under this guidance.

The Company applies ASC 740 to determine whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any tax benefit can be recorded in the financial statements. The following is a tabular reconciliation of our total gross unrecognized tax benefits:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Balance as of January 1 | $107252 | $97134 |
| Reversals related to the prior year |  |  |
| Additions related to the current year | 10600 | 10118 |
| Balance as of December 31 | $117852 | $107252 |

---

Utilization of the domestic NOL and tax credit forwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by the Internal Revenue Code Section 382, as well as similar state provisions. In general, an "ownership change," as defined by the code, results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders or public groups. Any limitation may result in expiration of all or a portion of the NOL or tax credit carry-forward before utilization.

The Company's income tax returns for all years remain open to examination by federal and state taxing authorities for a period of three years and four years after the utilization of its NOLs, respectively. ITSQuest, Inc.'s income tax returns remain open to examination for a period of three years by federal and state taxing authorities. Generally, tax authorities can include returns filed within the last three years in an audit. If they identify a substantial error, tax authorities may add additional years, however no more than the last six years.

**Other Considerations**

The Company records liabilities related to its uncertain tax positions. Tax positions for the Company and its subsidiaries are subject to income tax audits by federal and state tax jurisdictions. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the tax audits cannot be predicted with certainty, if any issues addressed in the Company's tax audits are resolved in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future.

**NOTE 15 – NET LOSS PER SHARE**

Net loss per common share is calculated in accordance with ASC Topic 260, *Earnings Per Share*. The Company presents basic and diluted loss per common share for (i) continuing operations, (ii) discontinued operations, and (iii) net loss attributable to Unicoin, Inc. Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted loss per share is computed using the weighted-average number of shares of common stock outstanding and, when applicable, the effect of potentially dilutive securities. For all periods presented, the Company reported an overall net loss attributable to the Company; accordingly, all potential common stock equivalents were anti-dilutive and excluded from diluted loss per share. As a result, basic and diluted loss per share are the same for continuing operations, discontinued operations, and in total, including periods in which discontinued operations generated net income.

Potentially dilutive securities consist of stock options, restricted stock units, and warrants to purchase common stock.

Calculation of net losses per share from continuing operations is as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>**Basic and Diluted:** | **2025** | **2024** |
| Numerator: |  |  |
| Net loss from continuing operations per consolidated statements of operations | $(8954370) | $(36115779) |
| Denominator: |  |  |
| Weighted average common shares outstanding used to compute basic and diluted loss per share | 741608124 | 735982489 |
| Net loss per common share from continued operations, basic and diluted | $(0.01) | $(0.05) |

---

Calculation of net losses per share from discontinued operations is as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>**Basic and Diluted:** | **2025** | **2024** |
| Numerator: |  |  |
| Net income from discontinued operations | $184040 | $543938 |
| Loss from divestiture of discontinued operations | (4891712) | - |
| Net loss (income) from discontinued operations and divestiture of discontinued operations | (4707672) | 543938 |
| Weighted average common shares outstanding used to compute basic and diluted loss per share | 741608124 | 735982489 |
| Net loss from discontinued operations and divestiture of discontinued operations, basic and diluted | $(0.01) | $0.00 |

---

Calculation of net losses per share attributable to Unicoin Inc. is as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
| <br>**Basic and Diluted:** | **2025** | **2024** |
| Numerator: |  |  |
| Net loss attributable to Unicoin Inc. per consolidated statements of operations | $(13393388) | $(34954651) |
| Denominator: |  |  |
| Weighted average common shares outstanding used to compute basic and diluted loss per share | 741608124 | 735982489 |
| Net loss per common share attributable to Unicoin Inc., basic and diluted | $(0.02) | $(0.05) |

---

The following table presents the potentially dilutive shares that were excluded from the computation of diluted net loss per share of common stock attributable to common stockholders, because their effect was anti-dilutive:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
| Stock options outstanding |  | 55110881 |  | 55110881 |
| Warrants for common stock |  | 9800000 |  | 9800000 |
| Restricted stock units |  |  |  | 6526 |

---

**NOTE 16 – SEGMENT INFORMATION**

Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, or decision-making group in deciding how to allocate resources and in assessing performance. The Company evaluates operating results based on measures of performance, including revenues, cost of revenue and gross profit. The Company currently operates in the following three reporting segments: SaaS, TaaS and Unicorn Hunters.

Our reportable segments consist of SaaS, TaaS and Unicorn Hunters. We determine our operating segments based on how the chief operating decision maker ("CODM") manages the business, allocate resources, make operating decisions and evaluate operating performance. The Company's CODM is the Chief Executive Officer. Our CODM reviews financial information presented on a consolidated basis accompanied by information about revenue and cost of revenue by services type along with gross profit for purposes of allocating resources and evaluating financial performance, as such we have disclosed segment information up to gross profit for each operating segment. Furthermore, our revenues are derived from the United States and foreign countries which includes the South American and European regions ("Foreign countries").

As discussed in Note 1, the Company operates in three business segments – SaaS, which consists of operations related to the Company's fully integrated all-in-one cloud-based solution to manage remote workers; TaaS, which consists of operations related to the Company's staffing service offerings, whereby customers are connected to individuals by the Company who are able to assist them in projects; and Unicorns, which consists of operations relative to production and streaming of the Unicorn Hunters show which provides publicity and exposure to customers through their appearances on the Unicorn Hunters show.

