3. Segment Reporting

The Company is organized into one operating and one reportable segment that engages in the development and sales of specialty fitness equipment and virtual training and is managed on a consolidated basis. The CODM regularly reviews financial information at the operating segment level to allocate resources and to assess performance. The CODM evaluates segment profit (loss) based on net loss, which is reported in the condensed consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the condensed consolidated balance sheets as total assets. The CODM uses net loss to allocate resources, including property and equipment and financial or capital resources, and to assess performance by monitoring budget-to-actual and year-over-year variances.

The following tables present revenue and significant segment expenses that are included within net loss:

 

 

Year Ended December 31,

 

 

(in thousands)

 

2025

 

 

2024

 

 

Total Revenues

 

$

11,530

 

 

$

5,380

 

 

Less:

 

 

 

 

 

 

 

Cost of fitness product revenue (excluding depreciation and amortization)

 

 

7,299

 

 

 

3,231

 

 

Cost of membership (excluding depreciation and amortization)

 

 

 

 

 

7

 

 

Cost of training

 

 

1,202

 

 

 

1,042

 

 

Research and development (excluding stock based compensation)

 

 

2,024

 

 

 

3,183

 

 

General and administrative (excluding stock based compensation, depreciation and amortization)

 

 

9,017

 

 

 

7,932

 

 

Interest expense

 

 

11,781

 

 

 

7,727

 

 

Interest income

 

 

(1,552

)

 

 

 

 

Change in fair value of earnout

 

 

(241

)

 

 

(1,300

)

 

(Gain) loss upon extinguishment of debt and accounts payable

 

 

(2,702

)

 

 

1,527

 

 

Loss on issuance of warrants

 

 

 

 

 

5,551

 

 

Change in fair value of convertible notes

 

 

(28,628

)

 

 

128

 

 

Change in fair value of derivatives

 

 

(482

)

 

 

460

 

 

Change in fair value of warrants

 

 

(2,813

)

 

 

(9,300

)

 

Change in fair value of digital assets

 

 

27,743

 

 

 

 

 

Depreciation and amortization expense

 

 

3,417

 

 

 

6,480

 

 

Stock-based compensation expense

 

 

3,079

 

 

 

10,252

 

 

Transaction related expenses (1)

 

 

3,312

 

 

 

1,864

 

 

Vendor Settlements

 

 

426

 

 

 

 

 

Other segment items (2)

 

 

2,616

 

 

 

1,530

 

 

Net loss

 

$

(23,968

)

 

$

(34,934

)

 

 

 

 

 

 

 

 

 

Reconciliation of net loss

 

 

 

 

 

 

 

Adjustments and reconciling items

 

 

 

 

 

 

 

Consolidated net loss

 

$

(23,968

)

 

$

(34,934

)

 

 

(1) Transaction costs related to acquisition of Wattbike, CLMBR, Inc and Best Efforts Offering.

(2) Other segment items included in consolidated net loss includes sales and marketing (excluding stock based compensation, depreciation and amortization), other expense and initial recognition of fair value of convertible notes.

 

The following tables present a summary of revenues by geographic area.

 

 

 

Year Ended December 31, 2025

 

 

(in thousands)

 

CLMBR

 

 

FORME

 

 

WATTBIKE

 

 

Total

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

 

Fitness Product Revenue

 

$

1,849

 

 

$

420

 

 

$

788

 

 

$

3,057

 

 

Membership Revenue

 

 

492

 

 

 

145

 

 

 

 

 

 

637

 

 

Training Revenue

 

 

305

 

 

 

156

 

 

 

 

 

 

461

 

 

           Total

 

 

2,646

 

 

 

721

 

 

 

788

 

 

 

4,155

 

 

Europe

 

 

 

 

 

 

 

 

 

 

 

 

 

Fitness Product Revenue

 

 

-

 

 

 

-

 

 

 

6,197

 

 

 

6,197

 

 

Membership Revenue

 

 

 

 

 

 

 

 

94

 

 

 

94

 

 

           Total

 

 

-

 

 

 

-

 

 

 

6,291

 

 

 

6,291

 

 

Asia

 

 

 

 

 

 

 

 

 

 

 

 

 

Fitness Product Revenue

 

 

-

 

 

 

-

 

 

 

711

 

 

 

711

 

 

           Total

 

 

-

 

 

 

-

 

 

 

711

 

 

 

711

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Fitness Product Revenue

 

 

-

 

 

 

-

 

 

 

373

 

 

 

373

 

 

           Total

 

 

 

 

 

 

 

 

373

 

 

 

373

 

 

Total Revenue

 

$

2,646

 

 

$

721

 

 

$

8,163

 

 

$

11,530

 

 

 

 

 

 

Year Ended December 31, 2024

 

 

(in thousands)

 

CLMBR

 

 

FORME

 

 

WATTBIKE

 

 

Total

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

 

Fitness Product Revenue

 

$

3,222

 

 

$

342

 

 

$

 

 

$

3,564

 

 

Membership Revenue

 

 

610

 

 

 

173

 

 

 

 

 

 

783

 

 

Training Revenue

 

 

329

 

 

 

295

 

 

 

 

 

 

624

 

 

           Total

 

 

4,161

 

 

 

810

 

 

 

 

 

 

4,971

 

 

Europe

 

 

 

 

 

 

 

 

 

 

 

 

 

Fitness Product Revenue

 

 

224

 

 

 

-

 

 

 

-

 

 

 

224

 

 

Total

 

 

224

 

 

 

-

 

 

 

-

 

 

 

224

 

 

Asia

 

 

 

 

 

 

 

 

 

 

 

 

 

Fitness Product Revenue

 

 

185

 

 

 

-

 

 

 

-

 

 

 

185

 

 

           Total

 

 

185

 

 

 

 

 

 

 

 

 

185

 

 

Total Revenue

 

$

4,570

 

 

$

810

 

 

$

 

 

$

5,380

 

 

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.