Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT REPORTING

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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 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 Company’s chief operating decision makers (“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, excluding discontinued operations as discussed in Note 18 below, reconciled to loss from continuing operations for the year ended December 31, 2025.

                       
    Operating Segment     Corporate & Other     Total  
                   
Revenue   $ 974,977     $ –     $ 974,977  
Cost of goods sold     (1,337,595 )     –       (1,337,595 )
Gross margin     (362,618 )     –       (362,618 )
                         
Operating expenses:                        
Sales and marketing     1,483,138       –       1,483,138  
Product development     398,605       –       398,605  
General and administrative     9,286,470       –       9,286,470  
Corporate     –       752,323       752,323  
Digital asset custody fee     –       713,185       713,185  
Share-based compensation expense     1,100,670       16,724,269       17,824,939  
Unrealized loss on digital assets     –       122,659,151       122,659,151  
Total operating expenses     12,268,883       140,848,928       153,117,811  
                         
Other income     –       1,565,515       1,565,515  
Loss on repayment of credit facility     –       (125,377 )     (125,377 )
Gain on change in fair value of financial liabilities     –       46,672       46,672  
Interest income     –       292,623       292,623  
Interest expense     –       (2,253,819 )     (2,253,819 )
Loss from continuing operations before income taxes     (12,631,501 )     (141,323,314 )     (153,954,815 )
Income tax benefit     –       5,383,973       5,383,973  
                         
Loss from continuing operations   $ (12,631,501 )   $ (135,939,341 )   $ (148,570,842 )

  

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 was the CEO, who used the consolidated statement of operations to assess financial performance. For the year ended December 31, 2024, see the consolidated statement of operations above.