The following tables set forth certain reportable segment information relating to where the Company derived its revenue for the years ended December 31, 2025, and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **United States** | **Foreign countries** | **Consolidated** | **United States** | **Foreign countries** | **Consolidated** |
| Staffing revenues | $2187686 | 203154 | $2390840 | $2228224 | $252843 | $2481067 |
| Subscription revenues | 112 | 26292 | 26404 | 192 | 32357 | 32549 |
| Unicorn Hunters | 38 | - | 38 | 85 | 2591 | 2676 |
| Total revenues | $2187836 | 229446 | $2417282 | $2228501 | $287791 | $2516292 |

---

The following tables set forth certain reportable segment information relating to the Company's operations for the years ended December 31, 2025, and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended December 31, 2025** | **Years Ended December 31, 2025** | **Years Ended December 31, 2025** | **Years Ended December 31, 2025** |
|  | **SaaS** | **TaaS** | **Unicorn Hunters** | **Consolidated** |
| Revenues | $26404 | $2390840 | $38 | $2417282 |
| Cost of revenues | - | 1993420 | 30300 | 2023720 |
| Gross profit (loss) | $26404 | $397420 | $(30262) | $393562 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended December 31, 2024** | **Years Ended December 31, 2024** | **Years Ended December 31, 2024** | **Years Ended December 31, 2024** |
|  | **SaaS** | **TaaS** | **Unicorn Hunters** | **Consolidated** |
| Revenues | $32549 | $2481067 | $2676 | $2516292 |
| Cost of revenues | - | 1954448 | 128415 | 2082863 |
| Gross profit (loss) | $32549 | $526619 | $(125739) | $433429 |

---

The following table includes a reconciliation of Gross Profit allocated to segments to Loss Before Income Taxes:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Gross Profit allocated to segments, net | $393562 | $433429 |
| Expenses not allocated to segments, net\* | 574421 | (2185039) |
| Loss Before Income Taxes | $(8953243) | $**(36046406)** |

---

\* Includes mainly Unicoin marketing expense, stock-based compensation, Unicoin's right transaction gain or Loss, and other Gen admin expenses, Amortization of intangibles, Bad debt expense and other Gen admin expense Software Development Expense, Impairment of investments in privately held companies, interest income (expense), net, other income (expense), net.

There were no material transactions between reportable segments during the years ended December 31, 2025 and 2024.

Assets by reportable segment and operating costs by reportable segment are not presented as the Company does not allocate assets to its reportable segments, nor is such information used by management for purposes of assessing performance or allocating resources.

**NOTE 17 – SUBSEQUENT EVENTS**

Management has evaluated subsequent events through the date of issuance of these financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the financial statements other than those described below:

In February and March 2026, the Company entered into a credit facility and related equity arrangements with SafeBets.world Inc. ("SafeBets"), an entity founded and solely owned by the Company's Chief Executive Officer and co-founder, Alex Konanykhin. On February 14, 2026, the Company executed a credit facility and stock allocation agreement with SafeBets pursuant to which the Company agreed to provide a revolving line of credit of up to $5.0 million, and SafeBets agreed to issue 50 million shares of its common stock to the Company in connection with the arrangement. In addition, in March 2026, SafeBets authorized the issuance of additional shares of its common stock to certain parties, including shares issued to the Company pursuant to the credit facility agreement. These events occurred subsequent to December 31, 2025 and are not reflected in the accompanying consolidated financial statements.

---

| |
|:---|
| As discussed in Note 12 - Commitments and Contingencies, on March 28, 2026, the Company entered into a settlement agreement with Michael Pickholz resolving all claims related to pending litigation. Pursuant to the settlement, the Company agreed to transfer non-cash consideration consisting of common stock with an estimated fair value of approximately $25 thousand and unicoins with an estimated fair value of approximately $5 thousand, and to pay $15 thousand in legal fees. The settlement was entered into without any admission of liability or wrongdoing by the Company. This matter constitutes a non-recognized subsequent event and is not reflected in the accompanying consolidated financial statements. |
| Subsequent to December 31, 2025, the Company received cash and USDC of $5,017 thousand and $292 thousand, respectively, related to new rounds of unicoin rights, representing the investor's rights to receive utility tokens in the future, when these become available. During the same period, the Company also received cash proceeds of $25 thousand from the issuance of short-term debt. |

---

**Item 9.** **CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

None.

---

| | |
|:---|:---|
| **Item 9A.** | **Controls and procedures** |

---

***Evaluation of Disclosure Controls and Procedures***

Based on an evaluation under the supervision and with the participation of the Company's management, and due to the material weakness in internal controls over financial reporting described below, the Company's principal executive officer and principal financial officer have concluded that the Company's disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were not effective for the periods ending December 31, 2025 and 2024 to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to the Company's management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

***Inherent Limitations Over Internal Controls***

The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company's internal control over financial reporting includes those policies and procedures that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company's assets;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that the Company's receipts and expenditures are being made only in accordance with authorizations of the Company's management and directors; and

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

Management, including the Company's Chief Executive Officer and Chief Financial Officer, does not expect that the Company's internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also, any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance with the policies or procedures may deteriorate.

