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

NOTE 12 — SEGMENT REPORTING

 

On September 2, 2025, the Company announced that Seth Yon, its President and Chief Commercial Officer, was appointed to the position of President and Chief Executive Officer, effective September 15, 2025. The Company’s Chief Executive Officer is the chief operating decision maker (the “CODM”). The CODM reviews operating results and makes decisions about resource allocation. As described in Note 1, the THP segment met the accounting requirements to be classified as discontinued operations at September 30, 2025, and the Company no longer reports the THP segment. Accordingly, the Company has one reportable segment. The determination that the Company operates as a single segment is consistent with the nature of its operations and the financial information regularly reviewed by the Company’s CODM.

 

 

Net income (loss) is the primary profitability measure used by the CODM for purposes of assessing financial performance and resource allocation. In addition to net income (loss), the CODM also uses Adjusted EBITDA for purposes of assessing financial performance and resource allocation. Adjusted EBITDA is a non-GAAP measure and is defined as net income (loss) from continuing operations excluding interest expense/income, provision/benefit for income taxes, depreciation and amortization, noncash share-based compensation expense, change in fair value of earnout liabilities, asset impairment charges, share of losses from equity method investments, gains/losses on the disposal of property and equipment, executive separation costs, and acquisition and other transaction related costs, as each is applicable to the periods presented. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. The CODM also reviews budget-to-actual variances for expenses on a monthly basis when making decisions about allocating resources to the segment. The measure of segment assets is reported in the Consolidated Balance Sheets as total consolidated assets.

 

The following table reflects results of operations including significant segment expenses that are regularly provided to the CODM for the Company’s reportable segment and Adjusted EBITDA for the periods presented:

 

   2026   2025   2026   2025 
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2026   2025   2026   2025 
Net revenue  $28,136,757   $25,804,252   $55,935,291   $49,238,348 
Cost of goods sold   1,981,347    1,937,282    3,904,936    3,772,249 
General and administrative   5,733,083    3,956,788    10,607,704    8,001,999 
Sales and marketing(1)   16,868,607    15,677,531    33,875,506    30,761,528 
Research and development   1,154,232    1,056,796    1,913,824    2,007,155 
Depreciation and amortization(2)   619,111    688,546    1,206,363    1,382,578 
Other expense(3)   2,191,521    1,987,050    4,440,415    3,433,146 
Net income (loss) from continuing operations  $(411,144)  $500,259   $(13,457)  $(120,307)
Adjusted EBITDA  $5,010,778   $4,719,827   $9,272,946   $7,414,885 

 

(1)For the three and six months ended June 30, 2026 and 2025, sales and marketing included compensation and benefits, commissions, travel and other sales and marketing expenses.
   
(2)Depreciation expense of $7,021 and $12,482 was reclassified as continuing operations in the three and six months ended June 30, 2025, respectively, and is therefore no longer reflected in discontinued operations.
   
(3)For the three and six months ended June 30, 2026, other expense included interest expense, share of losses from equity method investments and loss on disposal of property and equipment, offset by interest income. For the three months ended June 30, 2025, other expense included interest expense and share of losses from equity method investments. For the six months ended June 30, 2025, other expense included interest expense and share of losses from equity method investments, offset by interest income and gain on disposal of property and equipment.

 

The following table provides a reconciliation of net income (loss) from continuing operations to Adjusted EBITDA for the periods presented:

 

   2026   2025   2026   2025 
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2026   2025   2026   2025 
Net income (loss) from continuing operations  $(411,144)  $500,259   $(13,457)  $(120,307)
Adjustments:                    
Interest expense   1,810,311    1,791,568    3,609,656    3,108,660 
Depreciation and amortization(1)   619,111    688,546    1,206,363    1,382,578 
Noncash share-based compensation   1,496,310    1,278,871    2,524,645    2,454,367 
Share of losses from equity method investments   433,648    195,482    896,155    339,090 
(Gain) loss on disposal of property and equipment   1,376    -    1,376    (10,932)
Interest income   (53,814)   -    (66,772)   (3,672)
Executive separation costs(2)   -    260,275    -    260,275 
Acquisition and other transaction related costs(3)   1,114,980    4,826    1,114,980    4,826 
Adjusted EBITDA  $5,010,778   $4,719,827   $9,272,946   $7,414,885 

 

(1)Depreciation expense of $7,021 and $12,482 was reclassified as continuing operations in the three and six months ended June 30, 2025, respectively, and is therefore no longer reflected in discontinued operations.
   
(2)Includes $130,174 of share-based compensation related to executive separation costs for the three and six months ended June 30, 2025.
   
(3)Acquisition and other transaction related costs are comprised of legal and advisory services related to prospective acquisitions and corporate strategic initiatives.