Note 18. Segment Reporting

The Company has one operating and reportable segment, which derives revenue primarily from the sale of Zola coconut water. The Company's Chief Executive Officer is the Company’s chief operating decision maker ("CODM"). The CODM uses net loss for purposes of evaluating performance, forecasting future period financial results, allocating resources and setting incentive targets. The CODM evaluates segment business performance based primarily on consolidated net loss (from continuing operations) as reported on the consolidated statements of operations and comprehensive loss. The CODM considers budget-to-actual variances on a monthly basis for net loss when making decisions. Segment assets provided to the CODM are consistent with those reported on the consolidated balance sheets.

Information about the Company’s segment operations as of and for the years ended December 31, 2025 and 2024, are as follows (in thousands):

 

 

Year Ended December 31,

 

 

2025

 

2024

 

Total revenues

$

4,858

 

$

5,045

 

Product COGS

 

(3,090

)

 

(2,484

)

Other Adjustments

 

(8

)

 

(479

)

Human capital & technology

 

(1,879

)

 

(4,222

)

Corporate expenses

 

(1,503

)

 

(1,323

)

Advertising & marketing

 

(53

)

 

(51

)

Outside services

 

(2,304

)

 

(3,133

)

Depreciation

 

(32

)

 

(113

)

Other SG&A

 

(1,230

)

 

(799

)

Interest income

 

221

 

 

782

 

Credit loss

 

(4,745

)

 

 

Income tax expense

 

(8

)

 

(8

)

Change in fair value of common stock warrant and option liabilities

 

2,384

 

 

(1,474

)

Other segment items

 

5,050

 

 

3,942

 

Net loss from continuing operations

$

(2,339

)

$

(4,317

)

 

Other segment items consist of research and development expenses, gain on sale of intangible assets, gain on sale of property and equipment, credit losses, other income.

Geographic Data

Revenues based on the location of the customers, are as follows (in thousands):

 

 

Year Ended December 31,

 

 

2025

 

2024

 

United States

$

4,858

 

$

4,903

 

Argentina

 

 

 

26

 

India

 

 

 

7

 

Canada

 

 

 

109

 

Total

$

4,858

 

$

5,045

 

Historical Timeline

Fiscal YearFiled
2025Mar 26, 2026Showing above
2024Mar 25, 2025
2023Mar 28, 2024
2022Mar 30, 2023
2021Mar 31, 2022
2020Mar 31, 2021

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.