The first half of 2026, line by line

Revenue of $3,174,550: rental income $1,352,700, software and membership income $1,771,850 net, commission income $50,000. Operating expenses of $1,255,081, which include $671,884 of depreciation. Income from operations $539,484. Interest expense $871,185, all on the convertible bonds and all paid in cash. Net loss $150,608. Cash and short-term Treasuries at June 30, 2026: $16,346,435. 1

Adding back depreciation

GAAP spreads the cost of a building over decades as depreciation. It is a real accounting charge, and it is not cash leaving the company this year. Real estate investment trusts report net income plus depreciation as funds from operations, FFO, and it is the number most REIT investors watch. On that basis the first half of 2026 was positive $521,276: the net loss of $150,608 plus $671,884 of depreciation. Add the $31,578 of software amortization and it is $552,854. The same math does not rescue 2025: a net loss of $2,067,022 plus $1,192,150 of depreciation is still negative $874,872. 2024 was a net loss of $4,800,950 with $911,699 of depreciation. 12

Two cautions

First, cash. Net cash from operations in the half was $25,457, not $521,276. The gap is mostly deferred revenue: $555,691 of the half-year’s software and membership revenue was cash collected in earlier periods for lifetime products and recognized as revenue now. Receivables also grew by $148,998. Second, interest. The bonds pay 5% a year, about $1.93 million, in cash, every month. Adding back depreciation corrects one distortion; it does nothing about interest. 13

First six months of 2026: first positive operating cash flow

The first six months of 2026 were the company’s first positive operating cash flow: $25,457, against negative $286,141 in the first six months of 2025. The timing of the lifetime-product cash matters for reading it. Reinvest took over the courses and memberships on November 1, 2025, and the cash from lifetime sales landed in late 2025, when deferred revenue reached $1,066,909 at year end. The first six months of 2026 then recognized $555,691 of that as revenue while collecting less new deferred cash, so the period was cash-positive despite the deferred balance running down, not because of it. The next big intake is the fourth quarter of 2026, when Reinvest One lifetime sales ran at about $1.04 million gross in three days in October. That cash arrives up front and the costs of serving lifetime members arrive for years, which is the right way to read any period where deferred revenue jumps. 124

What could change the picture

The interest line has an exit. If an independent valuation in the first half of 2027 puts the non-voting shares at $1.40 or more, every bond converts to stock and the roughly $1.93 million a year of interest stops. The test repeats each year until the bonds come due at the end of 2032. On the revenue side, Kevin said on an October 8, 2026 livestream that Reinvest One lifetime sales had brought in about $1.04 million gross in three days, with about 88% of buyers being existing course members upgrading, and that the business is high margin but not pure margin, with a development team of twelve plus a lead and data partnerships to pay for. Lifetime sales are recognized as revenue when sold, so a strong fourth quarter would show up in the 2026 annual report, and so would the expenses that go with it. Neither is known yet. 34

Kevin’s account

It’s high margin, but it’s not pure margin. 4