FG Nexus Inc. Segments Disclosure
Note 18. Segment Reporting
The Company has two operating segments – digital assets and merchant banking. The chief operating decision maker (“CODM”)
is the Company’s Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s
reportable segments is income before income tax. The Company’s digital assets segment includes the operations related to the ETH
treasury strategy. Our merchant banking segment includes our equity and other holdings. The “other” category primarily includes
rental income and expenses related to the Company’s real estate in Canada and the land and building previously owned and operated
by Digital Ignition.
The following tables present the financial information for each segment that is specifically identifiable or based on allocations using internal methodology for the years ended December 31, 2025 and 2024 (in thousands):
| Year Ended December 31, 2025 | ||||||||||||||||
| Digital Assets | Merchant Banking | Other | Total | |||||||||||||
| ETH staking rewards | $ | 1,475 | $ | $ | $ | 1,475 | ||||||||||
| Rental income | 415 | 415 | ||||||||||||||
| Merchant banking advisory fees | 523 | 523 | ||||||||||||||
| Total revenue | 1,475 | 523 | 415 | 2,413 | ||||||||||||
| Compensation costs | (655 | ) | (1,239 | ) | (1,894 | ) | ||||||||||
| Professional fees | (574 | ) | (608 | ) | (1,182 | ) | ||||||||||
| Bank and custodial fees | (90 | ) | (2 | ) | (92 | ) | ||||||||||
| Realized loss on digital assets | (5,815 | ) | (5,815 | ) | ||||||||||||
| Unrealized measurement of fair value of ETH digital assets | (38,327 | ) | (38,327 | ) | ||||||||||||
| Loss on equity holdings | (5,503 | ) | (5,503 | ) | ||||||||||||
| Depreciation and amortization | (291 | ) | (291 | ) | ||||||||||||
| Other operating expenses | (11 | ) | (92 | ) | (103 | ) | ||||||||||
| Interest expense, net | (113 | ) | (113 | ) | ||||||||||||
| Segment (loss) income before taxes | (43,997 | ) | (6,921 | ) | 11 | (50,907 | ) | |||||||||
| Corporate and other non-segment operating expenses | (10,957 | ) | ||||||||||||||
| Stock-based compensation | (7,760 | ) | ||||||||||||||
| Foreign currency transaction gain | 1,936 | |||||||||||||||
| Interest expense, net | (19 | ) | ||||||||||||||
| Loss from continuing operations before taxes | $ | (67,707 | ) | |||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||
| Digital Assets | Merchant Banking | Other | Total | |||||||||||||
| ETH staking rewards | $ | $ | $ | $ | ||||||||||||
| Rental income | 704 | 704 | ||||||||||||||
| Merchant banking advisory fees | 75 | 75 | ||||||||||||||
| Total revenue | 75 | 704 | 779 | |||||||||||||
| Compensation costs | (679 | ) | (104 | ) | (783 | ) | ||||||||||
| Professional fees | (400 | ) | (400 | ) | ||||||||||||
| Loss on equity holdings | (14,675 | ) | (14,675 | ) | ||||||||||||
| Depreciation and amortization | (18 | ) | (384 | ) | (402 | ) | ||||||||||
| Other operating expenses | (91 | ) | (170 | ) | (261 | ) | ||||||||||
| Impairment | (1,475 | ) | (1,475 | ) | ||||||||||||
| Interest expense, net | (225 | ) | (225 | ) | ||||||||||||
| Segment loss before taxes | (15,788 | ) | (1,654 | ) | (17,442 | ) | ||||||||||
| Corporate and other non-segment operating expenses | (7,552 | ) | ||||||||||||||
| Stock-based compensation | (1,618 | ) | ||||||||||||||
| Bargain purchase on acquisition | 2,321 | |||||||||||||||
| Interest expense, net | (78 | ) | ||||||||||||||
| Loss from continuing operations before taxes | $ | (24,369 | ) | |||||||||||||
The following table presents the Company’s specifically identifiable assets for each of the Company’s segments as of December 31, 2024 (in thousands).
| December 31, 2025 | ||||||||||||||||
Merchant Banking | Digital Assets | Other | Total | |||||||||||||
| Segment assets | $ | 14,677 | $ | 119,384 | $ | 29,783 | $ | 163,844 | ||||||||
| December 31, 2024 | ||||||||||||||||
Merchant Banking | Digital Assets | Other | Total | |||||||||||||
| Segment assets | $ | 60,073 | $ | $ | 49,396 | $ | 109,469 | |||||||||
The “other” segment assets includes $13.9 million and $39.8 million of assets of discontinued operations as of December 31, 2025 and December 31, 2024, respectively, which are related to the Company’s reinsurance and managed services businesses.
There were no capital expenditures during 2025 or 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 24, 2023 | |
| 2021 | Mar 30, 2022 | |
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.