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Revenue Recognition
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 9 - Revenue Recognition

 

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”).

 

To determine revenue recognition for contracts with customers, the Company performs the following five steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the respective performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies the performance obligation.

 

The Company recognizes revenue when it transfers its goods and services to customers in an amount that reflects the consideration to which the Company expects to be entitled in such exchange.

 

For the six months ended June 30, 2025 and 2024, the Company has recognized its revenue at a point in time. The Company is currently engaged in the provision of Affiliate Marketing services and Ethereum Staking activities.

 

The Company’s assets and liabilities related to its contracts with customers were as follows:

 

   June 30, 2025   December 31, 2024 
           
Accounts receivable  $271,905   $264,831 

 

Affiliate Marketing

 

The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in contract advanced billings on the Company’s condensed consolidated balance sheet. The Company recognized unbilled revenue when revenue is recognized prior to invoicing.

 

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s services, and not to facilitate financing arrangements.

 

ETH Staking

 

In native staking, the Company retains the right and ability to direct the use of the underlying ETH, subject to a bonding period. As such, the Company does not derecognize the ETH when participating in native staking. The Company recognizes rewards from native staking as revenue in accordance with ASC 606. The Company acts as an agent in native staking transactions as it delegates ETH to third-party validator operators who perform the technical validation responsibilities. Native staking rewards are recognized as revenue at the end of each epoch, or block processing time, or when earned and measurable and when the Company’s share of rewards is known. The amount of revenue recognized is measured at fair value and is presented net of validator or other protocol fees.

 

The Company also participates in liquid staking, which is similar to native staking; however, one key difference and intended benefit of this method is the ability to provide the Company with tokens representing digital assets in exchange for its ETH. Liquid staking rewards are accumulated through the protocol conversion rate for the LsETH and 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.

 

As of June 30, 2025, the Company had native staked 23,200 ETH on the Ethereum blockchain. For the period ended June 30, 2025, the Company earned 11.5 ETH and recognized revenue from native staking rewards of $28,534.