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SEGMENT REPORTING
 9 Months Ended
Sep. 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:

 

Telecomm — 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 September 30, 2025 
   Nixxy   Telecomm 
REVENUE          
Revenue  $105,376   $31,809,556 
           
OPERATING EXPENSES          
Cost of revenue   23,698    31,788,191 
Sales and marketing   56,302    – 
Product development   185,930    – 
Amortization of intangibles   217,149    530,983 
General and administrative   907,663    367,465 
Total operating expenses   1,390,742    32,686,639 
           
LOSS FROM OPERATIONS  $(1,285,366)  $(877,083)

 

         
   Nine Months Ended September 30, 2025 
   Nixxy   Telecomm 
REVENUE          
Revenue  $342,299   $46,434,707 
           
OPERATING EXPENSES          
Cost of revenue   22,830    46,401,901 
Sales and marketing   762,489    – 
Product development   228,547    – 
Amortization of intangibles   636,243    942,640 
General and administrative   6,220,858    1,226,997 
Total operating expenses   7,870,967    48,571,538 
           
LOSS FROM OPERATIONS  $(7,528,668)  $(2,136,831)

         
   Three Months Ended September 30, 2024 
   Nixxy   Telecomm 
REVENUE          
Revenue  $135,886   $– 
           
OPERATING EXPENSES          
Cost of revenue   –    – 
Sales and marketing   14,854    – 
Product development   14,981    – 
Amortization of intangibles   235,640    – 
General and administrative   5,363,706    – 
Total operating expenses   5,629,181    – 
           
LOSS FROM OPERATIONS  $(5,493,295)  $– 

 

         
   Nine Months Ended September 30, 2024 
   Nixxy   Telecomm 
REVENUE          
Revenue  $491,544   $– 
           
OPERATING EXPENSES          
Cost of revenue (exclusive of amortization shown separately below)   3,029    – 
Sales and marketing   107,373    – 
Product development   32,238    – 
Amortization of intangibles   822,737    – 
General and administrative   7,055,956    – 
Total operating expenses   8,021,333    – 
           
LOSS FROM OPERATIONS  $(7,529,789)  $– 

 

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 September 30, 2025 
   Nixxy   Telecomm 
ASSETS          
Property and equipment, net  $106   $– 
Intangible assets, net   990,242    11,417,205 
Goodwill   2,405,341    – 
Total assets  $3,395,689   $11,417,205