v3.26.1
Segment Reporting
 9 Months Ended
Jan. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 19 – Segment Reporting

 

During the second quarter of 2026, the Company introduced a new business line focused on BNB Treasury Management and appointed a new Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”). These changes triggered a reassessment of the Company’s operating segments under ASC 280, Segment Reporting. As a result of this reassessment, the Company determined that it now operates two reportable segments: BNB Treasury Management and Retail and Industry. Comparative periods have been re-recast to reflect this change in segment composition.

 

The CODM evaluates the financial performance of the business and makes resource allocation decisions based on these two distinct sources of business activity:

 

  ● BNB Treasury Management – This segment includes income from digital asset activities, costs and expenses related to building and executing the Company’s digital asset strategy, and fair value changes (unrealized gains or losses) on digital assets associated with the Company’s BNB holdings.

 

  ● Retail and Industry Segment – This segment includes Fat Panda’s retail and distribution operations along with revenue and operating costs related to designing, engineering, and selling environmental control and other technologies for the Controlled Environment Agriculture industry.

 

The “Corporate” category presented in the following table is not considered an operating segment. It consists primarily of corporate support functions including capital and funding to support the business activities of the company and includes costs and expenses not allocated to a line of business.

 

The CODM uses income (loss) from operations before provision for income taxes as the primary measure to assess segment performance. This measure is reviewed regularly by examining period-over-period trends, benchmarking against competitors, and monitoring budget versus actual results. The CODM also considers this metric when evaluating income generated from segment assets to determine whether to reinvest profits within the segment or allocate resources elsewhere in the entity.

 

The following tables present (for each segment and consolidated total) the Company’s revenues and significant expenses regularly provided to the CODM, reconciled to income (loss) from operations before provision for income tax for each of the periods presented. Total segment assets provided to the CODM are also disclosed in the tables below for each period presented.

 

   CEA Industry Segment (Successor)  

BNB Treasury

Management

Segment

   Corporate   Total Consolidated 
   Three Months Ended January 31, 2026 
   Retail and Industry
Segment
(Successor)		  

BNB Treasury

Management
Segment

   Corporate  

Total

Consolidated

 
Total revenue, net  $7,334,626   $-   $-   $7,334,626 
Cost of revenue   (5,571,329)   -    -    (5,571,329)
Unrealized loss on digital asset   -    (159,791,308)   -    (159,791,308)
Other income from airdrop   -    1,265,452    -    1,265,452 
Advertising and marketing expenses   (63,506)   -    (220,860)   (284,366)
Compensation expenses   (1,394,344)   (175,000)   (312,781)   (1,882,125)
Asset management fees   -    (2,013,579)   -    (2,013,579)
Professional and contractor fees   (66,004)   (17,070)   (4,815,254)   (4,898,328)
Stock-based compensation   2,310,559    -    2,329,679    4,640,238 
Other segment expenses (1)   (673,406)   (380,724)   (789,732)   (1,843,863)
Gain from change in fair value of warrant liabilities   -    -    38,061,767    38,061,767 
Interest expense and other income, net   18,462    -    -    18,462 
Income (loss) from operations before provision for income tax  $1,895,058   $(161,112,229)  $34,252,818   $(124,964,353)
Total Assets   17,429,893    409,179,888    10,163,794    436,773,575 

 

 

   CEA Industry Segment (Predecessor)  

BNB Treasury

Management

Segment

   Corporate   Total Consolidated 
   Three Months Ended January 31, 2025 
   Retail and Industry
Segment
(Predecessor)		  

BNB Treasury

Management

Segment

   Corporate   Total Consolidated 
Total revenue, net  $6,908,817   $        -   $       -   $6,908,817 
Cost of revenue   (5,146,901)   -    -    (5,146,901)
Advertising and marketing expenses   (191,531)   -    -    (191,531)
Compensation expenses   111,714    -    -    111,714 
Professional and contractor fees   (157,496)   -    -    (157,496)
Other segment expenses (1)   (566,949)   -    -    (566,949)
Income (loss) from operations before provision for income tax  $957,654   $-   $-   $957,654 
Total Assets   8,342,878    -    -    8,342,878 

 

   CEA Industry Segment (Successor)  

BNB Treasury

Management

Segment

   Corporate   Total Consolidated  

CEA Industry

Segment
(Predecessor) (2)

 
   Period from June 7, 2025 to January 31, 2026   Period from May 1, 2025 to June 6, 2025 
   Retail and Industry
Segment
(Successor)		  

BNB Treasury

Management

Segment

   Corporate   Total Consolidated  

CEA Industry

Segment
(Predecessor)		 
Total revenue, net  $19,055,752   $-   $-   $19,055,752   $2,927,689 
Cost of revenue   (13,827,593)   -    -    (13,827,593)   (2,001,537)
Unrealized loss on digital asset   -    (45,757,590)   -    (45,757,590)   - 
Other income from airdrop   -    7,093,030    -    7,093,030    - 
Advertising and marketing expenses   (228,930)   -    (4,782,023)   (5,010,953)   (63,202)
Compensation expenses   (3,484,911)   (245,000)   (401,685)   (4,131,596)   (431,340)
Asset management fees   -    (3,811,936)   -    (3,811,936)   - 
Professional and contractor fees   (2,302,395)   (224,925)   (5,417,556)   (7,944,876)   (135,359)
Stock-based compensation   (33,572)   -    (26,648)   (60,220)   - 
Other segment expenses (1)   (2,081,302)   (382,004)   (16,187,254)   (18,650,560)   (275,650)
Gain from change in fair value of warrant liabilities   -    -    244,879,854    244,879,854    - 
Interest expense and other income, net   (902,830)   -    -    (902,830)   - 
Income (loss) from operations before provision for income tax  $(3,805,781)  $(43,328,425)  $218,064,688   $170,930,482   $20,602 

 

   CEA Industry Segment (Predecessor)  

BNB Treasury

Management

Segment

   Corporate   Total Consolidated 
   Nine Months Ended January 31, 2025 
   Retail and Industry
Segment
(Predecessor)		  

BNB Treasury

Management

Segment

   Corporate   Total Consolidated 
Total revenue, net  $21,313,671   $            -   $          -   $21,313,671 
Cost of revenue   (13,824,712)   -    -    (13,824,712)
Advertising and marketing expenses   (490,008)   -    -    (490,008)
Compensation expenses   (2,440,943)   -    -    (2,440,943)
Professional and contractor fees   (436,684)   -    -    (436,684)
Other segment expenses (1)   (1,921,130)   -    -    (1,921,130)
Income (loss) from operations before provision for income tax  $2,200,194   $-   $-   $2,200,194 

 

(1)Includes other selling, general, and administrative expenses such as occupancy expenses, maintenance expenses, utilities, depreciation and amortization expenses. Starting in the second quarter of 2026, other segment items also include warrant issuance costs, insurance fees and advisory fees.