Artificial Intelligence (AI) has been hailed as revolutionary and world changing. While AI does have some convenient and beneficial aspects such as speed of information and automation; there are some serious risks that occur with the rising use of AI. As AI grows more sophisticated and widespread, the potential threats and dangers of AI are growing louder and louder. Impact on Jobs: One of the most pressing threats is AI’s impact on the human job market. The concerning risk is that the human labor market will be made redundant by machines that are cheaper to run than human beings. AI machines would not require paychecks, insurance or any type of “employee benefits.” There would be no need for policies surrounding issues such as DEI, equal pay, discrimination, or wrongful termination. This in turn, would drastically reduce the function of The Bureau of Labor and Industry. Impact on Education: A student sits at his desk. He has been given the assignment of writing an essay on the Cuban Missile Crisis during Kennedy’s presidency. He opens his school- issued tablet, and types a single prompt into an AI chatbox. Within seconds, a well written essay appears on his screen. His assignment is completed and turned into the teacher. He has learned nothing. One of the greatest dangers of AI in education is not that they will help students cheat; but rather it will reshape how they think, learn and even understand truth itself. The problem is not merely that students may use AI to cheat on assignments—it’s that they may cheat themselves out of the very mental work that forms them into capable thinkers. A fifth grader who struggled with reading and writing, once asked, “Why do I need to know how to read and write? I can just ask Google for anything that I need to know.” Nature Reviews Bioengineering published an article titled, “Writing is Thinking.” While this article’s focus was on writing scientific articles as part of the scientific method to communicate research findings; it also included the importance behind human- generated writing. According to this article, writing is not only about reporting results; it also provides a tool to uncover new thoughts and ideas. The thesis behind this article is that writing is not simply a way of spitting back what some AI wrote. Human- generated writing ( the act of drafting, wrestling with ideas and revising ) forces the brain to process information, clarify thoughts and form original positions. A premature use of AI in education risks depriving students of that experience. Human- generated writing helps us uncover “new thoughts and ideas.” It encourages us to think in a linear and structured way, which increases brain connectivity, and improves overall learning and memory. These aren’t just academic skills—they are foundational to human intelligence. Impact on the Environment: Operating generative AI language models requires huge amounts of computer power. This is provided by vast data centers that burn through energy at rates comparable to small nations, creating poisonous emissions and noise pollution. These data centers also consume massive amounts of water at a time when water conservation is a public concern. Some believe that the eventual advancements created by AI will eventually outweigh the harm it causes to the environment. Yet, a lot of these advances are currently theoretical, while the environmental impact of AI is happening today. Impact on Privacy: We all joke that our tv’s cell phones, computers etc. are listening to us. Well, that might not be just a joking matter after all. It is not a coincidence that after you are chatting with your friend, spouse, or children about your desire to purchase a new table, that all of a sudden you see ads on your computer screen for furniture. AI has the ability to capture and process vast quantities of personal information. Employers are increasingly monitoring and analyzing worker activity. There is a growing number of AI-enabled cameras on our devices, and in our streets, vehicles and homes. Police forces are rolling out facial-recognition technology . Soon no corner will be safe from prying AIs. Impact on Intellectual Property: Multinational technology companies can train their AI’s on the work of artists, authors and other creative professionals, without paying them a dime. This has sparked widespread protest and backlash, with artists and their unions arguing that tech companies are effectively monetizing their stolen Intellectual Property (IP). Despite the legal battles, OpenAI and Google are spending huge resources into their missions for more and more training data. There are legitimate concerns that the rights of human creators might be overlooked in the interest of AI training. Impact on Information: AI enables and accelerates the spread of misinformation. It makes it quicker and easier to disseminate the misinformation and makes it more convincing. It is harder to detect from Deepfake videos of world leaders saying or doing things that never happened, to conspiracy theories flooding social media in the form of stories and images designed to go viral and cause disruption. The aim is often to destabilize, and create chaos and fear. One very scary factor is that the algorithmic nature of AI reinforces views by serving up content that individuals are likely to agree with. Or worse yet, leads the individual to content agreed upon by the creator of the AI algorithm, and suppresses content that opposes the creator of the algorithm. Impact on the Financial Industry: AI algorithms can help investors make smarter and more informed