# EDGAR Filing Document

**Accession Number:** 0001740742
**File Stem:** 0001829126-26-005346
**Filing Date:** 2026-5
**Character Count:** 181516
**Document Hash:** be5d4c6f15a99b0757595c4eed17f221
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001829126-26-005346.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001829126-26-005346

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 82

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TransparentBusiness, 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-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56276
- **FILM NUMBER:** 26986453

**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:** Unicoin Inc.
- **DATE OF NAME CHANGE:** 20221011

**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, DC 20549**

**FORM 10-Q**

**(Mark One)**

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

**For the quarterly period ended March 31, 2026**

**OR**

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

**For the transition period from N/A to N/A**

**Commission File Number: 000-56276**

**TransparentBusiness, Inc.**

**(Exact Name of Registrant as Specified in its Charter)**

---

| | |
|:---|:---|
| **Delaware** | **47-4360035** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(I.R.S. 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:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Common stock, $0.001 par value per share** |  |  |

---

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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 15, 2026, there were 742,679,936 shares of the Registrant's common stock outstanding.

**Table of Contents**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **[PART I. FINANCIAL INFORMATION](#a_001)** | **[PART I. FINANCIAL INFORMATION](#a_001)** | 1 |
| [Item 1.](#a_002) | [Financial Statements](#a_002) | 1 |
|  | [Condensed Consolidated Balance Sheets (Unaudited)](#a_003) | 1 |
|  | [Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)](#a_004) | 2 |
|  | [Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited)](#a_005) | 3 |
|  | [Condensed Consolidated Statements of Cash Flows (Unaudited)](#a_006) | 4 |
|  | [Notes to Condensed Consolidated Financial Statements (Unaudited)](#a_007) | 5 |
| [Item 2.](#a_008) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_008) | 31 |
| [Item 3.](#a_009) | [Quantitative and Qualitative Disclosures About Market Risk](#a_009) | 42 |
| [Item 4.](#a_010) | [Controls and Procedures](#a_010) | 43 |
| **[PART II. OTHER INFORMATION](#a_011)** | **[PART II. OTHER INFORMATION](#a_011)** | 45 |
| [Item 1.](#a_012) | [Legal Proceedings](#a_012) | 45 |
| [Item 1A.](#a_013) | [Risk Factors](#a_013) | 46 |
| [Item 2.](#a_014) | [Unregistered Sales of Equity Securities and Use of Proceeds](#a_014) | 46 |
| [Item 3.](#a_015) | [Defaults Upon Senior Securities](#a_015) | 48 |
| [Item 4.](#a_016) | [Mine Safety Disclosures](#a_016) | 48 |
| [Item 5.](#a_017) | [Other Information](#a_017) | 48 |
| [Item 6.](#a_018) | [Exhibits](#a_018) | 49 |
| [Signatures](#a_019) | [Signatures](#a_019) | 50 |

---

i

**CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS**

Some of the statements contained in this Quarterly Report on Form 10-Q of TransparentBusiness, Inc. (hereinafter referred to as "TransparentBusiness", "we", "our", or the "Company") discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. In this Quarterly Report on Form 10-Q, forward-looking statements are generally identified by the words such as "anticipate", "plan", "believe", "expect", "estimate", and the like. Forward-looking statements involve future risks and uncertainties. There are factors that could cause actual results or plans to differ materially from those expressed or implied. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. A reader, whether investing in the Company's securities or not, should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q. Important factors that may cause actual results to differ from projections include, for example:

● 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.

Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof. We believe the information contained in this Quarterly Report on Form 10-Q to be accurate as of the date hereof. Changes may occur after that date. We will not update that information except as required by law in the normal course of our public disclosure practices.

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

ii

**PART I-FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**TRANSPARENTBUSINESS, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2384779 | $1238462 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables payable in cash | 100398 | 219973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable from affiliates | 112341 | 51787 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 744163 | 498235 |
| TOTAL CURRENT ASSETS | 3341681 | 2008457 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 10752 | 13057 |
| &nbsp;&nbsp;&nbsp;Investments in land | 58975 | 58975 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 37266 | 5389 |
| &nbsp;&nbsp;&nbsp;Investments in privately-held companies | 7865528 | 7865528 |
| &nbsp;&nbsp;&nbsp;Receivable from a Related Party | 543651 |  |
| &nbsp;&nbsp;&nbsp;Other assets | 4073 | 3900 |
| TOTAL ASSETS | $11861926 | $9955306 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $555419 | $1135345 |
| &nbsp;&nbsp;&nbsp;Non-cash payables | 75000 | 11500 |
| &nbsp;&nbsp;&nbsp;Income tax payable | 2648 | 2648 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 2914254 | 4217819 |
| &nbsp;&nbsp;&nbsp;Accrued payroll liabilities | 560293 | 514174 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 788 | 1039 |
| &nbsp;&nbsp;&nbsp;Short-term debt | 1622350 | 2305782 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 557274 | 562299 |
| TOTAL CURRENT LIABILITIES | 6288026 | 8750606 |
| &nbsp;&nbsp;&nbsp;Unicoin Rights financing obligation | 119794346 | 112923853 |
| TOTAL LIABILITIES | 126082372 | 121674459 |
| STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value; 1,000,000,000 authorized; 783,707,180 and 783,690,180 issued; 742,179,936 and 742,165,436 outstanding, net of treasury stock at March 31, 2026 and December 31, 2025, respectively | 783707 | 783690 |
| &nbsp;&nbsp;&nbsp;Treasury stock, at cost; 41,527,244 and 41,524,744 shares at March 31, 2026 and December 31, 2025, respectively | (4089669) | (4088694) |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 77052145 | 77021362 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (182193364) | (179723505) |
| TOTAL TRANSPARENTBUSINESS, INC. STOCKHOLDERS' DEFICIT | (108447181) | (106007147) |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest | (5773265) | (5712006) |
| TOTAL STOCKHOLDERS' DEFICIT | (114220446) | (111719153) |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $11861926 | $9955306 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

**TRANSPARENTBUSINESS, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| REVENUES | $243413 | $647765 |
| COST OF REVENUES | 202446 | 528173 |
| GROSS PROFIT | 40967 | 119592 |
| OPERATING COSTS AND EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 1813522 | 1956106 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 915099 | 177644 |
| &nbsp;&nbsp;&nbsp;Research and development | 39300 | - |
| TOTAL OPERATING COSTS AND EXPENSES | 2767921 | 2133750 |
| LOSS FROM OPERATIONS | (2726954) | (2014158) |
| &nbsp;&nbsp;&nbsp;Interest income (expense), net | 136456 | (38739) |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | 60180 | (1676) |
| LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (2530318) | (2054573) |
| &nbsp;&nbsp;&nbsp;Income tax (expense) benefit | (800) | - |
| NET LOSS FROM CONTINUING OPERATIONS | (2531118) | (2054573) |
| Less: Net loss from discontinued operations | - | (58103) |
| NET LOSS | $(2531118) | $(2112676) |
| Less: net income (loss) attributable to the noncontrolling interest | (61259) | (74665) |
| NET LOSS ATTRIBUTABLE TO TRANSPARENTBUSINESS, INC. | $(2469859) | $(2038011) |
| Net loss per share from continuing operations, basic and diluted | $(0.00) | $(0.00) |
| Net loss per share from discontinued operations and divestiture of discontinued operations, basic and diluted | $- | $(0.00) |
| Net loss per share attributable to TransparentBusiness, Inc., basic and diluted | $(0.00) | $(0.00) |
| Weighted average common shares outstanding used to compute basic and diluted loss per share | 742174319 | 740438112 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

