v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
SEGMENT INFORMATION  
SEGMENT INFORMATION

NOTE 4 – SEGMENT INFORMATION

 

The Company manages its operations under two segments for the purpose of assessing performance and making operating decisions – Business to Business (“B2B”) and Business to Consumer (“B2C)”. The Company’s Chief Operating Decision Maker (“CODM”) is our executive management committee. The CODM allocates resources and evaluates the performance of the Company using information about combined net income from operations. All significant operating decisions are based upon an analysis of the Company as two operating segments, which are the same as its reporting segments.

 

We operate in two business segments: B2B and B2C. We organize our business segments based on the nature of products and services offered, and the economic characteristics of each segment. Following is a brief description of the activities of our business segments.

 

B2B

 

Our B2B segment includes the results of operations of Eastern Standard, RevenueZen, DDS Rank, SEO Butler, Contentellect, Pace Generative and DealPipe. These entities share similar characteristics such as customers being businesses, and being primarily service-related revenue.

 

B2C

 

Our B2C segment includes the results of operations of Proofread Anywhere, Mighty Deals (divested January 2026), and Vital Reaction. These entities share characteristics such as the end customers being individual consumers, and sales being more focused on product sales, including digital sales.

 

Selected Financial Data by Business Segment

 

Net sales and operating profit of the Company’s business segments exclude intersegment sales, cost of sales and profit as these activities are eliminated in consolidation and thus are not included in management’s evaluation of performance of each segment. Our Executive Management Committee serves as our Chief Operating Decision Maker (CODM) and is responsible for reviewing segment performance and making decisions regarding resource allocation. Our CODM evaluates each segment’s performance based on metrics such as net sales, operating profit, and other key financial indicators, guiding strategic decisions to align with company-wide goals. Business segment operating profit includes the Company’s share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of its business segments.

 

Summary Operating Results

 

Sales, cost of sales and operating profit for each of our business segments were as follows (in millions):

 

 

 

For the Three Months Ended June 30, 2026

 

 

 

B2B

 

 

B2C

 

 

CORPORATE

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, services

 

$1,218,406

 

 

$556

 

 

$-

 

 

$1,218,962

 

Revenue, product sales

 

 

-

 

 

 

278,593

 

 

 

-

 

 

 

278,593

 

Total Revenue

 

 

1,218,406

 

 

 

279,149

 

 

 

-

 

 

 

1,497,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue, services

 

 

729,313

 

 

 

1,866

 

 

 

-

 

 

 

731,179

 

Cost of revenue, product sales

 

 

-

 

 

 

34,373

 

 

 

-

 

 

 

34,373

 

Total cost of revenue

 

 

729,313

 

 

 

36,239

 

 

 

-

 

 

 

765,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

489,093

 

 

 

242,910

 

 

 

-

 

 

 

732,003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

559,386

 

 

 

182,336

 

 

 

400,926

 

 

 

1,142,648

 

Professional fees

 

 

32,539

 

 

 

17,316

 

 

 

505,008

 

 

 

554,863

 

Total operating expenses

 

 

591,925

 

 

 

199,652

 

 

 

905,934

 

 

 

1,697,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$(102,832 )

 

$43,258

 

 

$(905,934 )

 

$(965,508 )

 

 

 

For the Six Months Ended June 30, 2026

 

 

 

B2B

 

 

B2C

 

 

CORPORATE

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, services

 

$2,740,234

 

 

$38,466

 

 

$-

 

 

$2,778,700

 

Revenue, product sales

 

 

-

 

 

 

585,720

 

 

 

-

 

 

 

585,720

 

Total Revenue

 

 

2,740,234

 

 

 

624,186

 

 

 

-

 

 

 

3,364,420

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue, services

 

 

1,629,826

 

 

 

5,722

 

 

 

-

 

 

 

1,635,548

 

Cost of revenue, product sales

 

 

-

 

 

 

78,734

 

 

 

-

 

 

 

78,734

 

Total cost of revenue

 

 

1,629,826

 

 

 

84,456

 

 

 

-

 

 

 

1,714,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

1,110,408

 

 

 

539,730

 

 

 

-

 

 

 

1,650,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

1,268,983

 

 

 

362,340

 

 

 

832,111

 

 

 

2,463,434

 

Professional fees

 

 

56,154

 

 

 

36,754

 

 

 

892,659

 

 

 

985,567

 

Total operating expenses

 

 

1,325,137

 

 

 

399,094

 

 

 

1,724,770

 

 

 

3,449,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$(214,729 )

 

$140,636

 

 

