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

Note 8 – Segment Reporting

 

The Company operates within a single reportable segment under ASC 280, Segment Reporting, focused on blockchain based revenue generation through its blockchain infrastructure and DeFi operations.

 

Within this reportable segment, the Company’s operations are organized around three primary business lines that represent distinct revenue-generating activities:

 

  1. Validator Node Operations (“NodeOps”) – earns ETH-denominated staking rewards and validator fees from operating validator nodes that secure proof-of-stake blockchain networks.
     
  2. Block Building (“Builder+”) – generates execution-layer transaction fees and MEV rewards from the construction and submission of optimized transaction blocks to validators on Ethereum and Binance Smart Chain (BSC).
     
  3. DeFi Operations (“Imperium”) – represents the Company’s decentralized finance activities, including decentralized lending and liquidity pool participation, through which the Company earns protocol-denominated fees and rewards for supplying digital asset liquidity to smart contract-based protocols.

 

Revenues from NodeOps and Builder+ are aggregated and presented as Blockchain infrastructure revenues, while revenues from Imperium are presented separately as DeFi revenues in the statements of operations. Although these business lines have distinct economic drivers and operational processes, management evaluates them together as part of the Company’s single reportable segment due to shared infrastructure, integrated management oversight, and the common objective of on-chain revenue generation.

 

DeFi activities include both DeFi lending arrangements and decentralized exchange liquidity pool participation, which have distinct economic characteristics but are managed together within the Company’s DeFi operations.

 

Gross profit (loss) is the primary measure of segment performance reviewed by the Company’s CODMs, which comprises members of executive management including the Chief Executive Officer and Chief Financial Officer. In evaluating performance and allocating resources, the CODMs reviews segment revenues, direct production costs, validator payments, hosting expenses, and allocated employee compensation.

 

 

Consistent with ASU 2023-07, the Company discloses the significant segment expenses regularly provided to the CODMs for decision-making purposes, including validator payments, infrastructure hosting costs, allocated employee compensation, and other direct operating costs associated with blockchain infrastructure and DeFi operations.

 

The following tables present segment revenue and gross profit (loss), including the significant expense items reviewed by the CODMs, for the three and six months ended June 30, 2026 and 2025:

 

   NodeOps   Builder+   Imperium   Total   NodeOps   Builder+   Imperium   Total 
  

For the Three Months Ended

June 30, 2026

  

For the Six Months Ended

June 30, 2026

 
   NodeOps   Builder+   Imperium   Total   NodeOps   Builder+   Imperium   Total 
Revenues  $47,759   $896,890   $1,501,790   $2,446,439   $178,853   $1,901,147   $2,513,816   $4,593,816 
Less: Cost of revenues                                        
Validator payments   -    909,339    -    909,339    -    1,993,531    -    1,993,531 
Cloud and server hosting costs   3,575    11,910    -    15,485    7,116    23,791    -    30,907 
Compensation costs   4,375    13,999    9,075    27,449    8,750    28,000    18,150    54,900 
Third-party support costs   -    -    -    -    -    6,000    -    6,000 
Gross profit (loss)  $39,809   $(38,358)  $1,492,715   $1,494,166   $162,987   $(150,175)  $2,495,666   $2,508,478 

 

   NodeOps   Builder+   Imperium   Total   NodeOps   Builder+   Imperium   Total 
  

For the Three Months Ended

June 30, 2025

  

For the Six Months Ended

June 30, 2025

 
   NodeOps   Builder+   Imperium   Total   NodeOps   Builder+   Imperium   Total 
Revenues  $262,972   $2,509,226   $3,569   $2,775,767   $602,263   $3,858,870   $3,569   $4,464,702 
Less: Cost of revenues                                        
Validator payments   -    2,813,438    -    2,813,438    -    4,293,380    -    4,293,380 
Cloud and server hosting costs   4,385    15,207    -    19,592    40,038    45,497    -    85,535 
Compensation costs   7,508    11,233    -    18,741    17,336    22,894    -    40,230 
Third-party support costs   1,362    -    -    1,362    2,647    -    -    2,647 
Gross profit (loss)  $249,717   $(330,652)  $3,569   $(77,366)  $542,242   $(502,901)  $3,569   $42,910 

 

The following table reconciles total segment gross profit to consolidated net income (loss):

 

   2026   2025   2026   2025 
  

For the Three Months

Ended June 30,

  

For the Six Months Ended

June 30,

 
   2026   2025   2026   2025 
Gross profit   1,494,166    (77,366)   2,508,478    42,910 
Total operating expenses   (34,796,263)   4,346,092    (103,427,035)   (13,268,031)
Other income (expense)   (1,601,133)   (387,194)   (3,148,992)   (162,044)
Net income (loss)  $(34,903,230)  $3,881,532   $

(104,067,549

)  $(13,387,165)