Overview

I-ON is a leading developer and provider of asset-digitization and securitization solutions. The company specializes in digitizing documentary evidence of ownership into secure, asset-backed digital certificates, bringing liquidity and recognized value to a diverse array of asset classes. I-ON’s cutting-edge technology includes a hybrid blockchain architecture with smart contracts and sophisticated workflow management, including AI technologies.

In 2023, I-ON continued to expand its market presence and plans for future product offerings. The company notably acquired Orebits’ gold digitization patent and patent-pending portfolio, trademarks, brand marks, and core intellectual property. This acquisition has allowed I-ON to enhance its capabilities and broaden its plans for future service offerings, particularly through a new SaaS platform designed as a “digital front-end” for banks, broker-dealers, and other financial intermediaries.

The real-world asset tokenization market is rapidly evolving, with gold digitization and asset-backed securities emerging as standout segments. I-ON’s ability to unlock the liquidity of reserves still in the ground, enhance transparency, and offer fractional ownership of a time-tested store of value has positioned the company at the forefront of this movement. The company’s technological edge has deepened its presence in the rapidly evolving RWA tokenization, asset digitization, and asset-backed digital assets marketplace.

Building on evolving capacity and momentum, I-ON expanded its SaaS platform to serve banks and financial intermediaries with advanced tools for asset management, transaction processing, and digital securities reporting. The platform can now deliver faster, more secure blockchain-powered transactions, while also enabling the monetization of in-ground gold without physical extraction—supporting historical ESG mandates and broader sustainable finance initiatives. Strategic partnerships and a regulatory-focused mindset continue to drive innovation, allowing I-ON to meet institutional standards while setting new benchmarks in digital asset infrastructure. These advancements are expected to fuel revenue growth and position I-ON as a long-term leader in the digitization and tokenization of real-world assets.

Results of Operations

Net Sale – Related Party

The related party sales for the years ended December 31, 2024 and 2023 were $32,625 and $97,875, respectively. The Company subleased its license to a related party for one year from April 2023 through March 2024 for an annual fee of $130,500. The Company received the full amount and recorded it as deferred revenue which was recognized ratably into revenue over the twelve-month licensing period beginning in April 2023.

Cost of Goods Sold

The cost of sales for the years ended December 31, 2024 and 2023 were $21,000 and $63,000, respectively. The costs were recognized over the same period revenue was generated, from April 2023 through March 2024.

Gross Profit

The gross profit for the years ended December 31, 2024 and 2023 was $11,625 and $34,875, respectively.

Operating Expenses

Operating expenses consist of professional fees and general and administrative expenses.

Operating expenses for the year ended December 31, 2024 was $1,293,730, containing $574,049 of professional fees and $719,681 of general and administrative expenses. Comparing with the year ended December 31, 2023, the operating expenses were $740,404, containing $388,540 of professional fees, and $351,864 of general and administrative expenses.

The increase in operating expenses was due to general growth and more costs incurred such as professional fees, computer and internet expenses, franchise tax, travel and payroll expenses, etc. during the year ended December 31, 2024.

Other Income (Expense)

For the year ended December 31, 2024 and 2023, the Company had interest expenses of $547,385 and $90,585, respectively.

For the year ended December 31, 2024, the Company exchanged 50 units of Orebits for 2 units of Bitcoin, resulting in a gain on exchange of intangible assets of $25,682. The Company sold the 2 units of Bitcoin for cash of $120,425 resulting in a gain on sale of intangible assets of $3,795. Additionally, the Company amended their loans payable which resulted in a loss on debt extinguishment of $110,000.

Liquidity and Capital Resources

As of December 31, 2024, the Company had cash of $270,095 in its bank account. The Company had an accumulated deficit of $3,496,501 at December 31, 2023, had a working capital deficit of $707,969 at December 31, 2023, had a net loss of $805,138 for the year ended December 31, 2023, and net cash used in operating activities of approximately $498,834 for the year ended December 31, 2023. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2 to Notes to Financial Statements.

Operating Activities

Cash of $1,055,135 was used in the year ended December 31, 2024, compared to the cash used in operating activities of $498,834 for the year ended December 31, 2023, a change of $556,301. The change was mostly due to an increase net loss due to the increases in the expenses of computer and internet, payroll and professional fees in 2024 compared to that in 2023.

Investing Activities

Cash provided in investing activities for the year ended December 31, 2024 was $120,425, compared to cash used in investing activities of $578,842 for the year ended December 31, 2023, a decrease of $699,267. The change in cash in investing activities was due to the sale of intangible assets in 2024.

Financing Activities

Cash provided by financing activities for the year ended December 31, 2024 was $1,168,730, compared to cash provided in financing activities of $1,113,751 for the year ended December 31, 2023. The increase was primarily due to the proceeds from advances from the related party.

Critical Accounting Estimates

The company’s financial statements are affected by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete summary of these policies is included in Note 2 of the notes to the financial statements. The company has identified the accounting policies in Note 2 that are of particular importance in the presentation of its financial position, results of operations and cash flows, and which require the application of significant judgment by management.

Recently Issued Accounting Standards

Management has carefully considered the recently issued accounting pronouncements that altered generally accepted accounting principles, refer to the disclosure in Note 2 to the financial statements.