**TRANSPARENTBUSINESS, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT**

**(UNAUDITED)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | **Treasury Stock** | **Treasury Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br>Paid-In**<br>**Capital** | **Shares** | **Amount** | **Accumulated**<br>**Deficit** | **TransparentBusiness, Inc.<br>Stockholders'<br>Equity**<br>**(Deficit)** | **TransparentBusiness, Inc.<br>Non-controlling**<br>**Interest** | **Total<br>Stockholders'<br>Equity**<br>**(Deficit)** |
| **Balance as of December 31, 2024** | 781065752 | $781066 | $74714958 | (41451707) | $(4074110) | $(166330117) | $(94908203) | $(737638) | $(95645841) |
| Stock-based compensation expense |  |  | 13371 |  |  |  | 13371 |  | 13371 |
| Issuance of common stock | 1760106 | 1760 | 1757000 |  |  |  | 1758760 |  | 1758760 |
| Repurchase of common stock |  |  |  | (22006) | (3547) |  | (3547) |  | (3547) |
| Issuance of common stock upon release of restricted stock units | 19584 | 20 | (20) |  |  |  |  |  |  |
| Net Loss | - | - | - | - | - | (2038011) | (2038011) | (74665) | (2112676) |
| **Balance as of March 31, 2025** | 782845442 | $782846 | $76485309 | (41473713) | $(4077657) | $(168368128) | $(95177630) | $(812303) | $(95989933) |
| **Balance as of December 31, 2025** | 783690180 | $783690 | $77021362 | (41524744) | $(4088694) | $(179723505) | $(106007147) | $(5712006) | $(111719153) |
| Issuance of common stock | 17000 | 17 | 30783 |  |  |  | 30800 |  | 30800 |
| Repurchase of common stock |  |  |  | (2500) | (975) |  | (975) |  | (975) |
| Net Loss | - | - | - | - | - | (2469859) | (2469859) | (61259) | (2531118) |
| **Balance as of March 31, 2026** | 783707180 | $783707 | $77052145 | (41527244) | $(4089669) | $(182193364) | $(108447181) | $(5773265) | $(114220446) |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

 

 

**TRANSPARENTBUSINESS, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| Net loss and Comprehensive Loss | $(2531118) | $(2112676) |
| Plus: Net loss from discontinued operations | - | 58103 |
| Net loss from continuing operations | (2531118) | (2054573) |
| Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Gain on Accounts Payable Settlement | (75209) |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense |  | 13371 |
| &nbsp;&nbsp;&nbsp;Operating expenses paid with Unicoin Rights | 145280 | 79145 |
| &nbsp;&nbsp;&nbsp;Net operating expenses paid with digital assets, net of customer payments with digital assets | 160983 | 82936 |
| &nbsp;&nbsp;&nbsp;Transaction (gain) loss on reacquisition of rights |  | (7052) |
| &nbsp;&nbsp;&nbsp;Impairment and write-off of digital assets | 5472 |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 2804 | 3054 |
| &nbsp;&nbsp;&nbsp;Credit loss expense | 10000 | 19562 |
| &nbsp;&nbsp;&nbsp;Non-cash operating lease expense |  | 13730 |
| &nbsp;&nbsp;&nbsp;Interest income from the five-year deferred payment plan | (173) | (173) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables payable in cash | 119575 | (42696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (111764) | (134784) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (60554) | 122313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (548717) | (97715) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and accrued payroll liabilities | (1206150) | (495763) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (250) | 4059 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities |  | (14312) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (201154) | 32456 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (4290975) | (2476442) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities – discontinued operations |  | 129022 |
| CASH FLOWS USED IN INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets – trademark | (30000) |  |
| &nbsp;&nbsp;&nbsp;Loan Provided to Related Party | (543651) |  |
| &nbsp;&nbsp;&nbsp;Sale of intangible assets – digital assets |  | 7254 |
| &nbsp;&nbsp;&nbsp;Purchase of USDT and USDC | - | (89361) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (573651) | (82107) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of private placement unsecured notes | 25168 |  |
| &nbsp;&nbsp;&nbsp;Payment of short-term debt | (25000) |  |
| &nbsp;&nbsp;&nbsp;Net proceeds from sales and repurchases of Unicoin Rights | 5979975 | 847680 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 30800 | 1757046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 6010943 | 2604726 |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 1146317 | 175199 |
| CASH AND CASH EQUIVALENTS—Beginning of period | 1238462 | 2598208 |
| CASH AND CASH EQUIVALENTS—End of period | $2384779 | $2773407 |
| **Supplemental Non-Cash Disclosures:** |  |  |
| Issuance of common stock in exchange of digital assets, USDT and USDC | $- | $26134 |
| Market value of digital assets received as proceeds from sales of unicoin rights | $171784 | $7254 |
| Expenses paid by the Company on behalf of related parties | $60554 | $4411 |

---

*See accompanying notes to the unaudited condensed consolidated financial statements.*

**TRANSPARENTBUSINESS, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**AS OF MARCH 31, 2026 AND DECEMBER 31, 2025 AND**

**FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**

**NOTE 1 – ORGANIZATION AND OPERATIONS**

**Description of Business**

TransparentBusiness, Inc. ("TransparentBusiness" 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.

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. Consequently, management has recasted TransparentBusiness's historical financial statements for all periods presented, reclassifying all financial results associated with ITSQuest into discontinued operations.

*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. TransparentBusiness, 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.**

TransparentBusiness, 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 TransparentBusiness. TransparentBusiness 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 TransparentBusiness 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 TransparentBusiness, and the shared personnel remain solely employed or contracted by TransparentBusiness, 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 intends to use part of the token-related proceeds to invest in equity or other assets expected to support long-term token value. The Company does not intend to imply collateralization, guaranteed redemption rights, or that unicoins represent ownership interests in such assets. The Company plans to further clarify its 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 condensed consolidated financial statements have been prepared in accordance with United States ("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 $(2,531) thousand and $(2,055) thousand for the three months ended March 31, 2026 and 2025, respectively. Total income (loss) from discontinued operations, including the divestiture of discontinued operations, amounted to $0 thousand and $(58) thousand for the three months ended March 31, 2026 and 2025, respectively. The Company had net cash used in operating activities of $(4,940) thousand and $(2,477) thousand for the months ended March 31, 2026 and 2025, respectively. The Company had an accumulated deficit of $(182,193) thousand and $(179,724) thousand as of March 31, 2026 and December 31, 2025, 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 condensed 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 – SIGNIFICANT ACCOUNTING POLICIES, BASIS OF PRESENTATION AND OTHER BROAD DISCLOSURES**

**Significant Accounting Policies**

There have been no material changes to our significant accounting policies and effect of recent accounting pronouncements to the Company's consolidated financial statements from our Annual Report on Form 10-K for the year ended December 31, 2025.

**Basis of Presentation**

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2025.

The condensed consolidated balance sheet as of December 31, 2025, included herein, was derived from the audited financial statements as of that date, but does not include all disclosures required by GAAP.

The condensed consolidated financial statements include the accounts of TransparentBusiness, Inc. and its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated.

The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2026.

**Cash in Excess of FDIC Insured Amounts**

As of March 31, 2026 and December 31, 2025, the Company had $1,884 thousand and $693 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.

**Concentrations of Revenues and Accounts Receivable**

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

---

| | | |
|:---|:---|:---|
| | **Revenues<br>as a % of<br>Total Revenues** | **Revenues<br>as a % of<br>Total Revenues** |
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| <br>**Customer Reference** | **2026** | **2025** |
| Customer A | 52% | 31% |
| Customer B | 22% | \* |

---

\* 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:

---

| | | |
|:---|:---|:---|
| | **Accounts Receivable<br>as a % of<br> Accounts Receivable, net** | **Accounts Receivable<br>as a % of<br> Accounts Receivable, net** |
| <br>**Customer Reference** | **March 31,<br>2026** | **December 31,<br>2025** |
| Customer A | 46% | 26% |
| Customer B | 24% | \* |

---

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

**Advertising Expenses**

During the three months ended March 31, 2026 and 2025, the Company incurred advertising expenses of $727 thousand and $20 thousand, respectively, of which $67 thousand and $4 thousand were paid for by exchanging unicoin rights with such fair value.

