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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 18. SEGMENT INFORMATION

 

The company operates primarily in two distinct business segments: Dealerships and Financial Services.

 

Dealerships: Specializing in the buying, selling, and wholesaling of yachts and boats. Having a boat dealership created to run Yellow Fin sales in Miami.

 

Financial Services: A recreational loan broker and lender providing financing solutions for individuals, dealerships, and brokerages.

 

The Company’s segment profit or loss is measured using gross profit, which is the primary performance metric utilized by management to evaluate the financial results of each reportable segment and to make decisions regarding resource allocation. Although gross profit is reviewed by management for operational analysis, operating income (loss) is the primary measure used by the CODM for segment performance assessment and resource allocation. For segment reporting purposes, gross profit is calculated as the difference between segment revenue and the direct costs associated with specific projects or contracts. These direct costs include materials, labor, subcontractors, and other project-specific expenses directly attributable to the construction activities of each segment.

 

The financial performance of each segment is regularly reviewed with operational leaders in charge of these segments, the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and others. The CODM of the Company is Jason Ruegg, CEO. The Company’s segment disclosures are presented in accordance with the guidance set forth in ASC 280, Segment reporting. Specifically, the disclosures comply with the requirements outlined in ASC 280-10-50-22 through 50-26, which mandate that an entity disclose certain information about its operating segments to enable users of the financial statements to understand the financial performance of different parts of the business.

 

 

In accordance with ASC 280-10-50-22, the Company discloses financial information for each reportable segment, including revenue, operating profit or loss, and other significant items that are used by the chief operating decision maker (CODM) in assessing the performance and making decisions about the allocation of resources. The Company identifies its reportable segments based on the internal management structure, and all relevant information is disclosed in the segment footnote as required.

 

In accordance with ASC 280-10-50-29, the disclosures also adhere to the requirements of which mandate that the financial information provided for each segment should include items such as capital expenditures, depreciation, and amortization, when appropriate. The disclosures reflect the performance and financial position of each segment, and a reconciliation of segment totals to the overall combined and consolidated financial results, including total segment profit or loss and other significant disclosures.

 

The Company’s segment disclosures are presented in accordance with the requirements set forth in ASC 280-10-50-30(b) and (c), which specify the need to disclose the total of reportable segments’ profit or loss, as well as the basis of measurement used to determine the segment results.

 

In accordance with ASC 280-10-50-30(b), the Company provides the total of profit or loss for all reportable segments, which reflects the combined and consolidated operating results for each reportable segment included in the financial statements. The total segment profit or loss represents the aggregation of segment results before the allocation of corporate expenses and certain other items not attributable to specific segments.

 

As required by ASC 280-10-50-30(c), the Company has also disclosed the basis of measurement for segment profit or loss. The measure used to assess segment performance and allocate resources is operating income (or loss), which includes revenues, cost of sales, and directly attributable operating expenses for each segment. The operating income (or loss) for each reportable segment is reviewed by the Company’s chief operating decision maker (CODM) and serves as the primary performance metric used in resource allocation and operational decision-making.

 

Segment information is as follows:

SCHEDULE OF SEGMENT INFORMATION

 

                
   For the nine months ended September 30, 2025 
   Dealerships   Financial Services   Combined and consolidated 
Revenues   80,733,434    1,858,754    82,592,188 
Cost of revenues   73,459,661    759,317    74,218,978 
Gross profit   7,273,773    1,099,437    8,373,210 
Operating expenses               
Depreciation and amortization   210,201    171    210,372 
Selling, general and administrative   1,353,871    87,377    1,441,248 
Advertising and marketing   522,375    75,131    597,506 
Professional services   140,192    30,180    170,372 
Salaries and wages   2,403,647    710,317    3,113,964 
Rent expenses   533,872    62,378    596,250 
Total operating expenses   5,164,158    965,554    6,129,712 
Operating income   2,109,615    133,883    2,243,498 
Other income (expenses)             - 
Interest expense, net   (1,612,887)   (3,985)   (1,616,872)
Other income (expense)   143,889    6,434    150,323 
Total other (expense)   (1,468,998)   2,449    (1,466,549)
Net Income  $640,617   $136,332   $776,949 

 

 

                
   For the nine months ended September 30, 2024 
   Dealerships   Financial Services   Combined and consolidated 
Revenues   67,061,316    2,164,555    69,225,871 
Cost of revenues   61,437,517    858,739    62,296,256 
Gross profit   5,623,799    1,305,816    6,929,615 
Operating expenses               
Depreciation and amortization   200,788    5,999    206,787 
Selling, general and administrative   941,018    112,257    1,053,275 
Advertising and marketing   227,219    86,862    314,081 
Professional services   285,869    2,506    288,375 
Salaries and wages   1,454,145    693,998    2,148,143 
Rent expenses   249,284    64,230    313,514 
Total operating expenses   3,358,323    965,852    4,324,175 
Operating income   2,265,476    339,964    2,605,440 
Other income (expenses)               
Interest expense, net   (1,126,477)   (79,161)   (1,205,638)
Other income (expense)   263,923    8,749    272,672 
Total other (expense)   (862,554)   (70,412)   (932,966)
Net Income  $1,402,922   $269,552   $1,672,474 

 

The total assets for each segment are presented in accordance with segment reporting requirements of ASC 280-10, which requires the disclosure of total assets for each reportable segment.

 

 

                
   As of September 30, 2025 
   Dealerships   Financial Services   Combined and consolidated 
ASSETS               
Cash and cash equivalents  $1,682,812   $584,752    2,267,564 
Accounts receivable, net   218,483    25,917    244,400 
Inventory   23,990,133    25,850    24,015,983 
Prepaid expense   2,203,600    77,747    2,281,347 
Other current assets   293,750    74,367    368,117 
Property, plant and equipment, net   496,276    1,880    498,156 
Other receivable   43,366    -    43,366 
Intangible assets   456,111    -    456,111 
Right-of-use assets   1,868,839    -    1,868,839 
Goodwill   570,000    -    570,000 
TOTAL ASSETS  $31,823,370   $790,513   $32,613,883 

 

                
   As of December 31, 2024 
   Dealerships   Financial Services   Combined and consolidated 
ASSETS               
Cash and cash equivalents  $2,714,469   $212,657    2,927,126 
Accounts receivable, net   59,644    44,673    104,317 
Inventory   22,593,422    -    22,593,422 
Prepaid expense   2,337,100    51,682    2,388,782 
Prepaid expense - related party   -    -    - 
Private label receivable   -    190,492    190,492 
Other current assets   542,856    297,545    840,401 
Property, plant and equipment, net   459,658    2,051    461,709 
Other receivable   42,192    -    42,192 
Due from related party   11,313    -    11,313 
Right-of-use assets   1,450,367    55,619    1,505,986 
Goodwill   570,000    -    570,000 
TOTAL ASSETS  $30,781,021   $854,719   $31,635,740