| Segment Information |
Note 10. Segment Information The Company applies ASC 280 Segment Reporting in determining its reportable segments. The Company has two reportable segments: Specialty Finance and Mining Operations. The guidance requires that segment disclosures present the measure(s) used by the CODM to decide how to allocate resources and for purposes of assessing such segments’ performance. The Company’s CODM uses revenue, income from operations and income before taxes of our reporting segments to assess the performance of the business of our reportable operating segments. Segment asset information is not disclosed as such information is not regularly reviewed by the CODM. The CODM regularly reviews total assets as reported on the consolidated balance sheet. No operating segments have been aggregated to form the reportable segments. The corporate oversight function, and other components that may earn revenues that are only incidental to the activities of the Company are aggregated and included in the “All Other” category. The Specialty Finance segment generates revenue from providing funding to nonprofit community associations. The Mining Operations segment generates revenue from the Bitcoin the Company earns through its mining activities.
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|
|
|
|
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|
|
Three Months Ended June 30, 2025 |
|
|
Specialty Finance |
|
Mining Operations |
|
All Other |
|
Total |
|
Revenue, net |
$ |
121,960 |
|
$ |
1,806,364 |
|
$ |
- |
|
$ |
1,928,324 |
|
Digital mining cost of revenue |
|
- |
|
|
1,288,399 |
|
|
- |
|
|
1,288,399 |
|
Curtailment and energy sales |
|
- |
|
|
(223,269 |
) |
|
- |
|
|
(223,269 |
) |
Staff costs and payroll |
|
211,239 |
|
|
310,336 |
|
|
566,052 |
|
|
1,087,627 |
|
Unrealized gain on FMV of mined bitcoin |
|
- |
|
|
(3,761,139 |
) |
- |
|
|
(3,761,139 |
) |
Depreciation and amortization |
|
476 |
|
|
1,981,510 |
|
|
57,357 |
|
|
2,039,343 |
|
Loss on disposal of fixed assets |
|
- |
|
|
99,578 |
|
|
- |
|
|
99,578 |
|
Other segment expenses (1) |
|
198,363 |
|
|
383,703 |
|
|
491,782 |
|
|
1,073,848 |
|
Operating income (loss) |
|
(288,118 |
) |
|
1,826,824 |
|
|
(1,115,191 |
) |
|
423,515 |
|
Unrealized loss on investment and equity securities |
|
- |
|
|
- |
|
|
(130,890 |
) |
|
(130,890 |
) |
Unrealized loss on marketable securities |
|
- |
|
|
- |
|
|
(5,110 |
) |
|
(5,110 |
) |
Interest income |
|
- |
|
|
- |
|
|
531 |
|
|
531 |
|
Interest expense |
|
- |
|
|
(186,696 |
) |
|
(40,850 |
) |
|
(227,546 |
) |
Income (loss) before income taxes |
|
(288,118 |
) |
|
1,640,128 |
|
|
(1,291,510 |
) |
|
60,500 |
|
Fixed asset additions |
|
- |
|
|
15,182 |
|
|
191,957 |
|
|
207,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2025 |
|
|
Specialty Finance |
|
Mining Operations |
|
All Other |
|
Total |
|
Revenue, net |
$ |
219,357 |
|
$ |
4,080,304 |
|
$ |
- |
|
$ |
4,299,661 |
|
Digital mining cost of revenue |
|
- |
|
|
2,836,694 |
|
|
- |
|
|
2,836,694 |
|
Curtailment and energy sales |
|
- |
|
|
(372,955 |
) |
|
- |
|
|
(372,955 |
) |
Staff costs and payroll |
|
341,860 |
|
|
539,309 |
|
|
1,256,935 |
|
|
2,138,104 |
|
Unrealized gain on FMV of mined bitcoin |
|
- |
|
|
(1,951,163 |
) |
|
- |
|
|
(1,951,163 |
) |
Depreciation and amortization |
|
953 |
|
|
3,961,602 |
|
|
114,366 |
|
|
4,076,921 |
|
Loss on disposal of fixed assets |
|
- |
|
|
286,359 |
|
|
- |
|
|
286,359 |
|
Other segment expenses (1) |
|
413,247 |
|
|
569,089 |
|
|
979,690 |
|
|
1,962,026 |
|
Operating loss |
|
(536,703 |
) |
|
(1,788,631 |
) |
|