**Depreciation and Amortization Expense**

The Company's depreciation and amortization expense consisted of the following:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,<br>2026** | **March 31,<br>2025** |
| Amortization expense from acquisition related intangible assets | $500 | $- |
| Depreciation expense from property and equipment | 2304 | 3054 |
| Total depreciation and amortization expense | $2804 | $3054 |

---

**NOTE 3 – FAIR VALUE MEASUREMENT**

The value of stablecoins classified within the prepaid and other current assets line item in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 was $158 thousand and $26 thousand, respectively. Stablecoins are a type of digital asset designed to maintain a steady value by being pegged to a reserve asset, such as the US dollar, typically on a 1-to-1 basis.

The market value of the Company's digital assets classified within intangible assets – digital assets in the condensed consolidated balance sheets, based on quoted prices on active exchanges, was approximately $8 thousand and $5 thousand as of March 31, 2026 and December 31, 2025, respectively.

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 delivered and listed for trading, represents an embedded feature that may result in additional charges to the Company's condensed 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 delivered and listing for trading or probable of the delivery and listing for trading.

**NOTE 4 – INTANGIBLE ASSETS, AND STABLECOINS**

The Company's intangible assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **December 31,<br> 2025** |
| Trademarks | $29500 | $- |
| Digital assets | 7766 | 5389 |
| Total intangible assets, net | $37266 | $5389 |

---

**Intangible Assets - Trademarks**

During the three months ended March 31, 2026, the Company acquired trademark for a total purchase price of $30,000. This asset is classified within intangible assets on the condensed consolidated balance sheets and is being amortized over its estimated useful life of ten years. The Company evaluates intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

**Intangible Assets - Digital Assets**

During the three months March 31, 2026 and 2025, 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. Unicoin Rights are more fully discussed in Note 6. The Company utilized $161 thousand and $109 thousand of its digital asset holdings for vendor payments during the three months ended March 31, 2026 and 2025, respectively.

During the three months ended March 31, 2026 and 2025, the Company recorded $5 thousand and $0 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.

The table below summarizes the carrying values and activity for the Company's digital asset holdings:

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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| Bitcoin (BTC) | $- | $1921 |
| Ethereum (ETH) | 7766 | 3468 |
| Total | $7766 | $5389 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  |<br>**Ethereum** |<br>**USD Coin** | <br>**Tether** | **2026** | **2025** |
| Beginning balance | $3468 |  | 1921 | 5389 | $85653 |
| &nbsp;&nbsp;&nbsp;Received as consideration in sales of unicoin rights | 11317 | 171785 | 119896 | 302998 | 5020 |
| &nbsp;&nbsp;&nbsp;Vendors payments |  | (101983) | (59000) | (160983) | (109054) |
| &nbsp;&nbsp;&nbsp;Received as consideration in sales of common stock |  |  |  |  | 26134 |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of digital assets |  |  |  |  | 82107 |
| &nbsp;&nbsp;&nbsp;Write-off and impairment | (5466) |  | (6) | (5472) |  |
| &nbsp;&nbsp;&nbsp;Fees and other | (1553) | (69802) | (62811) | (134166) | (11461) |
| Ending balance | $7766 | - | - | 7766 | $78399 |

---

The table above presents all balances included within the Company's intangible assets line item on the consolidated balance sheets, based on quoted prices from active exchanges. The table also includes separate columns for transactions involving Tether ("USDT") and USD Coin ("USDC"). USDT and USDC are stablecoins, digital assets designed to maintain a stable value by being pegged to the U.S. dollar and supported by underlying reserves. Due to these characteristics, applicable accounting guidance indicates that stablecoins are not accounted for as intangible assets, but rather as financial assets. Accordingly, these balances are excluded from intangible assets and are recorded within Prepaid Expenses and Other Current Assets on the consolidated balance sheets. The Company has included these columns to provide additional transparency given its routine engagement in transactions involving both digital assets accounted for as intangible assets and stablecoins. The value of stablecoins classified as other current assets as of March 31, 2026 and December 31, 2025 was $158 thousand and $26 thousand, respectively.

**Stablecoins Classified Within Prepaid and Other Current Assets**

The value of stablecoins classified within the prepaid and other current assets line item in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025 was $158 thousand and $26 thousand, respectively.

In March 2026, the Company established a liquidity pool for its native token, UNCN, on the Uniswap v3 decentralized exchange. In connection with this activity, the Company contributed approximately $44 thousand of USDT, transferred from its custodial wallet, and issued 200 thousand UNCN tokens, which were paired and deposited into the liquidity pool to facilitate market trading. The Uniswap protocol operates using an automated market maker model, whereby the pool serves as liquidity for third-party participants to transact in UNCN against USDT, resulting in ongoing fluctuations in the relative quantities of each asset based on market activity. Upon deposit, the Company received a non-fungible token representing its liquidity position, which was subsequently transferred to an independent smart contract operated by a third-party protocol that enforces a contractual lock-up period of approximately 365 days, expiring in March 2027. As USDT is a U.S. dollar-pegged stablecoin that meets the definition of a financial asset under U.S. GAAP, the Company continues to classify its USDT contribution within Other Current Assets on the condensed consolidated balance sheet. As of March 31, 2026, activity within the liquidity pool was de minimis. The Company is evaluating the appropriate accounting treatment for subsequent changes in the liquidity position, including the impact of trading activity within the pool.

**NOTE 5 – DEBT**

As of March 31, 2026 and December 31, 2025 the Company held short-term debt of $1,622 thousand and $2,306 thousand, respectively. The Company did not hold any long-term debt as of March 31, 2026 or December 31, 2025. 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 March 31, 2026, $1,607 thousand and $15 thousand of short-term debt was payable during the year ended December 31, 2026 and December 31, 2027, respectively, to the extent holders do not elect to extend one additional year.

Interest expense on short-term debt of $62 thousand and $6 thousand was incurred during the three months ended March 31, 2026 and 2025, 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 March 31, 2026 approximates their carrying amounts.

Of the amount outstanding as of December 31, 2025, $684 thousand was subsequently repaid through settlement with the lender via the issuance of Unicoin Rights, which were measured at a fair value equal to the carrying amount of the debt extinguished.

**NOTE 6 – UNICOIN RIGHTS FINANCING OBLIGATION**

As of March 31, 2026 and through the filing date of these consolidated financial statements, the Company has not issued any unicoins to holders of Unicoin Rights to satisfy any of its obligation accrued to date. There is no assurance as to whether, at what amount, or on what terms unicoins will be available for issuance, if at all, to satisfy the Unicoin Rights Financing Obligation.

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.

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 75,973 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 of 69,482, and 6,491 purchasers worldwide. Of these, 1,748 are US Citizen investors (26.93% of purchasers), and 4,743 (6.24% of holders) are non-US citizens or were not verified (73.07%). Note that non-accredited holders or those not verified are either non-US Persons who purchased pursuant to Regulation S, purchased their coins after unicoin was deemed by the Company to not be securities, or were given unicoin rights for free, and thus were not sold unicoin rights.

As of March 31, 2026 and December 31, 2025, the Company has issued rights to acquire 7.9 billion and 7.2 billion unicoins, respectively. As of March 31, 2026 and December 31, 2025, the outstanding financing obligation related to unicoin rights was $119,794 thousand and $112,924 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 three months ended March 31, 2026 and 2025, the Company paid operating expenses to employees and service providers by issuing unicoin rights with a fair value of $145 thousand and $79 thousand, respectively.

