Axe Compute Inc. Segments Disclosure

NOTE 17 – SEGMENT INFORMATION

 

The Company has determined its operating segments in accordance with ASC 280, Segment Reporting. Factors used to determine the Company’s reportable segments include the availability of separate financial statements, the existence of separate leadership across business lines, the economic factors affecting each segment, and the evaluation of operating results at the segment level. The Company’s Chief Operating Decision Maker (“CODM”), its chief executive officer, allocates the Company’s resources for each of the operating segments and evaluates their relative performance based on gross profit, operating loss, and net loss. Operating expenses are disaggregated by department for purposes of evaluating each segment’s performance. Each operating segment listed below has separate financial statements and locally based leadership that are evaluated based on the results of their respective segments. It should be noted that the operating segments below have different products and services.

 

The Company has two reportable segments, which have been delineated by business area:

 

●

Compute Services and Treasury Management segment: provides services that include access to GPU compute capacity and manages the Company’s ATH Treasury Strategy.

 

●

Drug Discovery Services segment: provides services that include the application of AI using its proprietary biobank of 150,000+ tumor samples, as well as creation of proprietary 3D culture models used in drug development.

 

As described in Note 3 – Discontinued Operations, the Company’s former Birmingham and Eagan operating segments met the criteria to be reported as discontinued operations during the third quarter of 2024 and first quarter of 2025, respectively. As such, the former Birmingham and Eagan operating segments are excluded from the tables below, which only reflect continuing operations for all periods presented.

 

See discussion of revenue recognition in Note 2 – Summary of Significant Accounting Policies for a description of the products and services recognized in each segment. All revenues are earned from external customers.

 

The tables below summarize the Company’s segment reporting as of and for the years ended December 31, 2025, and 2024.

 

		Year Ended December 31, 2025
		Compute Services and Treasury Management				Drug Discovery Services				Corporate				Total
Revenue		$	-			$	125,284			$	-			$	125,284
Gains and (losses) from operations			(152,490,550	)			-				-				(152,490,550	)
Cost of revenues			-				72,622				-				72,622
General and administrative expenses			16,241,611				1,726,908				7,955,839				25,924,358
Research and development expenses			-				2,137,042				10,180				2,147,222
Sales and marketing expenses			-				-				406,247				406,247
Total operating (loss)			(168,732,161	)			(3,811,288	)			(8,372,266	)			(180,915,715	)
Gain (loss) on derivative instruments			(52,735,000	)			-				-				(52,735,000	)
Other segment items			117,463				676,702				2,903				797,068
Segment loss		$	(221,349,698	)		$	(3,134,586	)		$	(8,369,363	)		$	(232,853,647	)

 

		December 31, 2025
		Compute Services and Treasury Management				Drug Discovery Services				Corporate				Total
Assets		$	49,455,174			$	1,930,898			$	1,502,274			$	52,888,346
Depreciation and amortization			-				121,261				7,777				129,038
Expenditures for additions to long-lived assets			-				-				-				-

 

		Year Ended December 31, 2024
		Compute Services and Treasury Management				Drug Discovery Services				Corporate				Total
Revenue		$	-			$	84,812			$	-			$	84,812
Cost of revenues			-				78,285				-				78,285
General and administrative expenses			-				2,022,732				5,213,065				7,235,797
Research and development expenses			-				2,234,501				6,960				2,241,461
Sales and marketing expenses			-				5				833,194				833,199
Total operating loss			-				(4,250,711	)			(6,053,219	)			(10,303,930	)
Other segment items			-				(606	)			79,881				79,275
Segment loss		$	-				(4,251,317	)		$	(5,973,338	)		$	(10,224,655	)

 

		December 31, 2024
		Compute Services and Treasury Management				Drug Discovery Services				Corporate				Total
Assets		$	-			$	2,615,291			$	893,487			$	3,508,778
Depreciation and amortization			-				124,939				7,397				132,336
Expenditures for additions to long-lived assets			-				3,032				-				3,032

 

Other segment items is comprised of other income and other expenses. Other income primarily consists of aged accounts payable and accrued expenses written off in the year ended December 31, 2025, and interest income in the year ended December 31, 2024. Other expenses primarily consist of interest expense.

 

In each of the years ended December 31, 2025, and 2024, substantially all the Company revenues were located or derived from operations in the United States. As of December 31, 2025, all the Company’s long-lived assets were located within the United States.