(2,350,991 |
) |
|
(4,676,325 |
) |
FMV adjustment on purchased digital assets |
|
- |
|
|
(52,704 |
) |
|
- |
|
|
(52,704 |
) |
Unrealized loss on investment and equity securities |
|
- |
|
|
- |
|
|
(156,874 |
) |
|
(156,874 |
) |
Unrealized loss on marketable securities |
|
- |
|
|
- |
|
|
(13,820 |
) |
|
(13,820 |
) |
Interest income |
|
- |
|
|
- |
|
|
1,676 |
|
|
1,676 |
|
Interest expense |
|
- |
|
|
(370,615 |
) |
|
(77,837 |
) |
|
(448,452 |
) |
Loss before income taxes |
|
(536,703 |
) |
|
(2,211,950 |
) |
|
(2,597,846 |
) |
|
(5,346,499 |
) |
Fixed asset additions |
|
1,170 |
|
|
374,034 |
|
|
2,007 |
|
|
377,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2024 |
|
|
Specialty Finance |
|
Mining Operations |
|
All Other |
|
Total |
|
Revenue, net |
$ |
118,274 |
|
$ |
2,893,073 |
|
$ |
- |
|
$ |
3,011,347 |
|
Digital mining cost of revenue |
|
- |
|
|
2,357,111 |
|
|
- |
|
|
2,357,111 |
|
Staff costs and payroll |
|
211,239 |
|
|
146,033 |
|
|
480,616 |
|
|
837,888 |
|
Loss on fair value of Bitcoin, net |
|
- |
|
|
1,265,485 |
|
|
- |
|
|
1,265,485 |
|
Depreciation and amortization |
|
1,306 |
|
|
1,872,452 |
|
|
1,601 |
|
|
1,875,359 |
|
Loss on disposal of fixed assets |
|
- |
|
|
33,887 |
|
|
- |
|
|
33,887 |
|
Other segment expenses (1) |
|
137,976 |
|
|
64,559 |
|
|
752,106 |
|
|
954,641 |
|
Operating loss |
|
(232,247 |
) |
|
(2,846,454 |
) |
|
(1,234,323 |
) |
|
(4,313,024 |
) |
Unrealized loss on investment and equity securities |
|
- |
|
|
- |
|
|
(1,856,737 |
) |
|
(1,856,737 |
) |
Unrealized gain on marketable securities |
|
- |
|
|
- |
|
|
6,440 |
|
|
6,440 |
|
Interest income |
|
- |
|
|
- |
|
|
17,228 |
|
|
17,228 |
|
Interest expense |
|
- |
|
|
(18,400 |
) |
|
(18,493 |
) |
|
(36,893 |
) |
Loss before income taxes |
|
(232,247 |
) |
|
(2,864,854 |
) |
|
(3,085,885 |
) |
|
(6,182,986 |
) |
Fixed asset additions |
|
- |
|
|
1,226,602 |
|
|
- |
|
|
1,226,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
|
Specialty Finance |
|
Mining Operations |
|
All Other |
|
Total |
|
Revenue, net |
$ |
267,970 |
|
$ |
7,490,981 |
|
$ |
- |
|
$ |
7,758,951 |
|
Digital mining cost of revenue |
|
- |
|
|
5,012,057 |
|
|
- |
|
|
5,012,057 |
|
Staff costs and payroll |
|
341,860 |
|
|
233,264 |
|
|
1,505,790 |
|
|
2,080,914 |
|
Gain on fair value of Bitcoin, net |
|
- |
|
|
(2,992,030 |
) |
|
- |
|
|
(2,992,030 |
) |
Depreciation and amortization |
|
2,672 |
|
|
3,845,642 |
|
|
3,241 |
|
|
3,851,555 |
|
Impairment loss on mining machines |
|
- |
|
|
1,188,058 |
|
|
- |
|
|
1,188,058 |
|
Loss on disposal of fixed assets |
|
- |
|
|
42,057 |
|
|
- |
|
|
42,057 |
|
Other segment expenses (1) |
|
462,769 |
|
|
293,848 |
|
|
1,128,443 |
|
|
1,885,060 |
|
Operating loss |
|
(539,331 |
) |
|
(131,915 |
) |
|
(2,637,474 |
) |
|
(3,308,720 |
) |
Gain on fair value of purchased Bitcoin, net |
|
- |
|
|
- |
|
|
57,926 |
|
|
57,926 |
|
Unrealized loss on investment and equity securities |
|
- |
|
|
- |
|
|
(505,758 |
) |
|
(505,758 |
) |
Unrealized gain on marketable securities |
|
- |
|
|
- |
|
|
4,280 |
|
|
4,280 |
|
Other income - coupon sales |
|
- |
|
|
4,490 |
|
|
- |
|
|
4,490 |
|
Interest income |
|
- |
|
|
- |
|
|
26,353 |
|
|
26,353 |
|
Interest expense |
|
- |
|
|
(89,226 |
) |
|
(18,493 |
) |
|
(107,719 |
) |
Loss before income taxes |
|
(539,331 |
) |
|
(216,651 |
) |
|
(3,073,166 |
) |
|
(3,829,148 |
) |
Fixed asset additions |
|
- |
|
|
1,226,602 |
|
|
- |
|
|
1,226,602 |
|
1) Other segment items for each reportable segment include rent, collection costs, office and general business expenses, travel and insurance costs.
|