| Segment Reporting |
Note 12 - Segment Reporting The Company had historically operated and managed its business through two operating and reportable segments: Ophthalmic Technology and Digital Assets. All operations of the Ophthalmic Technology segment were wound down as of May 31, 2026. The Company’s chief operating decision maker (the “CODM”) is the Company’s Chief Executive Officer. The CODM has regularly reviewed discrete financial information for each segment, including segment revenues, cost of revenues, significant segment expenses, and segment (income) loss, to make decisions about resources to be allocated to each segment and to assess each segment’s performance, as well as to make strategic operational decisions and manage the organization. The measure of segment profit or loss used by the CODM is segment (income) loss, as presented in the tables below. Selling, general and administrative expenses and other income (expense), net, were not allocated to the segments and are presented as reconciling items between total segment (income) loss and total net income (loss). The measure of segment assets used by the CODM was total assets, disaggregated by segment as presented in the tables below. The accounting policies of the segments are the same as those described in Note 3 – Summary of Significant Accounting Policies. The prior Ophthalmic Technology reportable segment no longer meets the quantitative criteria to be presented as a reportable segment under ASC 280-10, and accordingly, its operating results through the period of its wind-down (completed by May 31, 2026) have been included in the Corporate/Other column for the 2026 periods. The 2025 periods were not required to be recast, and were therefore not recast, since the wind-down of the Ophthalmic Technology segment did not meet the criteria to be presented as a discontinued operation. The following tables summarize the activity of the Company’s segments for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, | | | 2026 | | 2025 | | | Digital | | Corporate/ | | | | | Ophthalmic | | Digital | | Corporate/ | | | | | | Assets | | Other | | Total | | Technology | | Assets | | Other | | Total | | | | | | | | | | | | | | | | | | | | | | | Revenue: | | | | | | | | | | | | | | | | | | | | | | Revenue | | $ | 357,693 | | $ | — | | $ | 357,693 | | $ | — | | $ | — | | $ | — | | $ | — | Gross Profit | | | 357,693 | | | — | | | 357,693 | | | — | | | — | | | — | | | — | Less: | | | | | | | | | | | | | | | | | | | | | | Research and Development: | | | | | | | | | | | | | | | | | | | | | | Salaries and benefits | | | — | | | 44,120 | | | 44,120 | | | 424,032 | | | — | | | — | | | 424,032 | Direct clinical and non-clinical expenses | | | — | | | 6,707 | | | 6,707 | | | 16,263 | | | — | | | — | | | 16,263 | Facilities expenses | | | — | | | 1,256 | | | 1,256 | | | 62,432 | | | — | | | — | | | 62,432 | Non-cash stock based compensation expenses | | | — | | | 4,187 | | | 4,187 | | | 157,291 | | | — | | | — | | | 157,291 | Other expenses (1) | | | — | | | 2,221 | | | 2,221 | | | 14,560 | | | — | | | — | | | 14,560 | Realized gain - digital assets and digital assets receivable | | | (17,859,505) | | | — | | | (17,859,505) | | | — | | | — | | | — | | | — | Unrealized gain - digital assets | | | (16,939,634) | | | — | | | (16,939,634) | | | — | | | — | | | — | | | — | Unrealized loss - digital intangible assets receivable | | | 367,251 | | | — | | | 367,251 | | | — | | | — | | | — | | | — | Impairment loss - digital intangible assets | | | 768,857 | | | — | | | 768,857 | | | — | | | — | | | — | | | — | Net gain on derivative instruments | | | (112,032) | | | — | | | (112,032) | | | — | | | — | | | — | | | — | Recovery of credit losses | | | (909,842) | | | — | | | (909,842) | | | — | | | — | | | — | | | — | Segment (income) loss | | | (35,042,598) | | | 58,491 | | | (34,984,107) | | | 674,578 | | | — | | | — | | | 674,578 | Reconciling Items | | | | | | | | | | | | | | | | | | | | | | Selling, general and administrative expense (2) | | | — | | | 3,918,592 | | | 3,918,592 | | | — | | | — | | | 7,678,704 | | | 7,678,704 | Impairment of right-of-use assets | | | — | | | 57,773 | | | 57,773 | | | — | | | — | | | — | | | — | Other expense, net (3) | | | — | | | 56,779 | | | 56,779 | | | — | | | — | | | 337,637 | | | 337,637 | Net Income (Loss) | | $ | 35,042,598 | | $ | (4,091,635) | | $ | 30,950,963 | | $ | (674,578) | | $ | — | | $ | (8,016,341) | | $ | (8,690,919) |
