NOTE 12 – SEGMENT INFORMATION

 

The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officers, who review financial information presented on a consolidated basis. The CODM uses consolidated operating margin and net income (loss) to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the allocation of budget between cost of revenues, sales and marketing, professional fees, and general and administrative expenses.

 

The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2025 and 2024:

 

   December 31, 2025   December 31, 2024 
   For the Years Ended 
   December 31, 2025   December 31, 2024 
Revenue  $7,138   $- 
           
Operating expenses          
General and administrative expenses   3,159,313    396,434 
Professional fees   2,092,013    438,461 
Total operating expenses   5,251,326    834,895 
Operating loss   (5,244,188)   (834,895)
Operating margin   -100%   -100%
           
Other income (expenses)          
Patent infringement income   108,096    - 
Interest income   36    13 
Change in fair value of earnout shares liability   1,053,084    18,731,514 
Change in fair value of warrants liability   803,680    (397,553)
Loss on settlement of debt   (760,302)   - 
Forbearance fee expense   -    (13,226,926)
Interest expense   (3,981,641)   (168,886)
Total other income (expense)   (2,777,047)   4,938,162 
Income (loss) before income tax expense   (8,021,235)   4,103,267 
Income tax expense   -    (200)
Net income (loss)  $(8,021,235)  $4,103,067 

 

The Company’s had $8,050 and $0 in long-lived tangible assets for the years ended December 31, 2025 and 2024, respectively.

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Apr 15, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.