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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 12. SEGMENT REPORTING

 

The Company currently operates as one operating segment, which is also the sole reportable segment. The Company’s CODM is its Chief Executive Officer and Principal Executive Officer, who assess performance and makes all resource allocation decisions based on consolidated net income (loss).

 

The CODM does not review discrete financial information or separate performance metrics for any individual business activity and all decisions are made based on consolidated results. The measure of segment assets is consolidated total assets as presented on the consolidated balance sheets.

 

 

During the quarter ended June 30, 2026, the Company initiated a strategic transformation to the design and development of fabless semiconductor technologies for AI data center infrastructure. The Company’s single operating segment now derives its activities principally from these semiconductor development activities, including the joint development arrangement with Kopin Corporation described in Note 16. Commitments and Contingencies. During 2025, the Company had initiated a digital asset treasury strategy associated with the stablecoin ecosystem. The Company disposed of all of its digital asset holdings during the quarter ended June 30, 2026, and does not intend to develop this strategy further (see Note 7. Digital Assets). During the quarter ended June 30, 2026, the Company also sold the assets associated with its electric vehicle operations (see Note 15. Sale of Legacy Electric Vehicle Assets).

 

These changes affected the nature of the business activities conducted within the Company’s single operating segment but did not change the Company’s basis of segmentation or the composition of its reportable segment. The CODM continued to assess performance and allocate resources on a consolidated basis throughout all periods presented, and there were no changes from the last annual report in the basis of segmentation or in the measure of segment profit or loss. Accordingly, prior-period segment information has not been recast.

 

In addition to the significant expense categories included within net loss presented on the Company’s Condensed Consolidated Statements of Operations, see below for disaggregated amounts that comprise consulting and personnel expenses:

 

   2026   2025 
   Three Months Ended June 30, 
   2026   2025 
Consulting expenses  $689,892   $862,023 
Personnel expenses   139,999    291,764 
Other expenses*   2,499,186    395,487 
Total operating expenses  $3,329,077   $1,549,274 

 

   2026   2025 
   Six Months Ended June 30, 
   2026   2025 
Consulting expenses  $814,756   $1,898,841 
Personnel expenses   300,160    699,682 
Other expenses*   3,915,216    924,303 
Total operating expenses  $5,030,132   $3,522,826 

 

* Other expenses primarily consists of rent, property taxes, insurance, depreciation, licenses and business taxes, software subscription fees, issuance cost, bad debt, dues and subscriptions, travel and entertainment, and marketing.

 

Other income (expense) segment items for the three and six months ended June 30, 2026, were $(9,152,955) and $(9,866,375), respectively, and consist primarily of changes in fair value on digital assets, changes in fair value of derivative and warrant liabilities, and interest expense.