The following table summarizes the components of the unicoin rights financing obligation recorded on the Company's consolidated balance sheet as of March 31, 2026 and December 31, 2025:

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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** |
| | | **March 31, <br>2026** | **March 31, <br>2026** | **December 31,<br>2025** | **December 31,<br>2025** |
| <br>**Nature/Category of** <br>**Unicoin Right Holder** | <br>**Form of Consideration** | **Units** | **Amount** | **Units** | **Amount** |
| Sales to Investors | Cash, Digital Assets and Treasury Stock | 1909460360 | $46754896 | 1907940360 | $46718121 |
| Sales to Investors | Cash, Digital Assets | 740461000 | 7828050 |  |  |
| TransparentBusiness, Inc. Shareholders | Non-Cash Dividends | 726189126 | 72619 | 726189126 | 72619 |
| Employee, Contractors, Directors | Discretionary Compensation | 522395275 | 52240 | 522395275 | 52240 |
| Service Providers, Influencers and Employees | Services and Employee Labor | 279160579 | 37458845 | 277939246 | 37382565 |
| &nbsp;&nbsp;&nbsp;Subtotal |  | 4177666340 | $92166650 | 3434464007 | $84225545 |
| ITSQuest Contingent Divestiture Amendment | Contract Amendment | 22000000 | 2570000 | 22000000 | 2570000 |
| Five-Year Deferred Payment Plan | Cash | 3278495501 | 22453221 | 3280015501 \* | 22488204 |
| Ten-Year Prepaid Plan | Cash | 3985713 | 1160793 | 7714046 \* | 2196422 |
| Asset Swap and related commission | Land | 464896751 | 1443682 | 464896751 | 1443682 |
| &nbsp;&nbsp;&nbsp;Total |  | 7947044305 | $119794346 | 7209090305 | $112923853 |

---

\* 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 March 31, 2026 and December 31, 2025, the unicoin rights financing obligation associated with sales to Investors amounted to $54,583 thousand and $46,718 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 March 31, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025, 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 TransparentBusiness in a social media post, making brief reference in a speech, posting about TransparentBusiness 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 March 31, 2026 and December 31, 2025, the unicoin rights financing obligation associated with unicoin rights issued to service providers, influencers and employees amounted to $37,459 thousand and $37,383 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 March 31, 2026 and December 31, 2025, 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<br> March 31,<br>2026** | **Outstanding as of<br> December 31,<br>2025** |
| Cash | $570506 | $572506 |
| Digital Assets | 97996 | 97996 |
| Non-TransparentBusiness, Inc. Stock | 1769980 | 1769980 |
| TransparentBusiness, Inc. Shares of Common Stock | 3584668 | 3585668 |
| Unicoin Rights | 30452967 | 30452967 |
| Real Estate | 15176914 | 15176914 |
| &nbsp;&nbsp;&nbsp;Total | $51653031 | $51656031 |

---

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-TransparentBusiness, 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.

○ TransparentBusiness, 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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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| Cash Receipts | $920000 | $1759500 |
| Accrued Interest | 240793 | 436922 |
| Unicoin Rights financing obligation, Ten-Year Prepaid Plan | $1160793 | $2196422 |

---

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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| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **December 31,<br>2025** |
| Proceeds subject to interest | $772500 | $1513000 |
| Exempt from contractual interest | 147500 | 252500 |
| Total | $920000 | $1765500 |

---

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 March 31, 2026, 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 |
| 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, TransparentBusiness 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, TransparentBusiness 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 $4,818 thousand and 1,287 million unicoin rights valued at $4,815 thousand, which represent the cumulative amounts issued to related parties during the months ended March 31, 2026 and December 31, 2025. 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** |
| | | **March 31, <br>2026** | **March 31, <br>2026** | **December 31, <br>2025** | **December 31, <br>2025** |
| <br>**Nature/Category** | <br>**Relationship** | **Units** | **Amount** | **Units** | **Amount** |
| Sales to Investors | Officers and Directors | 54006000 | $46200 | 54006000 | $46200 |
| TransparentBusiness, Inc. Shareholders (Dividends) | Officers and Directors | 549753656 | 54975 | 549753656 | 54975 |
| Discretionary Awards | Officers, Directors & their Families | 178244908 | 18317 | 178244908 | 18317 |
| Consideration for Services | Officers, Directors & their Families | 12875404 | 1675818 | 12575404 | 1672818 |
| ITSQuest Contingent Divestiture Amendment | Former Owners of ITSQuest | 22000000 | 2570000 | 22000000 | 2570000 |
| Five-Year Deferred Payment Plan | Officers, Directors & their Families | 469999900 | 452500 | 469999900 | 452500 |
| &nbsp;&nbsp;&nbsp;Total |  | 1286879868 | $4817811 | 1286579868 | $4814811 |

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*Other Matters*

As of March 31, 2026 and December 31, 2025, the Company had $273 thousand and $1,418 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 three months ended March 31, 2026 and 2025, the Company recorded a transaction gain/(loss) on repurchase of unicoin rights amounting to $0 thousand and $7 thousand, respectively.

During the three months ended March 31, 2026 and 2025, the transaction gain/(loss) included $0 thousand and $7 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.

**NOTE 7 – COMMON STOCK**

The Company is authorized to issue 1,000,000,000 shares of common stock with 783,707,180 and 783,690,180 shares of common stock issued and 742,179,936 and 742,165,436 outstanding, net of treasury stock, as of March 31, 2026 and December 31, 2025, 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 three months ended March 31, 2026, the Company raised $31 (of which $31 was raised in cash) thousand via a series of funding rounds as follows:

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| | | | |
|:---|:---|:---|:---|
| **Common Stock Issuances by Round** | **Shares** | **Weighted <br>Average<br>Price per<br>Share** | **Proceeds** |
| Round 6 | 2000 | $0.40 | $800 |
| Round 9 | 15000 | 2.00 | 30000 |
| &nbsp;&nbsp;&nbsp;Total stock issued | 17000 |  | $30800 |

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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 three months ended March 31, 2026, the Company repurchased 2,500 common stock shares in exchange for consideration of $1 thousand, which were recorded as treasury stock.

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

**NOTE 8 – STOCK-BASED COMPENSATION**

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

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| | | | |
|:---|:---|:---|:---|
| | **Classification in the Condensed Consolidated Statements of Operations** | **Three Months Ended<br> March 31,** | **Three Months Ended<br> March 31,** |
| <br>**Source of Stock-Based Compensation Expense** | **Classification in the Condensed Consolidated Statements of Operations** | **2026** | **2025** |
| Stock Options |  |  |  |
| Restricted stock units | General and administrative | - | 13371 |
| Total Stock-based compensation |  | $- | $13371 |

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**Restricted Stock Units ("RSUs") Classified as Equity**

Stock-based compensation expense from RSU's for the three months ended March 31, 2026 and 2025, amounted to $0 thousand and $13 thousand, respectively.

**Stock Options**

The following is a summary of stock option activity and related information for the three months ended March 31, 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Shares** | **Weighted<br>Average<br>Exercise Price** | **Weighted<br> Average<br> Remaining**<br> **Contractual<br> Term (Years)** | **Aggregate<br>Intrinsic Value** |
| Beginning balance January 1, 2026 | 55110881 | $0.031 | 4.61 | $2121886 |
| Granted |  |  |  |  |
| Exercised |  |  |  |  |
| Adjustments | - | - | - | - |
| Ending balance March 31, 2026 | 55110881 | $0.031 | 4.31 | $2550841 |
| Vested and exercisable as of March 31, 2026 | 55110881 | $0.031 | 4.31 | $2550841 |

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As of March 31, 2026 and December 31, 2025, there was no unrecognized stock-based compensation for stock options because all outstanding shares were fully vested. For the three months ended March 31, 2026 and 2025, there was no stock-based compensation for stock options.

**NOTE 9 – WARRANTS**

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.

