Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENTED INFORMATION

v3.25.1
SEGMENTED INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENTED INFORMATION

23. SEGMENTED INFORMATION

 

The Company has chosen to organize its operating segments based on products or services offered. Each operating segment is also a reportable segment (i.e. operating segments have not been aggregated). The Company’s operating and reportable segments at December 31, 2024, include Unthink Food, which produces high protein baking flour; Radical Clean Solutions, which sells its patented hydroxyl devices; and Bitcoin Mining. All other activities, including financing, are carried out through the corporate entity. At December 31, 2024, Bitcoin Mining operations were conducted at the Redwater Property in Alberta, Canada. Subsequent to December 31, 2024, on January 17, 2025, the Company will add Bitcoin Mining operations in Ohio, USA, which reflects the manner in which the Company’s Chief Operating Decision Maker (“CODM”), its Chief Executive Officer, reviews and assesses the performance of the business and allocates resources.

 

The information used by the CODM to assess performance and allocate resources includes various measures of segment profit, however, for the purposes of the disclosures required by ASC 280, Segment Reporting and ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, the Company has determined that the measure most consistent with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements is net income. Segment financial information is used to monitor forecast versus actual results in order to make key operating decisions for each segment. The CODM evaluates the performance or allocate resources for each segment based on the Company’s assets or liabilities.

 

The following discloses key financial information including the significant segment expenses, in the context of deriving net income, that are regularly provided to and reviewed by the CODM reconciled to the segment’s net income:

 

    Unthink Food     Radical Clean Solutions     Bitcoin Mining     Corporate    

Total

  
Year Ended December 31, 2024                                        
Revenue   $        -     $ 41,315     $ 26,572     $           -     $ 67,887  
Significant segment expenses                                        
Costs of services     -       -       54,923       -       54,923  
Cost of inventory sold     -       34,192       -       -       34,192  
Gross profit (loss)             7,123     (28,351

)

    

     

(21,228

 )
Selling, general and administrative     885,956       296,488       -       4,173,747       5,356,191  
Acquisition-related integration costs     -       -       20,610       -       20,610  
Depreciation     631,399       -       16,809       18,853       667,061  
Accretion interest expense     -       -       -       2,978,722       2,978,722  
Impairment expense     4,137,271       -       -       -       4,137,271  
Foreign exchange loss / gain     (385 )            

   

(203,835

)

    

(204,220

)
Change in fair value of derivatives                    

     

(1,392,530

 )    

(1,392,530

 )
Loss (gain) on conversion of convertible debt                            

1,627,858

      

1,627,858

  
Loss on debt extinguishment                            

2,805,306

      

2,805,306

  
Other segment items     38,938       512       -       217,868       257,318  
Total operating expenses and other expenses (income)    

5,693,179

      

297,000

      

37,419

      

10,225,989

      

16,253,587

  
Net Loss   $ (5,693,179 )   $ (289,877 )   $ (65,770 )   $

(10,225,989

 )   $ (16,274,815 )

 

 

    Unthink Food     Radical Clean Solutions     Bitcoin Mining     Corporate     Total  
Year Ended December 31, 2023                                        
Revenue   $       -     $ 16,281     $        -     $          -     $ 16,281  
Significant segment expenses                                        
Costs of services     -       -       -       -       -  
Cost of inventory sold     -       13,577       -       -      

13,577

  
Gross margin            

2,704

                   

2,704
Selling, general and administrative     682,868       15,761       -       7,813,833       8,512,462  
Acquisition-related integration costs     -       -       -       -       -  
Depreciation     670,411       -       -       9,433       679,844  
Interest expense     -       -       -       7,963,299       7,963,299  
Impairment expense     -       -       -       1,963,304       1,963,304  
Foreign exchange loss / gain                            

75,009

      

75,009

  
Change in fair value of derivatives                            

(9,360,886

 )    

(9,360,886

 )
Loss (gain) on conversion of convertible debt                            

1,190,730

      

1,190,730

  
Loss on debt extinguishment                            

680,935

      

680,935

  
Other segment items     (4,440 )     1,248       -       34,409       31,217
Total operating expenses and other expenses (income)    

1,348,840

      

17,009

       -      

10,370,066

      

11,735,914

  
Net Income   $ (1,348,839 )   $ (14,305 )   $ -     $

(10,370,066

 )   $ (11,733,210 )

 

Other segment items consists of loss on disposition of property, plant and equipment, change in fair value of derivatives, impairment loss, interest income, and foreign exchange (loss) gain, as reported on the consolidated income statements.

 

The following table summarizes the additions to property and equipment, total property and equipment, and total assets by segment, used by the CODM to assess segment performance.

 

    Unthink Food     Radical Clean Solutions     Bitcoin Mining     Corporate     Total  
Year Ended December 31, 2024                                        
Property and equipment, additions   $ -     $ -     $ 839,937     $ -     $ 839,937  
Intangible assets, additions     -       510,333       625,736       -       1,136,069  
Property and equipment, net    

-

      

-

      

807,471

      

1,424

      

808,895

  
Intangible assets, net    

7,209,120

      

472,834

      

625,736

      

-

      

8,307,690

  
Total assets   $ 7,209,120     $ 767,775     $ 1,459,489     $ 1,327,599     $ 10,763,983  
Year Ended December 31, 2023                                        
Property and equipment, additions   $ -     $ -     $ -     $ -     $ -  
Intangible assets, additions     -       -       -       -      

-

  
Property and equipment, net    

-

      

-

      

-

      

11,801

      

11,801

  
Intangible assets, net    

12,733,885

      

-

      

-

      

-

      

12,733,885

  
Total assets   $ 12,772,742     $ 223,801     $ -     $ 4,371,384     $ 17,367,927  

 

The following tables summarize revenue, assets, and property, plant, and equipment by geographic area based on the location of the underlying action activity or rendering of services and location of the underlying assets:

 

 

Year Ended December 31,   2024     2023  
             
Revenue                                   
Canada   $ 67,887      $ 16,281   
United States     -        -   

Total Revenue

   $

67,887

     $

16,281

  
                 
Assets                
Cash and cash equivalents for all segments                
Canada   $ 423,907     $ 3,869,333  
United States     65,961       9,245  
Total cash and cash equivalents   $

489,868

     $

3,878,578

  
                 
Property Plant and Equipment                
Canada   $ 808,895      $ 10,707   
United States     -        1,094   
Total property plant and equipment   $

808,895

     $

11,801

  

 

The revenues for the Radical Clean Solutions segment were generated from one customer for the years ended December 31, 2024 and 2023.

 

The revenues for the Bitcoin mining segment were generated from Bitcoin network.