Revenue Recognition |
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| Revenue Recognition | Note 4 – Revenue Recognition
The Company is currently engaged in ETH Treasury Management activities and Affiliate Marketing services.
ETH Treasury Management
The Company participates in the following revenue generating transactions: staking and restaking activities on the Ethereum blockchain; earned rewards for securing and validating transactions; and earned protocol incentives for providing and maintaining TVL on Linea.
Management has evaluated the nature of rewards received from liquid and restaking activities in accordance with the guidance in ASC 610-20 Gains and Losses from the Derecognition of Nonfinancial Assets and 606-10-50-4 Revenue from Contracts with Customers. Management applies the noncash consideration guidance in ASC 606-10-32-21 and measures the revenue at the fair value of ETH at contract inception. While included within the same line item, management has disclosed separately the amount of revenue attributable to liquid staking and liquid restaking versus native staking, and evaluated the associated risks and timing of reward recognition.
The following table provides additional breakdown of the Company’s revenue from staking activities:
During the three and six months ended June 30, 2025, the Company generated revenue from native staking rewards only of $29.
SHARPLINK, INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (dollar amounts in thousands, except share, per share data, and crypto asset tokens)
The following is a summary of crypto assets staked (in units) as of June 30, 2026 and December 31, 2025:
The following is a summary of total rewards earned from staking activities (in units) for the three and six months ended June 30, 2026:
During the three and six months ended June 30, 2025, we did not earn any rewards from staking activities.
The following is a summary of accounts receivable from rebates and incentive rewards earned but not yet received as of June 30, 2026 and December 31, 2025:
Affiliate Marketing
The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange.
For the three and six months ended June 30, 2026 and 2025, the Company has recognized its revenue at a point in time.
The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in contract advanced billings on the Company’s condensed consolidated balance sheet. The Company recognizes unbilled revenue when revenue is recognized prior to invoicing.
Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s services, and not to facilitate financing arrangements.
The Company did not have any major customers for the period ended June 30, 2026 or December 31, 2025.
SHARPLINK, INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (dollar amounts in thousands, except share, per share data, and crypto asset tokens)
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