The following table summarizes information about the warrants as of and for the three months ended March 31, 2026:

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| | | |
|:---|:---|:---|
|  | **Equity<br>Classified** | **Weighted Average<br>Grant Date Fair Value** |
| Beginning balance - January 1, 2026 | 9800000 | $0.01 |
| Granted |  |  |
| Exercises |  |  |
| Forfeited | - |  |
| Ending balance - March 31, 2026 | 9800000 | $0.01 |

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**NOTE 10 – 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 as of December 31, 2025. 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 had 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 three months ended March 31:

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| | |
|:---|:---|
|  | **2025** |
| Total Revenues | $3904425 |
| Cost of Sales | (3165585) |
| Gross Profit | 738840 |
| Operating Expenses | (826404) |
| Operating Loss | (87564) |
| Interest Income | 20910 |
| Net Loss from Discontinued Operations | (66654) |
| Income Tax | 8551 |
| Net loss from Discontinued Operations | $(58103) |

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The following is a summary of assets and liabilities attributable to discontinued operations:

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| | |
|:---|:---|
|  | **March 31,<br> 2025** |
| **ASSETS** |  |
| Cash and equivalents | $1833981 |
| Accounts receivable, net | 1803596 |
| Prepaid and other current assets | 76374 |
| Indemnification asset (\*) | 5263048 |
| Property, Plant and Equipment — Net | 2491 |
| Intangible — Net | 2243822 |
| Right of Asset | 134084 |
| Goodwill | 3865695 |
| Total Assets, discontinued operations | $15223092 |
| LIABILITIES |  |
| Accounts payable and accrued liabilities | $389354 |
| Lease Liability | 84705 |
| Other Liability | 361541 |
| Deferred Tax liability(\*) | 5038044 |
| TOTAL LIABILITY | $5873643 |

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| | |
|:---|:---|
| (\*) | 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 March 31, 2025, the Company had a Deferred Tax Liability of $5,038,044 related to a New Mexico Gross Receipts Tax assessment and a corresponding Indemnification Asset of $5,263,048. 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 2025 Consolidated Balance Sheet presented above. |

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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 months ended March 31, 2026 and 2025, 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 11 – 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*. f/k/a TransparentBusiness, 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 $30 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.

**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 TransparentBusiness 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 12 – RELATED PARTY TRANSACTIONS**

**Unicoin Rights Issued to Related Parties**

As discussed in Note 6, as of March 31, 2026 and December 31, 2025, outstanding unicoin rights issued to related parties amounted to 1,287 million unicoin rights valued at $4,818 thousand and 1,287 million unicoin rights valued at $4,815 thousand, respectively.

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 an agreement to provide SafeBets with a revolving line of credit of up to $5.0 million. All outstanding principal and any accrued interest, calculated at 5% per annum, drawn from the Credit Line shall be due and payable in full on December 31, 2029 (the "Maturity Date"). In connection with this arrangement, SafeBets agreed to issue 50 million shares of its common stock to the Company. Because SafeBets is a newly formed, private entity without a proven revenue model or observable market transactions, management determined the fair value of the equity received was de minimis at the inception of the agreement. Accordingly, the initial cost basis of the investment is recorded at $0.

As of March 31, 2026, the outstanding principal balance drawn on the revolving line of credit was $552 thousand. The Company evaluates the outstanding balance for expected credit losses under the ASC 326 framework. Management concluded that no valuation allowance is required as of March 31, 2026, due to the recent execution of the facility, the absence of any past-due payments, and the alignment of interests given the related-party nature of the borrower. Subsequent to March 31, 2026, SafeBets successfully raised independent funding and repaid $226 thousand of the principal balance, further supporting the collectability of the outstanding amount.

The Company pays certain operating expenses on behalf of related party entities. These amounts are generally reimbursed by the related parties in the normal course of business. The Company had receivables due from various related parties of $112 thousand and $52 thousand as of March 31, 2026 and December 31, 2025, respectively.

**NOTE 13 – INCOME TAXES**

The Company's annual effective tax rate from continuing operations was (0.03)% and (0.00)% for the three months ended March 31, 2026 and 2025, respectively. The company's estimated effective tax rate differs from the U.S. federal statutory rate of 21%, primarily due to the valuation allowance recorded against the company's deferred tax asset. During the three months ended March 31, 2026 and 2025, there were no significant changes to the total amount of unrecognized tax benefits.

**NOTE 14 – 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 TransparentBusiness, 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:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| <br>**Basic and Diluted:** | **2026** | **2025** |
| Numerator: |  |  |
| Net loss from continuing operations per consolidated statements of operations | $(2531118) | $(2054573) |
| Denominator: |  |  |
| Weighted average common shares outstanding used to compute basic and diluted loss per share | 742174319 | 740438112 |
| Net loss per common share from continued operations, basic and diluted | $(0.00) | $(0.00) |

---

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

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| <br>**Basic and Diluted:** | **2026** | **2025** |
| Numerator: |  |  |
| Net loss from discontinued operations | $- | $(58103) |
| Loss from divestiture of discontinued operations | - | - |
| Net loss from discontinued operations and divestiture of discontinued operations |  | (58103) |
| Weighted average common shares outstanding used to compute basic and diluted loss per share | 742174319 | 740438112 |
| Net loss from discontinued operations and divestiture of discontinued operations, basic and diluted | $(0.00) | $(0.00) |

---

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

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| <br>**Basic and Diluted:** | **2026** | **2025** |
| Numerator: |  |  |
| Net loss attributable to TransparentBusiness, Inc. per consolidated statements of operations | $(2469859) | $(2038011) |
| Denominator: |  |  |
| Weighted average common shares outstanding used to compute basic and diluted loss per share | 742174319 | 740438112 |
| Net loss per common share attributable to TransparentBusiness, Inc., basic and diluted | $(0.00) | $(0.00) |

---

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:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
|  | **2026** | **2025** |
| Stock options outstanding | 55110881 | 55110881 |
| Warrants for common stock | 9800000 | 9800000 |
| Restricted stock units |  | 6526 |

---

**NOTE 15 – 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 March 31, 2026 and 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** |
|  | **United States** | **Foreign countries** | **Consolidated** | **United States** | **Foreign countries** | **Consolidated** |
| Staffing revenues | $227919 | 14638 | $242557 | $564155 | $74857 | $639012 |
| Subscription revenues | 24 | 832 | 856 | 48 | 8686 | 8734 |
| Unicorn Hunters | - | - | - | 19 | - | 19 |
| &nbsp;&nbsp;&nbsp;Total revenues | $227943 | 15470 | $243413 | $564222 | $83543 | $647765 |

---

The following tables set forth certain reportable segment information relating to the Company's operations for the three months ended March 31, 2026, and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **SaaS** | **TaaS** | **Unicorn Hunters** | **Consolidated** |
| Revenues | $856 | $242557 | $- | $243413 |
| Cost of revenues | - | 195696 | 6750 | 202446 |
| Gross profit (loss) | $856 | $46861 | $(6750) | $40967 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **SaaS** | **TaaS** | **Unicorn Hunters** | **Consolidated** |
| Revenues | $8734 | $639012 | $19 | $647765 |
| Cost of revenues | - | 522323 | 5850 | 528173 |
| Gross profit (loss) | $8734 | $116689 | $(5831) | $119592 |

---

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

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2026** | **March 31,<br>2025** |
| Gross Profit allocated to segments, net | $40967 | $119592 |
| Expenses not allocated to segments, net\* | (2571285) | (2174165) |
| Loss Before Income Taxes | $(2530318) | $(2054573) |

---

\* Includes mainly Unicoin marketing expense, stock-based compensation, Unicoin 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 three months ended March 31, 2026 and 2025.

