ZeroStack Corp. Segments Disclosure
25. SEGMENTED INFORMATION
The Company formerly reported its financial results for the following two operating segments, which are also its reportable segments: commercial and wholesale (primarily Phatebo and TruHC), which sell pharmaceutical products, and house of brands (JustCBD, Vessel, United and AV subsidiaries), which sells a mix of products across multiple categories including food and beverage, cannabis accessories and technology, personal care and wellness. As discussed in Note 5, the Company disposed of the entirety of the house of brands segment on September 26, 2025. As a result, the Company had only one operating segment, commercial and wholesale, for most of 2025. This segment reflects how the Company's operations are managed, how the Company's Chief Executive Officer, who is the chief operating decision maker, allocates resources and evaluates performance, and how the Company's internal management financial reporting is structured. The chief operating decision maker uses net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the Company, such as for acquisitions. Net income is used to monitor actual results versus budget and prior year, which is used to assess the performance of the segment.
The Company operates its distribution business within its Germany subsidiary. The Corporate segment reflects balances and expenses that do not directly influence business unit operations or the Company's digital assets.
As discussed in Note 1, the Company began implementing an expansion strategy focused on identifying and pursuing complimentary growth opportunities within the global digital asset market in 2025. As a result of this strategy, management has re-evaluated its segment reporting structure and determined that a new segment, digital assets, would be created, beginning with this annual report. There were no other impacts to the current or prior periods.
In 2025, the Company made sales to two customers that each exceeded 10% of its consolidated revenue. In 2024, the Company made sales to two customers that each exceeded 10% of its consolidated revenue.
The following table shows information regarding the Company's segments for the year ended December 31, 2025.
| Commercial & Wholesale |
Digital Assets | Corporate | Total | |||||||||
| Revenue | $ | 35,676 | $ | - | $ | - | $ | 35,676 | ||||
| Cost of sales | 34,027 | - | - | 34,027 | ||||||||
| Gross profit | 1,649 | - | - | 1,649 | ||||||||
| Consulting and management fees | 1,642 | 100 | 3,497 | 5,239 | ||||||||
| Share based compensation | - | - | 1,208 | 1,208 | ||||||||
| Depreciation and amortization | 23 | - | - | 23 | ||||||||
| Impairment expense | - | - | 46 | 46 | ||||||||
| Gain on disposal of Insolvent Entities | (11,589 | ) | - | 10,470 | (1,119 | ) | ||||||
| Loss from changes in fair value of digital assets | - | 142,997 | - | 142,997 | ||||||||
| Changes in financial instruments fair value | - | (39,489 |
) |
1,149 | (38,340 | ) | ||||||
| Interest expense, net | 166 | - | 33 | 199 | ||||||||
| Other segment items (1) | 1,830 | 50 | 4,867 | 6,747 | ||||||||
| Net loss before income taxes | 9,577 | (103,658 | ) | (21,270 |
) |
(115,351 | ) | |||||
| Income taxes | 56 | - | 3 | 59 | ||||||||
| Net loss from continuing operations | $ | 9,521 | $ | (103,658 | ) | $ | (21,273 |
) |
$ | (115,410 | ) |
The following table shows information regarding the Company's segments for the year ended December 31, 2024.
| Commercial & Wholesale |
Digital Assets |
Corporate | Total | |||||||||
| Revenue | $ | 35,865 | $ | - | $ | - | $ | 35,865 | ||||
| Cost of sales | 33,669 | - | - | 33,669 | ||||||||
| Gross profit | 2,196 | - | - | 2,196 | ||||||||
| Consulting and management fees | 2,595 | - | 1,377 | 3,972 | ||||||||
| Share based compensation | 270 | - | 2,509 | 2,779 | ||||||||
| Depreciation and amortization | 25 | - | - | 25 | ||||||||
| Impairment expense | 32 | - | - | 32 | ||||||||
| Interest expense, net | 104 | - | 35 | 139 | ||||||||
| Changes in financial instruments fair value | - | - | (202 | ) | (202 | ) | ||||||
| Other segment items (1) | 726 | - | 4,049 | 4,775 | ||||||||
| Net loss before income taxes | (1,556 | ) | - | (7,768 | ) | (9,324 | ) | |||||
| Income taxes | 22 | - | - | 22 | ||||||||
| Net loss from continuing operations | $ | (1,578 | ) | $ | - | $ | (7,768 | ) | $ | (9,346 | ) |
(1) Other segment items include professional fees, general and administrative, travel expenses, research and development, operating lease expense, bad debt expense, other expenses (net), and foreign exchange loss (income).
Other significant items:
| Commercial & Wholesale |
Digital Assets | Corporate | Consolidated | |||||||||
| 2025 | ||||||||||||
| Purchases of property, plant and equipment and other assets | $ | 110 | $ | - | $ | - | $ | 110 | ||||
| Total assets | 4,311 | 121,026 | 4,898 | 130,235 | ||||||||
| 2024 | ||||||||||||
| Purchases of property, plant and equipment and other assets | $ | 80 | $ | - | $ | - | $ | 80 | ||||
| Total assets (2) | 9,435 | - | 16,792 | 26,227 |
(2) Total assets in the Corporate segment include assets held for sale.
All the Company's revenue for the years ended December 31, 2025 and 2024 originated from Germany. Disaggregation of net loss before income taxes by geographic area:
| Year Ended December 31, 2025 |
Year Ended December 31, 2024 |
|||||
| Net Loss Before Income Taxes | ||||||
| United States | $ | (69,478 | ) | $ | - | |
| Germany | (538 | ) | (1,557 | ) | ||
| Canada | (45,335 | ) | (7,767 | ) | ||
| $ | (115,351 | ) | $ | (9,324 | ) |
Disaggregation of property, plant and equipment and other long-lived assets by geographic area:
| December 31, 2025 | December 31, 2024 | |||||
| Property, Plant and Equipment | ||||||
| United States | $ | - | $ | - | ||
| Germany | 128 | 81 | ||||
| Canada | - | - | ||||
| $ | 128 | $ | 81 |
| December 31, 2025 | December 31, 2024 | |||||
| Other Long-lived Assets | ||||||
| United States | $ | 120,950 | $ | - | ||
| Germany | 380 | 68 | ||||
| Canada | 61 | 141 | ||||
| $ | 121,391 | $ | 209 |
| December 31, 2025 | December 31, 2024 | |||||
| Total Assets (2) | ||||||
| United States | $ | 124,450 | $ | 6,706 | ||
| Germany | 4,311 | 14,642 | ||||
| Canada | 1,474 | 4,163 | ||||
| Australia | - | 470 | ||||
| United Kingdom | - | 246 | ||||
| $ | 130,235 | $ | 26,227 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 24, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 31, 2023 | |
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.