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Operating Segments | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Operating Segments | Note 8 - Operating Segments The Company’s Chief Executive Officer serves as the Chief Operating Decision Maker (“CODM”) and evaluates the financial performance of the business and makes resource allocation decisions on the basis of its two different revenue sources. Our Affiliate Marketing segment is focused on performance-based customer acquisition services for leading sportsbooks and online casino gaming operators worldwide. Our Ethereum Staking (“ETH Staking”) segment captures ETH-based yield generated by participating in the Ethereum network’s staking protocol which is currently comprised of rewards received from native staking. As a result, the Company operates two reportable segments under ASC 280, Segment Reporting, Affiliate Marketing and ETH Staking﻿. Total Affiliate Marketing net loss from continuing operations before income taxes was $(1,492,219) and $(2,406,143) million for the three- and six-month periods ending June 30, 2025. Total ETH Staking net loss from continuing operations before income taxes was $(101,851,030) for the three- and six-month periods ending June 30, 2025. Affiliate Marketing The Company’s Affiliate Marketing operations include performance marketing services, lead generation, and data analytics. The Company focuses on delivering quality traffic and player acquisitions, retention and conversions to global casino gaming partners worldwide in exchange for a commission (cost per acquisition or portion of net gaming revenues) paid to the Company by the partners for the new players referred to them. The CODM assesses financial performance based on consolidated revenue, operating profit, and key operating expenses as detailed below. The following table presents significant segment expenses regularly provided to and reviewed by the CODM for the Affiliated Marketing Segment: Schedule of Companies Reportable Segments
|  | Affiliate Marketing Segment |  |  | Affiliate Marketing Segment |
|  | For the Three Months Ended June 30, 2025 |  |  | For the Three Months Ended June 30, 2024 |  |  | For the Six Months Ended June 30, 2025 |  |  | For the Six Months Ended June 30, 2024 |
Revenue |  | $ | 668,757 |  |  | $ | 981,272 |  |  | $ | 1,410,488 |  |  | $ | 1,957,218 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cost of revenues |  |  | 488,202 |  |  |  | 701,142 |  |  |  | 1,098,138 |  |  |  | 1,389,876 |
Segment gross profit |  |  | 180,555 |  |  |  | 280,130 |  |  |  | 312,350 |  |  |  | 567,342 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits |  |  | 741,110 |  |  |  | 247,839 |  |  |  | 1,043,810 |  |  |  | 708,798 |
Contractors and consulting expense |  |  | 132,649 |  |  |  | 51,005 |  |  |  | 203,440 |  |  |  | 138,630 |
Marketing expense |  |  | 21,186 |  |  |  | 60,463 |  |  |  | 41,636 |  |  |  | 136,260 |
Other segment expenses (1) |  |  | 777,829 |  |  |  | 794,383 |  |  |  | 1,429,607 |  |  |  | 2,212,351 |
Segment net loss from continuing operations before income taxes |  |  | (1,492,219 | ) |  |  | (873,560 | ) |  |  | (2,406,143 | ) |  |  | (2,628,697 | )
Reconciliation of profit or loss |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjustments and reconciling items |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Consolidated net loss from continuing operations before income taxes |  |  | (1,492,219 | ) |  |  | (873,560 | ) |  |  | (2,406,143 | ) |  |  | (2,628,697 | )
(1) | - other segment items included in Segment net loss include: professional fees, insurance, general and administrative expenses, depreciation and amortization, foreign currency exchange gains and losses, other income and interest expense.