***Management's Annual Report on Internal Control Over Financial Reporting***

Management conducted an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2025, based on the framework established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, management has determined that our internal control over financial reporting as of December 31, 2025, was not effective due to material weaknesses in internal controls over financial reporting.

*Material Weaknesses in Internal Control Over Financial Reporting*

A material weakness in internal controls over financial reporting is a deficiency, or a combination of deficiencies, in internal controls over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

The review, testing and evaluation of key internal controls over financial reporting completed by the Company resulted in the Company's principal executive officer and principal financial officer concluding that as of December 31, 2025, material weaknesses existed in the Company's internal controls over financial reporting. Specifically, in connection with our:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) entity-level controls - Controls are not in place with respect to the five components of entity-level controls: Control Environment, Risk Assessment, Monitoring, Information and Communication, and Control Activities;

(ii) information technology general controls and segregation of duties - Lack of proper segregation of duties related to journal entries. The accounting software does not require approval before a journal entry is posted to the general ledger. Thus, an unapproved journal entry can be easily input into the system without the knowledge of senior management; and

(iii) equity accounting - There was a large volume of equity transactions, mainly related to the issuance of stock to investors. The Company has a manually intensive set of processes and controls in place to record and review these transactions. We do not believe the controls are properly designed to sufficiently mitigate the risk of material misstatement given the large volume of transactions that are processed.

The Company has continued to address the material weaknesses described above through the following actions:

---

| |
|:---|
| Engaging third-party consultants with appropriate expertise to assist the finance and accounting department on an interim basis until key roles are filled; |
| Assessing finance and accounting resources to identify the areas and functions that lack sufficient personnel and recruiting for experienced personnel to assume these roles; |
| Further centralization of key accounting processes to enable greater segregation of duties; |
| Developing further training on segregation of duties; and |
| Designing and implementing additional compensating controls where necessary. |

---

While we continue working diligently to remediate these material weaknesses, there is no assurance that these material weaknesses will be fully remediated by December 31, 2026.

***Changes in Internal Control over Financial Reporting***

There were no changes in our internal control over financial reporting (as that term is defined in Rules 13a-15(d) or 15d-15(d) of the Exchange Act) identified in connection with management's evaluation during the year ended December 31, 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

---

| | |
|:---|:---|
| **Item 9B.** | **other information** |

---

None.

---

| | |
|:---|:---|
| **Item 9C.** | **Disclosure regarding foreign jurisdictions that prevent inspections** |

---

None.

**PART III**

**Item 10.** **DIRECTORS, EXECUTIVE OFFICERS** **AND CORPORATE GOVERNANCE**

The following table sets forth information for our executive officers and directors as of the day of this Annual Report on Form 10-K:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Silvina Moschini | 54 | Chief Strategy Officer |
| Alex Konanykhin | 59 | Chairman of the Board and Chief Executive Officer |
| Andrew Winn | 57 | Chief Financial Officer |
| Alejandro Dominguez | 56 | Chief Investment Officer |
| Petr Smirnov | 41 | Chief Technology Officer |
| Deniece Ky | 55 | Principal Accounting Officer |
| Robert Newman | 62 | Director |

---

**Executive Officers and Directors**

***Silvina Moschini***

Ms. Moschini is a Co-Founder of the Company and served as the Chairwoman and President of the Company since its founding in 2015. In December 2024, she resigned from her role as President, and was named CEO of the Company's Unicorns Inc. subsidiary. In March 2025, Ms. Moschini resigned from the Board of Directors of the Company. She was re-elected to the Board in June 2025, and named Chief Strategy Officer in April 2026. Prior to her roles at the Company, Ms. Moschini was Vice President of Corporate Communications at Visa International from 2002 to 2003, where she developed the public relations function, further positioning Visa as one of the most globally valued brands. She joined Visa from Patagon.com, the Internet branch of Santander Central Hispano Group, where she was Vice President of Corporate Communications from 2001 to 2002. Prior to joining Patagon, Ms. Moschini was the Public Relations manager for Compaq Computer Corporation Latin America from 1999 to 2001, creating the Public Relations Department and supervising the implementation of the communications strategy in the region. Ms. Moschini is also the founder of SheWorks, Inc., where she has served as its Chief Executive Officer and a director since November 2016 and the founder of Yandiki, Inc., where she has served as its Chief Executive Officer and a director from August 2014 until June 2024 when Yandiki was merged into SheWorks. Ms. Moschini is also a board member, CEO, co-producer and co-star in the Company's affiliated business reality show, Unicorn Hunters. Ms. Moschini has a B.S. in public relations from Universidad Argentina de la Empresa (Buenos Aires, Argentina) and a degree in marketing from New York University. She also completed a master's course in public relations from the University of Houston in Texas and graduate courses in web communications and social media at the Libera Università di Lingue e Comunicazione and the Università Commerciale Luigi Bocconi, both in Milan, Italy. Ms. Moschini was selected to serve on the board due to her extensive experience and leadership skills, including being responsible for developing the Company's industry-leading operating platform.