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 16 – SUBSEQUENT EVENTS**

Management has evaluated subsequent events through the date of issuance of these condensed consolidated 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 condensed consolidated financial statements other than those described below:

● Subsequent to March 31, 2026, the Company received cash $80 thousand related to new rounds of unicoin rights, representing the investor's rights to receive utility tokens in the future, when these become available.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed consolidated financial statements and related notes which are included elsewhere in this Quarterly Report on Form 10-Q. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors. See "Cautionary Note on Forward-Looking Statements".*

TransparentBusiness, 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." On April 13, 2026, we changed our name back to "TransparentBusiness, Inc". Our principal executive offices are located at 228 Park Avenue South 16065, New York, NY 10003 and our phone number is (212) 216-0001.

TransparentBusiness, 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, TransparentBusiness, Inc. wholly owns SheWorks!, a Talent as a Service ("TaaS") company.

In addition to its talent platforms, TransparentBusiness, 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, TransparentBusiness, 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, TransparentBusiness, 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 condensed 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. TransparentBusiness, 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 TransparentBusiness, Inc. any economic rights or interests in the assets or operations of 140 R.E. Properties Inc. To better safeguard TransparentBusiness, Inc.'s potential rights and strategic objectives in the region, TransparentBusiness, Inc., with the assistance of local counsel, is also exploring a potential restructuring of 140 R.E. Properties Inc.

**UH Properties Inc.**

While TransparentBusiness, 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 TransparentBusiness, 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. TransparentBusiness, 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.**

TransparentBusiness, 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 TransparentBusiness. In support of UII's operations and marketing efforts, TransparentBusiness 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 TransparentBusiness 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 TransparentBusiness, and the shared personnel remain solely employed or contracted by TransparentBusiness, not by UII. This collaborative arrangement is structured to enhance efficiency while preserving each party's separate corporate identity and regulatory compliance obligations.

UII agrees to provide funding to TransparentBusiness (previously Unicoin, Inc) via its own fundraising efforts in consideration for TransparentBusiness's entry into this Agreement and for the services provided pursuant to this Agreement. The TransparentBusiness Funding shall be made available by TransparentBusiness to the TransparentBusiness in accordance with the agreed schedule and conditions. UII reserves the right to adjust the funding schedule based on TransparentBusiness's compliance with the milestones and performance metrics, which may be defined or adjusted in a separate addendum to this Agreement.

**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*

TransparentBusiness 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.

TransparentBusiness'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 considerations in the periods reported consisted of fees collected for the transmission of the Unicorn Hunters show. 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*

TransparentBusiness, 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 May 15, 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 0.8 billion non-security utility issuance of approximately $8.6 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) 283 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 prediction platform.

We may accept certain cryptocurrencies, such as Ether (ETH), USD Coin (USDC), and Tether (USDT), 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.

**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, TransparentBusiness, 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, TransparentBusiness, 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 recasted TransparentBusiness's historical financial statements for all periods presented, reclassifying all financial results associated with ITSQuest into discontinued operations.

**Significant Related Party Transactions**

A total of 1,287 million unicoin rights valued at $4,818 thousand and 1,155 million unicoin rights valued at $2,701 thousand were issued to related parties during the three months ended March 31, 2026 and 2025, 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 condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026 and 2025 from our condensed consolidated financial statements, respectively. Our historical results are not necessarily indicative of the results that may be expected in the future.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **% of<br>Total Revenues** | **2025** | **% of<br>Total Revenues** |
| REVENUES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Staffing revenues | $242557 | 100% | $639012 | 99% |
| &nbsp;&nbsp;&nbsp;Subscription revenues | 856 | 0% | 8734 | 1% |
| &nbsp;&nbsp;&nbsp;Unicorns revenues | - | 0% | 19 | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenues | 243413 | 100% | 647765 | 100% |
| COST OF REVENUES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Staffing cost of revenues | 195696 | 80% | 522323 | 81% |
| &nbsp;&nbsp;&nbsp;Subscription cost of revenues | 0 | 0% | 0 | 0% |
| &nbsp;&nbsp;&nbsp;Unicorns cost of revenues | 6750 | 3% | 5850 | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Cost of Revenues | 202446 | 83% | 528173 | 82% |
| GROSS PROFIT | 40967 | 17% | 119592 | 18% |
| OPERATING COSTS AND EXPENSES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 1813522 | 745% | 1956106 | 302% |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 915099 | 376% | 177644 | 27% |
| &nbsp;&nbsp;&nbsp;Research and development | 39300 | 16% | - | 0% |
| TOTAL OPERATING COSTS AND EXPENSES | 2767921 | 1137% | 2133750 | 329% |
| LOSS FROM OPERATIONS | (2726954) | (1120)% | (2014158) | (311)% |
| &nbsp;&nbsp;&nbsp;Interest income (expense), net | 136456 | 56% | (38739) | (6)% |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | 60180 | 25% | (1676) | 0% |
| LOSS BEFORE INCOME TAXES | (2530318) | (1040)% | (2054573) | (317)% |
| &nbsp;&nbsp;&nbsp;Income tax benefit (expense) | (800) | 0% | - | 0% |
| Net loss from discontinued Operations | - | - | (58103) | 0% |
| NET LOSS AND COMPREHENSIVE LOSS | (2531118) | (1040)% | (2112676) | (326)% |
| Net income (loss) attributable to the non-controlling interest | (61259) | (25)% | (74665) | (12)% |
| NET LOSS ATTRIBUTABLE TO THE COMPANY | $(2469859) | (1015)% | $(2038011) | (315)% |

---

**Revenues**

The following table presents our revenue for the periods indicated.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** | **Change<br>($)** | **Change<br>(%)** |
| TAAS revenues | $242557 | $639012 | $(396455) | (62)% |
| SAAS revenues | 856 | 8734 | (7878) | (90)% |
| Unicorns revenues | - | 19 | (19) | (100)% |
| &nbsp;&nbsp;&nbsp;Total Revenues | $243413 | $647765 | $(404352) | (62)% |

---

Total revenues decreased by $404 thousand, or (62)%, to $243 thousand for the three months ended March 31, 2026, from $648 thousand for the three months ended March 31, 2025 and comprised 100% of our total revenues.

*TaaS*. TAAS revenues decreased by $396 thousand, or (62)%, to $243 thousand for the three months ended March 31, 2026, from $639 thousand for the three months ended March 31, 2025. The decrease was primarily due to a decrease in SheWorks related 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 during the three months ended March 31, 2026 and 2025.

**Cost of Revenues**

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** | **Change<br>($)** | **Change<br>(%)** |
| TAAS cost of revenues | $195696 | $522323 | $(326627) | (63)% |
| SAAS cost of revenues |  |  |  |  |
| Unicorns cost of revenues | 6750 | 5850 | 900 | 15% |
| &nbsp;&nbsp;&nbsp;Total Cost of Revenues | $202446 | $528173 | $(325727) | (62)% |

---

Total cost of revenues decreased by $326 thousand, or (62)%, to $202 thousand for the three months ended March 31, 2026, from $528 thousand for the three months ended March 31, 2025.

*TaaS.* TAAS cost of revenues decreased by $327 thousand, or (63)%, to $196 thousand. The decrease was proportional to the decrease in TAAS revenues.

Unicorns. Unicorns cost of revenues decreased by $1 thousand to $7 thousand for the three months ended March 31, 2026, compared to $6 thousand, for the three months ended March 31, 2025. No episodes were produced during each of the three months ended March 31, 2026 and 2025.

**General and administrative**

General and administrative expenses decreased by $143 thousand, or (7)%, to $1,814 thousand for the three months ended March 31, 2026, from $1,956 thousand for the three months ended March 31, 2025. This decrease was primarily driven by a $243 thousand legal fees, $87 thousand contractor expenses, partially offset by a $182 thousand accounting, taxes and professional fees.

**Sales and marketing**

Sales and marketing expenses increased by $737 thousand, or 415%, to $915 thousand for the three months ended March 31, 2026. The increase was primarily due to the increase in recurring marketing expenses amounted to $644 thousand and in sales & marketing expenses paid with unicoin rights as consideration, which amounted to $63 thousand.

