| Segment Information |
Note 13. Segment Information The Company applies ASC 280, Segment Reporting, in determining its reportable segments. The Company has two reportable segments: Specialty Finance and Mining and Treasury 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. Performance results are monitored, reviewed, and measured monthly and quarterly to assess returns on investment, compensation decisions and changing strategies, if required. 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 and Treasury Operations segment generates revenue from the Bitcoin the Company earns through its mining activities.
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Year ended December 31, 2025 |
|
|
Specialty Finance |
|
Mining and Treasury Operations |
|
All Other |
|
Total |
|
Revenue, net |
$ |
561,310 |
|
$ |
8,283,423 |
|
$ |
- |
|
$ |
8,844,733 |
|
Digital mining cost of revenue |
|
- |
|
|
5,792,433 |
|
|
- |
|
|
5,792,433 |
|
Curtailment and energy sales |
|
- |
|
|
(658,048 |
) |
|
- |
|
|
(658,048 |
) |
Staff costs and payroll |
|
522,898 |
|
|
1,446,708 |
|
|
4,241,198 |
|
|
6,210,804 |
|
Loss on fair value of mined bitcoin, net |
|
- |
|
|
1,808,174 |
|
|
- |
|
|
1,808,174 |
|
Impairment loss on mining machines |
- |
|
|
5,391,857 |
|
|
- |
|
|
5,391,857 |
|
Depreciation and amortization |
|
1,907 |
|
|
7,747,406 |
|
|
422,257 |
|
|
8,171,570 |
|
Loss on disposal of fixed assets |
|
- |
|
|
501,800 |
|
|
- |
|
|
501,800 |
|
Other segment expenses (1) |
|
794,980 |
|
|
1,874,007 |
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|
1,842,043 |
|
|
4,511,030 |
|
Operating loss |
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(758,475 |
) |
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(15,620,914 |
) |
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(6,505,498 |
) |
|
(22,884,887 |
) |
Loss on fair value of purchased Bitcoin, net |
|
- |
|
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(52,704 |
) |
|
- |
|
|
(52,704 |
) |
Loss on fair value of digital assets receivable |
|
- |
|
|
(3,017,485 |
) |
|
- |
|
|
(3,017,485 |
) |
Credit loss on digital assets receivable |
|
- |
|
|
(9,187 |
) |
|
- |
|
|
(9,187 |
) |
Unrealized loss on investment and equity securities |
|
- |
|
|
- |
|
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(179,972 |
) |
|
(179,972 |
) |
Unrealized gain on Galaxy loan derivative |
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- |
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|
285,160 |
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|
- |
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|
285,160 |
|
Unrealized gain on marketable securities |
|
- |
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- |
|
|
10,330 |
|
|
10,330 |
|
Impairment loss on prepaid mining machine deposits |
|
- |
|
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(4,885 |
) |
|
- |
|
|
(4,885 |
) |
Interest income |
|
- |
|
|
- |
|
|
3,124 |
|
|
3,124 |
|
Interest expense |
|
- |
|
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(963,663 |
) |
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(161,022 |
) |
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(1,124,685 |
) |
Loss before income taxes |
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(758,475 |
) |
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(19,383,678 |
) |
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(6,833,038 |
) |
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(26,975,191 |
) |
Fixed asset additions |
|
1,170 |
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5,351,165 |
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|
3,667 |
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|
5,356,002 |
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Year ended December 31, 2024 |
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Specialty Finance |
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Mining and Treasury Operations |
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All Other |
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Total |
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Revenue, net |
$ |
567,043 |
|
$ |
10,432,605 |
|
$ |
- |
|
$ |
10,999,648 |
|
Digital mining cost of revenue |
|
- |
|
|
6,990,856 |
|
|
- |
|
|
6,990,856 |
|
Staff costs and payroll |
|
607,245 |
|
|
464,895 |
|
|
3,484,641 |
|
|
4,556,781 |
|
Gain on fair value of Bitcoin, net |
|
- |
|
|
(7,350,805 |
) |
|
- |
|
|
(7,350,805 |
) |
Depreciation and amortization |
|
3,881 |
|
|
7,730,208 |
|
|
40,072 |
|
|
7,774,161 |
|
Impairment loss on mining machines |
|
- |
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|
1,379,375 |
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|
- |
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|
1,379,375 |
|
Loss on disposal of fixed assets |
|
- |
|
|
136,100 |
|
|
- |
|
|
136,100 |
|
Other segment expenses (1) |
|
922,081 |
|
|
494,995 |
|
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2,557,655 |
|
|
3,974,731 |
|
Operating income (loss) |
|
(966,164 |
) |
|
586,981 |
|
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(6,082,368 |
) |
|
(6,461,551 |
) |
Gain (loss) on fair value of purchased Bitcoin, net |
|
- |
|
|
(18,729 |
) |
|
57,926 |
|
|
39,197 |
|
Unrealized loss on investment and equity securities |
|
- |
|
|
- |
|
|
(1,097,433 |
) |
|
(1,097,433 |
) |
Unrealized gain on marketable securities |
|
- |
|
|
- |
|
|
9,190 |
|
|
9,190 |
|
Impairment loss on prepaid mining machine deposits |
|
- |
|
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(12,941 |
) |
|
- |
|
|
(12,941 |
) |
Other income - coupon sales |
|
- |
|
|
4,490 |
|
|
- |
|
|
4,490 |
|
Interest income |
|
26 |
|
|
- |
|
|
307,290 |
|
|
307,316 |
|
Interest expense |
|
- |
|
|
(72,511 |
) |
|
(371,189 |
) |
|
(443,700 |
) |
Income (loss) before income taxes |
|
(966,138 |
) |
|
487,290 |
|
|
(7,176,584 |
) |
|
(7,655,432 |
) |
Fixed asset additions |
|
- |
|
|
3,202,191 |
|
|
5,265 |
|
|
3,207,456 |
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(1) Other segment items for each reportable segment include rent, collection costs, office and general business expenses, travel, insurance, office and general business expenses
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