v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 16. Segment Reporting

 

The Company determines operating segments based on metrics that our Chief Operating Decision Makers (“CODM”) review internally to manage our business, including resource allocation and performance assessment. In August 2025, as a result of the new treasury strategy, management re-evaluated the segment reporting structure and determined that the Company operates in two reportable segments other than our corporate activities. Our CODM regularly review financial results based on the two operating segments consisting of Medical Device and Digital Commodity Treasury.

 

Medical Device: This segment is responsible for executing and managing the Company’s medical device sales and distribution business.

 

Digital Commodity Treasury: This segment is responsible for executing and managing the Company’s digital treasury platform.

 

The CODM uses segment operating income (loss) to evaluate operating segment performance and allocate resources. The Company does not prepare separate balance sheets by operating segment for the CODM, as assets are not evaluated as part of operating segment performance and resource allocation.

 

Transactions between segments are reported as if each were a stand-alone business and are eliminated in consolidation. The Company ceased manufacturing operations in October 2025. Accordingly, for the three and six months ended June 30, 2026 the Medical Device segment includes only the continuing sales and distribution business.

 

 

Certain payroll, consultant, and other selling, general and administrative expenses were allocated to the segment that they support, with the remaining expenses allocated to corporate.

 

The following table presents the Company’s segment results (unaudited) for the six months and three months ended June 30, 2026 and 2025:

 

                         
  

SIX MONTHS

ENDED JUNE 30, 2026

  

SIX MONTHS

ENDED JUNE 30, 2025

 
   Medical Device   Digital Asset Treasury   Corporate   Consolidated  

Medical

Device DO

   Digital Asset Treasury   Corporate   Consolidated 
Net Revenue  $192,780   $-   $-   $192,780   $136,080   $-   $-   $136,080 
Cost of goods sold   202,578    -    -    202,578    148,620    -    -    148,620 
Cost of goods sold - inventory reserve   284,228    -    -    284,228    -    -    -    - 
Total Cost of Goods Sold   486,806    -    -    486,806    148,620    -    -    148,620 
Gross Margin (Loss)   (294,026)   -    -    (294,026)   (12,540)   -    -    (12,540)
                                         
Staking Revenue, net   -    5,457,656    -    5,457,656    -    -    -    - 
                                         
Operating expenses:                                        
Consulting fees – related parties   -    5,000,000    -    5,000,000    -    -    -    - 
Selling, general and administrative   158,720    55,000    10,002,860    10,216,580    497,050    -    2,278,407    2,775,457 
Research and development   -    -    420,255    420,255    -    -    -    - 
Unrealized loss on digital commodities   -    84,336,553    -    84,336,553    -    -    -    - 
Realized loss on digital commodities   -    14,716,799    -    14,716,799    -    -    -    - 
Digital commodity transaction expenses   -    128,508    -    128,508    -    -    -    - 
Total Operating Expenses   158,720    104,236,860    10,423,115    114,818,695    497,050    -    2,278,407    2,775,457 
Loss from Operations   (452,746)   (98,779,204)   (10,423,115)   (109,655,065)   (509,590)   -    (2,278,407)   (2,787,997)
                                         
Other Income:                                        
Interest expense, net   -    57,517    29,267    86,784    -    -    (530,038)   (530,038)
Fair market value adjustment on warrants   -    -    47,919    47,919    -    -    11,087,700    11,087,700 
Other expense   -    -    329    329    -    -    (12)   (12)
Total Other Income    -    57,517    77,515    135,032    -    -    10,557,649    10,557,649 
Loss Before Provision for Taxes   (452,746)   (98,721,687)   (10,345,600)   (109,520,033)   (509,590)   -    8,279,242    7,769,651 
Tax Provision   -    -    -    -    -    -    -    - 
Income (Loss) from Continuing Operations  $(452,746)  $(98,721,687)  $(10,345,600)  $(109,520,033)  $(509,590)  $-   $8,279,242   $7,769,651 

 

                         
  

THREE MONTHS

ENDED JUNE 30, 2026

  

THREE MONTHS

ENDED JUNE 30, 2025

 
   Medical Device   Digital Asset Treasury   Corporate   Consolidated  

Medical

Device DO

   Digital Asset Treasury   Corporate   Consolidated 
Net Revenue  $-   $-   $-   $-   $136,080   $-   $-   $136,080 
Cost of goods sold   -    -    -    -    148,620    -    -    148,620 
Cost of goods sold - inventory reserve   284,228    -    -    284,228    -    -    -    - 
Total Cost of Goods Sold   284,228    -    -    284,228    148,620    -    -    148,620 
Gross Margin (Loss)   (284,228)   -    -    (284,228)   (12,540)   -    -    (12,540)
                                         
Staking Revenue, net   -    2,323,547    -    2,323,547    -    -    -    - 
                                         
Operating expenses:                                        
Consulting fees – related parties   -    2,500,000    -    2,500,000    -    -    -    - 
Selling, general and administrative   80,729    40,000    5,042,528    5,163,257    69,968    -    1,341,193    1,411,161 
Research and development   -    -    283,158    283,158    -    -    -    - 
Unrealized loss on digital commodities   -    13,490,351    -    13,490,351    -    -    -    - 
Realized loss on digital commodities   -    3,926,958    -    3,926,958    -    -    -    - 
Digital commodity transaction expenses   -    64,686    -    64,686         -    -    - 
Total Operating Expenses   80,729    20,021,995    5,325,686    25,428,410    69,968    -    1,341,193    1,411,161 
Loss from Operations   (364,957)   (17,698,448)   (5,325,686)   (23,389,091)   (82,508)   -    (1,341,193)   (1,423,701)
                                         
Other Income:                                        
Interest expense, net   -    76,746    -    76,746    -    -    96,953    96,953 
Fair market value adjustment on warrants   -    -    31,211    31,211    -    -    6,468,811    6,468,811 
Other expense   -    -    336    336    -    -    (12)   (12)
Total Other Income   -    76,746    31,547    108,293    -    -    6,565,751    6,565,751 
Loss Before Provision for Taxes   (364,957)   (17,621,702)   (5,294,139)   (23,280,798)   (82,508)   -    5,224,558    5,142,049 
Tax Provision   -    -    -    -    -    -    -    - 
Income (Loss) from Continuing Operations  $(364,957)  $(17,621,702)  $(5,294,139)  $(23,280,798)  $(82,508)  $-   $5,224,558   $5,142,049 

 

 

The following table presents the total assets by segment (unaudited) at June 30, 2026 and December 31, 2025:

 

June 30, 2026   DECEMBER 31, 2025 

Medical

Device

  

Digital

Commodities

   Corporate   Consolidated  

Medical

Device

  

Digital

Commodities

   Corporate   Consolidated 
$

570,381

   $

146,188,981

   $

13,591,213

   $160,350,575   $849,388   $

257,253,661

   $

10,972,124

   $

269,075,172

 

 

Note: Net Loss by Segment includes Corporate, although not a reportable segment, only for reconciliation to the condensed consolidated statement of operations.