***Alex Konanykhin***

Mr. Konanykhin is a Co-Founder of the Company and has served as the Chief Executive Officer and a director of the Company since its founding in 2015. Mr. Konanykhin was named Chairman of the Board on March 21, 2025, upon the resignation of Silvina Moschini from her role as Chairworman and resignation from the Board of Directors. Mr. Konanykhin is a serial entrepreneur, author and business expert. At the age of 23, he founded the Russian Exchange Bank, becoming one of the wealthiest men in post-Communist Russia. After defecting to the United States in 1992, he created KMGi in 1997, an international award-winning production studio that is widely recognized by leading publications such as Forbes and CNN as the "Future of the Internet" for innovative implementations of cutting-edge technology. KMGi developed a variety of businesses, including Intuic, Unicoin Inc., Yandiki, KMGi Studios, WikiExperts, ForWellConnected, Stock4Services and Services4Stock. He has also been a member of the board of directors of SheWorks, Inc. since 2016 and Yandiki, Inc. since 2014 and has served as the Chief Executive Officer and a member of the board of directors of Unicorns since November 2020. Most recently, Mr. Konanykhin has founded and become a board member, co-producer and co-star in the Company's affiliated business reality show, Unicorn Hunters. He has an MBA from the Edinburgh Business School. Mr. Konanykhin is qualified to serve on the board with his significant sector experience and key leadership skills.

***Andrew Winn***

Mr. Winn has served as the Chief Financial Officer of the Company since 2020. He is responsible for all duties of the CFO function, including accounting, reporting functions, investor relations, fundraising and investment presentations. He also has served as the Company's Chief Investor Relations Officer since 2017. Prior to joining the Company, Mr. Winn was a trader at Mid Atlantic Capital Group Inc. from 2013 through 2017. While there, Mr. Winn successfully executed fixed income trades for investment grade, high yield, structured and emerging market bonds and further enhanced and incorporated electronic trading platforms into the existing trading framework. He also significantly increased the visibility of the firm by building relationships and executing many trades in the United States and overseas. Mr. Winn earned a bachelor's degree in finance and accounting at the University of Berkeley and an MBA from Santa Clara University. He also took courses for a master's degree in taxation at Golden Gate University and earned the Chartered Financial Analyst designation. Mr. Winn brings to the board extensive experience related to financial reporting, internal controls, compliance, risk and regulatory strategy, developed from over 18 years of experience in accounting and investment functions in large investment institutions.

***Alex Dominguez***

Mr. Dominguez has served as Chief Investor Relations Officer since April 2022 and was promoted to Chief Investment Officer in December 2023. Mr. Dominguez was Executive VP of Corporate Development for the Company from March to April of 2022. He has held multiple sales management roles over the years in various large multinational pharmaceutical and biotech firms such as Sanofi Aventis and Abbott Labs. Most recently, from 2020 to 2022, he helped launch the world's first FDA approved treatment for Peanut allergy while working for startup Aimmune Therapeutics which was bought out by Nestle Health Sciences in 2020. Prior to that, he spent six years at the largest manufacturer of generic pharmaceuticals at the time Teva Pharmaceuticals based in Israel. While at Teva, he helped grow worldwide market share of various respiratory and CNS drugs such as QVAR and AJOVY while a member of the sales and marketing team. Mr. Dominguez has also held Series 3, 7, 24, 30 and 63 FINRA securities licenses in the past and has five years of experience as a retail stockbroker in the US equities market. Mr. Dominguez received an MBA degree from Barry University in 1994with a concentration in Public Administration. He earned his undergraduate degree in Finance / International Business from Florida International University in 1991.

***Petr Smirnov***

Mr. Smirnov is a seasoned business technology executive with an extensive track record in aligning technology to business results, delivering enterprise solutions and implementing large-scale technology vision. Mr. Smirnov has served as the Chief Technology Officer for the Company since June 2015 (initially with KMGi Group, then TransparentBusiness, Inc.). He helped develop the original TransparentBusiness software for remote workforce management. He is managing development and applying of Web3 and blockchain technologies into company workforce. Mr. Smirnov attended the Taganrog State University of Radio Engineering from 2001 to 2006, where he received a Bachelor's degree in Information Technologies.

***Deniece Ky***

Ms. Ky has served as Principal Accounting Officer of the Company since November 2020, where she has been responsible for all the Company's finance and accounting functions. Ms. Ky manages financial reporting, internal controls and processes, corporate taxes and filings, audits, accounting and internal compliance, systems integration and prepares the books, systems and processes to ensure IPO readiness. Prior to joining the Company, Ms. Ky served as Corporate Controller of Milestone Technologies from May 2018 through November 2020. At Milestone Technologies, Ms. Ky managed the financial processes for general and internal accounting and was responsible for audits, statutory reporting and handling the taxes of the business. She further led a team of individuals who were responsible for cash, job costing, expense reports, payroll and accounts payable. Ms. Ky also has nearly four years of experience, beginning in July 2014, as the Manager of Project, General Accounting & SOX PMO of Seagate Technology. In that role, she acted as the financial project lead for SAP to Oracle R12 and Oracle 11i to R12 implementation. She also led SOX compliance execution and provided internal controls related knowledge and guidance to SOX 404 leads. She has a BA in Business Administration, Accounting and Finance.