decisions on the market. But finance organizations need to make sure they understand their AI algorithms and how those algorithms make decisions. For example, “ AI trading bots ” aren’t clouded by human judgment or emotions. They also don’t take into account contexts, the interconnectedness of markets and factors like human trust and fear. These algorithms then make thousands of trades at the speed of lightening with the goal of selling a few seconds later for small profits. Selling off thousands of trades could scare investors into doing the same thing, leading to sudden crashes and extreme market volatility. “Frankenstein”, “The Space Odyssey”, “Terminator” and “The Matrix”, are cautionary tales that warned us of the potential dangers of giving our creations the power of thought. To some, those stories are just entertainment. To others, they are an eerie feeling of what might come to fruition. It’s hard to comprehend how we would go from ChatGPT to machines intent or even capable of maliciously harming us. But the threat of “ runaway AI ”, should be treated very seriously. Many leading AI researchers and alliances have spoken openly about the need for safeguards and transparency to prevent unknowable circumstances from emerging in the future. It is important to acknowledge and address the risks of AI and its impact on our country. It is equally important to focus on building the safeguards, governance frameworks, and ethical guidelines that can steer this technology toward positive outcomes. By addressing these risks with informed action, we can hopefully shape a future where AI serves humanity rather than threatens it. Tickers to consider: JTAI , PPCB , FBRX Sylva Disclaimer: https://www.sylvacap.com/disclaimer

Governments around the world play a role in shaping the environments in which businesses operate. Government involvement in specific industries can lead to increased regulation, subsidies, and tariffs. These can support growth, enhance sustainability, and protect workers and consumers. However, these interventions can also create burdens for businesses by imposing compliance challenges and operational constraints. Government involvement in various industries can significantly shape the economic environment of businesses. Governments can provide financial subsidies to specific sectors, making them more profitable. This can lead to potential investment and growth in those industries. Additionally, by imposing tariffs or taxes on imported goods, governments can protect domestic industries from foreign competition, allowing those said businesses to succeed. Government regulation plays a significant role in shaping the landscape of various industries. These regulations can have far-reaching consequences, affecting everything from the profitability of businesses to the safety and well-being of consumers. The primary goal of government regulation is to balance the interests of different stakeholders, including businesses, consumers, and the environment, to create a fair and sustainable market. Regulations imposed by the government can have both positive and negative impacts. Economic regulations are designed to ensure fair competition and prevent monopolistic practices that could harm consumers. These include antitrust laws, price controls, and industry-specific regulations. Compliance with these regulations is non-negotiable. Excessive regulations can hinder innovation by making it difficult for new businesses to enter the market, or for existing businesses to adapt to the ever changing rules. Failure to adhere to these regulations can result in fines, lawsuits, or worst case scenario, dissolving the business. In order to stay compliant, businesses must invest in legal expertise and compliance monitoring systems to effectively navigate these regulations. Labor laws were enacted to protect workers and employees. These regulations cover a wide array of issues, including minimum wages, maximum working hours, workplace safety standards, and anti-discrimination policies. Businesses are required to remain compliant with evolving labor laws. Changes in policies—such as an increase in the minimum wage or new paid leave requirements—can significantly impact payroll structures and overall operational budgets. One of the benefits of government regulation is the protection it offers to consumers. By setting standards for product safety, regulating advertising claims, and enforcing competition laws, governments can ensure that consumers have access to fair and safe markets. These measures not only benefit society as a whole but also contribute to the long-term sustainability of businesses. Government regulation can also have negative consequences, especially on small businesses. Overregulation can lead to increased compliance costs, which may disproportionately affect small businesses and startups. This limits their ability to compete with larger corporations. Furthermore, regulatory barriers can hinder innovation by making it difficult for new products or services to enter the market. The complexity of regulatory frameworks can also lead to “regulatory capture” where larger companies use their resources and influence to shape regulations in their favor. This further marginalizes smaller competitors. Regulatory burdens aren’t just shouldered by businesses. They are also passed on to consumers. According to August Pfluger, a representative from Texas, and Chairman of the U.S. House of Representatives Republican Study Committee, “[Regulations] amount to a massive stealth tax, paid by the American people, through lower pay and higher prices for the goods and services that we buy every day,” Doug Holtz-Eakin, a former director of the Congressional Budget Office and current president of American Action Forum, says costs are costs when it comes to the impact of regulations on businesses. “If you’re a businessperson, you have to cover the costs, whether it’s a tax you have to pay or another way to get to the same thing – a regulation that they force you to comply with. It hurts your opportunity to hire people. It hurts your chances to expand. It hurts all the things we think of as productive in the economy, and that’s a headwind to growth.” Tickers to consider: JTAI , VNRX , FBRX , POAI , PPCB , Sylva Disclaimer: https://www.sylvacap.com/disclaimer

