v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information

14. Segment Information

 

The Company operates and manages its business as one reportable and operating segment concentrating on the sale of gift cards and discount certificates to our customers. The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company derives revenue primarily in the United States of America and manages its business activities on a consolidated basis.

 

The Company’s chief operating decision maker (CODM), its Chief Executive Officer, reviews financial information presented on a consolidated basis and decides how to allocate resources based on net loss. Consolidated net loss is used for evaluating financial performance. The monitoring of budgeted versus actual results is used in assessing performance of the Company and in establishing management’s compensation.

 

Significant segment expenses include employee compensation, stock-based compensation, merchant fees, and consulting and outside provider costs. Other operating expenses include all remaining costs necessary to operate our business and primarily include advertising, corporate compliance, and overhead expenses. The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM:

 

Schedule of Segment Reporting Information 

   2025   2024   2025   2024 
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2025   2024   2025   2024 
                 
Net Sales  $20,900,731   $20,020,502   $43,177,744   $41,542,396 
Cost of sales   17,045,106    16,760,007    35,740,483    35,024,625 
Gross profit   3,855,625    3,260,495    7,437,261    6,517,771 
                     
Operating expenses                    
Employee compensation and benefits   1,768,705    1,711,341    3,416,003    3,252,524 
Stock-based compensation expense   1,607,872    6,226,045    3,410,007    7,525,920 
Merchant and bank fees   995,974    882,974    2,111,005    1,802,417 
Facility costs   138,606    148,500    309,879    245,879 
Consulting and outside provider costs   661,474    734,483    1,412,413    1,702,053 
Depreciation of capitalized software costs   161,543    302,738    323,087    681,474 
Amortization of intangible assets   557,061    607,917    1,100,979    1,215,834 
Other operating expenses   541,914    128,926    1,099,076    517,518 
Total operating expenses   6,433,149    10,742,924    13,182,449    16,943,619 
Loss from operations  $(2,577,424)  $(7,482,429)  $(5,745,189)  $(10,425,848)