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Segment Reporting | 12 Months Ended
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Dec. 31, 2025
Segment Reporting [Abstract] |
Segment Reporting | Note 17 – Segment Reporting The Company is a consumer-packaged foods company focused on developing, manufacturing, marketing, and distributing clean-label, plant-based dried fruit and vegetable snacks for retail and foodservice markets through BranchOut-branded products, private-label offerings, and industrial ingredient sales. In accordance with ASC 280, Segment Reporting, the Company has identified two operating and reportable segments based on how its Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”), evaluates performance and allocates resources:
| ● | United States Operations – includes all sales, marketing, distribution, and customer relationships. This segment generates substantially all of the Company’s consolidated revenue through sales to retail customers, distributors, and e-commerce platforms within the United States.
| ● | Latin American Operations – includes the Company’s production and manufacturing activities, including its dehydration facility in Pisco, Peru, and related production support functions.
Segment Structure and Operations The Company’s United States Operations segment is responsible for revenue generation and customer engagement, while the Latin American Operations segment supports these activities through the manufacture of finished goods and production of ingredient products. All revenue is generated within the United States, and the Latin American Operations segment does not generate external revenue. Instead, it operates as an internal production function, with costs reflected in cost of goods sold and operating expenses. The Company manages these segments separately due to differences in function, cost structure, and geographic location. The United States Operations segment is focused on sales growth, distribution expansion, and brand development, while the Latin American Operations segment is focused on production efficiency, capacity utilization, and cost management. CODM Evaluation and Measure of Profit or Loss The CODM evaluates segment performance and allocates resources primarily based on segment earnings before interest expense, interest income, income taxes, stock compensation expense, impairment expense, and depreciation and amortization (“EBITDA”). Segment EBITDA is used by the CODM to:
| ● | evaluate operating performance and efficiency,
| ● | assess period-over-period results,
| ● | compare actual performance to budgets and strategic targets, and
| ● | determine capital allocation priorities across the business.
Segment Expenses For the U.S. Operations segment, expenses include cost of goods sold from third party manufacturers for raisins and prunes as well as operating expenses such as general and administrative, salaries and wages, professional fees, and other selling and administrative costs. For the Latin American Operations segment, expenses primarily include production-related costs, including manufacturing overhead, labor, facility costs, and other operating expenses associated with the Company’s production activities. During the year ended December 31, 2025, the Latin American Operations segment incurred significant costs associated with the ramp-up and operation of the Company’s Peru facility, which negatively impacted segment EBITDA. Corporate-level expenses, including executive, finance, and administrative functions, are recorded within the U.S. Operations segment and are not allocated to the Latin American Operations segment for purposes of CODM evaluation. Assets and Capital Expenditures The CODM reviews asset information on a consolidated basis and does not evaluate assets by segment. Accordingly, asset information is not disclosed by reportable segment. Capital expenditures are primarily associated with the Latin American Operations segment, reflecting ongoing investment in manufacturing equipment, facility infrastructure, and production capacity. Reportable Segment Information The following table presents revenue, significant expenses, and segment EBITDA for the Company’s reportable segments, together with a reconciliation to consolidated net loss before income taxes for the years ended December 31, 2025 and 2024: Schedule of Segment Reporting
|  | 2025 |  |  | 2024 |
|  | For the Years Ended December 31, |
|  | 2025 |  |  | 2024 |
United States operations segment sales |  | $ | 13,724,563 |  |  | $ | 6,434,514 |
Latin American operations segment cost of goods sold |  | $ | 8,239,306 |  |  | $ | - |
United States operations segment cost of goods sold |  |  | 2,834,229 |  |  |  | 5,480,874 |
United States operations segment expenses: |  |  |  |  |  |  |  |
General and administrative |  |  | 2,312,198 |  |  |  | 1,285,245 |
Rent |  |  | 49,590 |  |  |  | 52,727 |
Salaries and wages |  |  | 1,027,351 |  |  |  | 975,647 |
Professional fees |  |  | 960,855 |  |  |  | 800,564 |
Total United States operating expenses |  | $ | 4,349,994 |  |  | $ | 3,114,183 |
United States operations segment EBITDA |  | $ | 6,540,340 |  |  | $ | (2,160,543 | )
Latin American operations segment cost of goods sold |  | $ | 8,239,306 |  |  | $ | - |
Latin American operations segment expenses: |  |  |  |  |  |  |  |
General and administrative |  |  | 1,710,708 |  |  |  | 263,438 |
Rent |  |  | 158,826 |  |  |  | 187,486 |
Salaries and wages |  |  | 349,798 |  |  |  | 213,940 |
Professional fees |  |  | 181,657 |  |  |  | 200,493 |
Total Latin American operating expenses |  |  | 2,400,989 |  |  |  | 865,357 |
Operating expenses |  |  | 2,400,989 |  |  |  | 865,357 |
Latin American operations segment EBITDA |  | $ | (10,640,295 | ) |  | $ | 865,357 |
Consolidated EBITDA |  | $ | (4,099,955 | ) |  | $ | (3,025,900 | )
Reconciliation of net earnings before income tax expense: |  |  |  |  |  |  |  |
Consolidated EBITDA |  | $ | (4,099,955 | ) |  | $ | (3,025,900 | )
EBITDA |  | $ | (4,099,955 | ) |  | $ | (3,025,900 | )
Depreciation |  |  | (616,581 | ) |  |  | (171,843 | )
Interest income |  |  | 19,400 |  |  |  | 14,156 |
Interest expense |  |  | (780,595 | ) |  |  | (863,231 | )
Stock compensation expense |  |  | (245,419 | ) |  |  | (704,698 | )
Impairment of note receivable |  |  | (401,522 | ) |  |  | - |
Consolidated net loss before income tax expense |  | $ | (6,124,672 | ) |  | $ | (4,751,516 | )

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- Definition The entire disclosure for reporting segments including data and tables. 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