v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 4 – SEGMENT INFORMATION

 

The Company manages its operations under two segments for the purpose of assessing performance and making operating decisions – Business to Business (“B2B”) and Business to Consumer (“B2C)”. The Company’s Chief Operating Decision Maker (“CODM”) is our executive management committee. The CODM allocates resources and evaluates the performance of the Company using information about combined net income from operations. All significant operating decisions are based upon an analysis of the Company as two operating segments, which are the same as its reporting segments.

We operate in two business segments: B2B and B2C. We organize our business segments based on the nature of products and services offered, and the economic characteristics of each segment. Following is a brief description of the activities of our business segments.

 

B2B

 

Our B2B segment includes the results of operations of Eastern Standard, RevenueZen, DDS Rank, SEO Butler, Contentellect, Pace Generative and DealPipe. These entities share similar characteristics such as customers being businesses, and being primarily service-related revenue.

 

B2C

 

Our B2C segment includes the results of operations of Proofread Anywhere, Mighty Deals, and Vital Reaction. These entities share characteristics such as the end customers being individual consumers, and sales being more focused on product sales, including digital sales.

 

Selected Financial Data by Business Segment

 

Net sales and operating profit of the Company’s business segments exclude intersegment sales, cost of sales and profit as these activities are eliminated in consolidation and thus are not included in management’s evaluation of performance of each segment. Our Executive Management Committee serves as our Chief Operating Decision Maker (CODM) and is responsible for reviewing segment performance and making decisions regarding resource allocation. Our CODM evaluates each segment’s performance based on metrics such as net sales, operating profit, and other key financial indicators, guiding strategic decisions to align with company-wide goals. Business segment operating profit includes the Company’s share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of its business segments.

 

Summary Operating Results

 

Sales, cost of sales and operating profit for each of our business segments were as follows (in millions):

 

 

 

For the Three Months Ended March 31, 2026

 

 

 

B2B

 

 

B2C

 

 

CORPORATE

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, services

 

$1,521,828

 

 

$37,910

 

 

$-

 

 

$1,559,738

 

Revenue, product sales

 

 

-

 

 

 

307,127

 

 

 

-

 

 

 

307,127

 

Total Revenue

 

 

1,521,828

 

 

 

345,037

 

 

 

-

 

 

 

1,866,865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue, services

 

 

900,513

 

 

 

3,856

 

 

 

-

 

 

 

904,369

 

Cost of revenue, product sales

 

 

-

 

 

 

44,361

 

 

 

-

 

 

 

44,361

 

Total cost of revenue

 

 

900,513

 

 

 

48,217

 

 

 

-

 

 

 

948,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

621,315

 

 

 

296,820

 

 

 

-

 

 

 

918,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

709,597

 

 

 

180,004

 

 

 

431,185

 

 

 

1,320,786

 

Professional fees

 

 

23,615

 

 

 

19,438

 

 

 

387,651

 

 

 

430,704

 

Acquisition costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total operating expenses

 

 

733,727

 

 

 

199,442

 

 

 

818,836

 

 

 

1,751,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$(111,897 )

 

$97,378

 

 

$(818,836 )

 

$(833,355 )

 

 

For the Three Months Ended March 31, 2025

 

 

 

B2B

 

 

B2C

 

 

CORPORATE

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, services

 

$1,693,914

 

 

$102,681

 

 

$-

 

 

$1,796,595

 

Revenue, product sales

 

 

-

 

 

 

1,015,348

 

 

 

-

 

 

 

1,015,348

 

Total Revenue

 

 

1,693,914

 

 

 

1,118,029

 

 

 

-

 

 

 

2,811,943

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue, services

 

 

982,352

 

 

 

34,508

 

 

 

-

 

 

 

1,016,860

 

Cost of revenue, product sales

 

 

-

 

 

 

87,963

 

 

 

-

 

 

 

87,963

 

Total cost of revenue

 

 

982,352

 

 

 

122,471

 

 

 

-

 

 

 

1,104,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

711,562

 

 

 

995,558

 

 

 

-

 

 

 

1,707,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

746,481

 

 

 

757,102

 

 

 

717,763

 

 

 

2,221,346

 

Professional fees

 

 

15,626

 

 

 

10,298

 

 

 

211,981

 

 

 

237,905

 

Acquisition costs

 

 

-

 

 

 

-

 

 

 

33,410

 

 

 

33,410

 

Total operating expenses

 

 

762,107

 

 

 

767,400

 

 

 

963,154

 

 

 

2,492,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$(50,545 )

 

$228,158

 

 

$(963,154 )

 

$(785,541 )

 

Included within Selling, general and administrative is intangible asset amortization expense of $203,677 for the B2B segment and $0 for the B2C segment for the three months ended March 31, 2026. Intangible asset amortization expense of $301,112 for the B2B segment and $0 for the B2C segment was included for the three months ended March 31, 2025.

 

Unallocated Items

 

Business segment operating profit excludes the other items not considered part of management’s evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, stock-based compensation expense, significant asset impairments, gains or losses from divestitures, intangible asset amortization expense, and other miscellaneous corporate activities. Excluded items are included in the reconciling item “Corporate” between operating profit from our business segments and our consolidated operating profit.

 

Assets

 

Total assets for each of our business segments were as follows:

 

 

 

As of

March 31,

2026

 

 

As of

December 31,

2025

 

B2B

 

$4,887,552

 

 

$5,399,530

 

B2C

 

 

1,809,382

 

 

 

1,873,485

 

Total business segment assets

 

 

6,696,934

 

 

 

7,273,015

 

Corporate assets

 

 

2,294,338

 

 

 

4,087,843

 

Total Assets

 

$8,991,272

 

 

$11,360,858

 

 

Corporate assets primarily include cash and cash equivalents, and investments in unconsolidated joint ventures. During the three months ended March 31, 2026, the Company incurred no reportable capital expenditures or additions to goodwill related to its segments.