Sow Good Inc. Segments Disclosure
Note 15 - Segment Reporting
The Company operates as a reportable segment, which is engaged in the production and sale of freeze-dried candy products. The Chief Operating Decision Maker ("CODM"), who is the Company’s , evaluates the performance of the business and allocates resources based on a review of the Statement of Operations presented on a consolidated basis. The CODM does not review assets in evaluating the results of the freeze-dried candy segment, and therefore, such information is not presented. The accounting policies of the freeze-dried candy segment are the same as those described in Note 2 – Summary of Significant Accounting Policies.
The following table provides the operating financial results of our freeze-dried candy segment for the twelve months ended December 31, 2024 and 2023:
|
|
Year Ended |
|
|||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Revenues |
|
$ |
31,992,511 |
|
|
$ |
16,070,924 |
|
Less: Significant other segment expenses |
|
|
|
|
|
|
||
Cost of goods sold |
|
|
19,017,498 |
|
|
|
12,795,754 |
|
Salaries and benefits |
|
|
7,824,030 |
|
|
|
2,314,047 |
|
Professional services |
|
|
1,589,287 |
|
|
|
688,023 |
|
Other general and administrative expenses |
|
|
5,086,342 |
|
|
|
1,389,726 |
|
Depreciation and amortization |
|
|
31,644 |
|
|
|
104,058 |
|
Interest expense, net |
|
|
1,325,845 |
|
|
|
1,839,749 |
|
Loss on early extinguishment of debt |
|
|
696,502 |
|
|
|
- |
|
Income tax expense (benefit) |
|
|
123,579 |
|
|
|
- |
|
Segment net income |
|
$ |
(3,702,216 |
) |
|
$ |
(3,060,433 |
) |
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.