Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING

v3.26.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2026
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 2023-07”), 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 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 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” 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 March 31, 2026            
    Operating Segment     Corporate & Other     Total  
                   
Revenue   $ 225,702     $ –     $ 225,702  
Cost of goods sold     (162,624 )     –       (162,624 )
Gross margin     63,078       –       63,078  
                         
Operating expenses:                        
Sales and marketing     323,636       –       323,636  
Product development     124,946       –       124,946  
General and administrative     1,640,192       –       1,640,192  
Corporate     –       1,217,772       1,217,772  
Digital asset custody fee     –       9,566       9,566  
Share-based compensation expense     –       1,704,252       1,704,252  
Loss on digital assets     –       78,354,036       78,354,036  
Total operating expenses     2,088,774       81,285,626       83,374,400  
                         
Other income     –       553,429       553,429  
Loss on repayment of term loan     –       (568,142 )     (568,142 )
Loss on change in fair value of financial liabilities     –       (62,017 )     (62,017 )
Interest income     –       42,539       42,539  
Interest expense     –       (2,058,035 )     (2,058,035 )
                         
Net loss   $ (2,025,696 )   $ (83,377,852 )   $ (85,403,548 )

 

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 three month period ended March 31, 2025 see the condensed consolidated statement of operations above.