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Business Segment and Geographic Area Information
 6 Months Ended
Nov. 30, 2025
Segment Reporting [Abstract]  
Business Segment and Geographic Area Information

Note 13 – Business Segment and Geographic Area Information

 

Business Segments

 

The Company operates in two reportable segments: Hearing Enhancement and Protection and Hair and Skin Care. The segments are determined based on the nature of the products sold and how the business is managed. On May 5, 2025, the Company incorporated a new wholly owned subsidiary, Sharper Vision Marketing Inc., which did not have any material activity for the three and six months ended November 30, 2025, and did not meet the definition of an operating segment under ASC Topic 280.

 

The Chief Operating Decision Maker (“CODM”) is the Company’s Chief Executive Officer. The CODM evaluates segment performance and allocates resources based primarily on a segment profit measure referred to as Segment non-cash operating income, which the Company has concluded is the measure of segment profitability. This non-GAAP measure is defined as operating income from segment operations before depreciation and amortization, stock-based compensation expense and corporate expenses. Corporate expenses primarily include insurance, expenses related to operating as a public company—including fees paid to related parties for executive management services—corporate office rent, and stock-based compensation for management.

 

The CODM reviews Segment non-cash operating income for each segment regularly to assess performance and to make decisions regarding the allocation of resources.

 

A reconciliation of Segment non-cash operating income to the most directly comparable measure under U.S. GAAP, Income from Operations, is included in the table below.

  

The Company’s segment information is as follows:

 

                              
   For the Three Months Ended, 
   November 30, 2025   November 30, 2024 
   Hearing
enhancement
and protection		   Hair and
skin care		   Consolidated   Hearing
enhancement
and protection		   Hair and
skin care		   Consolidated 
                 
Segment sales, net (1)  $7,755,912   $362,947   $8,118,859   $7,448,029   $284,545   $7,732,574 
Cost of sales (1)   2,458,177    140,445    2,598,622    2,123,489    111,038    2,234,527 
Gross profit (1)  $5,297,735   $222,502   $5,520,237   $5,324,540   $173,507   $5,498,047 
Operating expenses (Adjusted for non-cash items):                              
Sales and marketing  $2,954,864   $162,237   $3,117,101   $3,122,445   $116,038   $3,238,483 
Compensation and related taxes   336,990    -    336,990    266,305    10,369    276,674 
Professional and consulting   400,377    -    400,377    441,492    3,255    444,747 
General and administrative   138,596    43,966    182,562    151,246    16,901    168,147 
Total segment expenses adjusted for non-cash items  $3,830,827   $206,203   $4,037,030   $3,981,488   $146,563   $4,128,051 
Segment non-cash operating income  $1,466,908   $16,299   $1,483,207   $1,343,052   $26,944   $1,369,996 
Depreciation and amortization             (67,514)             (34,440)
Stock-based compensation             (181,022)             (304,600)
Corporate expenses             (347,545)             (358,085)
All other not included in Segments (1)             15,945              - 
Income from Operations            $903,071             $672,871 
Total Assets (2)  $11,450,424   $4,663,135   $16,113,559   $9,670,630   $4,039,069   $13,709,699 
Payments for property and equipment and intangible assets  $40,844   $-   $40,844   $65,783   $-   $65,783 
Depreciation and amortization  $66,581   $933   $67,514   $33,601   $839   $34,440 

 

   For the Six Months Ended, 
   November 30, 2025   November 30, 2024 
   Hearing
enhancement
and protection		   Hair and
skin care		   Consolidated   Hearing
enhancement
and protection		   Hair and
skin care		   Consolidated 
                 
Segment sales, net (1)  $14,335,578   $639,499   $14,975,077   $12,747,792   $836,054   $13,583,846 
Cost of sales (1)   4,543,789    276,117    4,819,906    3,526,093    406,058    3,932,151 
Gross profit (1)  $9,791,789   $363,382   $10,155,171   $9,221,699   $429,996   $9,651,695 
Operating expenses (Adjusted for non-cash items):                              
Sales and marketing  $5,569,193   $307,665   $5,876,858   $5,689,850   $218,104   $5,907,954 
Compensation and related taxes   541,518    -    541,518    446,877    20,445    467,322 
Professional and consulting   904,667    16,025    920,692    1,015,652    3,280    1,018,932 
General and administrative   283,208    59,467    342,675    332,051    55,810    387,861 
Total segment expenses adjusted for non-cash items  $7,298,586   $383,157   $7,681,743   $7,484,430   $297,639   $7,782,069 
Segment non-cash operating income  $2,493,203   $(19,775)  $2,473,428   $1,737,269   $132,357   $1,869,626 
Depreciation and amortization             (129,601)             (47,335)
Stock-based compensation             (380,234)             (602,464)
Corporate expenses             (664,729)             (687,659)
All other not included in segments (1)             15,945              - 
Income from Operations            $1,314,809             $532,169 
Total Assets (2)  $11,450,424   $4,663,135   $16,113,559   $9,670,630   $4,039,069   $13,709,699 
Payments for property and equipment and intangible assets  $135,341   $-   $135,341   $107,623   $-   $107,623 
Depreciation and amortization  $127,736   $1,865   $129,601   $45,657   $1,678   $47,335 

 

(1) Results of operations including sales, cost of sales and gross profit relating to our newly incorporated subsidiary have been included in ‘All other not included in segments.’

(2) As of November 30, 2025 and May 31, 2025, Total Assets in the Company's Hearing enhancement and protection segment includes $25,945 and $10,000 related to assets held by the Company’s recently incorporated subsidiary.

 

Geographic Area Information

 

During the three months ended November 30, 2025 and 2024, approximately 96% and 90%, respectively, of our consolidated net sales were to customers located in the U.S. (based on the customer’s shipping address). During the six months ended November 30, 2025 and 2024, approximately 96% and 91%, respectively, of our consolidated net sales were to customers located in the U.S. (based on the customer’s shipping address). All Company assets are located in the U.S.