v3.25.1
Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segments

11. Segments

 

The Company’s Chief Executive Officer, Alex Mannine, serves as the Chief Operating Decision Maker (“CODM”) and evaluates the financial performance of the business and makes resource allocation decisions on a consolidated basis. As a result, the Company operates as a single reportable segment under ASC 280, Segment Reporting, defined by the CODM as Consumer Goods. The Company's operations include marketing, e-commerce expenses, and purchasing and procurement, all of which are managed centrally. The CODM assesses financial performance based on revenue, operating profit, and key operating expenses as detailed below.

        
   March 31, 2025   March 31, 2024 
Revenue, net  $—   $— 
Less: Cost of goods sold   4,718    4,235 
Less:          
          Salaries, benefits and consultants   32,500    32,500 
          Other segment expenses (1)   43,752    43,881 
Segment net loss   (80,970)   (80,616)
           
Reconciliation of loss:          
Other income, net   —    — 
Interest expense   (939)   (6,626)
Loss before income taxes  $(80,970)  $(80,616)

 

(1) - other segment items included in Segment net loss include: professional fees, insurance, general and administrative expenses, depreciation, other income and interest expense.

These expenses represent the key cost components reviewed by the CODM in assessing the Company's performance.

The CODM evaluates income generated from the Company’s assets using net income as a key metric. The CODM utilizes this measure to assess return on assets when making strategic decisions. As the Company operates as one reportable segment, total segment assets and total consolidated assets are effectively the same. As such, segment assets are equivalent to total consolidated assets as presented on the balance sheet and all significant accounting policies, major customers, and revenue-related disclosures required under GAAP are included elsewhere in the financial statements.