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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 11 – SEGMENT REPORTING

 

The Company has two reportable segments, which are aligned with its internal organizational structure and reviewed by the Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (CODM). In accordance with ASC 280, Segment Reporting, segments are defined based on the manner in which financial information is evaluated by the CODM for resource allocation and performance assessment.

 

The Company’s reportable segments are as follows:

 

Auralink — Provider of private telecommunications solutions and proprietary billing services.

 

Nixxy — Provider of marketplace advertising and software subscription services.

 

All material operating units within each segment have been aggregated as they share similar economic characteristics, customer types, nature of products and services, and processes for procurement and delivery. The Company evaluates segment performance based on segment operating loss, which includes gross profit less direct research and development, sales and marketing, and general and administrative expenses that are specifically attributable to each segment. Items below loss from operations, such as interest and taxes, and all balance sheet data are not allocated to segments, as they are not used by the CODM.

  

The tables below present segment information reconciled to total Company loss from operations, with segment operating loss including gross profit less direct research and development expenses and direct selling, general and administrative expenses to the extent specifically identified by segment:

        
   Three Months Ended June 30, 2025 
   Nixxy   Auralink 
REVENUE        
Revenue  $102,380   $13,362,796 
           
OPERATING EXPENSES          
Cost of revenue   –    13,351,355 
Sales and marketing   11,701    – 
Product development   24,633    – 
Amortization of intangibles   214,923    343,513 
General and administrative   1,711,895    533,936 
Total operating expenses   1,963,152    14,228,804 
           
LOSS FROM OPERATIONS  $(1,860,772)  $(866,008)

 

         
   Six Months Ended June 30, 2025 
   Nixxy   Auralink 
REVENUE        
Revenue  $236,923   $14,625,151 
           
OPERATING EXPENSES          
Cost of revenue   (868)   14,613,710 
Sales and marketing   706,187    – 
Product development   42,617    – 
Amortization of intangibles   419,094    411,657 
General and administrative   5,313,195    859,532 
Total operating expenses   6,480,225    15,884,899 
           
LOSS FROM OPERATIONS  $(6,243,302)  $(1,259,748)

 

         
   Three Months Ended June 30, 2024 
   Nixxy   Auralink 
REVENUE        
Revenue  $133,101   $– 
           
OPERATING EXPENSES          
Cost of revenue   –    – 
Sales and marketing   39,773    – 
Product development   5,320    – 
Amortization of intangibles   272,687    – 
General and administrative   798,510    – 
Total operating expenses   1,116,290    – 
           
LOSS FROM OPERATIONS  $(983,189)  $– 

 

         
   Six Months Ended June 30, 2024 
   Nixxy   Auralink 
REVENUE        
Revenue  $355,658   $– 
           
OPERATING EXPENSES          
Cost of revenue (exclusive of amortization shown separately below)   3,029    – 
Sales and marketing   92,519    – 
Product development   17,257    – 
Amortization of intangibles   587,097    – 
General and administrative   1,692,250    – 
Total operating expenses   2,392,152    – 
           
LOSS FROM OPERATIONS  $(2,036,494)  $– 

 

Assets are not allocated to segments for internal reporting presentations. It is impracticable for us to separately identify the amount of amortization and depreciation by segment that is included in the measure of segment profit or loss.

 

Long-lived assets, excluding financial instruments and tax assets, were as follows:

        
   As of June 30, 2025 
   Nixxy   Auralink 
ASSETS        
Property and equipment, net  $479   $– 
Intangible assets, net   1,207,391    8,018,188 
Goodwill   2,405,341    – 
Total assets   $3,613,211   $8,018,188