Exodus Movement, Inc.EXOD
Exodus Movement, Inc. New Standards Disclosure
Recently Issued Accounting Pronouncements Pending Adoption
Targeted Improvements to the Accounting for Internal-Use Software
In September 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-06, “Intangibles — Goodwill
and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use
Software”. The amendments in ASU 2025-26 (i) remove all references to prescriptive software development “project
stages,” (ii) refocus the capitalization threshold such that an entity begins capitalizing when (a) management authorizes and
commits to funding the project and (b) it is probable that the project will be completed and used for its intended function
(subject to evaluation of significant development uncertainty). The amendments in ASU 2025-26 do not (i) amend the
accounting for external-use software under Subtopic 985-20, (ii) change the types of internal-use software costs eligible for
capitalization (e.g., data conversion, training, maintenance costs generally remain expensed), or (iii) modify when
capitalization ceases (i.e., when the software is substantially complete and ready for its intended use). The amendments in
ASU 2025-26 are effective for annual periods beginning after December 15, 2027, and for interim periods within those
annual periods. Early adoption is permitted, but only as of the beginning of an annual reporting period. Entities may elect a
prospective, retrospective, or modified retrospective transition approach. The Company is currently evaluating the impact
of adopting the standard on the consolidated financial statements.
Expense Disaggregation Disclosures
In November 2024, the FASB issued ASU 2024-03, "Expense Disaggregation Disclosures". ASU 2024-03 aims to enhance
disclosures regarding a public business entity’s expenses, specifically addressing investor requests for more detailed
information on the types of expenses included in commonly presented expense captions such as cost of sales, selling,
general and administrative expenses, and research and development. The amendments in ASU 2024-03 require additional
transparency on the breakdown of expenses, including purchases of inventory, team member compensation, depreciation,
amortization, and depletion. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after
December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The
amendments may be applied either prospectively to financial statements issued for reporting periods after the effective
date, or retrospectively to any or all prior periods presented in the financial statements. The Company is currently
evaluating the impact of ASU 2024-03 on its financial reporting and will adopt the standard in accordance with the
required effective date. Subsequent to December 31, 2024, in January 2025 the FASB issued ASU 2025-01 which clarifies
the disclosure requirements for public business entities adopting ASU 2024-03. ASU 2025-01 specifies that all public
business entities should initially adopt the disclosure requirements presented in ASU 2024-03 in the first annual reporting
period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after
December 15, 2027. The Company is currently evaluating the impact of adopting the standard on the consolidated financial
statements.
Recently Adopted Accounting Pronouncements
Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax
Disclosures”, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in
the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated
between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal,
state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state
and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15,
2024. As of December 31, 2025, the Company has adopted ASU 2023-09, which was applied on a prospective basis. This
guidance only impacts footnote disclosures and will not impact our consolidated financial statements.
Improvements to Crypto Assets Disclosures
In December 2023, the FASB issued ASU 2023-08, "Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60)"
which provides an update to existing crypto asset guidance and requires an entity to measure certain crypto assets at fair
value. In addition, this guidance requires additional disclosures related to crypto assets once it is adopted. As of January 1,
2024, the Company has adopted ASU 2023-08. As a result of adopting the amendments, the Company’s cumulative-effect
adjustment to the opening balance of retained earnings as of the beginning of the annual reporting period, or as of January
1, 2024, amounted to $38.3 million, which consisted of $48.7 million of fair value adjustments offset by a $10.4 million tax
impact related to the fair value adjustments. The Company includes realized and unrealized gains and losses in net (loss)
income on the consolidated financial statements which is presented separately from changes in the carrying amount of
other intangible assets.
Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable
Segment Disclosures”, which is intended to improve reportable segment disclosure requirements, primarily through
enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after
December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is
permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon
transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant
segment expense categories identified and disclosed in the period of adoption. ASU 2023-07 further permits disclosure of
more than one measure of segment profit or loss and extends the full disclosure requirements of ASC 280 to companies
with single reportable segments. This guidance only impacts footnote disclosures and will not impact our consolidated
financial results of operations. The Company adopted ASU 2023-07 on December 31, 2024 on a retrospective basis.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 11, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
About New Standards Disclosures
New accounting standards disclosures describe recently adopted pronouncements and those not yet effective, along with management's assessment of their expected impact. This section provides an early warning system for upcoming changes to how a company reports its financial results, often years before the new rules take effect.
Key signals: when management describes a not-yet-adopted standard's impact as "material" or "still being evaluated," it signals potential significant changes to reported metrics upon adoption. Watch for standards that affect a company's core operations — for example, revenue recognition changes for software companies or lease accounting changes for retailers with large store footprints. The transition method chosen (full retrospective versus modified retrospective) affects comparability with prior periods. Companies that delay adoption to the latest permitted date may be struggling with implementation complexity. Compare the disclosed impact assessments against peers in the same industry to gauge whether management's expectations are reasonable.