v3.25.2
SEGMENT INFORMATION AND DISAGGREGATION OF REVENUES
3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Segment Information And Disaggregation Of Revenues    
SEGMENT INFORMATION AND DISAGGREGATION OF REVENUES

NOTE 7. SEGMENT INFORMATION AND DISAGGREGATION OF REVENUES

 

The Company operates in two operating segments: Grocery and Wellness. In accordance with ASC 280, these segments have been aggregated into a single reportable segment because they share similar economic characteristics and meet all aggregation criteria, including similar nature of products sold, product acquisition process, customer base, distribution methods, and regulatory environment.

 

The Company’s CODM reviews financial results and allocates resources at the consolidated level, as the aggregated segments operate as one integrated business unit. No segment-specific financial metrics are used by the CODM to assess performance.

 

The Company adopted ASU 2023-07 effective January 1, 2024, on a retrospective basis. As the Company operates as a single reportable segment, the adoption did not have an impact on the Company’s consolidated financial statements. However, it did result in enhanced disclosures related to segment expenses and reconciliations to consolidated totals. Specifically, the Company has begun disclosing segment-specific expenses that are regularly reviewed by the CODM, Jeffrey Holman, the Company’s Chief Executive Officer, in accordance with the new standard.

 

The following table summarizes the significant segment expenses:

 SCHEDULE OF SIGNIFICANT SEGMENT EXPENSES

           
   Three Months Ended March 31, 
   2025   2024 
Advertising  $157,872   $158,069 
Payroll and Benefits   3,896,602    3,322,550 
Occupancy   1,823,446    1,420,209 
Depreciation and Amortization   429,910    363,141 
Bank Service Charges and Merchant Account Fees   400,269    300,539 
Other selling, general and administrative expenses   461,918    396,407 
Total significant reporting segment expenses  $7,170,017   $5,960,915 

 

 

The following table summarizes the reconciliations of reportable segment profit or loss and assets to the Company’s consolidated totals:

 SCHEDULE OF RECONCILIATIONS OF REPORTABLE SEGMENT

                 
    Three Months Ended March 31,  
    2025     2024  
Segment net operating income (loss)   $ 681,893     $ 93,460  
Unallocated amount     (1,091,568 )     (695,206 )
Consolidated loss from operation   $ (409,675 )   $ (601,746 )

 

   March 31, 2025   December 31, 2024 
Total reporting segment assets  $31,878,125   $30,698,054 
Unallocated amount   2,207,084    3,414,463 
Consolidated total assets  $34,085,209   $34,112,517 

 

When the Company prepares its internal management reporting to evaluate business performance, we disaggregate revenue into the following categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors, including the nature of products sold, product acquisition processes, customer types, distribution methods, and regulatory environments.

SCHEDULE DISAGGREGATED REVENUES

  

March 31, 2025

  

March 31, 2024

 
Retail Grocery  $18,452,867   $13,478,803 
Food service/restaurant   1,786,799    2,414,995 
Online/eCommerce   19,940    560 
Total revenue  $20,259,606   $15,894,358 

 

The Company does not have significant revenue recognized over time due to the nature of retail store operations. The Company recognizes revenue at a point in time when control of goods or services transfers to the customer. Revenue is recognized as follows:

 

  Retail Sales: At the point of sale when payment is received, products are physically transferred, and title passes.
  Advertising Services (COOP Revenue): When promotional materials are distributed to end-user customers.

 

NOTE 5. SEGMENT REPORTING AND DISAGGREGATION OF REVENUES

 

The Company operates in two operating segments: Grocery and Wellness. In accordance with ASC 280, these segments have been aggregated into a single reportable segment because they share similar economic characteristics and meet all aggregation criteria, including similar nature of products sold, product acquisition process, customer base, distribution methods, and regulatory environment.

 

The Company’s CODM reviews financial results and allocates resources at the consolidated level, as the aggregated segments operate as one integrated business unit. No segment-specific financial metrics are used by the CODM to assess performance.

 

The Company adopted ASU 2023-07 effective January 1, 2024, on a retrospective basis. As the Company operates as a single reportable segment, the adoption did not have an impact on the Company’s consolidated financial statements. However, it did result in enhanced disclosures related to segment expenses and reconciliations to consolidated totals. Specifically, the Company has begun disclosing segment-specific expenses that are regularly reviewed by the CODM, Jeffrey Holman, the Company’s Chief Executive Officer, in accordance with the new standard. This adoption did not have an impact on the Company’s consolidated financial statements.

 

The following table summarizes the significant segment expenses:

 

 SCHEDULE OF SIGNIFICANT SEGMENT EXPENSES

         
   For the Years Ended December 31, 
   2024   2023 
Advertising  $581,357   $564,405 
Payroll and Benefits   13,963,361    12,645,985 
Occupancy   6,573,925    5,280,405 
Depreciation and Amortization   1,576,457    1,431,816 
Bank Service Charges and Merchant Account Fees   1,331,637    927,863 
Other selling, general and administrative expenses   1,680,001    1,368,736 
Goodwill impairment   -    6,104,000 
Total significant reporting segment expenses  $25,706,738   $28,323,210 

 

The following table summarizes the reconciliations of reportable segment profit or loss and assets to the Company’s consolidated totals:

 

 SCHEDULE OF RECONCILIATIONS OF REPORTABLE SEGMENT

         
   For the Years Ended December 31, 
   2024   2023 
Segment net operating income (loss)  $1,358,571   $(7,974,985)
Unallocated amount   (3,136,049)   (2,549,084)
Consolidated loss from operation  $(1,777,478)  $(10,524,069)

 

         
   For the Years Ended December 31, 
   2024   2023 
Total reporting segment assets  $30,698,054   $28,432,560 
Unallocated amount   3,414,463    - 
Consolidated total assets  $34,112,517   $28,432,560 

 

When the Company prepares its internal management reporting to evaluate business performance, we disaggregate revenue into the following categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors, including the nature of products sold, product acquisition processes, customer types, distribution methods, and regulatory environments.

 

  

December 31,

2024

  

December 31,

2023

 
Retail Grocery  $60,690,718   $47,243,163 
Food service/restaurant   8,679,160    8,440,245 
Online/eCommerce   925    6,385 
Total revenue  $69,370,803   $55,689,793 

 

The Company does not have significant revenue recognized over time due to the nature of retail store operation. The Company recognizes revenue at a point in time when control of goods or services transfers to the customer. Revenue is recognized as follows:

 

 Retail Sales: At the point of sale when payment is received, products are physically transferred, and title passes.
 Advertising Services (COOP Revenue): When promotional materials are distributed to end-user customers.