Cosmos Health Inc. Segments Disclosure
NOTE 19 – SEGMENT REPORTING
A. Basis for segmentation
The Group operates through various operating segments, which include the wholesale sector, the pharmaceutical manufacturing sector, the nutraceuticals and pharmaceuticals sector and other, with only the first three of them being reportable segments based on the criteria (quantitative thresholds) of ASC 280. The financial information utilized by our Chief Operating Decision Maker (“CODM”), which is our CEO, for resource allocation and performance evaluation is included within the operating segments described above. The reconciling items presented in the tables below are excluded from the segment data provided to the Chief Operating Decision Maker (“CODM”). The “Other” category primarily consists of corporate expenses incurred by the Group’s parent entity, Cosmos Health Inc including, but not limited to, costs related to SEC legal and compliance matters, executive compensation, audit and review fees, and other corporate overhead expenses.
B. Information about reportable segments
The table below presents information about the Company's reportable segments for the 12-month period ended December 31, 2025 and December 31, 2024. The accounting policies followed in the preparation of the reportable segments are the same with those followed in the preparation of the Company's consolidated financial statements.
Year Ended December 31, 2025
|
| Wholesale |
|
| Pharma Manufacturing |
|
| Nutraceuticals & Pharmaceuticals |
|
| Other |
|
| Total |
| |||||
| ||||||||||||||||||||
Revenue |
|
| 59,318,982 |
|
|
| 1,689,062 |
|
|
| 4,262,543 |
|
|
| 1,228 |
|
|
| 65,271,815 |
|
Cost of revenues |
|
| (54,641,054 | ) |
|
| (325,658 | ) |
|
| (2,406,701 | ) |
|
| (2,827 | ) |
|
| (57,376,240 | ) |
General and administrative expenses |
|
| (1,210,696 | ) |
|
| (854,518 | ) |
|
| (5,460,388 | ) |
|
| (8,077,988 | ) |
|
| (15,603,590 | ) |
Salaries and wages |
|
| (2,023,636 | ) |
|
| (2,052,115 | ) |
|
| (1,395,017 | ) |
|
| (1,307,510 | ) |
|
| (6,778,278 | ) |
Sales and marketing expenses |
|
| (6,464 | ) |
|
| (1,454 | ) |
|
| (89,841 | ) |
|
| (52,481 | ) |
|
| (150,240 | ) |
Research and development costs |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (519,363 | ) |
|
| (519,363 | ) |
Net finance costs |
|
| (908,180 | ) |
|
| (1,568 | ) |
|
| 83,143 |
|
|
| (676,854 | ) |
|
| (1,503,459 | ) |
Segment profit (loss) |
|
| 528,952 |
|
|
| (1,546,251 | ) |
|
| (5,006,261 | ) |
|
| (10,635,795 | ) |
|
| (16,659,355 | ) |
Reconciling items: | ||||||||||||||||||||
Depreciation and amortization |
|
| (228,074 | ) |
|
| (589,735 | ) |
|
| (406,916 | ) |
|
| (144,628 | ) |
|
| (1,369,353 | ) |
Provisions |
|
| (13,920 | ) |
|
| (1,651 | ) |
|
| - |
|
|
| - |
|
|
| (15,571 | ) |
Impairment charges |
|
| (90,450 | ) |
|
| (72,335 | ) |
|
| - |
|
|
| - |
|
|
| (162,785 | ) |
Gain on extinguishment of debt |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 68,610 |
|
|
| 68,610 |
|
Non-cash interest expense |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (722,763 | ) |
|
| (722,763 | ) |
Change in fair value of derivative liability |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 1,525,020 |
|
|
| 1,525,020 |
|
Gain (loss) on digital assets |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (588,916 | ) |
|
| (588,916 | ) |
Change in fair value of convertible notes |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (1,347,658 | ) |
|
| (1,347,658 | ) |
Other income (expense), net |
|
| 50,471 |
|
|
| 55,918 |
|
|
| 225,510 |
|
|
| (204,126 | ) |
|
| 127,773 |
|
Net profit (loss) before income taxes |
|
| 246,979 |
|
|
| (2,154,054 | ) |
|
| (5,187,667 | ) |
|
| (12,050,256 | ) |
|
| (19,144,998 | ) |
Year Ended December 31, 2024
|
| Wholesale |
|
| Pharma Manufacturing |
|
| Nutraceuticals & Pharmaceuticals |
|
| Other |
|
| Total |
| |||||
| ||||||||||||||||||||
Revenue |
|
| 51,593,787 |
|
|
| 865,373 |
|
|
| 1,967,242 |
|
|
| - |
|
|
| 54,426,402 |
|
Cost of revenues |
|
| (48,887,569 | ) |
|
| (249,061 | ) |
|
| (978,449 | ) |
|
| - |
|
|
| (50,115,079 | ) |
General and administrative expenses |
|
| (647,225 | ) |
|
| (773,429 | ) |
|
| (1,442,101 | ) |
|
| (4,176,049 | ) |
|
| (7,038,805 | ) |
Salaries and wages |
|
| (1,701,552 | ) |
|
| (1,243,568 | ) |
|
| (1,430,736 | ) |
|
| (1,317,580 | ) |
|
| (5,693,436 | ) |
Sales and marketing expenses |
|
| (10,515 | ) |
|
| (489 | ) |
|
| (255,559 | ) |
|
| (88,405 | ) |
|
| (354,969 | ) |
Research and development costs |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (533,293 | ) |
|
| (533,293 | ) |
Net finance costs |
|
| (840,456 | ) |
|
| - |
|
|
| 234,856 |
|
|
| (265 | ) |
|
| (605,865 | ) |
Segment profit (loss) |
|
| (493,530 | ) |
|
| (1,401,174 | ) |
|
| (1,904,747 | ) |
|
| (6,115,593 | ) |
|
| (9,915,044 | ) |
Reconciling items: | ||||||||||||||||||||
Depreciation and amortization |
|
| (231,344 | ) |
|
| (565,371 | ) |
|
| (334,075 | ) |
|
| (118,448 | ) |
|
| (1,249,238 | ) |
Provisions |
|
| (1,021,818 | ) |
|
| (123,503 | ) |
|
| (3,549,112 | ) |
|
| - |
|
|
| (4,694,432 | ) |
Impairment charges |
|
| - |
|
|
| - |
|
|
| (160,947 | ) |
|
| (131,032 | ) |
|
| (291,980 | ) |
Other income (expense), net |
|
| (304,495 | ) |
|
| 5,789 |
|
|
| 225,664 |
|
|
| 40,718 |
|
|
| (32,324 | ) |
Net profit (loss) before income taxes |
|
| (2,051,187 | ) |
|
| (2,084,259 | ) |
|
| (5,723,217 | ) |
|
| (6,324,355 | ) |
|
| (16,183,018 | ) |
The following summary describes the operations of each reportable segment:
Reportable segments |
| Operations |
Wholesale |
| Distribution and export of pharmaceutical products |
Pharma manufacturing |
| Production of pharmaceutical products |
Nutraceutical and pharmaceuticals |
| Trade of owned nutraceutical & pharmaceutical products |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
| 2023 | Aug 5, 2024 | |
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.