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

Note 15 – SEGMENT INFORMATION:

 

The Company has one reportable operating segment, the “Flywheel,” which is engaged in developing and marketing Flywheel-based power boosting and power management solutions. 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 loss on digital assets and other third-party costs associated with the Company’s bitcoin holdings.

 

 

ZOOZ STRATEGY LTD

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer, who manages the entity on a consolidated basis. The CODM uses “net loss” to assess operating results of the flywheel business by comparing actual to budgeted results on a quarterly basis.

 

On July 31, 2025, the Company appointed a new Chief Executive Officer, resulting in a change in the Company’s CODM. As a result, the segment information regularly provided to the CODM changed, which also resulted in changes in the identification of significant segment expenses. Accordingly, the Company recast the corresponding segment information for prior periods to conform to the current-year presentation.

 

The following tables present the Company’s revenues and significant expenses regularly provided to the CODM, reconciled to net loss for the period presented. Total segment assets provided to the CODM are also disclosed in the tables below for the period presented.

 

             
   Year ended December 31, 2025 
   Flywheel   Corporate & Other  

Total

 
   U.S. dollars in thousands 
Total revenues   247    -    247 
Significant segment expenses               
Inventory write-off   2,888    -    2,888 
Research and development payroll   2,431    -    2,431 
Research and development projects   354    -    354 
Operating lease and maintenance   607    -    607 
Professional Services   -    4,318    4,318 
Directors Insurance   -    515    515 
Investors relations expenses   -    1,019    1,019 
Plant, property and equipment disposals   453    -    453 
Share-based compensation expense   (29)   6,730    6,701 
Unrealized loss on digital asset   -    30,307    30,307 
Digital asset custody and sponsor fees   -    152    152 
Other segment items(1)   3,699    2,392    6,091 
Net loss   10,156    45,433    55,589 
                
Total assets, as of December 31, 2025(2)   10,722    111,843    122,565 

 

 

ZOOZ STRATEGY LTD

NOTES TO THE FINANCIAL STATEMENTS (continued)

 

             
   Year ended December 31, 2024 
   Flywheel   Corporate & Other   Total 
   U.S. dollars in thousands 
Total revenues   1,041    -    1,041 
Significant segment expenses               
Inventory write-off   457    -    457 
Research and development payroll   2,955    -    2,955 
Research and development projects   952    -    952 
Operating lease and maintenance   647    -    647 
Professional Services   -    1,520    1,520 
Directors Insurance   -    734    734 
Share-based compensation expense   286    83    369 
Other segment items(1)   4,104    293    4,397 
Net loss   8,360    2,630    10,990 
Total assets, as of December 31, 2025(2)   12,473    364    12,837 

 

             
   Year ended December 31, 2023 
   Flywheel   Corporate & Other   Total 
   U.S. dollars in thousands 
Total revenues   764    -    764 
Significant segment expenses               
Inventory write-off   1,267    -    1,267 
Research and development payroll   3,651    -    3,651 
Research and development projects   1,085    -    1,085 
Operating lease and maintenance   687    -    687 
Professional Services   -    1,233    1,233 
Directors Insurance   -    45    45 
Share-based compensation expense   (425)   206    (219)
Other segment items(1)   5,240    (470)   4,770 
Net loss   10,741    1,014    11,755 
Total assets, as of December 31, 2025(2)   13,311    166    13,477 

 

(1)Other segment items for the Flywheel Business are primarily related to cost of revenue, payroll and other costs supporting the Company’s research and development activity, patents and certain expenses that are not easily allocatable to specific functions.

 

(2)Flywheel Segment assets include all Company assets except digital assets, cash and cash equivalents, short term prepaid expenses and long-term prepaid expenses.