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Segment information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment information

2. Segment information

 

The Company operates and manages its business as one reportable and operating segment concentrating on the sale of gift cards and discount certificates to our customers. The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company derives revenue primarily in the United States of America and manages its business activities on a consolidated basis.

 

The Company’s chief operating decision maker (CODM), its Chief Executive Officer, reviews financial information presented on a consolidated basis and decides how to allocate resources based on net loss. Consolidated net loss is used for evaluating financial performance. The monitoring of budgeted versus actual results is used in assessing performance of the Company and in establishing management’s compensation.

 

Significant segment expenses include employee compensation, stock-based compensation, merchant fees, and consulting and outside provider costs. Other operating expenses include all remaining costs necessary to operate our business and primarily include advertising, corporate compliance, and overhead expenses. The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM:

 

  

Year Ended

December 31, 2024

   December 30 to December 31, 2023  

January 1, 2023 to

December 29, 2023

 
   Successor   Predecessor 
  

Year Ended

December 31, 2024

   December 30 to December 31, 2023  

January 1, 2023 to

December 29, 2023

 
             
Net sales  $88,934,036   $484,860   $86,661,944 
Cost of sales   75,789,255    418,350    76,220,645 
Gross profit   13,144,781    66,510    10,441,299 
                
Less:               
Employee compensation and benefits   6,520,852    -    3,864,329 
Stock-based compensation expense   11,634,708    5,000,000    1,942 
Merchant and bank fees   3,812,064    -    3,737,748 
Consulting and outside provider costs   2,395,550    -    293,950 
Sales and marketing expenses   1,911,006    -    1,808,895 
Amortization of capitalized software costs   1,472,974    -    1,290,190 
Amortization of intangible assets   2,431,668    -    300,000 
Impairment of property and equipment   -    -    738,740 
Impairment of intangibles   -    -    250,000 
Other operating expenses   1,341,685    86,510    1,235,911 
Total operating expenses   31,520,507    5,086,510    13,521,705 
Loss from operations  $(18,375,726)  $(5,020,000)  $(3,080,406)