| SEGMENTED INFORMATION |
19.
SEGMENTED INFORMATION
The
Company has chosen to organize its operating segments based on products or services offered. Each operating segment is also a reportable
segment (i.e., operating segments have not been aggregated). As a result of the launch of the digital asset treasury reserve strategy
in the fourth quarter of 2025, the Company reorganized the operating and reportable segments to include Avalanche Protocol and Bitcoin
Mining All other activities, including financing, are carried out through the corporate entity. The prior period segment information
has been recast to conform to the current period presentation.
Our
Bitcoin Mining operations are conducted at our Redwater Property in Alberta, Canada, and the Bald Eagle Property in Ohio, USA, which
reflects the manner in which the Company’s Chief Operating Decision Maker (“CODM”), its Chief Executive Officer, reviews
and assesses the performance of the business and allocates resources.
The
information used by the CODM to assess performance and allocate resources includes various measures of segment profit, however, for the
purposes of the disclosures required by ASC 280, Segment Reporting and ASU 2023-07, Segment Reporting (Topic 280): Improvements
to Reportable Segment Disclosures, the Company has determined that the measure most consistent with the measurement principles used
in measuring the corresponding amounts in the consolidated financial statements is net income. Segment financial information is used
to monitor forecast versus actual results in order to make key operating decisions for each segment. The CODM evaluates the performance
or allocate resources for each segment based on the Company’s assets or liabilities.
The
following tables disclose key financial information including the significant segment expenses, in the context of deriving net income,
which are regularly provided to and reviewed by the CODM reconciled to the segment’s net income:
SCHEDULE
OF FINANCIAL INFORMATION INCLUDING SIGNIFICANT SEGMENT EXPENSES
| | |
Avalanche
Protocol | | |
Bitcoin Mining | | |
Corporate and
Other | | |
Total | |
| Year Ended December 31, 2025 | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
$ | 607,605 | | |
$ | 1,732,675 | | |
$ | 531 | | |
$ | 2,340,811 | |
| Significant segment expenses: | |
| | | |
| | | |
| | | |
| | |
| Costs of revenue, excluding depreciation | |
| 383,748 | | |
| 1,041,254 | | |
| 5,665 | | |
| 1,430,667 | |
| Realized gain on sale of digital assets | |
| - | | |
| (86,728 | ) | |
| - | | |
| (86,728 | ) |
| Unrealized loss on market valuation | |
| 7,530,815 | | |
| 235,683 | | |
| - | | |
| 7,766,498 | |
| Selling, general and administrative | |
| 8,017 | | |
| 66,997 | | |
| 6,861,249 | | |
| 6,936,263 | |
| Depreciation and amortization | |
| - | | |
| 648,038 | | |
| 556,088 | | |
| 1,204,126 | |
| Impairment of assets | |
| - | | |
| 452,635 | | |
| 5,110,592 | | |
| 5,563,227 | |
| Accretion interest expense | |
| - | | |
| - | | |
| 3,148,068 | | |
| 3,148,068 | |
| Consulting | |
| - | | |
| 27,964 | | |
| 419,294 | | |
| 447,258 | |
| Repairs and maintenance | |
| - | | |
| 388,423 | | |
| - | | |
| 388,423 | |
| Severance expense | |
| - | | |
| - | | |
| 356,087 | | |
| 356,087 | |
| Foreign exchange (gain) loss | |
| - | | |
| 3,948 | | |
| 76,495 | | |
| 80,443 | |
| Change in fair value of derivatives | |
| - | | |
| - | | |
| (2,976,911 | ) | |
| (2,976,911 | ) |
| Gain on conversion of debt | |
| - | | |
| - | | |
| (86,563 | ) | |
| (86,563 | ) |
| Loss on extinguishment of debt | |
| - | | |
| - | | |
| 10,131,237 | | |
| 10,131,237 | |
| Other expense | |
| - | | |
| - | | |
| 33,251 | | |
| 33,251 | |
| Net loss from discontinued operations | |
| - | | |
| - | | |
| 320,189 | | |
| 320,189 | |
| Loss on disposal of business | |
| - | | |
| - | | |
| 880,482 | | |
| 880,482 | |
| Total operating expenses and other expenses (income) | |
| 7,922,580 | | |
| 2,778,214 | | |
| 24,835,223 | | |
| 35,536,017 | |
| Net Loss | |
$ | (7,314,975 | ) | |
$ | (1,045,539 | ) | |
$ | (24,834,692 | ) | |
$ | (33,195,206 | ) |
| | |
Avalanche
Protocol | | |
Bitcoin Mining | | |
Corporate and
Other | | |
Total | |
| Year Ended December 31, 2024 | |
| | | |
| | | |
| | | |
| | |
| Revenue | |
$ | - | | |
$ | 26,572 | | |
$ | - | | |
$ | 26,572 | |
| Significant segment expenses: | |
| | | |
| | | |
| | | |
| | |
| Cost of revenue, excluding depreciation | |
| - | | |
| 54,923 | | |
| - | | |
| 54,923 | |
| Selling, general and administrative | |
| - | | |
| - | | |
| 5,059,703 | | |
| 5,059,703 | |
| Depreciation and amortization | |
| - | | |
| 16,809 | | |
| 650,252 | | |
| 667,061 | |
| Impairment of assets | |
| - | | |
| - | | |
| 4,137,271 | | |
| 4,137,271 | |
| Accretion interest expense | |
| - | | |
| - | | |
| 2,978,722 | | |
| 2,978,722 | |
| Foreign exchange gain | |
| - | | |
| - | | |
| (204,220 | ) | |
| (204,220 | ) |
| Change in fair value of derivatives | |
| - | | |
| - | | |
| (1,392,530 | ) | |
| (1,392,530 | ) |
| Loss on conversion of convertible debt | |
| - | | |
| - | | |
| 1,627,858 | | |
| 1,627,858 | |
| Loss on extinguishment of debt | |
| - | | |
| - | | |
| 2,805,306 | | |
| 2,805,306 | |
| Other expense | |
| - | | |
| - | | |
| 256,806 | | |
| 256,806 | |
| Net loss from discontinued operations | |
| - | | |
| - | | |
| 289,877 | | |
| 289,877 | |
| Acquisition-related integration costs | |
| - | | |
| 20,610 | | |
| - | | |
| 20,610 | |
| Total operating expenses and other expenses (income) | |
| - | | |
| 92,342 | | |
| 16,209,045 | | |
| 16,301,387 | |
| Net Loss | |
$ | - | | |
$ | (65,770 | ) | |
$ | (16,209,045 | ) | |
$ | (16,274,815 | ) |
The
following table summarizes the additions to long-lived assets, total long-lived assets, and total assets by segment, used by the CODM
to assess segment performance.
