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

16. SEGMENT 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 in Alberta, Canada and 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 discloses 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 
Three Months Ended March 31, 2026:                    
Revenue  $1,927   $584   $-   $2,511 
Significant segment expenses:                    
Cost of revenue, excluding depreciation  $632   $566   $-   $1,198 
Bitcoin operating costs   -    42    -    42 
Selling, general and administrative   36    2    2,228    2,266 
Repairs and maintenance   -    80    -    80 
Share-based compensation   -    -    253    253 
Depreciation and amortization   -    253    -    253 
Loss on disposal of operating assets   -    259    -    259 
Impairment of assets   1,127    -    -    1,127 
Realized loss digital asset transactions   5,297    -    -    5,297 
Unrealized loss on market valuation of digital assets   35,993    309    -    36,302 
Accretion of interest on debentures   -    -    1,818    1,818 
Other expense   -    -    7    7 
Total operating expenses and other expenses   43,085    1,511    4,306    48,902 
Net loss  $(41,158)  $(927)  $(4,306)  $(46,391)

 

 

   Avalanche Protocol   Bitcoin Mining   Corporate and Other   Total 
For the Three Months Ended March 31, 2025:                    
Revenue  $-   $273   $-   $273 
Significant segment expenses:                    
Cost of revenue, excluding depreciation  $-   $221   $-   $221 
Selling, general and administrative   -    36    1,309    1,345 
Repairs and maintenance   -    86    -    86 
Share-based compensation   -    -    127    127 
Depreciation and amortization   -    121    139    260 
Unrealized loss on market valuation of digital assets   -    -    36    36 
Accretion of interest on debentures   -    -    971    971 
Change in fair value of derivative liabilities   -    -    (2,977)   (2,977)
Foreign exchange loss (gain)   -    -    57    57 
(Gain) loss on conversion of convertible debt   -    -    (87)   (87)
Loss on debt extinguishment   -    -    115    115 
Other (income) expense   -    -    7    7 
Net loss from discontinued operations   -    -    257    257 
Total operating expenses and other expenses (income)   -    464    (46)   418 
Net loss  $-   $(191)  $46   $(145)

 

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 
As of March 31, 2026                    
Digital assets, additions  $4,285   $584   $-   $4,868 
                     
Balances:                    
Property and equipment, net  $-   $6,257   $-   $6,257 
Digital assets, current and non-current  $107,021   $1,443   $-   $108,464 
Intangible assets, net  $-   $351   $-   $351 
Intangible asset held for sale  $-   $-   $1,550   $1,550 
Total assets  $137,347   $12,983   $6,759   $157,090 
                     
As of December 31, 2025                    
Property and equipment, additions  $-   $1,248   $-   $1,248 
Digital assets, additions  $160,040   $1,733   $-   $161,773 
                     
Balances:                    
Property and equipment, net  $-   $4,246   $-   $4,246 
Digital assets, current and non-current  $152,509   $1,161   $-   $153,670 
Intangible assets, net  $-   $409   $-   $409 
Intangible asset held for sale  $-   $-   $1,550   $1,550 
Total assets  $178,052   $13,211   $3,700   $194,963 

 

 

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:

 

   Three Months Ended March 31, 
   2026   2025 
Revenue        
Canada  $380   $56 
United States   2,131    217 
Total Revenue  $2,511   $273 

 

   March 31, 2026   December 31, 2025 
Assets          
Cash and cash equivalents for all segments          
Canada  $34   $50 
United States   16,436    22,085 
Total cash and cash equivalents  $16,470   $22,135 
           
Property Plant and Equipment          
Canada  $3,053   $927 
United States   3,204    3,319 
Total property plant and equipment  $6,257   $4,246 
           
Digital Assets          
Canada  $589   $297 
United States   107,875    153,373 
Total digital assets, non-current  $108,464   $153,670