**Interest income (expense), net**

Net interest expense increased by $175 thousand, or (452)% to $136 thousand for the three months ended March 31, 2026, from $(39) thousand for the three months ended March 31, 2025. This increase was primarily attributable to reversal of 10-Yr Options Interest accruals amounted to $229 thousand due to conversion from the 10-Yr program to non-security unicoins partially offset by $56 thousand reduction of unsecured notes interest from conversion to the sales of non-security unicoins.

**Provision for Income Taxes**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** | **Change<br>($)** | **Change<br>(%)** |
| Income tax benefit (expense) | $(800) | $(-) | $(800) | -100% |
| Effective tax rate | (0.03)% | (0.00)% |  |  |

---

The Company's annual effective tax rate from continuing operations was (0.03)% and (0.00%) for the three months ended March 31, 2026 and 2025, respectively. The company's estimated effective tax rate differs from the U.S. federal statutory rate of 21%, due to the valuation allowance recorded against the company's deferred tax assets. During the three months ended March 31, 2026 and 2025, there were no significant changes to the total amount of unrecognized tax benefits.

**Net income (losses) attributable to the non-controlling interest**

Net losses attributable to noncontrolling interests decreased by $13 thousand, or (18)%, to $(61) thousand for the three months ended March 31, 2026. Noncontrolling interest partners in ITSQuest were allocated income of $0 thousand and $(28) thousand for the three months ended March 31, 2026 and 2025, respectively, while noncontrolling interest partners in Unicorns were allocated losses of $(35) thousand and $(46) thousand for the three months ended March 31, 2026 and 2025, respectively. Noncontrolling interest partners in Unicoin International were allocated losses of $(27) thousand and $0 thousand for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, noncontrolling interests in ITSQuest (immediately prior to its divestiture on December 31, 2025), Unicorns, and Unicoin International represented ownership interests of 0%, 28.12%, and 100%, respectively, compared to ownership interests of 49% and 28.12% in ITSQuest and Unicorns, respectively, as of March 31, 2025.

**Net loss from discontinued operations**

Net income from discontinued operations was $0 thousand for the three months ended March 31, 2026, as ITSQuest was automatically divested on December 31, 2025, while the three months ended March 31, 2025 include ITSQuest's pre-divestiture operating results; accordingly, discontinued operations did not have a material impact on the Company's net loss for the three months ended March 31, 2026.

**Liquidity and Capital Resources**

We had cash and cash equivalents of $2,385 thousand available as of March 31, 2026. Based on currently available capital resources (cash and cash equivalents on hand as of March 31, 2026), we estimate that at our current cash "burn rate", the Company will not be able to operate for more than 2 months. For the company to maintain operations for at least twelve months, we would need to receive further equity or debt financing of approximately $17,375 thousand. For the period from April 1, 2026 through the date of this Quarterly Report on Form 10-Q, we have received cash proceeds of $80 thousand from the issuance of unicoin rights. 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 launched and there remains significant uncertainty as to if, and when, this launch 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, 2026 through March 31, 2026, the Company issued unicoin rights to investors and service providers in exchange of consideration consisting of cash $6,326 thousand and $303 thousand cryptocurrencies and incurred operating expenses paid with unicoin rights with a fair value of $145 thousand, together amounting to approximately $6,774 thousand.

Through March 31, 2026, the Company has recorded a financing obligation of $119.8 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 TransparentBusiness, 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 $29,845 thousand and $27,269 thousand as of March 31, 2026 and 2025, 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**

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

---

| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| <br>*(In thousand)* | **2026** | **2025** |
| Cash flows provided by (used in) continuing operations: |  |  |
| &nbsp;&nbsp;&nbsp;Net cash used in operating activities | $(4291) | $(2477) |
| &nbsp;&nbsp;&nbsp;Net cash used in by investing activities | (574) | (82) |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 6011 | 2605 |
| Net increase in cash and cash equivalents from continuing operations | $1146 | $46 |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Cash flows from discontinued operations | - | 129 |
| Net increase in cash and cash equivalents | $1146 | $175 |

---

**Cash Used in Operating Activities**

Cash flows used in operating activities increased by 1,814 thousand to $(4,291) thousand for the period ended March 31, 2026, compared to $(2,477) thousand for the period ended March 31, 2025. Net cash used in operating activities for the period ended March 31, 2026, was due to our net loss of $(2,531) thousand, a decrease in operating assets, net of liabilities of $(2,009) thousand and non-cash items of $249 thousand. Net cash used in operating activities for the period ended March 31, 2025, was due to our net loss of $(2,055) thousand, an decrease in operating assets and liabilities of $(626) thousand and non-cash items of $205 thousand.

**Cash (Used in) Provided by Investing Activities**

Net cash flows used in investing activities increased by $492 thousand to $(574) thousand for the period ended March 31, 2026. The increase in net cash used in by investing activities was mainly due to $544 thousand line of credit to related party and $30 thousand purchases of Trademark.

**Cash Provided by Financing Activities**

Net cash flows provided by financing activities increased by $3,406 thousand to $6,011 thousand for the period ended March 31, 2026, compared to $2,605 thousand for the period ended March 31, 2025. The increase in net cash provided by financing activities was primarily driven by a $5,781 thousand increase in net proceeds from sales and repurchases of Unicoin Rights, as well as a $25 thousand of proceeds from the issuance of private placement unsecured notes, partially offset by $1,726 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 consist of money market accounts 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.

**Off-Balance Sheet Arrangements**

As of March 31, 2026 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.

**Critical Accounting Policies and Estimates**

Our significant accounting policies are described in Note 2 to the condensed consolidated financial statements presented in the Annual Report on Form 10-K. Our critical accounting policies and estimates are described in "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Annual Report on Form 10-K. Our significant and critical accounting policies and estimates have not changed significantly since the filing of the Annual Report on Form 10-K, except for as described in Note 2 to the condensed consolidated financial statement included in this Quarterly Report on Form 10-Q.

**Recent accounting pronouncements**

See "Significant Accounting Policies" in Note 2 of the notes to our condensed consolidated financial statements included in Part 1, Item 1 of this Quarterly Report on Form 10-Q for recent accounting pronouncements.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

***Interest Rate Risk***

We had cash and cash equivalents of $2,385 thousand available as of March 31, 2026, 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 consist of money market accounts 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 condensed 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.

***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.

**Item 4. 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 period ended March 31, 2026 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 condensed consolidated financial statements for external purposes in accordance with GAAP. The Company's internal control over financial reporting includes those policies and procedures that:

&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;

&nbsp;&nbsp;&nbsp;&nbsp;(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of condensed consolidated financial statements in accordance with 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 condensed consolidated 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.

***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 quarter ended March 31, 2026 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

***Remediation Initiatives***

In an effort to address the identified material weakness and enhance our internal controls related to our Internal Control Over Financial Reporting, The Company has continued to address the material weaknesses reported our Annual Report on Form 10-K through the following actions:

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| |
|:---|
| 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; |
| Developing further training on segregation of duties; and |
| Designing and implementing additional compensating controls where necessary. |

---

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

**PART II-OTHER INFORMATION**

**Item 1. 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 TransparentBusiness, 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 1A. Risk Factors.**

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, Item 1A Risk Factors in our Annual Report on Form 10-K (the "Risk Factors"). These Risk Factors could materially affect our business, financial condition and future results. These Risk Factors are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be insignificant also may materially and adversely affect our business, financial condition or operating results in the future.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

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

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

\*\* Shareholders as of April 15, 2024 were granted a right to purchase a limited number of common stock shares at $0.40, which approximates the fair value of the common stock.

