v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

15. SEGMENT REPORTING

 

The Company has two reportable segments: cloud services and colocation services. The reportable segments are identified based on the types of service performed.

 

Gross profit (loss) is the segment performance measure the chief operating decision maker (“CODM”) uses to assess the Company’s reportable segments.

 

The cloud services segment generates revenue from providing high performance computing services to support generative AI workstreams. Cost of revenue consists of direct production costs, including electricity costs, data center lease expense, GPU servers lease expense, and other relevant costs, but excluding depreciation and amortization.

 

Colocation services generate revenue by providing customers with physical space, power and cooling within the data center facility. Cost of revenue consists of direct production costs related to our HPC data center services, including electricity costs, lease costs, data center employees’ wage expenses, and other relevant costs but excluding depreciation and amortization.

 

The CODM analyzes the performance of the segments based on reportable segment revenue and reportable segment cost of revenue. No operating segments have been aggregated to form the reportable segments.

 

Other than the $20.1 million of goodwill from the Enovum acquisition allocated to the colocation services, the Company does not allocate all assets to the reporting segments as these are managed on an entity-wide basis. Therefore, the Company does not separately disclose the total assets of its reportable operating segments.

 

All Other revenue is generated from equipment leases with external customers. 

 

The following tables present segment revenue and segment gross profit reviewed by the CODM:

 

The Year Ended December 31, 2025

 

   Cloud
services		   Colocation
services		   Total 
Revenue from external customers $68,753,609  $8,913,816  $77,667,425 
                
Reconciliation of revenue               
Other revenue (a)      1,496,827   1,496,827 
Total consolidated revenue          79,164,252 
                
Less:               
Electricity costs  2,450,710   1,438,218   3,888,928 
Datacenter lease expense  5,410,230   1,025,851   6,436,081 
GPU lease expense  14,741,928   -   14,741,928 
Wage expense  -   406,787   406,787 
Customer support contractor fees  1,124,902   -   1,124,902 
Other segment items (b)  2,858,593   579,679   3,438,272 
                
Segment gross profit $42,167,246  $5,463,281  $47,630,527 

 

(a)Other revenue is primarily attributable to equipment leasing revenue and is therefore not included in the total for segment gross profit.

 

(b)All amounts included within Other segment items are individually insignificant.

 

The Year Ended December 31, 2024

 

   Cloud
services		   Colocation
services		   Total 
Revenue from external customers $45,727,736  $1,361,241  $47,088,977 
                
Reconciliation of revenue               
Other revenue (a)      550,260   550,260 
Total consolidated revenue          47,639,237 
                
Less:               
Electricity costs  1,198,060   188,559   1,386,619 
Datacenter lease expense  3,558,987   149,260   3,708,247 
GPU lease expense  13,640,737   -   13,640,737 
Wage expense  -   12,156   12,156 
Other segment items (b)  1,327,546   140,526   1,468,072 
                
Segment gross profit $26,002,406  $870,740  $26,873,146 

 

(a)Other revenue is primarily attributable to Equipment Leasing and is therefore not included in the total for segment gross profit.

 

(b)All amounts included within Other segment items are individually insignificant.

 

The following table presents the reconciliation of segment gross profit to net income before taxes:

 

   For the Years Ended
December 31,		 
   2025   2024 
Segment gross profit $47,630,527  $26,873,146 
           
Reconciling Items:          
Other revenue (a)  1,496,827   550,260 
Depreciation and amortization expenses  (23,440,884)  (16,511,406)
General and administrative expenses  (52,507,246)  (10,283,615)
Net loss from disposal of property and equipment  (372,993)  - 
Other income, net  1,425,399   1,615,634 
Net (loss) income before taxes $(25,768,370) $2,244,019 

 

(a)Other revenue is primarily attributable to Equipment Leasing and is therefore not included in the total for segment gross profit

 

Long-lived assets consist of property, plant and equipment, operating lease right-of-use assets and finance lease right-of-use assets. The geographic information for long-lived assets as of December 31, 2025 and December 31, 2024 are as follows:

 

   For the Years Ended 
   December 31,
2025		   December 31,
2024		 
United States $124,522,633  $- 
Iceland  113,516,239   59,766,182 
Canada  122,776,181   43,981,419 
  $360,815,053  $103,747,601 

 

Revenue by geographic location, based on the location where services are provided by the Company to the customer, with no other country individually comprising greater than 10% of total revenue, are as follows:

 

   For the Years Ended 
   December 31,
2025		   December 31,
2024		 
Iceland $69,167,349  $46,190,367 
Canada  8,913,816   1,361,241 
Other countries  1,083,087   87,629 
  $79,164,252  $47,639,237