v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue Recognition [Abstract]  
REVENUE RECOGNITION

NOTE 8 – REVENUE RECOGNITION

 

The Company recognizes revenue from native staking and liquid staking activities on the Ethereum blockchain as well as aircraft engine rental revenue.

 

Revenue by Source

 

Revenue consisted of the following (in thousands):

 

   For the Three Months Ended   For the Six Months Ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
Native staking revenue  $
-
   $
-
   $1,469   $
-
 
Liquid staking revenue1   
-
    
-
    302    
-
 
Aircraft engine rental   1,365    
-
    2,453    
-
 
Total revenue  $1,365   $
-
   $4,224   $
-
 

 

(1) Liquid staking revenue includes $0.3 million of staking rewards earned through participation in liquid staking protocols.

 

Revenue by Major Customers

 

The Company generated revenue from the following major customers, each of which represented 10% or greater of total revenue. All such revenue was generated within the Company’s single reportable segment (in thousands):

 

   For the Three Months Ended   For the Six Months Ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
Coinbase – staking income  $
-
   $
-
   $1,469   $
-
 
Ether.fi – liquid staking   
-
    
-
    339    
-
 
Puffer – liquid staking   
-
    
-
    (37)   
-
 
Delta Air Lines, Inc.   1,074    
-
    2,162    
-
 
American Airlines, Inc.   291    
-
    291    
-
 
Total revenue  $1,365   $
-
   $4,224   $
-
 

 

Aircraft Engine Purchase Agreement

 

The Company owns three aircraft engines that are leased to third-party customers under operating leases and accounted for in accordance with ASC 842. On January 17, 2026, the Company acquired two CFM56-7B24 aircraft engines from an unaffiliated seller for an aggregate purchase price of $12.2 million, including deposits previously paid, resulting in a total acquisition cost of $11.7 million recorded within property and equipment. The engines were acquired subject to existing lease arrangements with Delta Air Lines, Inc., which were assumed by the Company.

 

On March 27, 2026, the Company, through its wholly-owned subsidiary Eurus Aerospace Token I LLC, acquired one CFM56-5B5/P aircraft engine from Aero Engine Solutions, Inc. for $6.4 million in cash.

 

The aircraft engines are recorded within property and equipment and depreciated using the straight-line method over an estimated useful life of two and one-half years. The Company recognized depreciation expense of $0.9 million and $1.4 million during the three and six months ended June 30, 2026, respectively, which is included within “Cost of Revenue – aircraft engine rental” on the Condensed Consolidated Statements of Operations and Comprehensive Loss. All aircraft engines are leased to customers for a period of approximately 2.5 years and are classified as operating leases under ASC 842, Leases (“ASC 842”).

Lease revenue is recognized in accordance with ASC 842. Lease income consists of fixed lease payments and variable consideration based on engine usage. Fixed lease payments are recognized on a straight-line basis over the lease term, while variable lease payments are recognized in the period in which the underlying usage occurs. Lease revenue is recognized only from the date control of the aircraft engines transfers to the Company and is presented within “Aircraft engine rental revenue” in the Condensed Consolidated Statements of Operations and Comprehensive Loss. During the three and six months ended June 30, 2026, the Company recognized aircraft engine lease revenue of $1.4 million and $2.5 million, respectively.

 

The servicing arrangements include a mutual purchase and sale option exercisable upon expiration or earlier termination of the related lease at a fixed option price of $3.0 million, subject to specified conditions.