<u>Fundraising 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 investors or issued to service providers through the day of this quarterly report on Form 10-Q are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Price per<br> Unicoin Right\*** | **Total Number of<br> Unicoin Rights Sold\*\*** | **Accounted Dates\*\*\*** | **Exemption** |
| $0.0014 | 462000000 | &nbsp;&nbsp;&nbsp;9/1/24 to 12/31/24 | Rule 506(c); Reg. S |
| $0.0057 | 747600 | &nbsp;&nbsp;&nbsp;5/1/25 to 5/30/25 | Rule 506(c); Reg. S |
| $0.01 | 1374230500 | &nbsp;&nbsp;&nbsp;2/24/22 to 5/15/26 | Rule 506(c); Reg. S |
| $0.017 | 77690886 | &nbsp;&nbsp;&nbsp;4/1/22 to 3/31/24 | Rule 506(c); Reg. S |
| $0.02 | 78811400 | &nbsp;&nbsp;&nbsp;8/1/24 to 3/31/26 | Rule 506(c); Reg. S |
| $0.03 | 713333 | &nbsp;&nbsp;&nbsp;3/01/24 to 3/31/25 | Rule 506(c); Reg. S |
| $0.04 | 52940000 | &nbsp;&nbsp;&nbsp;8/1/24 to 9/30/25 | Rule 506(c); Reg. S |
| $0.05 | 57067533 | &nbsp;&nbsp;&nbsp;3/12/22 to 6/30/25 | Rule 506(c); Reg. S |
| $0.05 | 243626226 | &nbsp;&nbsp;&nbsp;5/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.055 | 29867260 | &nbsp;&nbsp;&nbsp;9/1/22 to 7/31/24 | Rule 506(c); Reg. S |
| $0.06 | 4502500 | &nbsp;&nbsp;&nbsp;8/1/24 to 9/30/25 | Rule 506(c); Reg. S |
| $0.07 | 19200000 | &nbsp;&nbsp;&nbsp;4/1/23 to 12/31/24 | Rule 506(c); Reg. S |
| $0.08 | 5565000 | &nbsp;&nbsp;&nbsp;4/1/23 to 6/30/25 | Rule 506(c); Reg. S |
| $0.089 | 30395447 | &nbsp;&nbsp;&nbsp;12/1/22 to 12/31/24 | Rule 506(c); Reg. S |
| $0.09 | 12370000 | &nbsp;&nbsp;&nbsp;8/1/24 to 9/30/25 | Rule 506(c); Reg. S |
| $0.1 | 129886501 | &nbsp;&nbsp;&nbsp;3/18/22 to 9/30/25 | Rule 506(c); Reg. S |
| $0.101 | 7190181 | &nbsp;&nbsp;&nbsp;3/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.11 | 5865000 | &nbsp;&nbsp;&nbsp;4/1/23 to 9/30/25 | Rule 506(c); Reg. S |
| $0.12 | 234000 | &nbsp;&nbsp;&nbsp;5/1/23 to 12/31/24 | Rule 506(c); Reg. S |
| $0.122 | 6636946 | &nbsp;&nbsp;&nbsp;6/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.13 | 125000 | &nbsp;&nbsp;&nbsp;9/1/24 to 9/30/24 | Rule 506(c); Reg. S |
| $0.14 | 1415000 | &nbsp;&nbsp;&nbsp;4/1/23 to 9/30/24 | Rule 506(c); Reg. S |
| $0.15 | 168333 | &nbsp;&nbsp;&nbsp;3/1/24 to 9/30/25 | Rule 506(c); Reg. S |
| $0.16 | 160000 | &nbsp;&nbsp;&nbsp;3/1/25 to 4/4/25 | Rule 506(c); Reg. S |
| $0.18 | 100000 | &nbsp;&nbsp;&nbsp;9/1/22 to 9/30/24 | Rule 506(c); Reg. S |
| $0.19 | 27500 | &nbsp;&nbsp;&nbsp;1/12/24 to 12/31/24 | Rule 506(c); Reg. S |
| $0.2 | 12500395 | &nbsp;&nbsp;&nbsp;9/8/22 to 3/31/26 | Rule 506(c); Reg. S |
| $0.3 | 1619794 | &nbsp;&nbsp;&nbsp;9/1/22 to 9/30/25 | Rule 506(c); Reg. S |
| $0.35 | 1236314 | &nbsp;&nbsp;&nbsp;6/1/23 to 4/4/25 | Rule 506(c); Reg. S |
| $0.357 | 1899741 | &nbsp;&nbsp;&nbsp;3/01/24 to 12/31/24 | Rule 506(c); Reg. S |
| $0.373 | 3813247 | &nbsp;&nbsp;&nbsp;9/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.395 | 5518212 | &nbsp;&nbsp;&nbsp;9/1/24 to 6/30/25 | Rule 506(c); Reg. S |
| $0.4 | 5261323 | &nbsp;&nbsp;&nbsp;11/2/22 to 6/30/25 | Rule 506(c); Reg. S |
| $0.459 | 1063134 | &nbsp;&nbsp;&nbsp;10/31/23 to 6/30/25 | Rule 506(c); Reg. S |
| $0.493 | 2553776 | &nbsp;&nbsp;&nbsp;4/1/23 to 6/30/25 | Rule 506(c); Reg. S |
| $0.5 | 8111831 | &nbsp;&nbsp;&nbsp;3/1/23 to 3/31/25 | Rule 506(c); Reg. S |
| $0.52 | 9334 | &nbsp;&nbsp;&nbsp;9/1/22 to 9/30/24 | Rule 506(c); Reg. S |
| $0.75 | 8871997 | &nbsp;&nbsp;&nbsp;4/1/24 to 3/31/26 | Rule 506(c); Reg. S |
| $0.01 | 790155000 | &nbsp;&nbsp;&nbsp;1/1/26 to 5/15/26 | Rule 506(c); Reg. S |
| $0.05 | 13990000 | &nbsp;&nbsp;&nbsp;1/1/26 to 5/15/26 | 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 6 – Unicoin Rights financing obligation of "Notes to Condensed Consolidated Financial Statements", for details regarding the issuance of those unicoin rights.

\*\*\* The date represents when the unicoin right transaction was funded by the investor. 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.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

None.

**Item 6. Exhibits**

**Exhibit Index**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 3.1 | [Articles of Incorporation, dated June 22, 2015\*](https://www.sec.gov/Archives/edgar/data/1740742/000182912621003207/tbi_ex3-1.htm) |
| 3.2 | [Certificate of Amendment, dated August 10, 2020\*](https://www.sec.gov/Archives/edgar/data/1740742/000182912621003207/tbi_ex3-2.htm) |
| 3.3 | [Amended and Restated Bylaws\*](https://www.sec.gov/Archives/edgar/data/1740742/000182912622015578/transparent_ex3-1.htm) |
| 3.4 | [Certificate of Amendment, dated October 6, 2022\*](https://www.sec.gov/Archives/edgar/data/1740742/000182912622017650/unicoininc_ex3-1.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](transparentbusiness_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](transparentbusiness_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](transparentbusiness_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.](transparentbusiness_ex32-2.htm) |

---

\* Previously filed

**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.

---

| | | |
|:---|:---|:---|
|  | TransparentBusiness, Inc. | TransparentBusiness, Inc. |
| Date: May 15, 2026 | By: | /s/ Alex Konanykhin |
|  |  | **Alex Konanykhin** |
|  |  | **Chief Executive Officer** |

---

## 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 Quarterly Report on Form 10-Q of TransparentBusiness, 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 condensed consolidated 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;

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;

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

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

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: May 15, 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 Quarterly Report on Form 10-Q of TransparentBusiness, 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 condensed consolidated 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;

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;

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

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

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: May 15, 2026 |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. Section 1350, AS<br>ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of TransparentBusiness, Inc. (the "Company") for the three months ended March 31, 2026, 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: May 15, 2026 |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. Section 1350, AS<br>ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of TransparentBusiness, Inc. (the "Company") for the three months ended March 31, 2026, 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: May 15, 2026 |

---