NOTE 6. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION

Accounts Receivable, net

Accounts receivable, net is as follows (in thousands):

SCHEDULE OF ACCOUNTS RECEIVABLE

The following table summarizes the changes in the allowance for credit losses for accounts receivable (in thousands):

SUMMARIZES THE CHANGES IN THE ALLOWANCE FOR CREDIT LOSSES FOR ACCOUNTS RECEIVABLE

Property and Equipment, net

The following is a summary of our property and equipment, at costs less accumulated depreciation and amortization:

 SCHEDULE OF PROPERTY PLANT AND EQUIPMENT LESS DEPRECIATION AND AMORTIZATION

Depreciation expense for property and equipment was approximately $0.1 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively. Depreciation expense for property and equipment was approximately $0.3 million and $0.3 million for the six months ended June 30, 2026 and 2025, respectively. The Company wrote off its remaining property and equipment during the three months ended June 30, 2026 and had no property and equipment as of June 30, 2026.

Other Current Assets

The following table summarizes the composition of other current assets as of the dates indicated:

 SCHEDULE OF OTHER CURRENT ASSETS

Accrued Expenses and Other Current Liabilities

The following table summarizes the composition of accrued expenses and other current liabilities as of the dates indicated:

 SCHEDULE OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Related Party Transactions

On October 24, 2025, the Company appointed its Chief Investment Officer, Ben Isenberg, to manage digital-asset treasury activities. The Chief Investment Officer has relationships within the Berachain ecosystem, and is also the owner of BSQD Corp., a liquidity provider with which the Company may transact to execute BERA acquisitions. Such transactions are subject to review and approval by the Company’s Digital Assets Committee prior to execution.

Renah Persofsky, who served as a Greenlane Director until October 23, 2025, is a Principal Owner of Green Gruff USA Inc, (“Green Gruff”). In January 2025 the Company entered into an amended distribution agreement with Green Gruff. During the three months ended June 30, 2026, the Company did not recognize material revenue or cost of goods sold from transactions with Green Gruff.

On February 4, 2026, Greenlane Subsidiary Inc., a wholly owned subsidiary of the Company, entered into a Token Purchase and Sale Agreement and a Token Lending Agreement with Berachain Operations Corporation. Under the Token Lending Agreement, the Company may lend USDC and/or USDT stablecoins to Berachain Operations Corporation. The lending arrangement is intended to facilitate BERA acquisition activity under the Token Purchase and Sale Agreement. Under the Token Purchase and Sale Agreement, the Company may request to purchase tranches of BERA tokens from Berachain Operations Corporation, including through settlement mechanics that reduce amounts outstanding under the lending arrangement.

The maximum amount available under the lending arrangement as of June 30, 2026 was $5.0 million. All amounts advanced under the lending arrangement were repaid in full during the six months ended June 30, 2026, and no digital asset loan receivable from a related party was outstanding as of June 30, 2026. No interest income was recognized during the period. Based on management’s evaluation under ASC 810, the Company does not consolidate Berachain Operations Corporation.

Berachain Operations Corporation may use one or more liquidity providers or market participants to source BERA tokens. One such liquidity provider is BSQD Corp., which is wholly owned by Ben Isenberg, the Company’s Chief Investment Officer. The Company’s review and approval process covered the arrangements with Berachain Operations Corporation and the related-party considerations associated with BSQD. The Company continues to monitor BERA acquisition activity, including any involvement of BSQD or other related-party liquidity providers, through its related-party transaction review process and Digital Assets Committee oversight. During the six months ended June 30, 2026, BSQD executed BERA purchases on behalf of Berachain Operations Corporation totaling approximately $7,056,387, for which BSQD received a fee of 0.1% of transaction value. These transactions occurred during the three months ended March 31, 2026; BSQD did not participate in any BERA sourcing transactions with the Company during the three months ended June 30, 2026.