| SEGMENT REPORTING |
NOTE 12 – SEGMENT REPORTING The Company operates as two operating and reporting segments (i) Energy Management Platform, and (ii) Mining of Digital Assets, namely, the development and commercialization of energy management technologies, batteries and other components across a range of applications, and the mining of BTC. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief operating decision maker (“CODM”), who is the Company’s chief executive officer, reviews profit and loss information for the EMP in order to assess performance, make decisions about the allocation of operating and capital resources, and evaluate pricing strategies related to the EMP segment. The CODM is not regularly provided disaggregated expense information, other than the expense information for each segment included in the captions within the condensed consolidated statements of operations. The CODM reviews financial information for mining digital assets separately from the financial information related to the energy management platform for making decisions, allocating resources and assessing financial performance of the Mining of Digital Assets segment. The CODM also uses these reviews of the two segments to make strategic operational decisions and manage the organization. The Company does not have intra-entity sales or transfers. The CODM does not consider gains and losses associated with digital assets when reviewing the results of operations, or allocating resources to the Company’s operating segments. Gains and losses associated with the Company’s digital assets are presented separately from segment operating results. The Company has designated a Corporate & Other category, which is not considered an operating segment, which includes the changes in fair value of the Company’s digital asset holdings. The following table presents the breakout of the operations of the Energy Management Platform and Mining of Digital Assets segments for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | June 30, 2026 | | June 30, 2025 | | | Energy | | | | | | | | | | | Energy | | | | | | | | | | | | Management | | Mining of | | Corporate & | | | | | Management | | Mining of | | Corporate & | | | | | | Platform | | Digital Assets | | Other | | Total | | Platform | | Digital Assets | | Other | | Total | Revenue | | $ | 1,474,195 | | $ | 605,982 | | $ | — | | $ | 2,080,177 | | $ | 2,533,902 | | $ | 1,118,569 | | $ | — | | $ | 3,652,471 | Cost of revenue | | | 1,663,763 | | | 1,055,347 | | | — | | | 2,719,110 | | | 1,836,023 | | | 1,102,738 | | | — | | | 2,938,761 | Gross Profit (Loss) | | | (189,568) | | | (449,365) | | | — | | | (638,933) | | | 697,879 | | | 15,831 | | | — | | | 713,710 | Operating Expenses | | | | | | | | | | | | | | | | | | | | | | | | | Research and development | | | 2,985,659 | | | — | | | — | | | 2,985,659 | | | 2,436,754 | | | — | | | — | | | 2,436,754 | Selling, general, and administrative(1) | | | 7,481,356 | | | 98,630 | | | — | | | 7,579,986 | | | 7,727,996 | | | — | | | — | | | 7,727,996 | Total Operating Expenses | | | 10,467,015 | | | 98,630 | | | — | | | 10,565,645 | | | 10,164,750 | | | — | | | — | | | 10,164,750 | Segment Net Loss | | | (10,656,583) | | | (547,995) | | | — | | | (11,204,578) | | | (9,466,871) | | | 15,831 | | | — | | | (9,451,040) | Other (Expense) Income | | | | | | | | | | | | | | | | | | | | | | | | | Other segment (expense) income(2) | | | (174,571) | | | — | | | — | | | (174,571) | | | 225,529 | | | — | | | — | | | 225,529 | Change in fair value of digital assets | | | — | | | — | | | (10,591,667) | | | (10,591,667) | | | — | | | — | | | 17,367,660 | | | 17,367,660 | Total Other (Expense) Income, net | | | (174,571) | | | — | | | (10,591,667) | | | (10,766,238) | | | 