***Robert Newman***

Robert Newman is the owner of Glass Systems, Inc., a company he founded in 2000, where he has served as President since 2000. Mr. Newman attended William Paterson University from 1982 through 1985 (no degree earned). Mr. Newman's qualifications to serve on the Board include his 25 years of success as an entrepreneur, as well as his experience in growing a small business, and his unwavering support for the Company and its mission as a shareholder and investor in unicoins.

**Family Relationships**

Silvina Moschini, the Company's Chief Strategy Officer and former President and Chairwoman of the Board, was previously married to Alex Konanykhin, a director and the Chief Executive Officer of the Company, until December 2022.

**Item 11.** **EXECUTIVE COMPENSATION**

**Executive Compensation Overview**

As an emerging growth company, we have opted to comply with the executive compensation disclosure applicable to "smaller reporting companies," as such term is defined in the rules promulgated under the Securities Act. This section describes the material components of the executive compensation program for our Chief Executive Officer and our two other most highly compensated executive officers whom we refer to as our "named executive officers." For the year ended December 31, 2025, our named executive officers were:

● Alex Konanykhin, our Chief Executive Officer; and

● Silvina Moschini, our Chief Strategy Officer and our Chief Executive Officer of Unicorns Inc.

To date, the compensation of our named executive officers has consisted of a combination of base salary, cash incentive compensation and long-term incentive compensation, as more fully described below. Our named executive officers, like all full-time employees, are eligible to participate in our health and welfare benefit plans. As we transition from a private company to a publicly traded company, we intend to evaluate our compensation values and philosophy and compensation plans and arrangements as circumstances require.

**Summary Compensation Table**

The following summary compensation table sets forth all compensation awarded to, earned by, or paid to our named executive officers paid by us during the years ended December 31, 2025 and 2024:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary<br> ($)** | **Bonus<br> ($)** | **Stock<br> Awards<br> ($)** | **Option<br> Awards<br> ($)** | **All Other<br> Compensation<br> ($)** | **Total<br> ($)** |
| Alex Konanykhin | 2025 | 316000 |  |  |  | 14306 | 330306 |
| Chief Executive Officer | 2024 | 316000 |  |  |  | 14306 | 330306 |
| Silvina Moschini | 2025 | 316000 |  |  |  | 2655 | 318655 |
| Chief Strategy Officer and Chief Executive Officer of Unicorns | 2024 | 316000 |  |  |  | 2655 | 318655 |

---

**Narrative to the Summary Compensation Table**

*Employment Arrangements with our Named Executive Officers*

All of our named executive officers are employees-at-will and we have not entered into any employment, severance, change in control or similar agreements with any of them, nor are we otherwise currently responsible for any payment upon the termination of their employment.

*Base Salaries*

Each named executive officer's base salary is a fixed component of annual compensation for performing specific duties and functions. Base salaries are reviewed annually, typically in connection with our annual performance review process and adjusted from time to time to realign salaries with market levels, when applicable, after taking into account individual responsibilities, performance and experience.

*Bonuses*

Annual cash incentive awards are used to motivate and reward our employees. We do not maintain a formal annual cash incentive award plan. Instead, such awards are determined on a discretionary basis and are generally based on individual and Company performance.

*Equity Awards*

Equity incentive compensation in the form of stock awards and option awards is used to promote performance-based pay that aligns the interests of our executive officers with the long-term interests of our equity-owners and to enhance executive retention.

*All Other Compensation*

We issue unicoin rights to our executive officers as a form of other compensation. The amounts listed in the table above under the column "All Other Compensation" include the dollar value of the total unicoin rights each named executive officer received during the fiscal years ended 2025 and 2024.

We also offer participation in broad-based retirement, health and welfare benefit plans to all of our employees. We have not maintained, and do not currently maintain, a defined benefit pension plan or nonqualified deferred compensation plan. In addition, we do not provide perquisites to our named executive officers.

**Outstanding Equity Awards at 2025 Fiscal Year End**

The following table sets forth information regarding outstanding equity awards held by our named executive officers as of December 31, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** |
| <br>**Name** | <br>**Grant Date** | **Number of<br> Securities <br> Underlying<br> Unexercised <br> Options (#)<br> Exercisable** | **Number of<br> Securities<br> Underlying<br> Unexercised<br> Options (#)<br> Unexercisable** | **Option Exercise <br> Price ($)** | **Option Expiration Date** | **Number of<br> Shares of<br> Stock That<br> Have Not<br> Vested (#)** | **Market<br> Value of<br> Shares of<br> Stock That<br> Have Not<br> Vested ($)** |
| Alex Konanykhin | 2/26/2020 | 1928830 |  | 0.0010 | 2/26/2030 |  |  |
| Silvina Moschini | 2/26/2020 | 1928830 |  | 0.0010 | 2/26/2030 |  |  |
|  | 8/3/2021 | 6500000 |  | 0.0010 | 8/3/2031 |  |  |
| Petr Smirnov | 10/31/2021 | 2500000 |  | 0.0010 | 10/31/2031 |  |  |
|  | 2/2/2022 | 1042 |  | 1.0300 | 2/2/2032 |  |  |

---

**Non-Employee Director Compensation**

The following table presents the total compensation for each person who served as a non-employee member of our board of directors during the year ended December 31, 2025. We do not have any formal agreements or arrangements with our non-employee directors to pay for their services. During the year ended December 31, 2025, Alex Konanykhin, our Chief Executive Officer, and Silvina Moschini, our Chief Strategy Officer and our Chief Executive Officer of Unicorns Inc. and our former President, also served as members of our board of directors. Mr. Konanykhin's detailed compensation is described in the "Summary Compensation Table" above.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees Earned or<br> Paid in Cash<br> ($)** | **All Other<br> Compensation<br> ($)** | **Total<br> ($)** |
| Robert Newman<sup>(1)</sup> | – | 57083 | 57083 |

---

(1) Mr. Newman was elected to serve on the Board of Directors, from November 2024.

