| SCHEDULE OF FINANCIAL INFORMATION INCLUDING SIGNIFICANT SEGMENT EXPENSES |
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 | ) |
|
| SCHEDULE OF ADDITIONS BY SEGMENT USED BY THE CODM TO ASSESS SEGMENT PERFORMANCE |
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 | |
|
| SCHEDULE OF REVENUE, ASSETS AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC AREA |
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 | |
|