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

 

   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.

 

   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:

 

 

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