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

Segment Reporting

v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 12 – Segment Reporting

 

The Company has two reportable segments. The legacy segment focuses on the previous endeavors of TNF Pharmaceuticals, Inc. This business segment operates in the clinical-stage pharmaceutical space and is specifically focused on Isomyosamine (formerly MYMD-1). The second and primary segment is focused on the development and eventual application of quantum computing technology, both for cryptocurrency applications and beyond. The Company’s chief operating decision maker (“CODM”), who is responsible for evaluating financial performance and allocating resources, is the Executive Chairman of the Board. The accounting policies of the duel segments are the same as those described in the summary of significant accounting policies. The CODM does not use assets to assess the segment. The CODM assesses performance for each segment and decides how to allocate resources based on net operating loss excluding stock-based compensation and warrant issuance expenses. The CODM uses a non-GAAP measure, net of operating loss excluding stock-based compensation and warrant issuance expenses, as the primary measure of operating performance and to monitor the Company’s cash burn and adherence to budget.

 

To date, the Company has not generated any product revenues and has incurred losses and negative cash flows from operations since inception.

 

The following table presents certain financial data for the Company’s two reportable segments and a reconciliation to the Company’s consolidated net loss.

 

                                 
   

Pharmaceuticals

     Computing Technology  
    2025     2024     2025     2024  
Sales     -       -          -       -  
Product Cost of Sales     -       -       -       -  
Gross Income     -       -       -       -  
                                 
Operating Expenses                                
Administrative Expenses     2,013,710       4,161,907       1,722,816       -  
Research and Development Expenses     3,045,977       3,441,010       425,864       -  
Stock-Based Compensation    

1,937,691

       -      

236,833

        
Franchise Tax Expense    

150,038

       -      

50,013

       -  
Warrant Issuance Expense     -       -       264,417       -  
Segment Net Loss    

(7,147,415

 )     (7,602,917 )     (2,699,942 )     -  
                                 
Reconcilement of Net Loss                                
Adjustments and Reconciling Items                                
Stock Based Compensation     1,325,144       1,057,271       -       -  
Series F Warrant Issuance Expenses     -       -       -       -  
Series F-1 Warrant Issuance Expenses     -       539,097       -       -  
Series G Warrant Issuance Expenses     -       969,505       -       -  
Series H Warrant Issuance Expenses     -       -       264,417       -  
Dividends Paid on Series H Preferred Stock     -       -       99,437       -  
Interest and Dividend Income     156,042       351,809       69,346       -  
Gains on Sales of Marketable Securities    

2,176

       976       -       -  
Unrealized Gains on Marketable Securities     (1,435 )     671       40,106       -  
Change in Fair Value of Derivative Liabilities    

1,303,000

       (388,000 )     (320,000 )     -  
Change in Fair Value of Warrant Liabilities    

-

       (4,410,000 )     -       -  
Loss on Issuance of Series F-1 Convertible Preferred Stock    

-

       (3,737,000 )     -       -  
Loss on Issuance of Series G Convertible Preferred Stock    

-

       (5,109,000 )     -       -  
Loss on Impairment of Intangible     (1,500,000 )     -       -       -  
Loss on FMV of Contingent Compensation     -       -       (1,529,000 )     -  
Casualty Gain/(Loss)     -       100,000       -       -  
Total Adjustments and Reconciling Items    

(1,365,331

 )     (15,756,417 )     (2,103,402 )     -  
                               
Consolidated Net Loss   $ (5,782,084 )   $ (23,359,334 )     (596,540 )     -  

 

Segment assets are not reviewed by the CODM and, accordingly, asset information is not presented.