AVAX ONE TECHNOLOGY LTD. Segments Disclosure

19. SEGMENTED INFORMATION

 

The Company has chosen to organize its operating segments based on products or services offered. Each operating segment is also a reportable segment (i.e., operating segments have not been aggregated). As a result of the launch of the digital asset treasury reserve strategy in the fourth quarter of 2025, the Company reorganized the operating and reportable segments to include Avalanche Protocol and Bitcoin Mining All other activities, including financing, are carried out through the corporate entity. The prior period segment information has been recast to conform to the current period presentation.

 

Our Bitcoin Mining operations are conducted at our Redwater Property in Alberta, Canada, and the Bald Eagle Property in Ohio, USA, which reflects the manner in which the Company’s Chief Operating Decision Maker (“CODM”), its Chief Executive Officer, reviews and assesses the performance of the business and allocates resources.

 

The information used by the CODM to assess performance and allocate resources includes various measures of segment profit, however, for the purposes of the disclosures required by ASC 280, Segment Reporting and ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, the Company has determined that the measure most consistent with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements is net income. Segment financial information is used to monitor forecast versus actual results in order to make key operating decisions for each segment. The CODM evaluates the performance or allocate resources for each segment based on the Company’s assets or liabilities.

 

 

The following tables disclose key financial information including the significant segment expenses, in the context of deriving net income, which are regularly provided to and reviewed by the CODM reconciled to the segment’s net income:

 

SCHEDULE OF FINANCIAL INFORMATION INCLUDING SIGNIFICANT SEGMENT EXPENSES

		Avalanche Protocol				Bitcoin Mining				Corporate and Other				Total
Year Ended December 31, 2025
Revenue		$	607,605			$	1,732,675			$	531			$	2,340,811
Significant segment expenses:
Costs of revenue, excluding depreciation			383,748				1,041,254				5,665				1,430,667
Realized gain on sale of digital assets			-				(86,728	)			-				(86,728	)
Unrealized loss on market valuation			7,530,815				235,683				-				7,766,498
Selling, general and administrative			8,017				66,997				6,861,249				6,936,263
Depreciation and amortization			-				648,038				556,088				1,204,126
Impairment of assets			-				452,635				5,110,592				5,563,227
Accretion interest expense			-				-				3,148,068				3,148,068
Consulting			-				27,964				419,294				447,258
Repairs and maintenance			-				388,423				-				388,423
Severance expense			-				-				356,087				356,087
Foreign exchange (gain) loss			-				3,948				76,495				80,443
Change in fair value of derivatives			-				-				(2,976,911	)			(2,976,911	)
Gain on conversion of debt			-				-				(86,563	)			(86,563	)
Loss on extinguishment of debt			-				-				10,131,237				10,131,237
Other expense			-				-				33,251				33,251
Net loss from discontinued operations			-				-				320,189				320,189
Loss on disposal of business			-				-				880,482				880,482
Total operating expenses and other expenses (income)			7,922,580				2,778,214				24,835,223				35,536,017
Net Loss		$	(7,314,975	)		$	(1,045,539	)		$	(24,834,692	)		$	(33,195,206	)

 

		Avalanche Protocol				Bitcoin Mining				Corporate and Other				Total
Year Ended December 31, 2024
Revenue		$	-			$	26,572			$	-			$	26,572
Significant segment expenses:
Cost of revenue, excluding depreciation			-				54,923				-				54,923
Selling, general and administrative			-				-				5,059,703				5,059,703
Depreciation and amortization			-				16,809				650,252				667,061
Impairment of assets			-				-				4,137,271				4,137,271
Accretion interest expense			-				-				2,978,722				2,978,722
Foreign exchange gain			-				-				(204,220	)			(204,220	)
Change in fair value of derivatives			-				-				(1,392,530	)			(1,392,530	)
Loss on conversion of convertible debt			-				-				1,627,858				1,627,858
Loss on extinguishment of debt			-				-				2,805,306				2,805,306
Other expense			-				-				256,806				256,806
Net loss from discontinued operations			-				-				289,877				289,877
Acquisition-related integration costs			-				20,610				-				20,610
Total operating expenses and other expenses (income)			-				92,342				16,209,045				16,301,387
Net Loss		$	-			$	(65,770	)		$	(16,209,045	)		$	(16,274,815	)

 

The following table summarizes the additions to long-lived assets, total long-lived assets, and total assets by segment, used by the CODM to assess segment performance.

 

SCHEDULE OF ADDITIONS BY SEGMENT USED BY THE CODM TO ASSESS SEGMENT PERFORMANCE

		Avalanche Protocol				Bitcoin Mining				Corporate and Other				Total
Year Ended December 31, 2025
Property and equipment, additions		$	-			$	1,248,464			$	-			$	1,248,464
Digital assets, additions			160,039,924				1,732,674				-				161,772,598
Intangible assets, additions			-				-				-				-
Balances:
Property and equipment, net			-				4,246,247				-				4,246,247
Digital assets, current and non-current			152,509,109				1,161,251				-				153,670,360
Intangible assets, net			-				408,857				-				408,857
Intangible asset held for sale			-				-				1,550,000				1,550,000
Total assets		$	178,051,611			$	13,210,577			$	3,702,452			$	194,964,640

 

 

		Avalanche Protocol				Bitcoin Mining				Corporate and Other				Total
Year Ended December 31, 2024
Property and equipment, additions		$	-			$	839,937			$	-			$	839,937
Digital assets, additions			-				25,246				-				25,246
Intangible assets, additions			-				625,736				510,333				1,136,069
Balances:
Property and equipment, net			-				807,471				1,424				808,895
Digital assets, current and non-current			-				26,282				-				26,282
Intangible assets, net			-				625,736				7,187,840				7,813,576
Total assets		$	-			$	1,459,489			$	9,304,494			$	10,763,983

 

The following tables summarize revenue and certain assets, such as cash and cash equivalents, property, plant, and equipment and digital assets by geographic area based on the location of the underlying activity or rendering of services and location of the underlying assets:

 

 SCHEDULE OF REVENUE, ASSETS AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC AREA

Year Ended December 31,		2025				2024
Revenue
Canada		$	313,687			$	26,572
United States			2,027,124				-
Total Revenue		$	2,340,811			$	26,572
Assets
Cash and cash equivalents for all segments
Canada		$	50,397			$	423,907
United States			22,085,053				65,961
Total cash and cash equivalents		$	22,135,450			$	489,868
Property Plant and Equipment
Canada		$	927,221			$	807,471
United States			3,319,026				1,424
Total property plant and equipment		$	4,246,247			$	808,895
Digital Assets
Canada		$	297,415			$	26,282
United States			153,372,945				-
Total digital assets, non-current		$	153,670,360			$	26,282