DeFi Development Corp.DFDV

DeFi Development Corp. Segments Disclosure

10-KFiled Mar 30, 20263 min read
NOTE 5—SEGMENTS
We determine operating segments based on metrics that our Chief Operating Decision Maker (“CODM”) reviews internally to manage our business, including resource allocation and performance assessment. Our CODM is the Chief Executive Officer, who regularly reviews financial results based on two operating segments consisting of Digital Asset Treasury and Real Estate Platform.
•Digital Asset Treasury ("Treasury"): This segment is responsible for executing and managing the Company’s treasury policy, including our owned validators.
•Real Estate Platform ("Real Estate"): This segment is responsible for providing a technology platform that connects commercial mortgage and small business borrowers looking for debt to refinance, build, or buy commercial property including apartment buildings to commercial property lenders. These property lenders include traditional banks, credit unions, REITs, debt funds, and other financial institutions looking to deploy capital into commercial mortgages.
The CODM uses Segment operating (loss) income to evaluate operating segment performance and allocate resources, including current period to prior period variances on a quarterly basis. Segment operating (loss) income excludes the impact of income taxes, interest expense and investment and other (expense) income items, as these are managed at the corporate level. We do not prepare separate balance sheets by operating segment for the CODM, as such, assets are not evaluated as part of operating segment performance and resource allocation. We provide the CODM depreciation and amortization expense and impairment charges that are generated from operating segment-specific assets, as these are included in Segment operating (loss) income.
Accounting policies associated with our operating segment are the same as those previously described in Note 1—Overview and Significant Accounting Policies, including transactions between segments. Transactions between segments are reported as if each were a stand-alone business and are eliminated in consolidations.
The table below shows our Segment operating (loss) income for the periods presented:
20252024
Year ended December 31 (in thousands)TreasuryReal EstateTreasuryReal Estate
Segment revenue$9,188 $2,198 $— $2,100 
Cost of revenue221 28 — 32 
Sales and marketing584 1,661 — 1,497 
Research and development672 470 — 655 
General and administrative13,088 1,242 — 2,612 
Depreciation and amortization810 235 — 307 
Net loss (gain) on digital assets26,994 — — — 
Loss on disposition of Janover Pro— 1,958 — — 
(Gain) loss from changes in fair value of contingent consideration— (179)— — 
Total segment operating expenses42,369 5,415 — 5,103 
Segment operating (loss) income$(33,181)$(3,217)$— $(3,003)
The below table reconciles Segment (loss) income to consolidated (loss) income before income taxes for the periods presented:
20252024
Year ended December 31 (in thousands)TreasuryReal EstateCorporateTotalTreasuryReal
Estate		CorporateTotal
Revenue$9,188 $2,198 $— $11,386 $— $2,100 $— $2,100 
Cost of revenue221 28 — 249 — 32 — 32 
Sales and marketing584 1,661 — 2,245 — 1,497 — 1,497 
Research and development672 470 — 1,142 — 655 — 655 
General and administrative13,088 1,242 — 14,330 — 2,612 — 2,612 
Depreciation and amortization810 235 — 1,045 — 307 — 307 
Net loss (gain) on digital assets26,994 — — 26,994 — — — — 
Loss on disposition of Janover Pro— 1,958 — 1,958 — — — — 
(Gain) loss from changes in fair value of contingent consideration— (179)— (179)— — — — 
Total operating expenses42,369 5,415 — 47,784 — 5,103 — 5,103 
Operating (loss) income(33,181)(3,217)— (36,398)— (3,003)— (3,003)
Interest expense— — (8,931)(8,931)— — — — 
(Loss) gain from derivative instruments— — (19,763)(19,763)— — — — 
Investment and other (expense) income, net— — (8,687)(8,687)— — 276 276 
(Loss) income before income taxes$(33,181)$(3,217)$(37,381)$(73,779)$— $(3,003)$276 $(2,727)

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.

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