Wellgistics Health, Inc. Segments Disclosure
NOTE 12. SEGMENT AND GEOGRAPHIC INFORMATION
The Company operates as one operating segment. The Company’s CODM is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated gross margin, operating income and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow operating income and the allocation of budget between cost of revenues, sales and marketing, general and administrative expenses or technology and development.
The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2025 and 2024:
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Net revenues | $ | 23,337,860 | $ | 18,128,831 | ||||
| Cost of net revenues | 29,764,279 | 16,361,517 | ||||||
| Gross profit (loss) | (6,426,419 | ) | 1,767,314 | |||||
| Operating expenses: | ||||||||
| General and administrative | 70,332,827 | 6,797,782 | ||||||
| Sales and marketing | 1,224,521 | |||||||
| Depreciation and amortization | 3,211,064 | 1,114,664 | ||||||
| Goodwill and intangible assets impairment | 12,554,266 | |||||||
| Total operating expenses | 87,322,678 | 7,912,446 | ||||||
| Loss from operations | (93,749,097 | ) | (6,145,132 | ) | ||||
| Other income/(expense): | ||||||||
| Interest expense, net | (4,579,556 | ) | (831,467 | ) | ||||
| Loss on debt extinguishment | (2,987,922 | ) | ||||||
| Other income | 42,045 | 120,373 | ||||||
| Total other expense, net | (7,525,433 | ) | (711,094 | ) | ||||
| Net loss before income taxes | (101,274,530 | ) | (6,856,226 | ) | ||||
| Provision for income taxes | ||||||||
| Net loss | $ | (101,274,530 | ) | $ | (6,856,226 | ) | ||
All revenues were within the U.S. region. See Note 1, Organization and Summary of Significant Accounting Policies - Revenue Recognition for additional information about disaggregated revenue.
The Company’s long-lived tangible assets, as well as the Company’s operating lease right-of-use assets recognized on the consolidated balance sheets were located as follows:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| United States | ||||||||
| Property, plant and equipment, net | $ | 229,376 | $ | 388,180 | ||||
| Operating lease, right-of-use assets | $ | 966,893 | $ | 1,528,128 | ||||
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.