Nixxy, Inc. Segments Disclosure
NOTE 12 - SEGMENT REPORTING
The Company has reportable segment, which is aligned with its internal organizational structure and reviewed by the Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (CODM). In accordance with ASC 280, Segment Reporting, segments are defined based on the manner in which financial information is evaluated by the CODM for resource allocation and performance assessment.
The Company’s reportable segment is as follows:
Telecomm — Provider of private telecommunications solutions and proprietary billing services.
All material operating units within each segment have been aggregated as they share similar economic characteristics, customer types, nature of products and services, and processes for procurement and delivery. The Company evaluates segment performance based on segment operating loss, which includes gross profit less direct research and development, sales and marketing, and general and administrative expenses that are specifically attributable to each segment. Items below loss from operations, such as interest and taxes, and all balance sheet data are not allocated to segments, as they are not used by the CODM.
The tables below present segment information reconciled to total Company loss from operations, with segment operating loss including gross profit less direct research and development expenses and direct selling, general and administrative expenses to the extent specifically identified by segment:
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||
| (in thousands) | Telecomm | Telecomm | ||||||
| REVENUE | ||||||||
| Revenue | $ | 97,906 | $ | – | ||||
| OPERATING EXPENSES | ||||||||
| Cost of revenue | 97,870 | – | ||||||
| Sales and marketing | 604 | – | ||||||
| Product development | 245 | – | ||||||
| Amortization of intangibles | 1,943 | – | ||||||
| Impairment expense | 1,748 | – | ||||||
| General and administrative | 7,250 | – | ||||||
| Total operating expenses | 109,660 | – | ||||||
| LOSS FROM OPERATIONS | $ | (11,754 | ) | $ | – | |||
Assets are not allocated to segments for internal reporting presentations. It is impracticable for the Company to separately identify the amount of amortization and depreciation by segment that is included in the measure of segment profit or loss.
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.