Overall cash position recovered in Q4 and ended positive. The main driver was the move back into cash after the temporary Q3 margin usage in eTrade and IBKR. eTrade held the majority of the cash balance at quarter end, while IBKR was also back in positive territory.

Expenses were down materially from 2024 on a full-year basis. Consolidated 2025 expenses were $25.5k, compared with $40.2k in 2024. Nakano accounted for $4.8k; Centerpitch accounted for $20.7k.

Two notes:

• We paid for a two-year subscription to Grants in 2023, which will need to be renewed in December for approx. $2,800.
• We pay our accountant fees in the last part of the year (I just paid them), which are about $2,500.

Our expense ratio fell with gross expenses. Based on full-year expenses of $25.5k and the private MTM/expected-return mark of $2.029M, the expense ratio is approximately 1.3%. This excludes public holdings from the denominator and should be read as a private-portfolio-only check.

Nakano doesn't attract much of our expense base since we opened Centerpitch in 2023; much of the operational expense stays there as long-term service subscriptions. Centerpitch attracts the majority of our expense base.

As of Q4 2025, Nakano equity stood at $1.704M. Total equity peaked at $2.654M, and started drawing down on Feb 1, 2023, initially with a $96k disbursement for Northfield and Linden Terrace. The majority of the draw down related to the funding of Centerpitch, which was stood up on March 9, 2023.

Nakano is designed to be an 80/20 entity. As of Q4 2025, the split is 79.8% / 20.2%, with Drexler holding $1.360M of Nakano's equity and Wiesner holding $0.344M. This is due to the fact that Matt has not yet taken a $4k distribution from the July 30, 2025 payment from Northfield; when he does, the ratio will return to 80/20.

Centerpitch is designed to be a 50/50 entity. As of Q4 2025, the split is 51.8% / 48.2%.

We made no new private investments in 2025.

• Smartemis: The company is getting close to its planned exit, which it must execute before Dec 31, 2027. Bill has met with ~40 potential exit partners for 1-on-1s, organized by three potential investment banking partners: Jeffries, Lincoln International, and William Blair; feedback has been very positive. Two French operational issues remain: the continuing (spurious) regulatory investigation — Winston & Strawn insist the case has no merit — and clinic data access, where conforming data still hasn't been extracted from a single clinic. Smartemis continues to grow its clinic network at a fast clip. The Q4 source workbook marks our position at $1.599M across both investing entities; the outperformance estimate is $2.666M, based on the workbook's current outperformance assumptions.
• ScreenMeet ($575k invested, $613k MTM, $2.3m outperformance): Since the ServiceNow deal fell apart in 2024, Ben has come back in hands-on. Revenue grew 26% YoY through Oct with expenses up only 6%; EBITDA positive in 2025 ($664.8k YTD). Plan is to stabilize earnings for a sale in 2026. Held at 4x revenue (market is 8x–10x) out of conservatism and strategic-exit realism.
• Photon Vault ($100k invested, $0 MTM): As of December 2025, traction with CIM Group ($130B AUM) — presenting to their investment committee Dec 10, pitching $5M Series A + $45M project equity. This looks like their last push; if they can't raise, they shut down. We hold at 0.
• Bloom Intelligence ($100k invested, $0 MTM): Holding pattern — ~$1m revenue, barely profitable. Will proposes a shareholder vote between "Cash Flow Optimization" and "Growth Acceleration" (raise $1M); our preference is overwhelmingly the former. Best option: find a partner and get bought.
• Lung Therapeutics / Rein Therapeutics (RNTX) ($50k initial, $0 MTM): Phase 2 for LTI-03 restarted after the FDA lifted its clinical hold Nov 3; results expected Q3 2026. Value has fallen 69% over our holding period; held as a lottery ticket at the current stock price.
• Northfield / Dreamfinders ($250k invested, $120k MTM, $505k received): We expect another $120k, bringing the total return to 2.5x on invested capital; timing unclear until the next K-1.

Our public holdings are split between eTrade (domestic, $745.2k) and IBKR (international, $675.5k), both Nakano assets — total holdings $1.4m as of Dec 18, 2025. A detailed performance analysis will be produced for year end.