v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting
Note 13: Segment Reporting
The Company reports information about operating segments in accordance with ASU 2023-07 — Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires financial information to be reported based on the way management organizes segments within a company for making operating decisions and evaluating performance. Circle8 and Lyneer each provide similar staffing/consulting services and use similar service delivery processes. However, Circle8 focuses on the European market, providing workplace solutions to enterprises, technology companies, financial institutions, and public-sector organizations, while Lyneer focuses on accounting, finance, customer service, hospitality, professional and medical, and light industrial staffing placement in the U.S. market.
In the U.S., revenue is derived from hourly fees charged from the placement of “light industrial” temporary staffing and placement fees earned from the placement of professional permanent employees at its customers. Revenues are accounted for and tracked by each branch location by temporary or permanent placement. The direct costs are not reported by temporary or permanent placement, but rather reported together. Direct costs, primarily payroll and payroll -related costs are included in cost of goods sold. Each branch’s operating expenses are not separated into temporary or permanent placement costs, but are reported in total at the branch level. So ultimately the segment manager does not review discrete financial information summarized by temporary or permanent placement, but rather total by operating branch.
Circle8 is comprised of multiple entities in various European countries, and each country operation (e.g. staffing company brand) is its own business unit and has its own business activities, managing director, and subsidiaries with discrete financial information. Accordingly, each business unit/country operation represents a component under ASC 280. The managing directors are all accountable to the Circle8 segment manager.
Therefore, the Company has two reportable segments, Domestic and International, which are in the business of providing commercial staffing solutions.
The accounting policies of the two reportable segments are the same as those described in Note 3: Summary of Significant Accounting Policies.
The Company’s CEO is the Chief Operating Decision Maker (“CODM”) and reviews financial information presented at the Lyneer/U.S. and Circle8/European level for purposes of making operating decisions, allocating resources, and evaluating financial performance. While business unit/country level financial information is available, the CODM holds the segment manager accountable for the operating results of Circle8 consolidated and relies on them to appropriately manage performance of their segment and related business units. The CODM also evaluates performance at the U.S and European level because that is the level investors focus on, with particular focus on revenues, profitability, growth trends, headwinds and other key trends.
The CODM uses net income/(loss) to evaluate income/(loss) generated from segment assets (return on assets) in deciding whether to reinvest profits into the current business segment or into other parts of the entity or parent, such as for acquisitions or other public costs such as investor relations and marketing and does not evaluate operating segments using asset or liability information.
The Company does not have intra-entity sales. Transfers between the segments were immaterial for the three months ended March 31, 2026.
Segment information for the three months ended March 31, 2026 consisted of the following:
Three Months Ended March 31, 2026
DomesticInternational
Service revenue, net$104,638,852 $145,248,041 
Cost of revenue93,522,194 134,938,646 
Gross profit11,116,658 10,309,395 
Selling, general and administrative
23,028,095 8,969,658 
Depreciation and amortization
1,228,502 3,103,592 
Loss from operations
(13,139,939)(1,763,855)
Gain on debt extinguishment
(233,022)— 
Interest expense
2,527,398 1,027,272 
Other expenses, gains and losses10,253,736 2,283,127 
Net loss before provision for income taxes
(25,688,051)(5,074,254)
Income tax benefit
7,923 65,258 
Net loss
$(25,680,128)$(5,008,996)
The Company had one reportable segment as of March 31, 2025 and segment information for the three months ended March 31, 2025 consisted of the following:
Three Months Ended March 31, 2025
Domestic
Service revenue, net$102,808,807 
Cost of revenue:91,622,685 
Gross profit11,186,122 
Selling, general and administrative
19,399,479 
Depreciation and amortization
1,236,389 
Loss from operations
(9,449,746)
Interest expense
1,284,822 
Net loss before provision for income taxes
(10,734,568)
Income tax expense
(9,617)
Net loss
$(10,744,185)