Sow Good Inc. Segments Disclosure
Note 15 - Segment Reporting
The Company operates as one reportable segment, reflecting its capital-light business model under which it earns proceeds from the sale of freeze-dried candy products. The Chief Operating Decision Maker (“CODM”), the Company’s , evaluates performance and allocates resources based on the consolidated Statement of Operations. The CODM does not review asset-level information in assessing segment performance; accordingly, such information is not presented. The accounting policies for this segment are consistent with those described in Note 2 – Summary of Significant Accounting Policies.
On December 30, 2025, the Company sold substantially all of its manufacturing assets to Trea Grove, a related party. In connection with this transaction, the Company entered into an exclusive Distribution Agreement under which Trea Grove serves as the exclusive distributor of the Company’s finished goods inventory, and the Company receives 10% of gross receipts from customer sales. Following these transactions, the Company continues to operate as a reportable segment.
As a result, the Company no longer operates manufacturing facilities and has transitioned to a capital-light model for the term of the Distribution Agreement. The results of the former manufacturing and omnichannel sales operations have been reclassified to net income (loss) from discontinued operations in the consolidated Statement of Operations for all periods presented. The segment information presented below reflects only continuing operations.
The following table provides the operating financial results of our freeze-dried candy segment for the twelve months ended December 31, 2025 and 2024:
|
|
Year Ended |
|
|||||
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Revenues |
|
$ |
- |
|
|
$ |
- |
|
Salaries and benefits |
|
|
4,410,288 |
|
|
|
7,614,215 |
|
Professional services |
|
|
838,654 |
|
|
|
1,589,287 |
|
Other general and administrative expenses |
|
|
1,323,667 |
|
|
|
1,854,779 |
|
Depreciation and amortization |
|
|
33,101 |
|
|
|
31,644 |
|
Interest expense, net |
|
|
159,953 |
|
|
|
741,204 |
|
Segment net income (loss) |
|
$ |
(6,765,663 |
) |
|
$ |
(11,831,129 |
) |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
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.