NOTE 17 – SEGMENT REPORTING 

 

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker (“CODM”) in making decisions regarding resource allocation and assessing performance.

 

The Company views its operations and manages its business as one operating segment engaged in patriotic goods comprised of safes, soft goods, and beer. The Company’s Chief Executive Officer, as the CODM, regularly reviews the entity-wide financial and operational performance as a single unit. No financial information is disaggregated into separate lines of business. The CODM makes resource allocation and business process decisions regarding the overall level of resources available and how to best deploy the resources.

 

The single segment’s principal measure of segment profit and loss is consolidated revenue, gross margin, and total operating expenses. The CODM considers actual and forecasted numbers when evaluating performance.

 

The following table provides information about the Company’s one reportable segment and includes the reconciliation to consolidated net loss.

 

       
   Year ended December 31, 
   2025   2024 
Total revenues  $9,522,109   $11,420,268 
Less:          
Cost of revenues (excluding amortization and depreciation)   9,719,861    11,539,905 
Consulting/payroll and other costs   3,246,972    2,039,777 
Share based compensation expense   531,251    656,250 
Product development costs   78,640    385,800 
Marketing and brand development costs   4,633,182    2,354,809 
Administrative and other   6,074,630    6,663,842 
Interest expense, net   2,525,752    3,968,121 
Remeasurement and loss on debt extinguishment and settlement of liability   17,051,377    1,422,307 
Other income   (14,267)   (6,179)
Segment net loss   (34,325,289)   (17,604,364)
           
Reconciliation of net loss:          
Adjustments and reconciling items   -    - 
Consolidated net loss  $(34,325,289)  $(17,604,364)

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Apr 9, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.