| SCHEDULE OF OPERATIONS, ASSETS AND CAPITAL EXPENDITURES FOR OUR BUSINESS SEGMENTS |
The
following table reflects results of operations including significant segment expenses that are regularly provided to the CODM for the
Company’s reportable segment and Adjusted EBITDA for the periods presented:
SCHEDULE OF OPERATIONS, ASSETS AND CAPITAL EXPENDITURES FOR OUR BUSINESS SEGMENTS
| | |
2026 | | |
2025 | |
| | |
Three
Months Ended March 31, | |
| | |
2026 | | |
2025 | |
| Net revenue | |
$ | 27,798,534 | | |
$ | 23,434,096 | |
| Cost of goods sold | |
| 1,923,589 | | |
| 1,834,967 | |
| General and administrative | |
| 4,874,621 | | |
| 4,045,211 | |
| Sales and marketing (1) | |
| 17,006,899 | | |
| 15,083,997 | |
| Research and development | |
| 759,592 | | |
| 950,359 | |
| Depreciation and amortization(2) | |
| 587,252 | | |
| 694,032 | |
| Other expense (3) | |
| 2,248,894 | | |
| 1,446,096 | |
| Net income (loss) from continuing operations | |
$ | 397,687 | | |
$ | (620,566 | ) |
| Adjusted EBITDA | |
$ | 4,262,168 | | |
$ | 2,695,058 | |
| (1) | For
the three months ended March 31, 2026 and 2025, sales and marketing included compensation
and benefits, commissions, travel and other sales and marketing expenses. |
| | | |
| (2) | Depreciation
expense of $5,461 was reclassified as continuing operations in the three months ended March
31, 2025 and is therefore no longer reflected in discontinued operations. |
| | | |
| (3) | For
the three months ended March 31, 2026, other expense included interest expense and share
of losses from equity method investments, offset by interest income. For the three months
ended March 31, 2025, other expense included interest expense and share of losses from equity
method investments, offset by interest income and gain on disposal of property and equipment. |
|
| SCHEDULE OF RECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA |
The
following table provides a reconciliation of net income (loss) from continuing operations to Adjusted EBITDA for the periods presented:
SCHEDULE
OF RECONCILIATION OF NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA
| | |
2026 | | |
2025 | |
| | |
Three
Months Ended March 31, | |
| | |
2026 | | |
2025 | |
| Net income (loss) from continuing operations | |
$ | 397,687 | | |
$ | (620,566 | ) |
| Adjustments: | |
| | | |
| | |
| Interest expense | |
| 1,799,345 | | |
| 1,317,092 | |
| Depreciation and amortization(1) | |
| 587,252 | | |
| 694,032 | |
| Noncash share-based compensation | |
| 1,028,335 | | |
| 1,175,496 | |
| Share of losses from equity method investments | |
| 462,507 | | |
| 143,608 | |
| Gain on disposal of property and equipment | |
| - | | |
| (10,932 | ) |
| Interest income | |
| (12,958 | ) | |
| (3,672 | ) |
| Adjusted EBITDA | |
$ | 4,262,168 | | |
$ | 2,695,058 | |
| (1) | Depreciation
expense of $5,461 was reclassified as continuing operations in the three months ended March
31, 2025 and is therefore no longer reflected in discontinued operations. |
|