| Segment Reporting |
17.
Segment Reporting
The
Company manages its business on a product basis and operates in the following two reporting segments for financial reporting purposes:
(1) Hard Tonneau Covers and (2) Soft Tonneau Covers. The accounting policies of both reporting segments are the same as those described
in Note 1, Description of Business and Summary of Significant Accounting Policies.
The
Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who regularly reviews financial information
presented on a consolidated basis for purposes of allocating resources and evaluating financial performance of the Company’s reporting
segments. The CODM primarily focuses on net income to evaluate its reporting segments. The CODM also uses net income for evaluating pricing
strategy and to assess the performance for determining the compensation of certain employees. Significant segment expenses reviewed,
which represent the differences between segment revenue and segment net loss, consist of the following:
Schedule
of Revenue and Segment Net Loss
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
For the three months ended June 30, 2025 | | |
For the three months ended June 30, 2024 | |
| | |
Hard
Tonneau
Covers | | |
Soft
Tonneau
Covers | | |
Corporate / Other / Eliminations | | |
Consolidated | | |
Hard
Tonneau
Covers | | |
Soft
Tonneau
Covers | | |
Corporate / Other / Eliminations | | |
Consolidated | |
| Net sales | |
$ | 3,981,689 | | |
$ | 123,269 | | |
$ | - | | |
$ | 4,104,958 | | |
$ | 960,195 | | |
$ | 961,344 | | |
$ | - | | |
$ | 1,921,539 | |
| Less: Cost of sales | |
| (2,937,204 | ) | |
| (90,357 | ) | |
| 4,715 | | |
| (3,022,846 | ) | |
| (812,254 | ) | |
| (812,656 | ) | |
| - | | |
| (1,624,910 | ) |
| Selling, general and administrative | |
| (2,502,025 | ) | |
| (52,063 | ) | |
| (1,701,753 | ) | |
| (4,255,841 | ) | |
| (1,277,484 | ) | |
| (766,870 | ) | |
| (1,930,197 | ) | |
| (3,974,551 | ) |
| Depreciation and amortization | |
| (430,224 | ) | |
| (10,002 | ) | |
| (3,676 | ) | |
| (443,902 | ) | |
| (187,826 | ) | |
| (23,095 | ) | |
| (21,905 | ) | |
| (232,826 | ) |
| Loss from continuing operations | |
$ | (1,887,764 | ) | |
$ | (29,153 | ) | |
$ | (1,700,714 | ) | |
$ | (3,617,631 | ) | |
$ | (1,317,369 | ) | |
$ | (641,277 | ) | |
$ | (1,952,102 | ) | |
$ | (3,910,748 | ) |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
For the six months ended June 30, 2025 | | |
For the six months ended June 30, 2024 | |
| | |
Hard
Tonneau
Covers | | |
Soft
Tonneau
Covers | | |
Corporate / Other / Eliminations | | |
Consolidated | | |
Hard
Tonneau
Covers | | |
Soft
Tonneau
Covers | | |
Corporate / Other / Eliminations | | |
Consolidated | |
| Net sales | |
$ | 6,100,254 | | |
$ | 244,709 | | |
$ | - | | |
$ | 6,344,963 | | |
$ | 995,977 | | |
$ | 1,438,199 | | |
$ | - | | |
$ | 2,434,176 | |
| Less: Cost of sales | |
| (4,673,695 | ) | |
| (188,708 | ) | |
| (4,227 | ) | |
| (4,866,630 | ) | |
| (843,807 | ) | |
| (1,256,284 | ) | |
| - | | |
| (2,100,091 | ) |
| Selling, general and administrative | |
| (4,525,421 | ) | |
| (118,292 | ) | |
| (3,819,688 | ) | |
| (8,463,401 | ) | |
| (2,254,510 | ) | |
| (999,331 | ) | |
| (4,014,486 | ) | |
| (7,268,327 | ) |
| Depreciation and amortization | |
| (847,539 | ) | |
| (22,831 | ) | |
| (18,498 | ) | |
| (888,868 | ) | |
| (498,277 | ) | |
| (38,135 | ) | |
| (79,560 | ) | |
| (615,972 | ) |
| Loss from continuing operations | |
$ | (3,946,401 | ) | |
$ | (85,122 | ) | |
$ | (3,842,413 | ) | |
$ | (7,873,936 | ) | |
$ | (2,600,617 | ) | |
$ | (855,551 | ) | |
$ | (4,094,046 | ) | |
$ | (7,550,214 | ) |
The
following table presents the Company’s net sales disaggregated by geographic area:
Schedule
of Net Sales Disaggregated by Geographic Area
| | |
| | |
| | |
| | |
| | |
| | |
| |
| | |
2025 | | |
2024 | |
| | |
Hard
Tonneau
Covers | | |
Soft
Tonneau
Covers | | |
Consolidated | | |
Hard
Tonneau
Covers | | |
Soft
Tonneau
Covers | | |
Consolidated | |
| United States | |
$ | 6,053,246 | | |
$ | 244,709 | | |
$ | 6,297,955 | | |
$ | 976,057 | | |
$ | 1,409,435 | | |
$ | 2,385,492 | |
| Canada | |
| 47,008 | | |
| - | | |
| 47,008 | | |
| 19,920 | | |
| 28,764 | | |
| 48,684 | |
| Net sales | |
$ | 6,100,254 | | |
$ | 244,709 | | |
$ | 6,344,963 | | |
$ | 995,977 | | |
$ | 1,438,199 | | |
$ | 2,434,176 | |
No
asset information has been provided for the reported segments as the CODM does not regularly review asset information by reportable segment.
As of June 30, 2025 and December 31, 2024, assets held in the U.S. accounted for 88% of total assets, respectively.
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