Quarterly report [Sections 13 or 15(d)]

SEGMENT REPORTING (Tables)

v3.26.3
SEGMENT REPORTING (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Schedule of segment information
           
Three Months Ended September 30, 2026        
    Operating Segment   Corporate & Other   Total
             
Revenue   $ 99,606     $ –     $ 99,606  
Cost of goods sold     (285,354 )     –       (285,354 )
Gross margin     (185,748 )     –       (185,748 )
                         
Operating expenses:                        
Sales and marketing     231,470       –       231,470  
Product development     102,815       –       102,815  
General and administrative     1,251,295       –       1,251,295  
Corporate     –       227,228       227,228  
Digital asset custody fee     –       12,805       12,805  
Stockholder litigation, proxy preparation and distribution, and stockholder solicitation     –       10,613,667       10,613,667  
Gain on digital asset     –       (36,986,989 )     (36,986,989 )
Total operating (income) expenses     1,585,580       (26,133,289 )     (24,547,709 )
                         
Other income     –       34,298       34,298  
Gain on change in fair value of financial liabilities     –       16,513       16,513  
Interest income     –       324,229       324,229  
Interest expense     –       (750,907 )     (750,907 )
                         
Net income (loss) from continuing operations   $ (1,771,328 )   $ 25,757,422     $ 23,986,094  

 

             
Nine Months Ended September 30, 2026        
    Operating Segment   Corporate & Other   Total
             
Revenue   $ 405,327     $ –     $ 405,327  
Cost of goods sold     (596,181 )     –       (596,181 )
Gross margin     (190,854 )     –       (190,854 )
                         
Operating expenses:                        
Sales and marketing     2,937,950       –       2,937,950  
Product development     398,266       –       398,266  
General and administrative     4,227,001       –       4,227,001  
Corporate     –       676,150       676,150  
Digital asset custody fee     –       46,075       46,075  
Share-based compensation expense     –       1,797,041       1,797,041  
Stockholder litigation, proxy preparation and distribution, and stockholder solicitation     –       21,464,118       21,464,118  
Loss on digital assets     –       69,280,274       69,280,274  
Total operating expenses     7,563,217       93,263,658       100,826,875  
                         
Other income     –       619,478       619,478  
Loss on repayment of term loan     –       (568,142 )     (568,142 )
Loss on change in fair value of financial liabilities     –       (25,387 )     (25,387 )
Interest income     –       411,493       411,493  
Interest expense     –       (3,871,601 )     (3,871,601 )
                         
Net loss from continuing operations   $ (7,754,071 )   $ (96,697,817 )   $ (104,451,888 )

 

             
Three Months Ended September 30, 2025        
    Operating Segment   Corporate & Other   Total
             
Revenue   $ 199,984     $ –     $ 199,984  
Cost of goods sold     (197,537 )     –       (197,537 )
Gross margin     2,447       –       2,447  
                         
Operating expenses:                        
Sales and marketing     420,754       –       420,754  
Product development     67,522       –       67,522  
General and administrative     4,595,850       –       4,595,850  
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     5,084,126       28,914,099       33,998,225  
                         
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 )
Income tax benefit     –       5,383,973       5,383,973  
                         
Net loss from continuing operations     (5,081,679 )     (23,603,630 )     (28,685,309 )
Net loss from discontinued operations     (486,019 )     –       (486,019 )
Net loss   $ (5,567,698 )   $ (23,603,630 )   $ (29,171,328 )

 

             
Nine Months Ended September 30, 2025        
    Operating Segment   Corporate & Other   Total
             
Revenue   $ 852,489     $ –     $ 852,489  
Cost of goods sold     (1,089,400 )     –       (1,089,400 )
Gross margin     (236,911 )     –       (236,911 )
                         
Operating expenses:                        
Sales and marketing     1,110,828       –       1,110,828  
Product development     371,424       –       371,424  
General and administrative     7,863,989       –       7,863,989  
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     10,446,911       28,914,099       39,361,010  
                         
Other income     –       348,784       348,784  
Loss on repayment of credit facility     –       (125,377 )     (125,377 )
Gain on change in fair value of financial liabilities     –       4,724       4,724  
Interest income     –       241,426       241,426  
Interest expense     –       (525,111 )     (525,111 )
Income tax benefit     –       5,383,973       5,383,973  
                         
Net loss from continuing operations     (10,683,822 )     (23,585,680 )     (34,269,502 )
Net loss from discontinued operations     (1,262,153 )     –       (1,262,153 )
Net loss   $ (11,945,975 )   $ (23,585,680 )   $ (35,531,655 )