Sharplink, Inc. Revenue Disclosure
Note 4 – Revenue Recognition
The Company is currently engaged in ETH Treasury Management activities and the provision of Affiliate Marketing services.
ETH Treasury Management
The following table provides additional breakdown of the Company’s revenue from staking activities:
| December 31, 2025 | ||||
| Revenue from contracts with customers | ||||
| Native staking rewards | $ | 25,126 | ||
| Native staking fees | (944 | ) | ||
| $ | 24,182 | |||
| Revenue from contracts with non-customers | ||||
| Liquid staking rewards | 1,412 | |||
| Total revenue from staking, net | $ | 25,594 | ||
The Company participates in staking activities on the Ethereum blockchain and earns rewards for securing and validating transactions. For the year ended December 31, 2025, the Company earned total staking rewards of approximately $25,594, of which $1,412 relates to liquid staking rewards received via redemption of LsETH receipt tokens from staking ETH through third-party validators and decentralized protocols and $24,182 of rewards received from native staking, net of cash paid for staking fees.
Management has evaluated the nature of rewards received from liquid staking activities in accordance with the guidance in ASC 610-20 Gains and Losses from the Derecognition of Nonfinancial Assets and 606-10-50-4 Revenue from Contracts with Customers. Staking is an ongoing central activity of the Company, and accordingly, on redemption of liquid staking tokens, incremental ETH attributable to liquid staking rewards is recognized as revenue. Management applies the noncash consideration guidance in ASC 606-10-32-21 and measures the revenue at the fair value of ETH at contract inception. While included within the same line item, management has disclosed separately the amount of revenue attributable to liquid staking versus native staking, and evaluated the associated risks and timing of reward recognition. The Company continues to assess evolving industry practice and regulatory interpretations in this area.
The following is a summary of crypto assets staked as of December 31, 2025:
| Unstaked ETH | 55,582 | |||
| Native staked ETH | 584,443 | |||
| Total LsETH | 204,409 | |||
| Total crypto assets | 844,434 |
The following is a summary of total rewards earned from staking activities for the year ended December 31, 2025:
| Native staked ETH | 6,688 | |||
| Redeemed liquid staked ETH | 297 | |||
| Total staking rewards | 6,985 |
Affiliate Marketing
The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange.
For the year ended December 31, 2025, the Company has recognized its revenue at a point in time.
The timing of revenue recognition may differ from the timing of invoicing to customers, and these timing differences result in contract advanced billings on the Company’s consolidated balance sheet. The Company recognized unbilled revenue when revenue is recognized prior to invoicing.
Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s services, and not to facilitate financing arrangements.
The Company’s assets and liabilities related to its contracts with major customers as of December 31, 2024 are presented in the table below. The Company did not have any major customers during the year ended December 31, 2025.
| December 31, 2024 | ||||
| Accounts receivable | $ | 265 | ||
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.