Laird Superfood, Inc. Segments Disclosure

15.	Reportable Segments

 

In accordance with ASC 280, Segment Reporting (“ASC 280”), the Company considers operating segment(s) to be components of the Company’s business for which separate financial information is available and is evaluated regularly by management in deciding how to allocate resources and in assessing performance. 

 

The Company manages their business through one operating and reportable segment: superfood. The superfood segment provides customers with clean, functional, and sustainability-conscious alternatives in an industry rife with ultra-processed ingredients and laden with artificial sweeteners. This segment includes the sales of (i) coffee creamers, (ii) coffee, tea, and hot chocolate products, (iii) hydration and beverage enhancing products, and (iv) snacks and other food items. Substantially all revenue is derived from domestic product sales. See Note 14 for presentation of revenue disaggregated by product groups and by sales channels. The accounting policies of the superfood segment are the same as those described in the summary of significant accounting policies. The Company does not have intra-entity sales or transfers.

 

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer.

 

The CODM assesses segment performance and allocates resources based on consolidated net income (loss). Significant segment expenses that would require disclosure are costs of goods sold, general and administrative, marketing and advertising, and selling. Other segment information includes other income, depreciation and amortization, stock-based compensation, income tax expense, and other extraordinary or unusual items which are utilized to reconcile net income (loss) to adjusted EBITDA. The CODM uses consolidated net income to assess operating performance as compared to prior results, annual operating plans, iterative periodic forecasts, and our competitors. The CODM uses this information to allocate future operating and capital expenditures. The measure of segment assets is reported on the consolidated balance sheets as total assets.

 

The following table reconciles consolidated net loss to consolidated adjusted EBITDA for the periods presented:

 

		Years Ended December 31,
		2025				2024
Net loss		$	(3,252,211	)		$	(1,820,161	)
Adjusted for:
Depreciation and amortization			253,719				270,271
Stock-based compensation			1,883,513				1,637,788
Income tax expense			20,746				60,324
Other Income			(182,635	)			(413,255	)
Impairment of long-lived intangible assets			661,103				—
Product quality issue (a)			—				(434,329	)
Acquisition costs (b)			932,856				—
Adjusted EBITDA		$	317,091			$	(699,362	)
(a) In January 2023, the Company identified a product quality issue with raw material from one vendor and we voluntarily withdrew any affected finished goods. The Company previously incurred costs associated with product testing, discounts for replacement orders, and inventory obsolescence costs. The Company reached settlement with a supplier in the third quarter of 2023 and recorded recoveries in 2024.
(b) On December 21, 2025, the Company entered into an agreement to acquire Navitas Organics and Global Superfood Company. The Company incurred professional fees related to this business combination in the year ended December 31, 2025. See Note 16 for more information on the Navitas Acquisition.