Borealis Foods Inc. Segments Disclosure
11. Segment Reporting
The Company has a reportable segment focused around sale of similar products. This reportable segment derives revenues from the manufacture and sale of high quality, affordable and nutritious ready to eat meals.
The Company identifies its operating segments in accordance with ASC 280, Segment Reporting. An operating segment is a component of an entity (a) that engages in business activities from which it may earn revenues and incur expenses, (b) whose operating results are regularly reviewed by the (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and (c) for which discrete financial information is available.
The Company’s CODM is the Chief Executive Officer. The CODM reviews revenue by geographic region as the primary basis for resource allocation and performance assessment. Discrete revenue information is available for each region; however, operating expenses, assets, liabilities, and capital expenditures are not allocated to individual regions for internal reporting purposes and are managed on a consolidated basis. Accordingly, the Company is treated as a single reportable segment under ASC 280-10-50-1 for purposes of full segment disclosure.
Revenue by Geographic Region
The following table presents gross revenue disaggregated by geographic region for the years ended December 31, 2025 and 2024, respectively. Regions correspond to the sales territories through which the Company distributes its products in the United States, Canada, and international markets.
| Year ended December 31 | ||||||||
| 2025 | 2024 | |||||||
| Southeast | $ | 10,695,000 | $ | 11,933,000 | ||||
| Midwest | 9,446,000 | 4,307,000 | ||||||
| Southwest | 3,400,000 | 2,731,000 | ||||||
| Northeast | 2,441,000 | 1,547,000 | ||||||
| Mountain | 2,186,000 | 1,422,000 | ||||||
| Pacific | 1,839,000 | 5,109,000 | ||||||
| International | 1,469,000 | 2,051,000 | ||||||
| Total Gross Revenue | $ | 31,476,000 | $ | 29,100,000 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 2, 2026 | Showing above |
| 2024 | Apr 15, 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.