v3.26.1
Segment information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment information

13. Segment information

 

The Company operates and manages its business as one reportable and operating segment concentrating on the sale of gift cards and discount certificates to our customers. The measure of segment assets is reported on the balance sheet as total consolidated assets. The Company derives revenue primarily in the United States of America and manages its business activities on a consolidated basis.

 

The Company’s chief operating decision maker (CODM), its Chief Executive Officer, reviews financial information presented on a consolidated basis and decides how to allocate resources based on net loss. Consolidated net loss is used for evaluating financial performance. The monitoring of budgeted versus actual results is used in assessing performance of the Company and in establishing management’s compensation.

 

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

             
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2026   2025   2026   2025 
                 
Net Sales  $21,747,024   $20,900,731   $43,104,428   $43,177,744 
Cost of sales   17,343,380    17,045,106    34,455,545    35,740,483 
Gross profit   4,403,644    3,855,625    8,648,883    7,437,261 
                     
Operating expenses                    
Employee compensation and benefits   1,635,767    1,542,184    3,641,809    3,189,482 
Stock-based compensation expense   700,957    1,607,872    1,896,226    3,410,007 
Merchant and bank fees   1,229,033    995,974    2,491,540    2,111,005 
Facility costs   131,765    138,606    259,564    309,879 
Consulting and outside provider costs   449,013    443,379    1,232,807    1,194,318 
Sales and marketing costs   552,567    

712,515

    1,111,571    

1,004,057

 
Depreciation of capitalized software costs   128,193    161,543    289,737    323,087 
Amortization of intangible assets   550,849    557,062    1,128,190    1,100,979 
Other operating expenses   279,464    274,014    518,392    539,636 
Total operating expenses   5,657,608    6,433,149    12,569,836    13,182,450 
Loss from operations  $(1,253,964)  $(2,577,524)  $(3,920,953)  $(5,745,189)