v3.26.1
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Information  
Segment Information

Note 14 – Segment Information

 

The Company accounts for segment reporting in accordance with ASC Topic 280, Segment Reporting.

Operating segments are components of an enterprise for which separate financial information is available and regularly reviewed by the chief operating decision maker ("CODM") in deciding how to allocate resources and assess performance.

 

The Company's CODM is its Chief Executive Officer.

 

The Company has identified two reportable operating segments:

 

·

Franchising – Consists primarily of franchise royalties, franchise fee revenue, manufacturer and distributor allowances, equipment commissions, and related support activities.

·

Company-Owned Restaurants – Consists of the operations of Company-owned Craft Pizza & Pub locations and Company-operated non-traditional restaurant locations.

 

The CODM evaluates segment performance primarily based on segment revenue, segment operating expenses, and segment contribution margin. General corporate expenses, depreciation and amortization, interest expense, income taxes, and certain other corporate-level items are not allocated to operating segments for purposes of evaluating segment performance.

 

Segment information for the years ended December 31, 2025 and 2024 is as follows:

 

Year Ended December 31, 2025

 

 

 

Franchising

 

 

Company-Owned Restaurants

 

 

Total

 

Revenue

 

$6,213,917

 

 

$9,977,046

 

 

$16,190,963

 

Administrative fees and other revenue

 

 

—

 

 

 

—

 

 

 

270,496

 

Total revenue

 

 

6,213,917

 

 

 

9,977,046

 

 

 

16,461,459

 

Segment operating expenses

 

 

(1,709,258)

 

 

(9,147,798)

 

 

(10,857,056)

Segment contribution margin

 

$4,504,659

 

 

$829,248

 

 

$5,604,403

 

 

Year Ended December 31, 2024

 

 

 

Franchising

 

 

Company-Owned Restaurants

 

 

Total

 

Revenue

 

$5,540,968

 

 

$9,530,722

 

 

$15,071,690

 

Administrative fees and other revenue

 

 

—

 

 

 

—

 

 

 

77,910

 

Total revenue

 

 

5,540,968

 

 

 

9,530,722

 

 

 

15,149,600

 

Segment operating expenses

 

 

(1,703,136)

 

 

(8,794,444)

 

 

(10,497,580)

Segment contribution margin

 

$3,837,832

 

 

$736,278

 

 

$4,652,020

 

 

The following table reconciles total segment contribution margin to consolidated income before income taxes:

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Total segment contribution margin

 

$5,604,403

 

 

$4,652,020

 

General and administrative expenses

 

 

(2,336,422)

 

 

(2,677,334)

Depreciation and amortization

 

 

(392,948)

 

 

(499,648)

Operating income

 

 

2,875,033

 

 

 

1,475,038

 

Interest expense

 

 

(1,336,773)

 

 

(1,637,398)

Change in fair value of warrants

 

 

52,436

 

 

 

1,828

 

Income (loss) before income taxes

 

$1,590,696

 

 

$(160,532)

 

The CODM does not regularly review total assets by segment for purposes of allocating resources. Accordingly, asset information by segment is not presented.

 

Substantially all revenues are generated within the United States. No individual franchisee or customer accounted for more than 10% of consolidated revenue during 2025 or 2024.