Each member of the Board of Directors receives one hundred thousand (100,000) unicoin rights per month, which comprise the total compensation that each such member receives. The amounts listed in the table above represent the dollar value of the total unicoin rights each director received during the fiscal year ended 2025.

**Item 12.** **SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

The following table sets forth information as of the date hereof regarding beneficial ownership of our common stock (a) prior to this offering and (b) as adjusted to give effect to this offering, by:

● each person known by us to beneficially own more than 5% of our common stock;

● each of our named executive officers and directors; and

● all of our current directors and executive officers as a group.

Beneficial ownership of the voting stock is determined in accordance with the rules of the SEC and includes any shares of company voting stock over which a person exercises sole or shared voting or investment power, or of which a person has a right to acquire ownership at any time within 60 days of December 31, 2025. Applicable percentage ownership in the following table is based on 739,614,045 shares of common stock issued and outstanding as of the date hereof.

To the best of our knowledge, except as otherwise indicated, each of the persons named in the table has sole voting and investment power with respect to the shares of our common stock beneficially owned by such person, except to the extent such power may be shared with a spouse. To our knowledge, none of the shares listed below are held under a voting trust or similar agreement, except as noted. To our knowledge, there is no arrangement, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control of the Company.

Unless otherwise indicated, the address for each listed stockholder is c/o Unicoin Inc., 228 Park Ave South 16065, New York, New York.

---

| | | |
|:---|:---|:---|
| | **Shares Beneficially Owned** | **Shares Beneficially Owned** |
| <br>**Name and Address of Beneficial Owner<sup>(1)</sup>** | **Number** | **Percent** |
| **5% Stockholders:** |  |  |
| Silvina Moschini | 270297882 | 36.42% |
| Alex Konanykhin | 266207848 | 35.87% |
| **Named Executive Officers and Directors:** |  |  |
| Silvina Moschini | 270297882 | 36.42% |
| Alex Konanykhin | 266207848 | 35.87% |
| Andrew Winn | 3461425 | \* |
| Petr Smirnov | 1250000 | \* |
| Alejandro Dominguez | 176667 | \* |
| Robert Newman | 168923 | \* |
| Deniece Ky | 131605 | \* |
| **All current directors and executive officers as a group** | 540694350 | 72.99% |

---

\* Denotes less than 1% beneficial ownership.

**Item 13.** **CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

The following includes a summary of transactions since January 1, 2025 and any currently proposed transactions, to which we were or are to be a participant, in which (i) the amount involved exceeded or will exceed $120,000; and (ii) any of our directors, executive officers or holders of more than 5% of our capital stock, or any affiliate or member of the immediate family of the foregoing persons, had or will have a direct or indirect material interest, other than compensation and other arrangements that are described under the section titled "Executive Compensation."

**Related Party Transactions**

Refer to Note 13 of "Notes to Consolidated Financial Statements," included in Item 8 of this Annual Report on Form 10-K for details.

**Director and Officer Indemnification and Insurance**

We plan to enter into indemnification agreements with each of our directors and executive officers and plan to purchase directors' and officers' liability insurance. See "Description of Capital Stock - Limitations on Liability and Indemnification Matters."

**Related Person Transaction Policy**

Our board of directors will adopt a written related person transaction policy, to be effective upon the closing of this offering, setting forth the policies and procedures for the review and approval or ratification of related person transactions. This policy will cover, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which we were or are to be a participant, where the amount involved exceeds $120,000 in any fiscal year and a related person had, has or will have a direct or indirect material interest, including without limitation, purchases of goods or services by or from the related person or entities in which the related person has a material interest, indebtedness, guarantees of indebtedness and employment by us of a related person. In reviewing and approving any such transactions, our audit committee will be tasked to consider all relevant facts and circumstances, including, but not limited to, whether the transaction is on terms comparable to those that could be obtained in an arm's length transaction and the extent of the related person's interest in the transaction.

**Director Independence**

As of the date of this Annual Report on Form 10-K, the Company has three directors. Our director, Robert Newman, is an independent director. Therefore, the majority of the members of the board of directors as currently composed qualify as independent in accordance with the published listing requirements of the NASDAQ Global Market. The NASDAQ independence definition includes a series of objective tests, such as that a director is not, and has not been for at least three years, one of the Company's employees and that neither the director, nor any of his or her family members, has engaged in various types of business dealings with us.

