v3.26.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Due to the launch of the $IP Token treasury reserve strategy in August 2025 and continual assessment of the requirements under ASC 280, Segment Reporting, the Company has reassessed its segment conclusions and determined that effective with our December 31, 2025 Annual Report on Form 10-K, the Company is presenting two operating and reportable segments: one segment that manages the Company’s intangible digital asset treasury (the “IP Strategy Segment”); and one reportable segment that produces and sells alcohol beverages under various brands (the “Heritage Distilling Segment”). In the IP Strategy Segment, the Company’s $IP Token investments are maintained and managed to make a return on investment through validation and staking activities to generate revenue. In the Heritage Distilling Segment, all brands are predominantly beverages that are manufactured using similar production processes, have comparable alcohol content, generally fall under the same regulatory environment, and are sold to the same types of customers in similar size quantities at similar price points and with similar profit margins.
The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM assesses performance for each segment based on revenue and gross profit, which are reported in the condensed consolidated statement of operations. Other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. The accounting policies for segment reporting are the same as for the Company’s condensed consolidated financial statements. As the Company continues its operations of the $IP treasury strategy, it may provide additional data points to the CODM to assist with decision making that will be evaluated for inclusion in the Company's reportable segment disclosure.
The following summarizes the Company’s operations by segment for the three months ended March 31, 2026 and 2025. There were no IP Strategy Segment activities prior to August 2025.
Three Months Ended March 31,
20262025
Crypto and Related Segment
Revenue(a)
$1,452,503 $— 
Cost of Revenue142,522 — 
Gross Profit1,309,980 — 
Spirits Business Segment
Revenue(b)
$259,722 $1,091,983 
Cost of Revenue400,623 820,098 
Gross Profit(140,901)271,885 
Total Revenue$1,712,225 $1,091,983 
Cost of Revenue543,146 820,098 
Gross Profit$1,169,079 $271,885 
____________
(a) Represented as Crypto and Related Revenue in the condensed consolidated statement of operations.
(b) Represented as Spirits Products Revenue and Spirits Services Revenue in the condensed consolidated statement of operations.
The CODM does not review disaggregated assets on a segment basis, and therefore, such information is not presented. As a result of the change in operating segments, the Company’s reporting units were reassessed, and it was determined that the Company would use the two operating segments as reporting units for purpose of evaluating goodwill for impairment. Since the IP Strategy Segment is a newly-created operating segment that did not have activities prior to August 2025, all goodwill was attributed to the Heritage Distilling Segment.