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

Note 8 – Segment Reporting

 

The Company operates within a single reportable segment under ASC 280, Segment Reporting, focused on blockchain based revenue generation through its blockchain infrastructure and DeFi operations.

 

Within this reportable segment, the Company’s operations are organized around three primary business lines that represent distinct revenue-generating activities:

 

  1. Validator Node Operations (“NodeOps”) – earns ETH-denominated staking rewards and validator fees from operating validator nodes that secure proof-of-stake blockchain networks.
     
  2. Block Building (“Builder+”) – generates execution-layer transaction fees and MEV rewards from the construction and submission of optimized transaction blocks to validators on Ethereum and Binance Smart Chain (BSC).
     
  3. DeFi Operations (“Imperium”) – represents the Company’s decentralized finance activities, including decentralized lending and liquidity pool participation, through which the Company earns protocol-denominated fees and rewards for supplying digital asset liquidity to smart contract-based protocols.

 

Revenues from NodeOps and Builder+ are aggregated and presented as Blockchain infrastructure revenues, while revenues from Imperium are presented separately as DeFi revenues in the statements of operations. Although these business lines have distinct economic drivers and operational processes, management evaluates them together as part of the Company’s single reportable segment due to shared infrastructure, integrated management oversight, and the common objective of on-chain revenue generation.

 

 

DeFi activities include both DeFi lending arrangements and decentralized exchange liquidity pool participation, which have distinct economic characteristics but are managed together within the Company’s DeFi operations.

 

Gross profit (loss) is the primary measure of segment performance reviewed by the Company’s CODMs, which comprises members of executive management including the Chief Executive Officer and Chief Financial Officer. In evaluating performance and allocating resources, the CODMs reviews segment revenues, direct production costs, validator payments, hosting expenses, and allocated employee compensation.

 

Consistent with ASU 2023-07, the Company discloses the significant segment expenses regularly provided to the CODMs for decision-making purposes, including validator payments, infrastructure hosting costs, allocated employee compensation, and other direct operating costs associated with blockchain infrastructure and DeFi operations.

The following tables present segment revenue and gross profit (loss), including the significant expense items reviewed by the CODMs, for the three months ended March 31, 2026 and 2025:

 

   NodeOps   Builder+   Imperium   Total 
   For the Three Months Ended March 31, 2026 
   NodeOps   Builder+   Imperium   Total 
Revenues  $131,094   $1,004,257   $1,012,026   $2,147,377 
Less: Cost of revenues                    
Validator payments  $-   $1,084,192   $-   $1,084,194 
Cloud and server hosting costs   3,542    11,881    -    15,423 
Compensation costs   4,375    14,000    9,075    27,450 
Third-party support costs   -    6,000    -    6,000 
Gross profit (loss)  $123,177   $(111,816)  $1,002,951   $1,014,312 

 

   NodeOps   Builder+   Imperium   Total 
   For the Three Months Ended March 31, 2025 
   NodeOps   Builder+   Imperium   Total 
Revenues  $339,291   $1,349,644   $-   $1,688,935 
Less: Cost of revenues                    
Validator payments  $-   $1,479,943    -   $1,479,943 
Cloud and server hosting costs   35,652    30,290    -    65,942 
Compensation costs   9,828    11,660    -    21,488 
Third-party support costs   1,286    -    -    1,286 
Gross profit (loss)  $292,525   $(172,249)  $-   $120,276 

 

The following table reconciles total segment gross profit to net income (loss):

 

   2026   2025 
  

For the Three Months Ended

March 31,

 
   2026   2025 
Gross profit   1,014,312    120,276 
Total operating expenses   (68,630,772)   (17,614,123)
Other income (expense)   (1,547,859)   225,150 
Net income (loss)  $(69,164,319)  $(17,268,697)