**Item 14.** **Principal ACCOUNTANT fees and services**

The following table presents fees billed for professional audit services and other services rendered to the Company by Kreit & Chiu for the years ended December 31, 2025 and 2024, respectively. The dollar amounts in the table and accompanying footnotes are in thousands.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Audit Fees (1) | $402 | $378 |
| Audit-Related Fees |  |  |
| Tax Fees |  |  |
| All Other Fees (2) | - | - |
| &nbsp;&nbsp;&nbsp;Total | $402 | $378 |

---

(1) Audit Fees consist of fees billed for professional services rendered for the annual audit and quarterly reviews of the Company's consolidated financial statements, as well as services that generally only the Company's independent registered public accounting firm can reasonably provide, including statutory audits and services rendered in connection with SEC filings.

(2) Audit-related fees consist of fees for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of the registrant's financial statements and are not reported under "Audit Fees".

**PART IV**

**Item 15.** **ExhibitS, FINANCIAL STATEMENTS Schedules**

The following documents are filed as part of this Annual Report on Form 10-K:

*a.* *Consolidated Financial Statements* 

The consolidated financial statements are filed as part of this Annual Report on Form 10-K under "Item 8. Financial Statements and Supplementary Data."

*b.* *Financial Statement Schedules* 

The financial statement schedules are omitted because they are either not applicable or the information required is presented in the financial statements and notes thereto under "Item 8. Financial Statements and Supplementary Data."

*c.* *Exhibits* 

The exhibits listed in the following Exhibit Index are filed, furnished, or incorporated by reference as part of this Annual Report on Form 10-K.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 3.1 | [Articles of Incorporation, dated June 22, 2015\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912621003207/tbi_ex3-1.htm) |
| 3.2 | [Certificate of Amendment, dated August 10, 2020\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912621003207/tbi_ex3-2.htm) |
| 3.3 | [Amended and Restated Bylaws\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912622015578/transparent_ex3-1.htm) |
| 3.4 | [Certificate of Amendment, dated October 6, 2022\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912622017650/unicoininc_ex3-1.htm) |
| 10.1 | [TV Series Producer Agreement, dated February 3, 2021, by and between Unicoin Inc., Unicorns, Inc. and Alexander Konanykhin\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912621003207/tbi_ex10-1.htm) |
| 10.3 | [Amendment to Share Exchange Agreement, effective on December 28, 2022, by and between Unicoin Inc., ITSQuest, Inc., Sarah Reagan and Jeff Reagan\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912623002515/unicoininc_ex10-3.htm) |
| 10.4 | [Amendment to Share Exchange Agreement, effective on December 31, 2025, by and between Unicoin Inc., ITSQuest, Inc., Sarah Reagan and Jeff Reagan](unicoininc_ex10-4.htm) |
| 10.10 | [Board of Directors Services Agreement dated March 17, 2022 by and among TransparentBusiness, Inc., Rosa G. Rios and Red River Associates, LLC\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912622014556/transparent_ex10-8.htm) |
| 10.11 | [Indemnification Agreement dated March 17, 2022 by and between TransparentBusiness, Inc. and Rosa G. Rios\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912622014556/transparent_ex10-9.htm) |
| 21.1 | [Subsidiaries of the Registrant\*](http://www.sec.gov/Archives/edgar/data/1740742/000182912621003207/tbi_ex21-1.htm) |
| 31.1 | [Certification of Chief Executive Officer pursuant to Rule 13(a)-14(a)/15(d)-14(a) of the Securities Act of 1934](unicoininc_ex31-1.htm) |
| 31.2 | [Certification of Chief Financial Officer pursuant to Rule 13(a)-14(a)/15(d)-14(a) of the Securities Act of 1934](unicoininc_ex31-2.htm) |
| 32.1 | [Certification of Chief Executive Officer Executive Officer under Section 1350 as adopted pursuant Section 906 of the Sarbanes-Oxley Act of 2002](unicoininc_ex32-1.htm) |
| 32.2 | [Certification of Chief Financial Officer under Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](unicoininc_ex32-2.htm) |

---

\* Previously filed

**Item 16.** **fORM 10-K SUMMARY**

None.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | Unicoin Inc. | Unicoin Inc. |
| Date: April 1, 2026 | By: | /s/ Alex Konanykhin |
|  |  | **Alex Konanykhin** |
|  |  | **Chief Executive Officer** |

---

**POWER OF ATTORNEY**

KNOWN BY ALL PERSONS BY THESE PRESENTS, that the individuals whose signatures appear below hereby constitute and appoint Alex Konanykhin and Andrew Winn, and each of them severally, as his or her true and lawful attorneys-in-fact and agents with full power of substitution and resubstitution for him or her and in his or her name, place and stead in any and all capacities to sign any and all amendments to this Annual Report and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, full power and authority to do or perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or of his substitute or substitutes, may lawfully do to cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on the dates indicated below.

