SOLESENCE, INC. Segments Disclosure

(13) Business Segmentation and Geographical Distribution

 

The Company operates as a single business segment, in which the factors used to make this determination include differences in products, services, geographical areas, regulatory environment, and other such criteria considered for the appropriateness of aggregation. The types of products and services for which the sole reportable segment, which is the same as the Company as a whole, offered by the company is discussed in Note 1. Since the Company operates as a single segment, there were no intra-entity sales or transfers.

 

The role of Chief Operating Decision Maker for the Company is comprised of a committee that includes the Chief Executive and Chief Operating Officers. The Chief Operating Decision Maker assesses performance for the single segment and decides how to allocate resources based on net income that also is reported on the income statement as net income. The measure of segment assets is reported on the balance sheet as total assets. The accounting policies of the sole segment are the same as those described in the summary of significant accounting policies in Note 2.

 

The Chief Operating Decision Maker uses gross profit and net income to evaluate Company performance and in what way to allocate resources. Significant segment expenses, which are the same as the entity as a whole, are as follows:

 

		As of December 31,
		2025				2024
Total revenue		$	62,064			$	52,347
Employee costs			14,905				12,933
Contractors and professional services			11,566				7,815
Materials and supplies			22,042				15,559
Depreciation and amortization			897				928
Interest expense			1,126				670
Other income			(1,416	)			(2	)
Tax expense			151				318
Facilities			3,905				3,413
Shipping			1,059				1,193
Testing			418				917
IT services			1,471				1,091
Insurance			862				785
Manufacturing other expense			1,064				992
Selling, general and administrative other expense			2,224				1,500
Total Expense			60,274				48,112
Net Income		$	1,790			$	4,235

 

Revenue from international sources approximated $5,169 and $1,825 for the years ended December 31, 2025 and 2024, respectively. As part of our revenue from international sources, we recognized approximately $3,326 and $616 in product revenue from United Kingdom companies, in the aggregate, for the years ended December 31, 2025 and 2024, respectively.

 

 

Our operations comprise a single business segment and all of our long-lived assets are located within the United States. We categorize our revenue stream into three main product categories, personal care ingredients, advanced materials and consumer products. The revenues for 2025 and 2024 by category are as follows:

 

		For the years ended December 31
Product Category		2025				2024
Consumer Products		$	54,868			$	44,373
Personal Care Ingredients			6,339				6,827
Advanced Materials			857				1,147
Total Sales		$	62,064			$	52,347