Government shutdowns in the United States (“U.S.”) are creatures of both constitutional and statutory law. The Constitution states that “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law,” meaning that federal agencies cannot spend funds to operate without the approval of Congress. Under the Antideficiency Act, agencies may not “make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation” or “ involve either government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law.” In other words, Congress must determine how the government will spend its funds, and a government shutdown ensues if the parties cannot agree on a budget. The current government shutdown occurred on October 1, 2025, as a result of Congress’s failure to reach an agreement for funding federal agencies and programs for the 2026 fiscal year. The previous budget expired on September 30, 2025, and without a new budget or continuing resolution, the government was forced to shut down. One of the biggest hurdles in reaching an agreement has to do with the demands by the Senate democrats. In order to vote for a continuing resolution or extension of the 2025 fiscal budget, the Senate Democrats are demanding in part that Congress resume Medicaid, Medicare and Affordable Care Act premium subsidy policies that open the door for illegal aliens to receive government benefits. Those benefits were terminated when the One Big Beautiful Bill Act (OBBBA)was approved. OBBBA provides eligibility for health benefits only to U.S. citizens, lawful permanent residents, Cuban and Haitian entrants, and lawful residents under the Compact of Free Association. The Senate Democrats’ continuing resolution would repeal changes made by OBBBA. What are the impacts of this shutdown? Members of Congress still get paid during this shutdown. Lawmakers' pay has been funded by a permanent appropriation since 1983, according to a recent Congressional Research Service report , meaning funding for their pay doesn't need to be renewed annually. Other government employees and contractors are not afforded the same luxury. Federal employees, whether they remain on the job or are furloughed do not get paid while the government is shut down. They are also at risk of permanently losing their jobs. For those federal employees who still have their job, they will receive back pay once funding to their agency is restored. But for now, those same federal employees have to work without collecting a paycheck if they choose to keep their job. Government Contractors (1099 contractors, not W2 Employees), those who carried out about $755 billion worth of government work in the last fiscal year, are not guaranteed back pay. They should have a written contract which outlines their pay, and should eventually hold up in a court of law; but how long they have to wait for payment of said contract would remain uncertain. During a government shutdown, the administration retains limited spending flexibility by prioritizing funding for programs that the president deems essential for public safety or national security, such as military operations or emergency services. Agencies may also reallocate available funds to maintain critical operations, provided those actions comply with the Antideficiency Act and other legal constraints. For most companies, one of the biggest hurdles will be navigating a complex regulatory scheme that relies on federal agencies to function. As the shutdowns disrupt these agencies’ operations, businesses and federal employees will be adversely affected. How much individuals will be affected will be largely determined by the duration of the shutdown. The longer government workers and contractors go without paychecks, the more likely they are to start looking for new jobs. A longer shutdown, in addition to possible layoffs and unclear guidance regarding back pay, may leave the government with a substantially smaller workforce post-shutdown. Tickers to consider: JTAI , VNRX , FBRX , POAI , PPCB , Sylva Disclaimer: https://www.sylvacap.com/disclaimer