---

| | | |
|:---|:---|:---|
| **SIGNATURE** | **TITLE** | **DATE** |
| /s/ Alex Konanykhin | Chief Executive Officer and Chairman of the Board | April 1, 2026 |
| Alex Konanykhin | (principal executive officer) |  |
| /s/ Andrew Winn | Chief Financial Officer | April 1, 2026 |
| Andrew Winn | (principal financial officer) |  |
| /s/ Silvina Moschini | Director | April 1, 2026 |
| Silvina Moschini |  |  |
| /s/ Robert Newman | Director | April 1, 2026 |
| Robert Newman |  |  |

---

## Exhibit 10.4

**Exhibit 10.4**

**AMENDMENT NO. 2 TO**

**SHARE EXCHANGE AGREEMENT**

**THIS AMENDMENT NO. 2 TO SHARE EXCHANGE AGREEMENT** (this "Amendment") is effective as of December 31, 2025 ("Effective Date") by and among ITSQUEST, Inc., a New Mexico corporation ("Company"), the shareholders of Company, Sarah Reagan and Jeff Reagan, (each a "Shareholder," and collectively, the "Shareholders"), and Unicoin Inc., a Delaware corporation formerly known as TransparentBusiness, Inc. ("Unicoin").

WHEREAS, the parties hereto have entered into that certain Share Exchange Agreement dated as of November 19, 2020, as amended December 27, 2022 (the "Agreement"), into which this Amendment shall be incorporated; and

WHEREAS, the parties wish to continue their existing relationship and amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements herein, and intending to be legally bound hereby, the parties agree as follows:

1. <u>Contingent Divestiture</u> 

The first paragraph of Section 2 is hereby deleted and replaced in its entirety with the following:

"In the event that (i) Unicoin does not conduct a registered public offering of its Common Stock in which the Unicoin Shares issued to Company pursuant to this Agreement are registered with the US Securities and Exchange Commission and listed for trading on a national securities exchange in the United States, with an initial listing price of at least ten Dollars ($10.00) per share, or (ii) Unicoin's proposed tokens "unicoins" do not become tokenized and listed on an available Alternative Trading System or cryptocurrency exchange (whichever is applicable), with a quoted price at or above $1.00 per token at any time on or before December 31, 2026 (the "Trigger Event"), then:"

The remainder of Section 2 shall remain in effect, unmodified by this Amendment.

2. <u>Consideration</u> 

In consideration of the foregoing, Unicoin shall issue rights to receive one million (1,000,000) additional unicoin rights to each of the Shareholders, (for an aggregate of 2,000,000 unicoin rights to the Shareholders, collectively) upon execution of this Amendment.

 **IN WITNESS WHEREOF**, the parties have executed this Agreement as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| ITSQUEST, INC. | ITSQUEST, INC. | UNICOIN INC. | UNICOIN INC. |
| By: | /s/ Jeff Reagan | By: | /s/ Alex Konanykhin |
|  | Jeff Reagan, President |  | Alex Konanykhin, CEO |
| SHAREHOLDERS | SHAREHOLDERS |  |  |
| /s/ Jeff Reagan | /s/ Jeff Reagan | /s/ Sarah Reagan | /s/ Sarah Reagan |
| Jeff Reagan | Jeff Reagan | Sarah Reagan | Sarah Reagan |

---

## Exhibit 31.1

**Exhibit 31.1**

**Certification of Chief Executive Officer**

**Pursuant to pursuant to Rule 13a-14(a) or Rule 15d-14(a)**

**of the Securities Exchange Act of 1934, as amended**

I, Alex Konanykhin, Chief Executive Officer, certify that:

1. I have reviewed this Annual
 Report on Form 10-K of Unicoin Inc.;

2. Based on my knowledge,
 this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
 made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
 report;

3. Based on my knowledge,
 the financial statements, and other financial information included in this report, fairly present in all material respects the financial
 condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's
 other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
 in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)
 and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure
 controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
 information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
 particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal
 control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness
 of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
 of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report
 any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent
 fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's
 other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
 equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies
 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
 affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not
 material, that involves management or other employees who have a significant role in the registrant's internal control over
 financial reporting.

---

| |
|:---|
| */s/ Alex Konanykhin* |
| Alex Konanykhin, Chief Executive Officer |
| Dated: April 1, 2026 |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification of Chief Financial Officer**

**Pursuant to pursuant to Rule 13a-14(a) or Rule 15d-14(a)**

**of the Securities Exchange Act of 1934, as amended**

I, Andrew Winn, Chief Financial Officer, certify that:

1. I
have reviewed this Annual Report on Form 10-K of Unicoin Inc.;

2. Based
on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered
by this report;

3. Based
on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The
registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure
 controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
 information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
 particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal
 control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness
 of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
 of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report
 any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent
 fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The
registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing
the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies
 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
 affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not
 material, that involves management or other employees who have a significant role in the registrant's internal control over
 financial reporting.

---

| |
|:---|
| */s/ Andrew Winn* |
| Andrew Winn, Chief Financial Officer |
| Dated: April 1, 2026 |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. Section 1350, AS**

**ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 10-K of Unicoin Inc. (the "Company") for the fiscal year ended December 31, 2025, as filed with the Securities and Exchange Commission (the "Report"), I, Alex Konanykhin, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| */s/ Alex Konanykhin* |
| Alex Konanykhin, Chief Executive Officer |
| Dated: April 1, 2026 |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. Section 1350, AS**

**ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 10-K of Unicoin Inc. (the "Company") for the fiscal year ended December 31, 2025, as filed with the Securities and Exchange Commission (the "Report"), I, Andrew Winn, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| */s/ Andrew Winn* |
| Andrew Winn, Chief Financial Officer |
| Dated: April 1, 2026 |

---