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

Note 14. Segment Reporting

 

The Company has two operating segments – merchant banking and real estate. The chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax. The Company’s merchant banking segment includes our equity and other holdings. The real estate segment includes rental income and expenses related to the Company’s real estate in Canada.

 

The following tables present the financial information for each segment that is specifically identifiable or based on allocations using internal methodology for the three and six months ended June 30, 2026 and 2025 (in thousands):

 

   Merchant Banking   Real Estate   Total 
   Three Months Ended June 30, 2026 
   Merchant Banking   Real Estate   Total 
Rental income  $-   $104   $104 
Merchant banking advisory fees   138    -    138 
Total revenue   138    104    242 
                
Compensation costs   (273)   -    (273)
Professional fees   (121)   -    (121)
Loss on equity holdings   (9,208)   -    (9,208)
Gain on forward purchase agreement derivative   705    -    705 
Depreciation and amortization   -    (74)   (74)
Other operating expenses   (117)   -    (117)
Interest expense, net   -    (23)   (23)
Segment (loss) income before taxes   (8,876)   7    (8,869)
                
Corporate and other non-segment operating expenses             (1,672)
Stock-based compensation             (129)
Gain on financial instruments             475 
Interest income, net             153 
Loss from continuing operations before taxes            $(10,042)

 

 

   Merchant Banking   Real Estate   Total 
   Three Months Ended June 30, 2025 
   Merchant Banking   Real Estate   Total 
Rental income  $-   $98   $98 
Merchant banking advisory fees   109    -    109 
Total revenue   109    98    207 
                
Compensation costs   (234)   -    (234)
Professional fees   (120)   -    (120)
Gain on equity holdings   6,240    -    6,240 
Depreciation and amortization   -    (74)   (74)
Other operating expenses   (19)   -    (19)
Interest expense, net   -    (29)   (29)
Segment income (loss) before taxes   5,976    (5)   5,971 
                
Corporate and other non-segment operating expenses             (1,107)
Stock-based compensation             (250)
Foreign currency transaction gain             2 
Interest income, net             34 
Income from continuing operations before taxes            $4,650 

 

   Merchant Banking   Real Estate   Total 
   Six Months Ended June 30, 2026 
   Merchant Banking   Real Estate   Total 
Rental income  $-   $208   $208 
Merchant banking advisory fees   265    -    265 
Total revenue   265    208    473 
                
Compensation costs   (525)   -    (525)
Professional fees   (243)   -    (243)
Loss on equity holdings   (9,176)   -    (9,176)
Gain on forward purchase agreement derivative   705    -    705 
Depreciation and amortization   -    (148)   (148)
Other operating expenses   (347)   -    (347)
Interest expense, net   -    (47)   (47)
Segment (loss) income before taxes   (9,321)   13    (9,308)
                
Corporate and other non-segment operating expenses             (4,169)
Stock-based compensation             (246)
Foreign currency transaction loss             (26)
Gain on financial instruments             378 
Interest income, net             221 
Loss from continuing operations before taxes            $(13,150)

 

 

   Merchant Banking   Real Estate   Total 
   Six Months Ended June 30, 2025 
   Merchant Banking   Real Estate   Total 
Rental income  $-   $207   $207 
Merchant banking advisory fees   237    -    237 
Total revenue   237    207    444 
                
Compensation costs   (469)   -    (469)
Professional fees   (242)   -    (242)
Loss on equity holdings   (179)   -    (179)
Depreciation and amortization   -    (144)   (144)
Other operating expenses   (35)   -    (35)
Interest expense, net   -    (58)   (58)
Segment (loss) income before taxes   (688)   5    (683)
                
Corporate and other non-segment operating expenses             (3,002)
Stock-based compensation             (425)
Foreign currency transaction loss             2 
Interest income, net             59 
Loss from continuing operations before taxes            $(4,049)

 

The following table presents the Company’s specifically identifiable assets for each of the Company’s segments as of June 30, 2026 and December 31, 2025 (in thousands):

 

   June 30, 2026 
   Merchant Banking   Real Estate   Corporate & Discontinued Operations   Total 
Segment assets  $25,109   $1,986   $42,233   $69,328 

 

   December 31, 2025 
   Merchant Banking   Real Estate   Corporate & Discontinued Operations   Total 
Segment assets  $14,670   $2,208   $146,966   $163,844 

 

The “Corporate & Discontinued Operations” segment assets as of December 31, 2025 includes $13.9 million of assets of discontinued operations related to the Company’s reinsurance business, which was sold during the first quarter of 2026 and $119.4 million of assets of discontinued operations related to the Company’s digital assets business, which the Company exited during the second quarter of 2026.