| | | | | | | | | | | | | | | | | | | | | | | | For the Six Months Ended June 30, | | | 2026 | | 2025 | | | Digital | | Corporate/ | | | | | Ophthalmic | | Digital | | Corporate/ | | | | | | Assets | | Other | | Total | | Technology | | Assets | | Other | | Total | | | | | | | | | | | | | | | | | | | | | | | Revenue: | | | | | | | | | | | | | | | | | | | | | | Revenue | | $ | 601,964 | | $ | — | | $ | 601,964 | | $ | 14,720 | | $ | — | | $ | — | | $ | 14,720 | Less: | | | | | | | | | | | | | | | | | | | | | | Cost of revenue | | | — | | | — | | | — | | | (48) | | | — | | | — | | | (48) | Gross Profit | | | 601,964 | | | — | | | 601,964 | | | 14,672 | | | — | | | — | | | 14,672 | Less: | | | | | | | | | | | | | | | | | | | | | | Research and Development: | | | | | | | | | | | | | | | | | | | | | | Salaries and benefits | | | — | | | 167,226 | | | 167,226 | | | 844,032 | | | — | | | — | | | 844,032 | Direct clinical and non-clinical expenses | | | — | | | 67,548 | | | 67,548 | | | 88,920 | | | — | | | — | | | 88,920 | Facilities expenses | | | — | | | 13,044 | | | 13,044 | | | 133,269 | | | — | | | — | | | 133,269 | Non-cash stock based compensation expenses | | | — | | | 43,121 | | | 43,121 | | | 221,968 | | | — | | | — | | | 221,968 | Supplies and materials | | | — | | | — | | | — | | | 25,130 | | | — | | | — | | | 25,130 | Other expenses (1) | | | — | | | 6,101 | | | 6,101 | | | 34,302 | | | — | | | — | | | 34,302 | Depreciation expense | | | — | | | 48,215 | | | 48,215 | | | — | | | — | | | — | | | — | Realized gain - digital assets and digital assets receivable | | | (21,483,269) | | | — | | | (21,483,269) | | | — | | | — | | | — | | | — | Unrealized gain - digital assets | | | (27,913,613) | | | — | | | (27,913,613) | | | — | | | — | | | — | | | — | Impairment loss - digital intangible assets | | | 2,000,525 | | | — | | | 2,000,525 | | | — | | | — | | | — | | | — | Net gain on derivative instruments | | | (151,433) | | | — | | | (151,433) | | | — | | | — | | | — | | | — | Recovery of credit losses | | | (405,331) | | | — | | | (405,331) | | | — | | | — | | | — | | | — | Segment (income) loss | | | (48,555,085) | | | 345,255 | | | (48,209,830) | | | 1,347,621 | | | — | | | — | | | 1,347,621 | Reconciling Items | | | | | | | | | | | | | | | | | | | | | | Selling, general and administrative expense (2) | | | — | | | 8,412,196 | | | 8,412,196 | | | — | | | — | | | 10,051,026 | | | 10,051,026 | Impairment of right-of-use assets | | | — | | | 57,773 | | | 57,773 | | | — | | | — | | | — | | | — | Other expense, net (3) | | | — | | | (51,652) | | | (51,652) | | | — | | | — | | | 790,477 | | | 790,477 | Net Income (Loss) | | $ | 48,555,085 | | $ | (8,763,572) | | $ | 39,791,513 | | $ | (1,332,949) | | $ | — | | $ | (10,841,503) | | $ | (12,174,452) |
| (1) | Other research and development expenses include outsourced engineering and IT systems used for research and development. |
| (2) | Selling, general and administrative expenses primarily include professional fees, general and administrative compensation expenses, general strategic consulting, Nasdaq/SEC fees, insurance and facilities expenses. |
| (3) | Other (income) expense, net includes interest income, interest expense and gain on extinguishment of liabilities. |
The following table summarizes the segment assets as of June 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | Digital | | Corporate/ | | | | | Ophthalmic | | Digital | | Corporate/ | | | | | | Assets | | Other | | Total | | Technology | | Assets | | Other | | Total | Segment Assets | | | | | | | | | | | | | | | | | | | | | | Cash | | $ | — | | $ | 9,637,216 | | $ | 9,637,216 | | $ | — | | $ | — | | $ | 6,310,878 | | $ | 6,310,878 | Digital assets | | | 99,840,797 | | | — | | | 99,840,797 | | | — | | | 43,872,033 | | | — | | | 43,872,033 | All other assets | | | — | | | 3,660,905 | | | 3,660,905 | | | 132,652 | | | — | | | 1,448,693 | | | 1,581,345 | Total Assets | | $ | 99,840,797 | | $ | 13,298,121 | | $ | 113,138,918 | | $ | 132,652 | | $ | 43,872,033 | | $ | 7,759,571 | | $ | 51,764,256 |
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