v3.25.3
Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 16. Segment Reporting

 

The Company has two operating segments – digital assets and merchant banking. The chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer. The measure of profit or loss used by the CODM to identify and measure the Company’s reportable segments is income before income tax. The Company’s digital assets segment includes the operations related to the ETH treasury strategy. Our merchant banking segment includes our equity and other holdings. The “other” category primarily includes rental income and expenses related to the Company’s real estate in Canada and the land and building previously owned and operated by Digital Ignition.

 

The following tables present the financial information for each segment that is specifically identifiable or based on allocations using internal methodology for the three and nine months ended September 30, 2025 and 2024 (in thousands).

 

                 
   Three Months Ended September 30, 2025 
   Digital Assets   Merchant Banking   Other   Total 
ETH staking rewards  $641   $-   $-   $641 
Other revenue   -    147    104    251 
Total revenue   641    148    103    892 
                     
Compensation costs   (171)   (231)   -    (402)
Professional fees   (293)   (121)   -    (414)
Bank and custodial fees   (38)   (1)   -    (39)
Realized loss on cryptocurrency assets   (21)   -    -    (21)
Unrealized gain on ETH digital assets   14,078    -    -    14,078 
Loss on equity holdings   -    (7,289)   -    (7,289)
Depreciation and amortization   -    -    (74)   (74)
Other operating expenses   (2)   (32)   -    (34)
Interest expense, net   -    -    (11)   (11)
Segment income (loss) before taxes   14,194    (7,527)   19    6,686 
                     
Corporate and other non-segment operating expenses                  (2,394)
Stock-based compensation                  (7,350)
Interest income, net                  24 
Loss from continuing operations before taxes                 $(3,034)

 

 

                 
   Three Months Ended September 30, 2024 
   Digital Assets   Merchant Banking   Other   Total 
ETH staking rewards  $           -   $   -   $   -   $- 
Other revenue   -    -    110    110 
Total revenue   -    -    110    110 
                     
Compensation costs   -    (201)   -    (201)
Professional fees   -    (120)   -    (120)
Loss on equity holdings   -    (2,636)   -    (2,636)
Depreciation and amortization   -    -    (75)   (75)
Other operating expenses   -    (32)   -    (32)
Interest expense, net   -    -    (40)   (40)
Segment income (loss) before taxes   -    (2,989)   (5)   (2,994)
                     
Corporate and other non-segment operating expenses                  (2,183)
Stock-based compensation                  (440)
Interest income, net                  4 
Loss from continuing operations before taxes                 $(5,613)

 

                 
   Nine Months Ended September 30, 2025 
   Digital Assets   Merchant Banking   Other   Total 
ETH staking rewards  $641   $-   $-   $641 
Other revenue   -    385    311    696 
Total revenue   641    395    301    1,337 
                     
Compensation costs   (171)   (700)   -    (871)
Professional fees   (293)   (362)   -    (655)
Bank and custodial fees   (38)   (2)   -    (40)
Realized loss on cryptocurrency assets   (21)   -    -    (21)
Unrealized gain on ETH digital assets   14,078    -    -    14,078 
Loss on equity holdings   -    (7,468)   -    (7,468)
Depreciation and amortization   -    -    (221)   (221)
Other operating expenses   (2)   (75)   -    (77)
Interest expense, net   -    -    (69)   (69)
Segment income (loss) before taxes   14,194    (8,222)   21    5,993 
                     
Corporate and other non-segment operating expenses                  (5,381)
Stock-based compensation                  (7,775)
Interest income, net                  24 
Loss from continuing operations before taxes                 $(7,139)

 

 

                 
   Nine Months Ended September 30, 2024 
   Digital Assets   Merchant Banking   Other   Total 
ETH staking rewards  $       -   $-   $-   $- 
Other revenue   -    -    594    594 
Total revenue   -    -    594    594 
                     
Compensation costs   -    (508)   -    (508)
Professional fees   -    (280)   -    (280)
Loss on equity holdings   -    (10,047)   -    (10,047)
Depreciation and amortization   -    -    (306)   (306)
Other operating expenses   -    (69)   73    4 
Impairment   -    -    (1,475)   (1,475)
Interest expense, net   -    -    (191)   (191)
Segment income (loss) before taxes   -    (10,904)   (1,305)   (12,209)
                     
Corporate and other non-segment operating expenses                  (6,705)
Stock-based compensation                  (1,165)
Bargain purchase on acquisition                  1,831 
Interest expense, net                  (14)
Loss from continuing operations before taxes                 $(18,262)

 

The following table presents the Company’s specifically identifiable assets for each of the Company’s segments as of September 30, 2025 and December 31, 2024 (in thousands):

 

   September 30, 2025 
   Digital Assets   Merchant Banking   Other   Total 
Segment assets  $210,435   $12,845   $21,457   $244,737 

 

   December 31, 2024 
   Merchant Banking   Digital Assets   Other   Total 
Segment assets  $60,073   $        -   $49,396   $109,469 

 

The “other” segment assets includes $10.4 million and $39.8 million of assets of discontinued operations as of September 30, 2025 and December 31, 2024, respectively, which are related to the Company’s reinsurance and managed services businesses.