v3.26.1
SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2025
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 12 – SEGMENT INFORMATION

 

In its operation of the business, management, including our chief operating decision maker, who is also our CEO, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis not consistent with GAAP.

 

For all of the segments, the CODM uses segment operating income (loss) in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments. The CODM also uses segment operating income to assess the performance for each segment by comparing the results and return on assets of each segment with one another.

 

During February 2025, the Company completed a spin-off of its American Infrastructure (AIC) and ReElements (RLMT) reporting units. AIC and RLMT were deconsolidated as of December 25, 2025 and December 26, 2025, respectively and are presented as discontinued operations in the accompanying consolidated financial statements.

 

Our reportable segments are described below.

 

Corporate - Certain costs are incurred at a corporate level and allocated to our segments. These allocated costs generally include corporate overhead and administrative support costs incurred as a part of a corporate program. Each allocation is measured differently based on the specific facts and circumstances of the costs being allocated and is generally based on relative gross margin or relative headcount.

 

EMC - Aggregator and processor of used metals for recycling into new steel-based products for the recovery and sale of recovered metal and steel. From inception to date the majority of company activities and revenue have been focused on the aggregation and sales of scrap steel materials.  The company has yet to commence meaningful operations in battery, magnet and advanced materials recycling.

 

The accounting policies of our reportable segments are the same as those described in the “Summary of Significant Accounting Policies” for the Company.

 

Revenue and costs are generally directly attributed to our segments. However, due to the integrated structure of our business, certain revenue recognized and costs incurred by one segment may benefit other segments. Revenue from certain contracts is allocated among the segments based on the relative value of the underlying products and services, which can include allocation based on actual prices charged, prices when sold separately, or estimated costs plus a profit margin. Cost of revenue is allocated in certain cases based on a relative revenue methodology. Operating expenses that are allocated primarily include those relating to marketing of products and services from which multiple segments benefit and are generally allocated based on relative gross margin.

 

The table below presents information about reported segments for the years ending December 31:

 

2025

 

 

 

 

 

 

 

 

Corporate

 

 

EMC

 

 

Consolidated

 

Revenue

 

 

-

 

 

 

-

 

 

 

-

 

Operating (loss)

 

 

(10,622,774 )

 

 

(685,761 )

 

 

(11,308,535 )

 

2024

 

 

 

 

 

 

 

 

Corporate

 

 

EMC

 

 

Consolidated

 

Revenue

 

 

-

 

 

 

34,070

 

 

 

34,070

 

Operating (loss)

 

 

(13,136,778)

 

 

(1,082,240)

 

 

(14,219,018)

 

A reconciliation of total segment revenues to total consolidated revenues and of total segment gross margin and segment operating income (loss) to total consolidated income (loss) before income taxes, for the years ended December 31, 2025 and 2024, is as follows:

 

2025

 

Corporate

 

 

EMC

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

Metal recovery and sales

 

$-

 

 

$-

 

 

$-

 

Total revenue

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (income)

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and processing

 

 

-

 

 

 

306,639

 

 

 

306,639

 

Depreciation

 

 

122,916

 

 

 

-

 

 

 

122,916

 

General and administrative

 

 

9,194,914

 

 

 

362,976

 

 

 

9,557,890

 

Professional fees

 

 

462,303

 

 

 

16,146

 

 

 

478,449

 

Litigation expense

 

 

720,283

 

 

 

-

 

 

 

720,283

 

Production taxes and royalties

 

 

14,851

 

 

 

-

 

 

 

14,851

 

Development

 

 

107,507

 

 

 

-

 

 

 

107,507

 

Segment operating loss

 

$(10,622,774)

 

$(685,761)

 

$(11,308,535)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to net loss:

 

 

 

 

 

 

$(6,525,961

) 

Net loss

 

 

 

 

 

 

$(17,834,496

) 

   

 2024

 

Corporate

 

 

EMC

 

 

Consolidated

 

Revenue

 

 

 

 

 

 

 

 

 

Metal recovery and sales

 

$-

 

 

$34,070

 

 

$34,070

 

 Total revenue

 

 

-

 

 

 

34,070

 

 

 

34,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (income)

 

 

 

 

 

 

 

 

 

 

 

 

    Cost of sales and processing

 

 

 -

 

 

 

 530,891

 

 

 

 530,891

 

    Depreciation

 

 

 123,253

 

 

 

 -

 

 

 

 123,253

 

General and administrative

 

 

11,043,789

 

 

 

373,419

 

 

 

11,417,208

 

Professional fees

 

 

1,523,305

 

 

 

212,000

 

 

 

1,735,305

 

Production taxes and royalties

 

 

11,638

 

 

 

-

 

 

 

11,638

 

Development

 

 

434,793

 

 

 

-

 

 

 

434,793

 

         Segment operating loss

 

$(13,136,778 )

 

$(1,082,240 )

 

$(14,219,018 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciling items to net loss:

 

 

 

 

 

 

 

 

 

$(1,742,143 )

Net loss

 

 

 

 

 

 

 

 

 

$(15,961,161)