Envela Corp Segments Disclosure
NOTE 9 — SEGMENT INFORMATION
The CODM uses operating income to evaluate the performance of the overall business, make investing decisions, and allocate resources. The following table depicts the Company’s segment results of operations, including significant expenses that are regularly reviewed by the CODM, for the years ended December 31, 2025 and 2024:
Year Ended December 31, | ||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||
| Consumer | | Commercial | | Consolidated | | Consumer | | Commercial | | Consolidated | |||||||
Sales | $ | 192,717,539 | $ | 48,303,823 | $ | 241,021,362 |
| $ | 130,469,468 | $ | 49,906,761 | $ | 180,376,229 | |||||
Cost of goods sold |
| 169,793,289 |
| 17,303,080 |
| 187,096,369 |
|
| 114,587,598 |
| 21,472,844 |
| 136,060,442 | |||||
Selling, general and administrative |
| 15,454,592 |
| 18,494,881 |
| 33,949,473 |
|
| 15,211,970 |
| 19,393,162 |
| 34,605,132 | |||||
Depreciation and amortization |
| 791,966 |
| 1,074,623 |
| 1,866,589 |
|
| 524,510 |
| 1,027,264 |
| 1,551,774 | |||||
Operating income | $ | 6,677,692 | $ | 11,431,239 | $ | 18,108,931 |
| $ | 145,390 | $ | 8,013,491 | $ | 8,158,881 | |||||
The following table depicts a reconciliation from segment operating income to income before income taxes for the years ended December 31, 2025 and 2024:
Year Ended December 31, | ||||||||||||||||||
2025 | 2024 | |||||||||||||||||
Consumer | | Commercial | | Consolidated | | Consumer | | Commercial | | Consolidated | ||||||||
Operating income | $ | 6,677,692 | $ | 11,431,239 | $ | 18,108,931 |
| $ | 145,390 | $ | 8,013,491 | $ | 8,158,881 | |||||
Other income |
| 352,295 |
| 668,634 |
| 1,020,929 |
|
| 104,561 |
| 933,121 |
| 1,037,682 | |||||
Interest expense |
| (204,603) |
| (202,039) |
| (406,642) |
|
| (228,792) |
| (218,591) |
| (447,383) | |||||
Income before income taxes | $ | 6,825,384 | $ | 11,897,834 | $ | 18,723,218 |
| $ | 21,159 | $ | 8,728,021 | $ | 8,749,180 | |||||
Other significant segment items that are regularly reviewed by the CODM are Capital Expenditures, which the Company defines as any purchases of property and equipment or intangible assets. The following table depicts Capital Expenditures for the years ended December 31, 2025 and 2024:
Year Ended December 31, | ||||||
| 2025 | | 2024 | |||
Consumer | $ | 820,906 | $ | 3,159,705 | ||
Commercial |
| 84,792 |
| 144,419 | ||
Corporate |
| 345,448 |
| 454,280 | ||
$ | 1,251,146 | $ | 3,758,404 | |||
The following table depicts the Company’s total assets:
As of | ||||||
| December 31, 2025 | | December 31, 2024 | |||
Consumer | $ | 56,313,243 | $ | 40,454,328 | ||
Commercial |
| 20,272,552 |
| 33,068,887 | ||
Corporate |
| 19,436,952 |
| 4,347,274 | ||
$ | 96,022,747 | $ | 77,870,489 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Mar 21, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 23, 2021 | |
| 2019 | Mar 26, 2020 | |
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.