| Schedule of Segment Reporting Information |
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
| | |
2026 | | |
2025 | |
| | |
Three
Months Ended March
31, | |
| | |
2026 | | |
2025 | |
| | |
| | |
| |
| Net
sales | |
$ | 21,357,404 | | |
$ | 22,277,013 | |
| Cost of sales | |
| 17,112,165 | | |
| 18,695,377 | |
| Gross profit | |
| 4,245,239 | | |
| 3,581,636 | |
| | |
| | | |
| | |
| Less: | |
| | | |
| | |
| Employee compensation and
benefits | |
| 1,616,062 | | |
| 1,551,307 | |
| Stock-based compensation expense | |
| 1,195,269 | | |
| 1,563,005 | |
| Merchant and bank fees | |
| 1,262,507 | | |
| 1,115,030 | |
| Facility costs | |
| 132,548 | | |
| 171,274 | |
| Consulting and outside provider
costs | |
| 752,110 | | |
| 808,413 | |
| Sales and marketing expenses | |
| 558,701 | | |
| 565,395 | |
| Depreciation of capitalized
software costs | |
| 161,543 | | |
| 161,543 | |
| Amortization of intangible
assets | |
| 577,341 | | |
| 543,917 | |
| Other operating expenses | |
| 656,147 | | |
| 269,417 | |
| Total operating expenses | |
| 6,912,228 | | |
| 6,749,301 | |
| Loss from operations | |
$ | (2,666,989 | ) | |
$ | (3,167,665 | ) |
|