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

NOTE 11 – SEGMENT REPORTING

 

The Company’s operations are managed and reported in two operating segments, each of which is a reportable segment for financial reporting purposes: (1) RF Specialties and (2) Two Trees Distilling. These segments are organized principally by product and service category. The Company’s reportable segments are determined based on (1) financial information reviewed by the CODM, (2) operational structure of the Company which is designed and managed to share resources across the entire suite of products offered by the business, and (3) the basis upon which the CODM makes resource allocation decisions. The CODM for both segments is the Director, President and Chief Executive Officer of the Company. The CODM utilizes the segment operating income (loss) to assess profitability and performance of actual results compared to forecasts.

 

Significant segment expenses and assets information is as follows:

 

   2026   2025 
  

For the Three Months ended

June 30,

 
   2026   2025 
         
Revenue          
Two Trees Distilling  $253,568   $249,566 
RF Specialties   270,522    171,043 
Total  $524,090   $420,609 
           
Cost of Sales          
Two Trees Distilling  $310,612   $220,638 
RF Specialties   141,062    481,268 
Total  $451,674   $701,906 
           
Gross profit          
Two Trees Distilling  $(57,044)  $28,928 
RF Specialties   129,460    (310,225)
Total  $72,416   $(281,297)
           
General & Administrative Expense          
Two Trees Distilling  $121,211   $219,229 
RF Specialties   45,888    73,245 
Corporate   156,678    296,888 
Total  $323,777   $589,362 
           
Salary and Wages          
Two Trees Distilling  $2,109   $- 
RF Specialties   -    - 
Corporate   162,819    375,265 
Total  $164,928   $375,265 
           
Depreciation and Amortization Expense          
Two Trees Distilling  $58,506   $28,998 
RF Specialties   31,450    46,455 
Corporate   3,357    3,135 
Total  $93,313   $78,588 
           
Net loss from operations          
Two Trees Distilling  $(238,870)  $(219,299)
RF Specialties   52,122    (429,925)
Corporate   (322,854)   (675,288)
Total  $(509,602)  $(1,324,512)

 

 

   2026   2025 
  

For the Six Months ended

June 30,

 
   2026   2025 
         
Revenue          
Two Trees Distilling  $567,307   $502,403 
RF Specialties   390,870    432,136 
Total  $958,177   $934,539 
           
Cost of Sales          
Two Trees Distilling  $681,663   $389,353 
RF Specialties   340,361    693,951 
Total  $1,022,024   $1,083,304 
           
Gross profit          
Two Trees Distilling  $(114,356)  $113,050 
RF Specialties   50,509    (261,815)
Total  $(63,847)  $(148,765)
           
General & Administrative Expense          
Two Trees Distilling  $257,103   $364,567 
RF Specialties   89,548    146,915 
Corporate   465,020    661,785 
Total  $811,670   $1,173,267 
           
Salary and Wages          
Two Trees Distilling  $2,109   $16,148 
RF Specialties   -    - 
Corporate   308,873    452,926 
Total  $310,982   $469,074 
           
Depreciation and Amortization Expense          
Two Trees Distilling  $89,076   $53,615 
RF Specialties   65,239    91,340 
Corporate   6,599    6,240 
Total  $160,914   $151,195 
           
Net loss from operations          
Two Trees Distilling  $(462,644)  $(321,280)
RF Specialties   (104,278)   (500,070)
Corporate   (780,492)   (1,120,951)
Total  $(1,347,414)  $(1,942,301)
           
Capital expenditures          
Two Trees Distilling  $22,202   $56,909 
RF Specialties   20,104   714,373 
Corporate   

1,694

    - 
Total  $42,306  $771,282 

 

Assets  As of June 30, 2026   As of December 31, 2025 
Two Trees Distilling  $2,474,455   $1,958,962 
RF Specialties   1,275,725    1,946,177 
Corporate   140,765    143,633 
Total  $3,890,945   $4,048,772