You should report the information from the 1099-B on your tax return for 2025, even though there is no tax consequence (because you had no basis in the shares and got nothing for them). The 2 sections you have there look to be correct, but for the Sales info section in between you should include the Description of the securities. Does the 1099-B have acquisition dates for the shares? This should be reported by the broker, but if the shares were acquired on more than 1 date, you can select the button by Something other than a date and report "Various". Since the shared became worthless in 2025, you can use the date provided on the 1099-B, but if not available, use 12/31/2025.
Once you enter than information, the next page states, "Let us know if any of these situations apply to this sale" and you can select "This was a worthless security".
On the cost basis screen that follows you can select "I don't want to make any changes . . .".
On the next screen, you'll need to establish if the shares are short term (one year or less from the date your receive the shares) or long term (over one year).
Please be sure to retain proof that the shares were worthless, such as bankruptcy filings, news articles, etc.
Should you receive the $2/share that you were promised in 2026, you could report that income in 2026.
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