v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 16. Segment Reporting

 

We determine operating segments based on metrics that our Chief Operating Decision Makers (“CODM”) review internally to manage our business, including resource allocation and performance assessment. In August 2025, as a result of the new treasury policy, management re-evaluated the segment reporting structure and determined that the Company operates in two reportable segments other than our corporate activities. Our CODM regularly review financial results based on the two operating segments consisting of Medical Device and Digital Commodity Treasury.

 

Medical Device: This segment is responsible for executing and managing the Company’s medical device sales and distribution business.

 

Digital Commodity Treasury: This segment is responsible for executing and managing the Company’s treasury platform.

 

The CODM uses segment operating income (loss) to evaluate operating segment performance and allocate resources. We do not prepare separate balance sheets by operating segment for the CODM, as assets are not evaluated as part of operating segment performance and resource allocation. We provide the CODM depreciation and amortization expense and impairment charges that are generated from operating segment-specific assets, as these are included in segment net (loss).

 

The accounting policies for the segment information are the same as described in Note 2 - Summary of Significant Accounting Transactions. Transactions between segments are reported as if each were a stand-alone business and are eliminated in consolidation. The Company ceased manufacturing operations in October 2025. Accordingly, for the three months ended March 31, 2026 no medical device segment expenses were included as part of discontinued operations.

 

Certain payroll and consultant expenses were allocated among segments on the basis of the estimated percentage of time spent on each segment.

 

 

The following table presents the Company’s segment results (unaudited) for the three months ended March 31, 2026 and 2025:

 

                      
  

THREE MONTHS

ENDED MARCH 31, 2026

  

THREE MONTHS

ENDED MARCH 31, 2025

 
  

Medical

Device

  

Digital

Commodities

   Corporate   Consolidated  

Medical

Device

   Corporate   Consolidated 
Net Revenue  $192,780   $-   $-   $192,780   $-   $-   $- 
Cost of goods sold   202,578    -    -    202,578    -    -    - 
Total Cost of Goods Sold   202,578    -    -    202,578    -    -    - 
Gross Margin (Loss)   (9,798)   -    -    (9,798)   -    -    - 
                                    
Staking revenue, net   -    3,134,109    -    3,134,109    -    -    - 
                                    
Operating expenses:                                   
Consulting fees – related parties   -    2,500,000    -    2,500,000    -         - 
Selling, general and administrative   175,488    438,209    4,439,622    5,053,320    427,082    937,214    1,364,296 
Research and development   -    -    137,097    137,097    -    -    - 
Unrealized loss on digital commodities   -    70,846,202    -    70,846,202    -    -    - 
Realized loss on digital commodities   -    10,789,841    -    10,789,841    -    -    - 
Digital commodity transaction expenses   -    63,821    -    63,821    -    -    - 
Total Operating Expenses   175,488    84,638,073    4,576,719    89,390,281    427,082    937,214    1,364,296 
Loss from Operations   (185,286)   (81,503,964)   (4,576,719)   (86,265,970)   (427,082)   (937,214)   (1,364,296)
                                    
Other Income (Expense):                                   
Interest expense, net   -    (19,229)   29,267    10,038    -    (626,991)   (626,991)
Fair market value adjustment on warrants   -    -    16,708    16,708    -    4,618,889    4,618,889 
Foreign currency loss   -    -    (8)   (8)   -    -    - 
Other Income (Expense), net   -    (19,229)   45,967    26,738    -    3,991,898    3,991,898 
Income (Loss) Before Provision for Taxes   (185,286)   (81,523,193)   (4,530,752)   (86,239,232)   (427,082)   3,054,684    2,627,602 
Tax Provision   -    -    -    -              - 
Income (Loss) from Continuing Operations   (185,286)   (81,523,193)   (4,530,752)   (86,239,232)   (427,082)   3,054,684    2,627,602 
                                    
Discontinued Operations:                                   
Loss from discontinued operations   -    -    -    -    (830,769)   -    (830,769)
Income tax benefit   -    -    -    -    132,000    -    132,000 
Loss from Discontinued Operations   -    -    -    -    (698,769)   -    (698,769)
Net Income (Loss)  $(185,286)  $(81,523,193)  $(4,530,752)  $(86,239,232)  $(1,125,851)  $3,054,684   $1,928,833 

 

The following table presents the total assets by segment (unaudited) at March 31, 2026 and December 31, 2025:

 

MARCH 31, 2026   DECEMBER 31, 2025 
Medical Device   Digital Commodities   Corporate   Consolidated   Medical Device   Digital Commodities   Corporate   Consolidated 
$516,543   $174,476,910   $6,009,157   $181,002,610   $849,388   $257,253,661  $10,972,124   $269,075,173 

 

Note: Net Loss by Segment includes Corporate, although not a reportable segment, only for reconciliation to the condensed consolidated statement of operations.