| Operating Segments |
Operating Segments At June 30, 2026, the Company had three segments: Branded Spirits, Distilling Solutions, and Ingredient Solutions. The Company’s operating segments are based on the financial information the chief operating decision maker uses to allocate resources and evaluate performance of the business. The Branded Spirits segment consists of a portfolio of high quality branded spirits which are produced through distilleries and bottling facilities. The Distilling Solutions segment consists of food grade alcohol (primarily brown goods) and distillery co-products, such as distillers feed (commonly called dried distillers grain in the industry). The Distilling Solutions segment also includes warehouse services, such as barrel put away, barrel storage, and barrel retrieval services. The Ingredient Solutions segment consists of specialty starches and proteins as well as commodity starches and proteins. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.
Operating income for each segment is based on sales less identifiable operating expenses. Non-direct selling, general, and administrative expenses, interest expense, and other general miscellaneous expenses are excluded from segment operations and are classified as Corporate. Receivables, inventories, property, plant and equipment, leases, goodwill, and intangible assets have been identified with the segments to which they relate. All other assets are considered as Corporate.
The following tables present summarized financial information for each segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter Ended June 30, 2026 | | Branded Spirits | | Distilling Solutions | | Ingredient Solutions | | Corporate | | Total | | Sales | $ | 59,630 | | | $ | 29,220 | | | $ | 35,507 | | | $ | — | | | $ | 124,357 | | | Cost of Goods Sold | 28,034 | | | 17,918 | | | 31,934 | | | — | | | 77,886 | | | Gross Profit | 31,596 | | | 11,302 | | | 3,573 | | | — | | | 46,471 | | | Advertising and promotion expense | 5,546 | | | — | | | 114 | | | 23 | | | 5,683 | | | SG&A expense | 7,945 | | | 717 | | | 763 | | | 10,812 | | | 20,237 | | | Provision for credit loss | 2,148 | | | — | | | — | | | — | | | 2,148 | | | Impairment and other | 751 | | | — | | | — | | | — | | | 751 | | | Operating income (loss) | $ | 15,206 | | | $ | 10,585 | | | $ | 2,696 | | | $ | (10,835) | | | $ | 17,652 | | | | | | | | | | | | | Depreciation and amortization | $ | 2,144 | | | $ | 1,767 | | | $ | 2,119 | | | $ | 356 | | | $ | 6,386 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter Ended June 30, 2025 | | Branded Spirits | | Distilling Solutions | | Ingredient Solutions | | Corporate | | Total | | Sales | $ | 60,520 | | | $ | 50,000 | | | $ | 34,974 | | | $ | — | | | $ | 145,494 | | | Cost of Goods Sold | 28,536 | | | 31,188 | | | 27,383 | | | — | | | 87,107 | | | Gross Profit | 31,984 | | | 18,812 | | | 7,591 | | | — | | | 58,387 | | | Advertising and promotion expense | 6,268 | | | 285 | | | 331 | | | 29 | | | 6,913 | | | SG&A expense | 8,979 | | | 786 | | | 970 | | | 12,421 | | | 23,156 | | | | | | | | | | | | | Change in fair value of contingent consideration | 8,000 | | | — | | | — | | | — | | | 8,000 | | | Operating income (loss) | $ | 8,737 | | | $ | 17,741 | | | $ | 6,290 | | | $ | (12,450) | | | $ | 20,318 | | | | | | | | | | | | | Depreciation and amortization | $ | 2,145 | | | $ | 2,025 | | | $ | 1,307 | | | $ | 353 | | | $ | 5,830 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year to Date Ended June 30, 2026 | | Branded Spirits | | Distilling Solutions | | Ingredient Solutions | | Corporate | | Total | | Sales | $ | 103,867 | | | $ | 57,220 | | | $ | 69,697 | | | $ | — | | | $ | 230,784 | | | Cost of Goods Sold | 51,135 | | | 37,293 | | | 62,303 | | | — | | | 150,731 | | | Gross Profit | 52,732 | | | 19,927 | | | 7,394 | | | — | | | 80,053 | | | Advertising and promotion expense | 11,558 | | | 86 | | | 122 | | | 108 | | | 11,874 | | | SG&A expense | 15,915 | | | 1,421 | | | 1,635 | | | 22,332 | | | 41,303 | | | Provision for credit loss | 2,148 | | | — | | | — | | | — | | | 2,148 | | | Impairment and other | 180,277 | | | — | | | — | | | — | | | 180,277 | | | Operating income (loss) | $ | (157,166) | | | $ | 18,420 | | | $ | 5,637 | | | $ | (22,440) | | | $ | (155,549) | | | | | | | | | | | | | Depreciation and amortization | $ | 4,303 | | | $ | 3,565 | | | $ | 4,077 | | | $ | 706 | | | $ | 12,651 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year to Date Ended June 30, 2025 | | Branded Spirits | | Distilling Solutions | | Ingredient Solutions | | Corporate | | Total | | Sales | $ | 108,747 | | | $ | 96,943 | | | $ | 61,457 | | | $ | — | | | $ | 267,147 | | | Cost of Goods Sold | 54,565 | | | 59,451 | | | 51,414 | | | — | | | 165,430 | | | Gross Profit | 54,182 | | | 37,492 | | | 10,043 | | | — | | | 101,717 | | | Advertising and promotion expense | 13,922 | | | 431 | | | 651 | | | 81 | | | 15,085 | | | SG&A expense | 17,969 | | | 1,438 | | | 2,094 | | | 22,860 | | | 44,361 | | | | | | | | | | | | | Change in fair value of contingent consideration | 22,700 | | | — | | | — | | | — | | | 22,700 | | | Operating income (loss) | $ | (409) | | | $ | 35,623 | | | $ | 7,298 | | | $ | (22,941) | | | $ | 19,571 | | | | | | | | | | | | | Depreciation and amortization | $ | 4,285 | | | $ | 4,080 | | | $ | 2,578 | | | $ | 695 | | | $ | 11,638 | |
The following table allocates assets to each segment as of: | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Identifiable Assets | | | | | | Branded Spirits | | $ | 550,586 | | | $ | 734,459 | | | Distilling Solutions | | 337,437 | | | 342,449 | | | Ingredient Solutions | | 139,069 | | | 133,807 | | | Corporate | | 30,671 | | | 25,149 | | | Total | | $ | 1,057,763 | | | $ | 1,235,864 | |
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