Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING

v3.25.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 3 – SEGMENT REPORTING

 

In November 2023, the Financial Accounting Standards Board issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-7”), requiring public companies to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. Public companies with a single report segment were required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements of ASU 2023-07 during the year ended December 31, 2024.

 

Subsequent to the implementation of the Company’s digital asset treasury strategy, the Company continues to operate as one operating segment and the Company’s Co-CEOs are the CODMs. The “Corporate & Other” category presented in the following tables is not considered an operating segment. It consists primarily of costs and expenses related to executing the Company’s Bitcoin strategy and includes the unrealized gain or loss on digital assets, other third party costs associated with the Company’s Bitcoin holdings, and net interest expense primarily related to debt obligations, the net proceeds of which were primarily used to repurchase the Company’s common stock. Beginning in July 2025, the Company has dedicated certain corporate resources to its Bitcoin strategy. These costs, including related share-based compensation expense, are included within the “Corporate resources” and the “Share-based compensation expense” segment expense line items to better align with their activities and utilization. The following tables present (for the operating segment and the corporate & other category, and on a consolidated basis) the Company’s revenues and significant expenses regularly provided to the CODMs, reconciled to net income (loss) for each of the periods presented.

                 
Three Months Ended September 30, 2025            
    Operating Segment     Corporate & Other     Total  
                   
Revenue   $ 198,301     $ –     $ 198,301  
Cost of goods sold     (291,602 )     –       (291,602 )
Gross margin     (93,301 )     –       (93,301 )
                         
Operating expenses:                        
Sales and marketing     684,943       –       684,943  
Product development     181,671       –       181,671  
General and administrative     4,607,783       –       4,607,783  
Corporate     –       424,702       424,702  
Digital asset custody fee     –       628,815       628,815  
Share-based compensation expense     –       13,754,360       13,754,360  
Unrealized loss on digital assets     –       14,106,222       14,106,222  
Total operating expenses     5,474,397       28,914,099       34,388,496  
                         
Other income     –       289,670       289,670  
Loss on repayment of credit facility     –       (125,377 )     (125,377 )
Gain on change in fair value of financial liabilities     –       39,533       39,533  
Interest income     –       84,134       84,134  
Interest expense     –       (361,464 )     (361,464 )
                         
Net loss   $ (5,567,698 )   $ (28,987,603 )   $ (34,555,301 )

 

                         
Nine Months Ended September 30, 2025            
    Operating Segment     Corporate & Other     Total  
                   
Revenue   $ 1,637,286     $ –     $ 1,637,286  
Cost of goods sold     (1,924,461 )     –       (1,924,461 )
Gross margin     (287,175 )     –       (287,175 )
                         
Operating expenses:                        
Sales and marketing     1,843,804       –       1,843,804  
Product development     791,352       –       791,352  
General and administrative     7,922,974       –       7,922,974  
Corporate     –       424,702       424,702  
Digital asset custody fee     –       628,815       628,815  
Share-based compensation expense     1,100,670       13,754,360       14,855,030  
Unrealized loss on digital assets     –       14,106,222       14,106,222  
Total operating expenses     11,658,800       28,914,099       40,572,899  
                         
Other income     –       348,785       348,785  
Loss on repayment of credit facility     –       (125,377 )     (125,377 )
Gain on change in fair value of financial liabilities     –       4,723       4,723  
Interest income     –       241,426       241,426  
Interest expense     –       (525,111 )     (525,111 )
                         
Net loss   $ (11,945,975 )   $ (28,969,653 )   $ (40,915,628 )

 

Prior to the implementation of the Company’s digital asset treasury strategy in July 2025, the Company operated as one operating segment, and the Company’s chief operating decision maker (“CODM”) was the CEO, who used the consolidated statement of operations to assess financial performance. For the three and nine month periods ended September 30, 2024, see the condensed consolidated statement of operations above.