Digital Asset Treasury Companies (DATCO) are publicly traded firms that focus on accumulating and managing digital assets like Bitcoin and Ethereum as a core part of their business strategy. They provide investors with exposure to cryptocurrencies without the need for direct ownership, often utilizing equity and debt to fund their asset acquisitions. This allows the companies to fund asset acquisitions by borrowing money through loans or issuing bonds, thereby sanctioning the companies to purchase assets without using its own cash reserves. DATCO’s took off in 2020 when Strategy (formerly MicroStrategy) started gobbling up Bitcoin (BTC) as an inflation hedge. In August 2020, Michael Saylor, founder of MicroStrategy, led the company’s dramatic push into becoming a DATCO with the purchase of over 21,000 BTC for $250 million. As of September 15, 2025, Strategy owned almost 640,000 BTC valued at $47.2 billion. During that same period, Strategy’s market value has risen over 2,700% (92.0% annualized), capturing the imaginations of finance and financial technology people alike. DATCO’s differ from crypto miners or exchanges in that they are all about accumulating assets, with digital holdings making up 70-90% of their enterprise value. Below are some key features of DATCO’s: Core Functions: DATCO’s aim is to hold digital assets as the primary function of their business model. Investment Access: DATCO’s provide investors with exposure to cryptocurrencies without the need for direct ownership or management of the assets. This makes it an attractive alternative for investors who want crypto exposure but prefer not to hold tokens directly. Revenue Generation: DATCO’s can generate income through various means, including lending services and decentralized financial protocols. The uniqueness of a DATCO lies in its dual nature. It is simultaneously a publicly traded company and a capital markets vehicle for direct exposure to a specific digital asset. For investors, this offers a compelling alternative to owning the asset directly or through an exchange-traded fund (ETF). There are several rewards associated with investing in DATCO’s. Investors benefit from the expertise of professionals who specialize in managing digital assets. DATCO’s often adhere to regulatory standards, providing for a safer investment environment. Finally, DATCO’s ensure liquidity for their digital assets, which makes for easier transactions. DATCO’s come with their own set of challenges and risks. For example, the Stock Market’s Volatility can significantly fluctuate the value of digital assets, impacting the financial stability of DATCO’s. Additionally, changes in regulations can affect operations and the profitability of DATCO’s. Lastly, funding can be a big risk when it comes to DATCO’s. Most DATCO’s rely on external capital to fund their asset accumulation strategies. This can be very risky in volatile markets. The true strength of a DATCO will be measured not by the size of its digital asset holdings at a bull market peak, but by its ability to navigate volatile markets, manage funding costs prudently, and build sustainable business models that can withstand the inevitable digital asset market downturns. The companies that master this balance will not only survive but will cement their place as true pioneers in the next generation of finance. The rise of these companies into DATCOs helps to foster a more efficient, transparent, and accessible financial system. This benefits business investors, broadens the economy, and encourages individuals or investors to participate in DATCO investments. Tickers to consider: JTAI , VNRX , FBRX , POAI , PPCB , Sylva Disclaimer: https://www.sylvacap.com/disclaimer

The Federal Fund rate, which impacts interest rates, can potentially be cut at the Fed’s policy meeting this month. Cutting interest rates can potentially stimulate the economy by making borrowing cheaper, which encourages spending and investments. However, some experts believe that rate cuts may not be enough to boost the current economy. According to the CME FedWatch tool, investors are quite certain that the Fed will cut interest rates in September by at least 25 basis-points. There are several benefits that could arise from reducing interest rates. Loans would become cheaper for consumers and businesses. Consumers may be more inclined to borrow money for larger purchases, such as a home or a vehicle. Lower rates can finance business operations and expansions, leading to the creation of more jobs. There are a few who don’t believe cutting interest rates will help the current state of our economy. David Kelly, the chief global strategist at JP Morgan Asset Management, stated that interest rate cuts are inevitable, but “that’s not going to fix anything.” Morgan discussed three reasons why he does not see rate cuts helping the economic picture with CNBC. Lower interest rates could cut income for retirees. Retirees tend to store a larger chunk of their savings in safer assets, like US Treasurys, which are tied to interest rates in the broader economy . If the interest rate goes down, then the interest income decreases. Hesitant borrowers might make cutting rates have a backfire effect. Hesitant borrowers tend to “wait and see” if the rates will drop even further before taking the plunge to loan money just to make sure that they are getting the best rate possible. Kelly speculates that borrowers will be incentivized to wait for rates to drop further before taking out loans. There is still a looming uncertainty of how much the Trump administration’s tariff policy and immigration policy will affect the economy. Lowering interest rates will not remove this uncertainty. Lastly, there is always the concern that lowering interest rates will actually boost inflation in an already elevated state. If consumer demands increase too quickly due to lower rates, then the result is inflation. This would undermine the purpose of the rate cuts. In short, lowering interest rates may temporarily boost the economy. But the long-term effects of reduced interest rates are affected by many other factors that might limit their effectiveness in the current economy. Economic uncertainty, borrower behavior and inflation risks can complicate the benefits of monetary policy actions. Tickers to consider: JTAI , VNRX , FBRX , POAI , PPCB , GRCE Sylva Disclaimer: https://www.sylvacap.com/disclaimer