ETH Staking Beginning in June 2025, the Company used the proceeds from its capital raising activities to acquire and deploy ETH in staking activities, which can include native staking, liquid staking and restaking. The Company has entered into separate contractual agreements with various third-party entities to facilitate its ETH staking activities. The Company commenced both native staking and liquid staking in June of 2025. The Company intends for staking to become a primary revenue generation strategy of the Company within the current fiscal year. Native Staking The Company utilized two third-party asset managers to manage and stake ETH on its behalf as of June 30, 2025. Through its agreements with these asset managers, the Company’s ETH is held by qualified custodians, staked in the Ethereum protocol, and the stake is delegated to third party validators. When chosen as validators by the Ethereum network, these validators earn staking rewards and transaction fees proportional to the amount of stake delegated to them. The Company recognizes rewards from native staking as revenue in accordance with ASC 606. All native staking revenue is earned within the United States as the validators are domiciled within the United States. Liquid Staking The Company participates in liquid staking, which is similar to native staking. One key difference and intended benefit of liquid staking is that it provides for liquidity by allowing the Company to earn staking rewards while still maintaining the ability, provided through the receipt token, to enter into to other transactions. When the Company’s ETH is staked, the Company is provided with a digital intangible asset (i.e., LsETH) which represents the crypto asset (i.e., ETH) which has been staked. Liquid staking rewards will be recognized as gains or losses within other income upon redemption or sale of the LsETH in accordance with ASC 610-20. No LsETH was redeemed or sold in the period ended June 30, 2025. The CODM assesses financial performance based on consolidated revenue, operating profit and key operating expenses as detailed below. The following table presents significant segment expenses regularly provided to and reviewed by the CODM for the ETH Staking segment:
|  |  | ETH Staking Segment |
|  |  | For the Three Months Ended June 30, 2025 |  |  |  | For the Six Months Ended June 30, 2025 |
Revenue |  | $ | 28,534 |  |  | $ | 28,534 |
Segment gross profit |  |  | 28,534 |  |  |  | 28,534 |
Less: |  |  |  |  |  |  |  |
Salaries and benefits |  |  | 118,961 |  |  |  | 118,961 |
Contractors and consulting expense |  |  | 43,511 |  |  |  | 43,511 |
Asset manager fees |  |  | 377,841 |  |  |  | 377,841 |
Legal expenses |  |  | 83,145 |  |  |  | 83,145 |
Realized gains on crypto assets, net |  |  | (5,373,583 | ) |  |  | (5,373,583 | )
Unrealized loss on crypto assets |  |  | 2,437,026 |  |  |  | 2,437,026 |
Impairment on digital intangible assets |  |  | 87,813,295 |  |  |  | 87,813,295 |
Other segment expenses (1) |  |  | 16,379,368 |  |  |  | 16,379,368 |
Segment net loss from continuing operations before income taxes |  |  | (101,851,030 | ) |  |  | (101,851,030 | )
Reconciliation of profit or loss |  |  |  |  |  |  |  |
Adjustments and reconciling items |  |  | - |  |  |  | - |
Consolidated net loss from continuing operations before income taxes |  |  | (101,851,030 | ) |  |  | (101,851,030 | )
(1) |  | - other segment items included in Segment net loss include: stock-based compensation - related party.
These expenses represent the key cost components reviewed by the CODM in assessing the Company’s performance. The CODM evaluates income generated from the Company’s assets using net income (loss) as a key metric. The CODM utilizes this measure to assess return on assets when making strategic decisions, including whether to reinvest profits into the affiliate marketing platform or ETH staking business, enhance technology and data analytics capabilities, or expand partnerships with advertisers and publishers. Summarized revenues by country in which the Company operated for the three and six months ended June 30, 2025 and 2024 are shown below. All ETH staking revenue occurred within the United States. Schedule of Revenues by Country For the three months ended June 30, 2025:
United States |  | $ | 177,704 |
Rest of the World |  | $ | 519,587 |
Revenue |  | $ | 697,291 |
For the six months ended June 30, 2025:
United States |  | $ | 408,432 |
Rest of the World |  | $ | 1,030,590 |
Revenue |  | $ | 1,439,022 |
For the three months ended June 30, 2025:
United States |  | $ | 230,725 |
Rest of the World |  | $ | 750,547 |
Revenue |  | $ | 981,272 |
For the six months ended June 30, 2024:
United States |  | $ | 438,726 |
Rest of the World |  | $ | 1,518,492 |
Revenue |  | $ | 1,957,218 |
The Company does not have material assets in foreign jurisdictions. The Company’s Affiliate Marketing Services segment derives a significant portion of its revenues from several large customers. The table below presents the percentage of consolidated revenues derived from large customers: Schedule of Percentage of Consolidated Revenues Derived from Large Customers
|  | June 30, 2025 |  |  | June 30, 2024 |
Customer A |  |  | 44 | % |  |  | 37 | %
Customer B |  |  | 14 | % |  |  | 22 | %
Customer C |  |  | 22 | % |  |  | 0 | %
Percentage of consolidated revenues |  |  | 22 | % |  |  | 0 | %

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- Definition The entire disclosure for reporting segments including data and tables. 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