NOTE 18 – SEGMENT REPORTING

Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the chief operating decision maker (“CODM”). The Company manages its operations as a single segment for purposes of assessing performance and making decisions. The segment’s accounting policies are set forth in Note 2, Summary of Significant Accounting Policies. The Company’s CODM is its President and Chief Operating Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis, using the operating expenses and interest expense, as presented on the face of the income statement, for purposes of making operating decisions, allocating resources, and evaluating financial performance. The measure of segment assets is reported on the balance sheet as total consolidated assets.

Significant expenses regularly reviewed by the CODM are Professional fees, Operations and research, excluding compensation, which is reviewed separately and employee compensation. The following table presents the details of the significant segment expenses, segment net revenues, and the segment performance measure, net loss, in the periods indicated:

 

 

For the Year Ended December 31,

 

 

2025

 

 

2024

 

Total revenue

$

353,719

 

 

$

768,677

 

 

 

 

 

 

Less significant expenses:

 

 

 

 

 

Professional fees

 

4,476,279

 

 

 

2,871,333

 

Operations and research (excluding compensation)

 

2,122,783

 

 

 

3,949,669

 

Compensation:

 

 

 

 

 

Salaries and wages

 

6,727,498

 

 

 

3,120,544

 

Share-based compensation

 

222,100

 

 

 

2,011,605

 

Total compensation

 

6,949,598

 

 

 

5,132,149

 

Total significant expenses

 

13,548,660

 

 

 

11,953,151

 

Other segment items (gain)/loss (1)

 

35,275,463

 

 

 

(17,431,603

)

Total significant expenses and other segment items

$

48,824,123

 

 

$

(5,478,452

)

 

 

 

 

 

Net income/(loss)

$

(48,470,404

)

 

$

6,247,129

 

 

(1)
Includes other expenses within Marketing, General and Administrative and Operations and Research which are not significant individually or in the aggregate and not included within Significant Expenses above; as well as, Interest income, Interest Expense, Disposal of equipment, Loss on equity method investment, Change in derivative liabilities fair value, Gain on debt extinguishment, Residual economic interest in shipwreck, Loss on Termination Agreement, and Other, as reported in our consolidated statements of operations.

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 31, 2025

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.