| Segment Information |
Note 10. Segment Information The Company applies ASC 280 Segment Reporting in determining its reportable segments. The Company has two reportable segments: Specialty Finance and Mining and Treasury Operations. The guidance requires that segment disclosures present the measure(s) used by the CODM to decide how to allocate resources and for purposes of assessing such segments’ performance. The Company’s CODM uses revenue, income from operations and income before taxes of our reporting segments to assess the performance of the business of our reportable operating segments. Segment asset information is not disclosed as such information is not regularly reviewed by the CODM. The CODM regularly reviews total assets as reported on the consolidated balance sheet. Performance results are monitored, reviewed, and measured monthly and quarterly to assess returns on investment, compensation decisions and changing strategies, if required. No operating segments have been aggregated to form the reportable segments. The corporate oversight function, and other components that may earn revenues that are only incidental to the activities of the Company are aggregated and included in the “All Other” category. The Specialty Finance segment generates revenue from providing funding to nonprofit community associations. The Mining and Treasury Operations segment generates revenue from the Bitcoin the Company earns through its mining activities.
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Three Months Ended March 31, 2026 |
|
|
Specialty Finance |
|
Mining and Treasury Operations |
|
All Other |
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Total |
|
Revenue, net |
$ |
130,787 |
|
$ |
1,978,180 |
|
$ |
- |
|
$ |
2,108,967 |
|
Digital mining cost of revenue |
|
- |
|
|
1,868,344 |
|
|
- |
|
|
1,868,344 |
|
Curtailment and energy sales |
|
- |
|
|
(367,595 |
) |
|
- |
|
|
(367,595 |
) |
Staff costs and payroll |
|
39,640 |
|
|
310,644 |
|
|
966,991 |
|
|
1,317,275 |
|
Loss on fair value of mined bitcoin, net |
|
- |
|
|
3,784,418 |
|
|
- |
|
|
3,784,418 |
|
Depreciation and amortization |
|
208 |
|
|
640,336 |
|
|
189,284 |
|
|
829,828 |
|
Other segment expenses (1) |
|
176,557 |
|
|
516,239 |
|
|
416,176 |
|
|
1,108,972 |
|
Operating loss |
|
(85,618 |
) |
|
(4,774,206 |
) |
|
(1,572,451 |
) |
|
(6,432,275 |
) |
Unrealized gain on investment and equity securities |
|
- |
|
|
- |
|
|
14,024 |
|
|
14,024 |
|
Unrealized loss on marketable securities |
|
- |
|
|
- |
|
|
(2,380 |
) |
|
(2,380 |
) |
Gain on Galaxy loan derivative |
|
- |
|
|
22,374 |
|
|
- |
|
|
22,374 |
|
Loss on fair value of digital assets receivable |
|
- |
|
|
(3,178,440 |
) |
|
- |
|
|
(3,178,440 |
) |
Change in credit loss reserve on digital assets receivable |
|
- |
|
|
5,794 |
|
|
- |
|
|
5,794 |
|
Interest income |
|
- |
|
|
- |
|
|
532 |
|
|
532 |
|
Interest expense |
|
- |
|
|
(504,484 |
) |
|
(40,687 |
) |
|
(545,171 |
) |
Loss before income taxes |
|
(85,618 |
) |
|
(8,428,962 |
) |
|
(1,600,962 |
) |
|
(10,115,542 |
) |
Fixed asset additions |
|
- |
|
|
203,344 |
|
|
4,578 |
|
|
207,922 |
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Three Months Ended March 31, 2025 |
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Specialty Finance |
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Mining and Treasury Operations |
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All Other |
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Total |
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Revenue, net |
$ |
97,397 |
|
$ |
2,273,940 |
|
$ |
- |
|
$ |
2,371,337 |
|
Digital mining cost of revenue |
|
- |
|
|
1,548,295 |
|
|
- |
|
|
1,548,295 |
|
Staff costs and payroll |
|
130,621 |
|
|
228,973 |
|
|
690,883 |
|
|
1,050,477 |
|
Loss on fair value of Bitcoin, net |
|
- |
|
|
1,809,976 |
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|
- |
|
|
1,809,976 |
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Depreciation and amortization |
|
477 |
|
|
1,980,092 |
|
|
57,009 |
|
|
2,037,578 |
|
Other segment expenses (1) |
|
214,883 |
|
|
322,061 |
|
|
487,908 |
|
|
1,024,852 |
|
Operating loss |
|
(248,584 |
) |
|
(3,615,456 |
) |
|
(1,235,800 |
) |
|
(5,099,840 |
) |
Loss on fair value of purchased Bitcoin, net |
|
|
|
(52,704 |
) |
|
- |
|
|
(52,704 |
) |
Unrealized loss on investment and equity securities |
|
- |
|
|
- |
|
|
(25,984 |
) |
|
(25,984 |
) |
Unrealized loss on marketable securities |
|
- |
|
|
- |
|
|
(8,710 |
) |
|
(8,710 |
) |
Interest income |
|
- |
|
|
- |
|
|
1,145 |
|
|
1,145 |
|
Interest expense |
|
- |
|
|
(183,919 |
) |
|
(36,987 |
) |
|
(220,906 |
) |
Loss before income taxes |
|
(248,584 |
) |
|
(3,852,079 |
) |
|
(1,306,336 |
) |
|
(5,406,999 |
) |
Fixed asset additions |
|
1,170 |
|
|
166,896 |
|
|
2,007 |
|
|
170,073 |
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1) Other segment items for each reportable segment include rent, collection costs, office and general business expenses, travel and insurance costs.
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