GIFTIFY, INC. Segments Disclosure
14. Segment information
The Company operates and manages its business as one reportable and operating segment concentrating on the sale of gift cards and discount certificates to our customers. The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company derives revenue primarily in the United States of America and manages its business activities on a consolidated basis.
The Company’s chief operating decision maker (CODM), its Chief Executive Officer, reviews financial information presented on a consolidated basis and decides how to allocate resources based on net loss. Consolidated net loss is used for evaluating financial performance. The monitoring of budgeted versus actual results is used in assessing the performance of the Company and in establishing management’s compensation.
Significant segment expenses include employee compensation, stock-based compensation, merchant fees, and consulting and outside provider costs. Other operating expenses include all remaining costs necessary to operate our business and primarily include advertising, corporate compliance, and overhead expenses. The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM:
Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net Sales | $ | 83,181,716 | $ | 88,934,036 | ||||
| Cost of sales | 67,686,362 | 75,789,255 | ||||||
| Gross profit | 15,495,354 | 13,144,781 | ||||||
| Operating expenses | ||||||||
| Employee compensation and benefits | 6,175,515 | 6,520,852 | ||||||
| Stock-based compensation expense | 6,302,614 | 11,634,708 | ||||||
| Merchant and bank fees | 4,250,638 | 3,812,064 | ||||||
| Facility costs | 602,955 | 560,937 | ||||||
| Consulting and outside provider costs | 2,263,779 | 2,395,550 | ||||||
| Sales and marketing costs | 2,082,434 | 1,911,006 | ||||||
| Depreciation of capitalized software costs | 646,173 | 1,472,974 | ||||||
| Amortization of intangible assets | 2,271,673 | 2,431,668 | ||||||
| Other operating expenses | 1,254,319 | 780,748 | ||||||
| Total operating expenses | 25,850,100 | 31,520,507 | ||||||
| Loss from operations | $ | (10,354,746 | ) | $ | (18,375,726 | ) | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 31, 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.