$(1,724,770 )

 

$(1,798,863 )

 

 

For the Three Months Ended June 30, 2025

 

 

 

B2B

 

 

B2C

 

 

CORPORATE

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, services

 

$1,974,771

 

 

$87,832

 

 

$-

 

 

$2,062,603

 

Revenue, product sales

 

 

-

 

 

 

1,085,606

 

 

 

-

 

 

 

1,085,606

 

Total Revenue

 

 

1,974,771

 

 

 

1,173,438

 

 

 

-

 

 

 

3,148,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue, services

 

 

1,052,778

 

 

 

21,287

 

 

 

-

 

 

 

1,074,065

 

Cost of revenue, product sales

 

 

-

 

 

 

135,867

 

 

 

-

 

 

 

135,867

 

Total cost of revenue

 

 

1,052,778

 

 

 

157,154

 

 

 

-

 

 

 

1,209,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

921,993

 

 

 

1,016,284

 

 

 

-

 

 

 

1,938,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

837,015

 

 

 

857,502

 

 

 

372,279

 

 

 

2,066,796

 

Professional fees

 

 

14,805

 

 

 

8,521

 

 

 

322,415

 

 

 

345,741

 

Acquisition costs

 

 

-

 

 

 

-

 

 

 

32,263

 

 

 

32,263

 

Total operating expenses

 

 

851,820

 

 

 

866,023

 

 

 

726,957

 

 

 

2,444,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$70,173

 

 

$150,261

 

 

$(726,957 )

 

$(506,523 )

 

 

 

For the Six Months Ended June 30, 2025

 

 

 

B2B

 

 

B2C

 

 

CORPORATE

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, services

 

$3,668,685

 

 

$190,513

 

 

$-

 

 

$3,859,198

 

Revenue, product sales

 

 

-

 

 

 

2,100,954

 

 

 

-

 

 

 

2,100,954

 

Total Revenue

 

 

3,668,685

 

 

 

2,291,467

 

 

 

-

 

 

 

5,960,152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue, services

 

 

2,035,130

 

 

 

51,219

 

 

 

-

 

 

 

2,086,349

 

Cost of revenue, product sales

 

 

-

 

 

 

228,406

 

 

 

-

 

 

 

228,406

 

Total cost of revenue

 

 

2,035,130

 

 

 

279,625

 

 

 

-

 

 

 

2,314,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

1,633,555

 

 

 

2,011,842

 

 

 

-

 

 

 

3,645,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

1,583,496

 

 

 

1,614,604

 

 

 

1,090,042

 

 

 

4,288,142

 

Professional fees

 

 

30,431

 

 

 

18,819

 

 

 

534,396

 

 

 

583,646

 

Acquisition costs

 

 

-

 

 

 

-

 

 

 

65,673

 

 

 

65,673

 

Total operating expenses

 

 

1,613,927

 

 

 

1,633,423

 

 

 

1,690,111

 

 

 

4,937,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$19,628

 

 

$378,419

 

 

$(1,690,111 )

 

$(1,292,064 )

 

Included within selling, general and administrative is intangible asset amortization expense of $160,077 for the B2B segment and $0 for the B2C segment for the three months ended June 30, 2026 and $363,754 for the B2B segment and $0 for the B2C segment for the six months ended June 30, 2026. Intangible asset amortization expense of $301,113 for the B2B segment and $0 for the B2C segment was included for the three months ended June 30, 2025 and $602,225 for the B2B segment and $0 for the B2C segment was included for the six months ended June 30, 2025.

 

Unallocated Items

 

Business segment operating profit excludes the other items not considered part of management’s evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, stock-based compensation expense, significant asset impairments, gains or losses from divestitures, intangible asset amortization expense, and other miscellaneous corporate activities. Excluded items are included in the reconciling item “Corporate” between operating profit from our business segments and our consolidated operating profit.

 

Assets

 

Total assets for each of our business segments were as follows:

 

 

 

As of

June 30,

2026

 

 

As of

December 31,

2025

 

B2B

 

$4,582,468

 

 

$5,399,530

 

B2C

 

 

1,706,034

 

 

 

1,873,485

 

Total business segment assets

 

 

6,288,502

 

 

 

7,273,015

 

Corporate assets

 

 

1,503,615

 

 

 

4,087,843

 

Total Assets

 

$7,792,117

 

 

$11,360,858

 

 

Corporate assets primarily include cash and cash equivalents, and investments in unconsolidated joint ventures. During the six months ended June 30, 2026, the Company incurred no reportable capital expenditures or additions to goodwill related to its segments.