NOTE 16 – SEGMENTS

 

The Company applies ASC 280, Segment Reporting, in determining its reportable segments. The Company has two reportable segments: Bitcoin Mining and Fintech Services. The guidance requires that segment disclosures present the measure(s) used by the Chief Operating Decision Maker (“CODM”) to decide how to allocate resources and for purposes of assessing such segments’ performance. The Company’s CODM is comprised of several members of its executive management team who use revenue and expenses of our two operating segments to assess the performance of the business of our reportable operating segments.

  

The following tables detail revenue, operating expenses, and assets for the Company’s reportable segments for the year ended December 31, 2025.

 

   Fintech
Segment
   Bitcoin
Mining
Segment
   Consolidated
Total
 
ASSETS            
Current Assets:            
Cash  $15,751   $26   $15,777 
Accounts receivable, net   17,430    
    17,430 
Prepaid expenses   162,766    
    162,766 
Other receivables   430,232    398,983    829,215 
Other current assets   
    25,444    25,444 
Total Current Assets   626,179    424,453    1,050,632 
                
Other Assets:               
Property and equipment, net   
    2,725,120    2,725,120 
Goodwill   8,139,889    
    8,139,889 
Other long-term assets   380,952    
    380,952 
Total Other Assets   8,520,841    2,725,120    11,245,961 
                
TOTAL ASSETS  $9,147,020   $3,149,573   $12,296,593 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY               
Current Liabilities:               
Cash overdraft  $27,019   $
   $27,019 
Accounts payable   3,780,116    682,134    4,462,250 
Accrued expenses   817,600    
    817,600 
Merchant portfolio purchase installment obligation   2,000,000    
    2,000,000 
Related party payable   167,315    
    167,315 
Note payable – current portion   216,684    
    216,684 
Due to/from intercompany   (24,067,037)   24,067,037    
 
Total Current Liabilities   (17,058,303)   24,749,171    7,690,868 
Total Liabilities   (17,058,303)   24,749,171    7,690,868 
                
Stockholders’ Equity:               
Series A Preferred stock   
    
    
 
Common stock   944    
    944 
Treasury stock   (109,988)   
    (109,988)
Additional paid-in capital   79,163,627    
    79,163,627 
Accumulated deficit   (52,849,260)   (21,599,598)   (74,448,858)
Total stockholders’ equity (deficit)   26,205,323    (21,599,598)   4,605,725 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $9,147,020   $3,149,573   $12,296,593 
   Fintech
Segment
   Bitcoin
Mining
Segment
   Consolidated
Total
 
Revenue:            
Transaction and processing fees  $7,936,768   $
   $7,936,768 
Merchant equipment rental and sales   28,720    
    28,720 
Revenue, net - bitcoin mining   
    210,256    210,256 
Other revenue from monthly recurring subscriptions   302,241    
    302,241 
Digital product revenue   198,922    
    198,922 
Total revenue   8,466,651    210,256    8,676,907 
                
Operating expenses:               
Processing and servicing costs, excluding merchant portfolio amortization   7,528,415    
    7,528,415 
Depreciation expense   
    507,393    507,393 
Salaries and wages   1,997,044    996,648    2,993,692 
Professional fees   736,215    198,861    935,076 
General and administrative expenses   1,399,386    478,307    1,877,693 
Total operating expenses   11,661,060    2,181,209    13,842,269 
                
Loss from operations   (3,194,409)   (1,970,953)   (5,165,362)
                
Other income (expense):               
Interest expense   (395,645)   (281)   (395,926)
Loss on conversion related party   (175,763)   
    (175,763)
Loss on settlement of accounts payable and debt   (52,000)   
    (52,000)
Loss on settlement of lawsuit   (85,000)   
    (85,000)
Total other income   (708,408)   (281)   (708,689)
                
Net loss   (3,902,817)   (1,971,234)   (5,874,051)
                
Preferred dividends (related party)   (30,630)   
    (30,630)
Deemed dividend – preferred stock   (775,000)   
    (775,000)
                
Net Loss Applicable to Common Stockholders’  $(4,708,447)  $(1,971,234)  $(6,679,681)

The following tables detail revenue, operating expenses, and assets for the Company’s reportable segments for the year ended December 31, 2024.

