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SEGMENT AND GEOGRAPHIC INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION

Note 13. SEGMENT AND GEOGRAPHIC INFORMATION

 

The Company operates as one operating segment. The Company’s CODM is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated gross margin, operating income and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow operating income and the allocation of budget between cost of revenues, sales and marketing, general and administrative expenses or technology and development.

 

The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2026 and 2025:

 

   2026   2025   2026   2025 
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
                 
Net revenues  $1,779,860   $7,790,865   $3,339,423   $18,654,308 
Cost of net revenues   1,597,656    7,285,113    2,986,998    17,455,915 
Gross profit (loss)   182,204    505,752    352,425    1,198,393 
                     
Operating expenses:                    
General and administrative   7,056,671    4,859,949    11,925,606    36,032,869 
Sales and marketing   113,990    343,383    1,073,990    408,600 
Depreciation and amortization   356,597    802,796    713,421    1,605,668 
Total operating expenses   7,527,258    6,006,128    13,713,017    38,047,137 
                     
Loss from operations   (7,345,054)   (5,500,376)   (13,360,592)   (36,848,744)
                     
Other income/(expense):                    
Interest expense, net   (1,561,240)   (1,184,040)   (3,633,919)   (2,278,530)
Loss on extinguishment of vendor obligation   (320,000)   -    (60,120)   - 
Loss on extinguishment of debt   (8,881,694)   -    (8,881,694)   - 
Loss on contract termination fee   (766,394)   -    (766,394)   - 
Settlement fees   -    -    (13,000)   - 
Other income   511,157    11,952    609,897    23,907 
Total other expense, net   (11,018,171)   (1,172,088)   (12,745,230)   (2,254,623)
                     
Net loss before income taxes   (18,363,225)   (6,672,464)   (26,105,822)   (39,103,367)
Provision for income taxes   -    -    -    - 
Net loss  $(18,363,225)  $(6,672,464)  $(26,105,822)  $(39,103,367)

 

All revenues were within the U.S. region. See Note 1, Organization and Summary of Significant Accounting Policies - Revenue Recognition for additional information about disaggregated revenue.

 

The Company’s long-lived tangible assets, as well as the Company’s operating lease right-of-use assets recognized on the unaudited condensed consolidated balance sheets were located as follows:

 

   June 30,   December 31, 
   2026   2025 
United States          
Property, plant and equipment, net  $173,879   $229,376 
Operating lease, right-of-use assets  $719,645   $966,893