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Revenue Recognition
 3 Months Ended
Mar. 31, 2026
Revenue Recognition [Abstract]  
REVENUE RECOGNITION

NOTE 8 – REVENUE RECOGNITION

 

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

 

Revenue by Source

 

Revenue consisted of the following (in thousands):

 

   Three Months Ended
March 31,
2026		 
Native staking revenue  $1,469 
Liquid staking revenue1   302 
Aircraft engine rental   1,088 
Total revenue  $2,859 

 

(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):

 

   Three Months Ended
March 31,
2026		 
Coinbase – staking income  $              1,469 
Ether.fi – liquid staking   339 
Puffer – liquid staking   (37)
Delta Air Lines, Inc   1,088 
Total revenue  $2,859 

 

Aircraft Engine Purchase Agreement

 

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, which was payable in cash, less certain deposits previously paid for a total acquisition cost of $11.7 million recorded as property and equipment. The engines were acquired subject to existing lease arrangements with Delta Air Lines, Inc., which were assumed by the Company, and the Company entered into a servicing agreement with an affiliate of the seller to manage the engines during the lease term.

 

On March 27, 2026, the Company, through its wholly owned subsidiary Eurus Aerospace Token 1 LLC, acquired one CFM56-5B5/P aircraft engine from Aero Engine Solutions, Inc. for $6.4 million in cash.

 

The aircraft engines are depreciated over an estimated useful life of two and a half years. The Company recognized depreciation expense of $0.5 million during the three months ended March 31, 2026, which is included within “General and administrative” expenses on the Condensed Consolidated Statements of Income 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. Lease revenue is recognized in accordance with ASC 842, Leases (“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.

 

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

 

During the three months ended March 31, 2026, the Company recognized $1.1 million of aircraft engine lease revenue related to these assets.