XML 31 R21.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

Note 12 – Segment Information

 

The Company operates within a single reportable segment under ASC 280, Segment Reporting, focused on blockchain-based revenue generation through its blockchain infrastructure and DeFi operations.

 

Within this reportable segment, the Company’s operations are organized around three primary business lines that represent distinct revenue-generating activities:

 

  1. Validator Node Operations (“NodeOps”) – earns ETH-denominated staking rewards and validator fees from operating validator nodes that secure proof-of-stake blockchain networks.
     
  2. Block Building (“Builder+”) – generates execution-layer transaction fees and maximal extractable value (“MEV”) from the construction and submission of optimized transaction blocks to validators on Ethereum and Binance Smart Chain (BSC).
     
  3. DeFi Operations (“Imperium”) – represents the Company’s decentralized finance activities, including liquidity provision and other on-chain DeFi operations, through which the Company earns protocol-denominated rewards for supplying crypto-asset liquidity to decentralized markets.

 

Revenues from NodeOps and Builder+ are aggregated and presented as Blockchain infrastructure revenues, while revenues from Imperium are presented separately as DeFi revenues in the statements of operations. Although these business lines have distinct economic drivers and operational processes, management evaluates them together as part of the Company’s single reportable segment due to shared infrastructure, integrated management oversight, and the common objective of ETH accumulation and on-chain revenue generation.

 

Gross profit (loss) is the primary measure of segment performance reviewed by the Company’s Chief Operating Decision Maker (“CODM”), which comprises members of executive management including the CEO and CFO. In evaluating performance and allocating resources, the CODM reviews segment revenues, direct production costs, validator payments, hosting expenses, and allocated employee compensation.

 

Consistent with ASU 2023-07, the Company discloses the significant segment expenses regularly provided to the CODM for decision-making purposes, including validator payments, infrastructure hosting costs, and allocated employee compensation.

 

 

The following tables present segment revenue and gross profit (loss), including the significant expense items reviewed by the CODM, for the three and nine months ended September 30, 2025 and 2024:

   

                         
   For the Three Months Ended September 30, 2025   For the Nine Months Ended September 30, 2025 
   NodeOps   Builder+   Imperium   Total   NodeOps   Builder+   Imperium   Total 
Revenues  $858,867   $3,356,357   $723,279   $4,938,503   $1,461,130   $7,215,227   $726,843   $9,403,200 
Less: Cost of Revenues                                        
Validator Payments   -    3,803,608    -    3,803,608    -    8,096,988    -    8,096,988 
Cloud and server hosting costs   1,449    1,476    -    2,925    41,487    46,973    -    88,460 
Compensation costs   6,816    15,767    6,916    29,499    24,152    38,660    6,916    69,728 
Third-party support costs   -    14,518    -    14,518    2,648    14,518    -    17,166 
Gross profit (loss)  $850,602   $(479,012)  $716,363   $1,087,953   $1,392,843   $(981,912)  $719,927   $1,130,858 

 

                         
   For the Three Months Ended September 30, 2024   For the Nine Months Ended September 30, 2024 
   NodeOps   Builder+   Imperium   Total   NodeOps   Builder+   Imperium   Total 
Revenues  $334,654   $404,503   $-   $739,157   $1,238,347   $513,388   $-   $1,751,735 
Less: Cost of Revenues                                        
Validator Payments   -    456,928    -    456,928    -    615,040    -    615,040 
Cloud and server hosting costs   33,445    28,046    -    61,491    106,748    74,301    -    181,049 
Compensation costs   6,825    15,521    -    22,346    20,475    40,074    -    60,549 
Third-party support costs   2,543    -    -    2,543    14,957    1,186    -    16,143 
Gross profit (loss)  $291,841   $(95,992)  $-   $195,849   $1,096,167   $(217,213)  $-   $878,954 

 

The following table reconciles total segment gross profit to net income (loss):

 

             
  

For the Three Months Ended

September 30,

  

For the Nine Months Ended

September 30,

 
   2025   2024   2025   2024 
Gross profit   1,087,953    195,849    1,130,858    878,954 
Total operating expenses   (7,079,833)   (1,920,693)   (14,610,198)   (4,376,909)
Other income (expense)   71,580,689    (7,314,943)   65,680,984    (13,115)
Net income (loss)  $65,588,809   $(9,039,787)  $52,201,644   $(3,511,070)