Tron Inc. Segments Disclosure
Note 13 - Segment Reporting
The Company has two reportable segments: (i) the toy business consisting of design, development and manufacture (through third parties) of toys and souvenir items and (ii) digital assets, consisting of investing for growth in the appreciation of the asset and staking the tokens to produce income to the Company.
Gross profit (loss) is the segment performance measure the chief operating decision maker (“CODM”) (our CEO, Richard Miller) uses to assess the Company’s reportable segments.
The toys and souvenir items (“Products”) generate revenue from the sale of the Products to theme parks and entertainment venues and direct sales through Amazon and other direct channels. Cost of revenue consists primarily of direct manufacturing costs and freight and shipping.
The digital assets have nominal costs associated with revenue generated through staking.
The following table presents segment revenue and segment gross profit for the years ended December 31, 2025 and 2024 reviewed by the CODM:
| 2025 | 2024 | |||||||
| Revenue from Toy sales | $ | 4,740,551 | $ | 4,311,382 | ||||
| Cost of sales | 3,542,890 | 3,456,151 | ||||||
| Gross profit | 1,197,661 | 855,231 | ||||||
| Income from digital assets | ||||||||
| Unrealized (loss) on digital asset investments | (15,223,891 | ) | ||||||
| Unrealized income from staking activities | 5,437,403 | |||||||
| Realized (loss) from TRX to sTRX conversion | (2,135,357 | ) | ||||||
| Total income (loss) from digital assets | (11,921,845 | ) | ||||||
| Operating (expenses) | (3,715,758 | ) | (5,190,028 | ) | ||||
| Impairment of intangible asset | (2,507,267 | ) | ||||||
| Net interest income (expense) | 135,411 | (4,548 | ) | |||||
| Net (loss) | $ | (16,811,267 | ) | $ | (4,339,345 | ) | ||
Assets and liabilities are not separately analyzed or reported to the CODM and are not used to assist in decisions surrounding resource allocation and assessment of segment performance. As such, an analysis of segment assets and liabilities has not been included in this financial information.
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.