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SEGMENT AND GEOGRAPHIC INFORMATION
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION

Note 12. SEGMENT AND GEOGRAPHIC INFORMATION

 

The Company operates as one operating segment. The Company’s CODM is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated gross margin, operating income and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow operating income and the allocation of budget between cost of revenues, sales and marketing, general and administrative expenses or technology and development.

 

The following table presents selected financial information with respect to the Company’s single operating segment for the three months ended March 31, 2026 and 2025:

 

   2026   2025 
   Three Months Ended 
   March 31, 
   2026   2025 
         
Net revenues  $1,559,563   $10,863,443 
Cost of net revenues   1,389,342    10,170,802 
Gross profit (loss)   170,221   692,641 
           
Operating expenses:          
General and administrative   4,868,935    31,172,920 
Sales and marketing   960,000    65,217 
Depreciation and amortization   356,824    802,872 
Total operating expenses   6,185,759    32,041,009 
           
Loss from operations   (6,015,538)   (31,348,368)
           
Other income/(expense):          
Interest expense, net   (2,072,679)   (1,094,490)
Gain on extinguishment of vendor obligation   259,880    - 
Settlement fees   (13,000)   - 
Other income   98,740    11,955 
Total other expense, net   (1,727,059)   (1,082,535)
           
Net loss before income taxes   (7,742,597)   (32,430,903)
Provision for income taxes   -    - 
Net loss  $(7,742,597)  $(32,430,903)

 

All revenues were within the U.S. region. See Note 1, Organization and Summary of Significant Accounting Policies - Revenue Recognition for additional information about disaggregated revenue.

 

The Company’s long-lived tangible assets, as well as the Company’s operating lease right-of-use assets recognized on the unaudited condensed consolidated balance sheets were located as follows:

 

   March 31,   December 31, 
   2026   2025 
United States          
Property, plant and equipment, net  $201,514   $229,376 
Operating lease, right-of-use assets  $844,400   $966,893