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SEGMENT INFORMATION AND DISAGGREGATION OF REVENUES
 6 Months Ended
Jun. 30, 2025
Segment Information And Disaggregation Of Revenues  
SEGMENT INFORMATION AND DISAGGREGATION OF REVENUES

NOTE 7. SEGMENT INFORMATION AND DISAGGREGATION OF REVENUES

 

The Company operates in two operating segments: Grocery and Wellness. In accordance with ASC 280, these segments have been aggregated into a single reportable segment because they share similar economic characteristics and meet all aggregation criteria, including similar nature of products sold, product acquisition process, customer base, distribution methods, and regulatory environment.

 

The Company’s CODM reviews financial results and allocates resources at the consolidated level, as the aggregated segments operate as one integrated business unit. No segment-specific financial metrics are used by the CODM to assess performance.

 

The Company adopted ASU 2023-07 effective January 1, 2024, on a retrospective basis. As the Company operates as a single reportable segment, the adoption did not have an impact on the Company’s consolidated financial statements. However, it did result in enhanced disclosures related to segment expenses and reconciliations to consolidated totals. Specifically, the Company has begun disclosing segment-specific expenses that are regularly reviewed by the CODM, Jeffrey Holman, the Company’s Chief Executive Officer, in accordance with the new standard.

 

The following table summarizes the significant segment expenses:

 

   2025   2024   2025   2024 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   2025   2024 
Advertising  $84,061   $43,161   $241,933   $201,230 
Payroll and Benefits   3,917,799    3,200,050    7,814,401    6,522,601 
Occupancy   1,859,964    1,450,702    3,683,410    2,870,911 
Depreciation and Amortization   434,717    361,817    864,627    724,958 
Bank Service Charges and Merchant Account Fees   362,079    305,093    762,348    605,632 
Other selling, general and administrative expenses   485,621    406,318    947,538    802,725 
Total significant reporting segment expenses   7,144,241    5,767,141    14,314,257    11,728,057 
Unallocated amount   988,167    610,873    2,079,736    1,306,080 
Total consolidated operating expenses  $8,132,408   $6,378,014   $16,393,993   $13,034,137 

 

 

The following tables summarize the reconciliations of reportable segment profit or loss and assets to the Company’s consolidated totals:

 

   2025   2024   2025   2024 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   2025   2024 
Segment net operating income  $949,135   $129,315   $1,631,028   $222,776 
Unallocated amount   (988,167)   (610,873)   (2,079,736)   (1,306,080)
Consolidated loss from operation  $(39,032)  $(481,558)  $(448,708)  $(1,083,304)

 

   June 30, 2025   December 31, 2024 
Total reporting segment assets  $32,191,340   $30,698,054 
Unallocated amount   4,210,379    3,414,463 
Consolidated total assets  $36,401,719   $34,112,517 

 

When the Company prepares its internal management reporting to evaluate business performance, we disaggregate revenue into the following categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors, including the nature of products sold, product acquisition processes, customer types, distribution methods, and regulatory environments.

 

   2025   2024   2025   2024 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   2025   2024 
Retail Grocery  $18,304,905   $13,364,836   $36,757,772   $26,802,107 
Food service/restaurant   1,877,421    2,170,903    3,664,220    4,585,897 
Online/eCommerce   17,653    58,836    37,593    100,929 
Total revenue  $20,199,979   $15,594,575   $40,459,585   $31,488,933 

 

The Company does not have significant revenue recognized over time due to the nature of retail store operations. The Company recognizes revenue at a point in time when control of goods or services transfers to the customer. Revenue is recognized as follows:

 

  ● Retail Sales: At the point of sale when payment is received, products are physically transferred, and title passes.
  ● Advertising Services (CO-OP Revenue): When promotional materials are distributed to end-user customers.