| Segment Reporting [Text Block] |
Note 14. Segment Information
In accordance with ASC 280, Segment Reporting, the Company has two reportable segments, Zig-Zag products and Stoker’s products. The Zig-Zag products segment markets and distributes (i) rolling papers, tubes, and related products; (ii) finished cigars and MYO cigar wraps; and (iii) lighters and other accessories. The Stoker’s products segment (i) manufactures and markets moist snuff, (ii) contracts for and markets loose-leaf chewing tobacco products, and (iii) contracts for and markets its modern oral product. The Company's products are distributed primarily through wholesale distributors in the U.S. and Canada. Corporate unallocated includes the costs and assets of the Company not assigned to one of the two reportable segments and includes corporate overhead expense, including executive management, finance, legal and information technology salaries, and professional services such as audit, external legal costs and information technology services, as well as costs related to the FDA premarket tobacco product application.
The Company’s CODM is its President and Chief Executive Officer who uses segment operating income as the measure of earnings to evaluate the performance of each segment and to make decisions about allocating resources, including employees, property, plant and equipment, as well as financial and capital resources. On a quarterly basis, the CODM reviews segment operating income budget-to-actual variances to assess segment performance and make resource allocation decisions. For both reportable segments, cost of sales is the significant segment expense that is regularly provided to the CODM.
The accounting policies of these segments are the same as those of the Company. Corporate costs are not directly charged to the two reportable segments in the ordinary course of operations.
The tables below present financial information about reportable segments:
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
| Net sales | | | | | | | | | | | | | | | | |
| Zig-Zag products | | $ | 35,381 | | | $ | 47,018 | | | $ | 72,050 | | | $ | 94,283 | |
| Stoker’s products | | | 107,579 | | | | 69,616 | | | | 195,188 | | | | 128,787 | |
| Total | | $ | 142,960 | | | $ | 116,634 | | | $ | 267,238 | | | $ | 223,070 | |
| | | | | | | | | | | | | | | | | |
| Cost of Sales | | | | | | | | | | | | | | | | |
| Zig-Zag products (1) | | $ | 12,758 | | | $ | 23,919 | | | $ | 28,482 | | | $ | 45,618 | |
| Stoker’s products (2) | | | 36,498 | | | | 26,092 | | | | 76,757 | | | | 51,219 | |
| Total | | $ | 49,256 | | | $ | 50,011 | | | $ | 105,239 | | | $ | 96,837 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | | | | | | | | | | | | | | |
| Zig-Zag products | | $ | 22,623 | | | $ | 23,099 | | | $ | 43,568 | | | $ | 48,665 | |
| Stoker’s products | | | 71,081 | | | | 43,524 | | | | 118,431 | | | | 77,568 | |
| Total | | $ | 93,704 | | | $ | 66,623 | | | $ | 161,999 | | | $ | 126,233 | |
| | | | | | | | | | | | | | | | | |
| Other segment items (3) | | | | | | | | | | | | | | | | |
| Zig-Zag products | | $ | 13,872 | | | $ | 8,358 | | | $ | 23,586 | | | $ | 16,993 | |
| Stoker’s products | | | 41,152 | | | | 13,445 | | | | 68,731 | | | | 23,356 | |
| Total | | $ | 55,024 | | | $ | 21,803 | | | $ | 92,317 | | | $ | 40,349 | |
| | | | | | | | | | | | | | | | | |
| Operating income (loss) | | | | | | | | | | | | | | | | |
| Zig-Zag products | | $ | 8,751 | | | $ | 14,741 | | | $ | 19,982 | | | $ | 31,672 | |
| Stoker’s products | | | 29,929 | | | | 30,079 | | | | 49,700 | | | | 54,212 | |
| Total segment operating income | | $ | 38,680 | | | $ | 44,820 | | | $ | 69,682 | | | $ | 85,884 | |
| Corporate unallocated (4)(5) | | | (21,967 | ) | | | (18,493 | ) | | | (40,485 | ) | | | (36,368 | ) |
| Total | | $ | 16,713 | | | $ | 26,327 | | | $ | 29,197 | | | $ | 49,516 | |
| | | | | | | | | | | | | | | | | |
| Other expense, net | | | 63 | | | | - | | | | 126 | | | | | |
| Interest expense, net | | | 4,251 | | | | 5,140 | | | | 8,674 | | | | 9,554 | |
| Investment loss (gain) | | | 1,089 | | | | (78 | ) | | | 938 | | | | (519 | ) |
| (Income) loss from equity method investment | | | (2,674 | ) | | | 61 | | | | (5,657 | ) | | | 211 | |
| Loss on extinguishment of debt | | | - | | | | - | | | | - | | | | 1,235 | |
| | | | | | | | | | | | | | | | | |
| Income from continuing operations before income taxes | | $ | 13,984 | | | $ | 21,204 | | | $ | 25,116 | | | $ | 39,035 | |
| | | | | | | | | | | | | | | | | |
| Capital expenditures | | | | | | | | | | | | | | | | |
| Zig-Zag products | | $ | - | | | $ | 3 | | | $ | - | | | $ | 20 | |
| Stoker’s products | | | 88 | | | | 3,988 | | | | 5,227 | | | | 6,156 | |
| Total | | $ | 88 | | | $ | 3,991 | | | $ | 5,227 | | | $ | 6,176 | |
| | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | | | | | | | | | | | | | | |
| Zig-Zag products | | $ | 276 | | | $ | 232 | | | $ | 563 | | | $ | 555 | |
| Stoker’s products | | | 2,092 | | | | 1,658 | | | | 3,872 | | | | 2,950 | |
| Total | | $ | 2,368 | | | $ | 1,890 | | | $ | 4,435 | | | $ | 3,505 | |
| (1) | Cost of sales reduced by tariff refund of $2.4 million for the three months and six months ended June 30, 2026. |
| (2) | Cost of sales reduced by tariff refund of $9.9 million for the three months and six months ended June 30, 2026. |
| (3) | Includes primarily selling and marketing costs. |
| (4) | Includes corporate costs that are not allocated to any of the two reportable segments. |
| (5) | Includes costs related to FDA premarket tobacco product application (“PMTA”) of $3.2 million and $1.6 million for the three months ended June 30, 2026 and 2025, respectively, and $3.5 million and $3.2 million for the six months ended June 30, 2026 and 2025, respectively. |
| | | June 30, | | | December 31, | |
| | | 2026 | | | 2025 | |
| Assets | | | | | | | | |
| Zig-Zag products | | $ | 246,400 | | | $ | 256,762 | |
| Stoker’s products | | | 318,510 | | | | 268,305 | |
| Corporate unallocated (1) | | | 290,286 | | | | 238,683 | |
| Total | | $ | 855,196 | | | $ | 763,750 | |
| (1) | Includes assets not assigned to the two reportable segments. All goodwill has been allocated to the reportable segments. |
Net Sales: Domestic and Foreign
The following table shows a breakdown of consolidated net sales between domestic and foreign customers:
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2026 | | | 2025 | | | 2026 | | | 2025 | |
| Domestic | | $ | 136,701 | | | $ | 108,186 | | | $ | 252,854 | | | $ | 208,674 | |
| Foreign | | | 6,259 | | | | 8,448 | | | | 14,384 | | | | 14,396 | |
| Total | | $ | 142,960 | | | $ | 116,634 | | | $ | 267,238 | | | $ | 223,070 | |
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