225,529 | | | — | | | 17,367,660 | | | 17,593,189 | Net Income (Loss) | | $ | (10,831,154) | | $ | (547,995) | | $ | (10,591,667) | | $ | (21,970,816) | | $ | (9,241,342) | | $ | 15,831 | | $ | 17,367,660 | | $ | 8,142,149 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | For the Six Months Ended | | | June 30, 2026 | | June 30, 2025 | | | Energy | | | | | | | | | | | Energy | | | | | | | | | | | | Management | | Mining of | | Corporate & | | | | | Management | | Mining of | | Corporate & | | | | | | Platform | | Digital Assets | | Other | | Total | | Platform | | Digital Assets | | Other | | Total | Revenue | | $ | 4,758,314 | | $ | 1,268,293 | | $ | — | | $ | 6,026,607 | | $ | 4,732,754 | | $ | 1,368,323 | | $ | — | | $ | 6,101,077 | Cost of revenue | | | 4,050,998 | | | 2,097,250 | | | — | | | 6,148,248 | | | 3,738,284 | | | 1,442,738 | | | — | | | 5,181,022 | Gross Profit (Loss) | | | 707,316 | | | (828,957) | | | — | | | (121,641) | | | 994,470 | | | (74,415) | | | — | | | 920,055 | Operating Expenses | | | | | | | | | | | | | | | | | | | | | | | | | Research and development | | | 4,756,159 | | | — | | | — | | | 4,756,159 | | | 4,886,654 | | | — | | | — | | | 4,886,654 | Selling, general, and administrative(1) | | | 14,316,065 | | | 295,890 | | | — | | | 14,611,955 | | | 14,928,246 | | | — | | | — | | | 14,928,246 | Total Operating Expenses | | | 19,072,224 | | | 295,890 | | | — | | | 19,368,114 | | | 19,814,900 | | | — | | | — | | | 19,814,900 | Segment Net Loss | | | (18,364,908) | | | (1,124,847) | | | — | | | (19,489,755) | | | (18,820,430) | | | (74,415) | | | — | | | (18,894,845) | Other (Expense) Income | | | | | | | | | | | | | | | | | | | | | | | | | Other segment (expense) income(2) | | | (141,525) | | | — | | | — | | | (141,525) | | | 611,276 | | | — | | | — | | | 611,276 | Change in fair value of digital assets | | | — | | | — | | | (31,359,380) | | | (31,359,380) | | | — | | | — | | | 7,619,060 | | | 7,619,060 | Total Other (Expense) Income, net | | | (141,525) | | | — | | | (31,359,380) | | | (31,500,905) | | | 611,276 | | | — | | | 7,619,060 | | | 8,230,336 | Net Loss | | $ | (18,506,433) | | $ | (1,124,847) | | $ | (31,359,380) | | $ | (50,990,660) | | $ | (18,209,154) | | $ | (74,415) | | $ | 7,619,060 | | $ | (10,664,509) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | As of | | | June 30, 2026 | | December 31, 2025 | | | Energy | | | | | | | | | | | Energy | | | | | | | | | | | | Management | | Mining of | | Corporate & | | | | | | Management | | Mining of | | Corporate & | | | | | | Platform | | Digital Assets | | Other | | Total | | Platform | | Digital Assets | | Other | | Total | Segment Assets | | | | | | | | | | | | | | | | | | | | | | | | | Cash and Restricted Cash | | $ | 13,067,983 | | $ | — | | $ | — | | $ | 13,067,983 | | $ | 13,300,188 | | $ | — | | $ | — | | $ | 13,300,188 | Digital assets | | | — | | | — | | | 63,922,870 | | | 63,922,870 | | | — | | | — | | | 93,995,256 | | | 93,995,256 | All other assets | | | 23,085,238 | | | — | | | — | | | 23,085,238 | | | 21,672,260 | | | — | | | — | | | 21,672,260 | Total Assets | | $ | 36,153,221 | | $ | — | | $ | 63,922,870 | | $ | 100,076,091 | | $ | 34,972,448 | | $ | — | | $ | 93,995,256 | | $ | 128,967,704 |
(1) | Selling, general, and administrative included credit losses on Auto-Vibe assets and accounts receivable for 2026 and impairment of equipment deposits for 2025. |
(2) | Other segment expense and income include miscellaneous income, interest income, interest expense, amortization of debt discount, gain (loss) on extinguishment of debt and change in fair value of accrued issuable equity. |
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