SCHEDULE OF ADDITIONS BY SEGMENT USED BY THE
CODM TO ASSESS SEGMENT PERFORMANCE
| | |
Avalanche
Protocol | | |
Bitcoin
Mining | | |
Corporate and Other | | |
Total | |
| Year Ended December 31, 2025 | |
| | | |
| | | |
| | | |
| | |
| Property and equipment, additions | |
$ | - | | |
$ | 1,248,464 | | |
$ | - | | |
$ | 1,248,464 | |
| Digital assets, additions | |
| 160,039,924 | | |
| 1,732,674 | | |
| - | | |
| 161,772,598 | |
| Intangible assets, additions | |
| - | | |
| - | | |
| - | | |
| - | |
| | |
| | | |
| | | |
| | | |
| | |
| Balances: | |
| | | |
| | | |
| | | |
| | |
| Property and equipment, net | |
| - | | |
| 4,246,247 | | |
| - | | |
| 4,246,247 | |
| Digital assets, current and non-current | |
| 152,509,109 | | |
| 1,161,251 | | |
| - | | |
| 153,670,360 | |
| Intangible assets, net | |
| - | | |
| 408,857 | | |
| - | | |
| 408,857 | |
| Intangible asset held for sale | |
| - | | |
| - | | |
| 1,550,000 | | |
| 1,550,000 | |
| Total assets | |
$ | 178,051,611 | | |
$ | 13,210,577 | | |
$ | 3,702,452 | | |
$ | 194,964,640 | |
| | |
Avalanche
Protocol | | |
Bitcoin
Mining | | |
Corporate and Other | | |
Total | |
| Year Ended December 31, 2024 | |
| | | |
| | | |
| | | |
| | |
| Property and equipment, additions | |
$ | - | | |
$ | 839,937 | | |
$ | - | | |
$ | 839,937 | |
| Digital assets, additions | |
| - | | |
| 25,246 | | |
| - | | |
| 25,246 | |
| Intangible assets, additions | |
| - | | |
| 625,736 | | |
| 510,333 | | |
| 1,136,069 | |
| | |
| | | |
| | | |
| | | |
| | |
| Balances: | |
| | | |
| | | |
| | | |
| | |
| Property and equipment, net | |
| - | | |
| 807,471 | | |
| 1,424 | | |
| 808,895 | |
| Digital assets, current and non-current | |
| - | | |
| 26,282 | | |
| - | | |
| 26,282 | |
| Intangible assets, net | |
| - | | |
| 625,736 | | |
| 7,187,840 | | |
| 7,813,576 | |
| Total assets | |
$ | - | | |
$ | 1,459,489 | | |
$ | 9,304,494 | | |
$ | 10,763,983 | |
The
following tables summarize revenue and certain assets, such as cash and cash equivalents, property, plant, and equipment and digital
assets by geographic area based on the location of the underlying activity or rendering of services and location of the underlying assets:
SCHEDULE
OF REVENUE, ASSETS AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC AREA
| Year Ended December 31, | |
2025 | | |
2024 | |
| Revenue | |
| | | |
| | |
| Canada | |
$ | 313,687 | | |
$ | 26,572 | |
| United States | |
| 2,027,124 | | |
| - | |
| Total Revenue | |
$ | 2,340,811 | | |
$ | 26,572 | |
| | |
| | | |
| | |
| Assets | |
| | | |
| | |
| Cash and cash equivalents for all segments | |
| | | |
| | |
| Canada | |
$ | 50,397 | | |
$ | 423,907 | |
| United States | |
| 22,085,053 | | |
| 65,961 | |
| Total cash and cash equivalents | |
$ | 22,135,450 | | |
$ | 489,868 | |
| | |
| | | |
| | |
| Property Plant and Equipment | |
| | | |
| | |
| Canada | |
$ | 927,221 | | |
$ | 807,471 | |
| United States | |
| 3,319,026 | | |
| 1,424 | |
| Total property plant and equipment | |
$ | 4,246,247 | | |
$ | 808,895 | |
| | |
| | | |
| | |
| Digital Assets | |
| | | |
| | |
| Canada | |
$ | 297,415 | | |
$ | 26,282 | |
| United States | |
| 153,372,945 | | |
| - | |
| Total digital assets, non-current | |
$ | 153,670,360 | | |
$ | 26,282 | |
|