9.
SEGMENT INFORMATION

The Company operates as a single operating segment. The Company’s chief operating decision maker is one individual and has the role of Chief Executive Officer (the “CODM”). The CODM reviews financial information including operating results and assets on a company-wide basis, accompanied by disaggregated information about the Company’s revenue. For information about how the Company derives revenue, as well as the Company’s accounting policies, refer to Note 3.

The CODM uses multiple measures of performance including net income (loss) to assess performance, evaluate cost optimization, and allocate financial, capital and personnel resources. Asset information is not presented as the CODM does not use asset information for purposes of making operating decisions, allocating resources, and evaluating financial performance.

The following table sets forth significant expense categories and other specified amounts included in net income (loss) that are reviewed by the CODM, or are otherwise regularly provided to the CODM, for the years ended December 31, 2025 and 2024:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024 (a)

 

Net revenues

 

$

96,449

 

 

$

93,122

 

Less:

 

 

 

 

 

 

Inventory and product costs

 

$

80,995

 

 

$

80,001

 

Stock-based compensation expense

 

 

3,781

 

 

 

 

Depreciation and amortization expense

 

 

217

 

 

 

310

 

Other costs and expenses1

 

 

15,831

 

 

 

8,543

 

Interest income, net

 

 

(1,868

)

 

 

(241

)

Net income (loss)

 

$

(2,507

)

 

$

4,509

 

(a) See Note 14.

(1)
Other costs and expenses primarily consists of employee compensation expense, legal and professional services, shipping expenses, payment processing fees, income tax expense, and program and web development expenses.

As of December 31, 2025 and 2024, all of the Company’s property and equipment were maintained in the United States. For the years ended December 31, 2025 and 2024, all of the Company’s revenues and expenses were generated and incurred in the United States.

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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.