 

   Fintech
Segment
   Bitcoin
Mining
Segment
   Consolidated
Total
 
ASSETS            
Current Assets:            
Cash  $27,125   $311   $27,436 
Accounts receivable, net   100,621    
    100,621 
Prepaid expenses   18,075    
    18,075 
Other receivables   200,592    398,983    599,575 
Total Current Assets   346,413    399,294    745,707 
                
Other Assets:               
Property and equipment, net   
    3,254,039    3,254,039 
Intangible assets, net   3,724    
    3,724 
Goodwill   8,139,889    
    8,139,889 
Operating lease right-of-use assets   140,218    
    140,218 
Other long-term assets   395,952    
    395,952 
Total Other Assets   8,679,783    3,254,039    11,933,822 
                
TOTAL ASSETS  $9,026,196   $3,653,333   $12,679,529 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY               
Current Liabilities:               
Cash overdraft  $31,750   $
   $31,750 
Accounts payable   3,666,838    549,356    4,216,194 
Accrued expenses   1,080,863    70,940    1,151,803 
Preferred dividend payable (related party)   543,509    
    543,509 
Merchant portfolio purchase installment obligation   2,000,000    
    2,000,000 
Related party payable   1,171,960    32,000    1,203,960 
Operating lease liability – current portion   46,491    
    46,491 
Note payable – current portion   202,939    
    202,939 
Due to/from intercompany   (22,629,401)   22,629,401    
 
Total Current Liabilities   (13,885,051)   23,281,697    9,396,646 
Long Term Liabilities:               
Operating lease liability – net of current portion   93,869    
    93,869 
Total Liabilities   (13,791,182)   23,281,697    9,490,515 
                
Stockholders’ Equity:               
Series A Preferred stock   10    
    10 
Common stock   228    
    228 
Treasury stock   (109,988)   
    (109,988)
Additional paid-in capital   71,098,571    
    71,098,571 
Accumulated deficit   (48,171,443)   (19,628,364)   (67,799,807)
Total stockholders’ equity   22,817,378    (19,628,364)   3,189,014 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $9,026,196   $3,653,333   $12,679,529 
   Fintech
Segment
   Bitcoin
Mining
Segment
   Consolidated
Total
 
Revenue:            
Transaction and processing fees  $9,684,152   $
   $9,684,152 
Merchant equipment rental and sales   75,575    
    75,575 
Revenue, net - bitcoin mining   
    413,332    413,332 
Other revenue from monthly recurring subscriptions   521,268    
    521,268 
Digital product revenue   2,144,661    
    2,144,661 
Total revenue   12,425,656    413,332    12,838,988 
                
Operating expenses:               
Processing and servicing costs, excluding merchant portfolio amortization   10,669,238    
    10,669,238 
Amortization expense   83,810    449,995    533,805 
Depreciation expense   73,319    2,542,818    2,616,137 
Salaries and wages   1,932,528    1,000,420    2,932,948 
Professional fees   1,601,566    337,976    1,939,542 
General and administrative expenses   2,098,120    763,180    2,861,300 
Impairment expense   
    2,962,469    2,962,469 
Total operating expenses   16,458,581    8,056,858    24,515,439 
                
Loss from operations   (4,032,925)   (7,643,526)   (11,676,451)
                
Other income (expense):               
Realized gain on sale of bitcoin   
    222,751    222,751 

Realized gain on investment

   
    274,731    274,731 
Interest expense   (45,942)   
    (45,942)
Total other income   (45,942)   497,482    451,540 
                
Net loss   (4,078,867)   (7,146,044)   (11,224,911)
                
Preferred dividends (related party)   (124,903)   
    (124,903)
                
Net Loss Applicable to Common Stockholders’  $(4,203,770)  $(7,146,044)  $(11,349,814)

Historical Timeline

Fiscal YearFiled
2025Apr 1, 2026Showing above
2024Apr 15, 2025
2023Apr 15, 2024
2022Mar 30, 2023
2021Mar 28, 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.