Quarterly report [Sections 13 or 15(d)]

SEGMENTS

v3.25.1
SEGMENTS
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENTS

NOTE 4 – SEGMENTS

 

The Company has the following reportable segments:

 

Starco Brands. The Starco Brands segments generate revenue through the development and sales of consumer good products. The Starco Brands segment includes STCB, AOS, Whipshots Holdings and Whipshots LLC.

 

Skylar. The Skylar segment generates revenue through the sale of fragrances.

 

Soylent. The Soylent segment generates revenue through the sale of nutritional products, mainly drinks.

 

Balance sheet data are reviewed by the Chief Operating Decision Maker (“CODM”) on a consolidated basis; therefore, disaggregated balance sheet data are not presented.

 

The CODM uses the following measures to assess segment performance:

 

Profit or Loss Measures

 

  ● Revenues
  ● Revenues – related parties
  ● Gross profit
  ● Income from operations

 

Significant Expense Categories

 

  ● Cost of goods sold
  ● Cost of goods sold – related parties
  ● Compensation expense
  ● Professional fees
  ● Marketing, general and administrative expenses
  ● Fair value share adjustment gain/loss
  ● Goodwill impairment

 

The following tables present gross profit and significant expenses by reporting segment:

 

 

    Starco Brands     Skylar     Soylent     Total  
    Three Months Ended March 31, 2025  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 1,150,225     $ 1,413,933     $ 7,254,599     $ 9,818,757  
Gross revenues, related parties     1,050,312       -       -       1,050,312  
Cost of revenues     213,384       558,982       4,455,484       5,227,850  
Cost of revenues, related parties     897,981       -       -       897,981  
Gross profit     1,089,172       854,951       2,799,115       4,743,238  
                                 
Compensation expense     874,485       220,399       641,304       1,736,188  
Professional fees     611,869       54,232       114,123       780,224  
Marketing, general and administrative     908,413       859,489       1,616,516       3,384,418  
Fair value share adjustment gain     -       -       (3,692,529 )     (3,692,529 )
Total operating expenses     2,394,767       1,134,120       (1,320,586 )     2,208,301  
                                 
(Loss) income from operations   $ (1,305,595 )   $ (279,169 )   $ 4,119,701     $ 2,534,937  

 

    Starco Brands     Skylar     Soylent     Total  
    Three Months Ended March 31, 2024  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 1,673,890     $ 2,075,125     $ 9,180,176     $ 12,929,191  
Gross revenues, related parties     2,310,196       -       -       2,310,196  
Cost of revenues     224,917       843,068       6,005,250       7,073,235  
Cost of revenues, related parties     1,152,008       -       -       1,152,008  
Gross profit     2,607,161       1,232,057       3,174,926       7,014,144  
                                 
Compensation expense     1,034,475       446,321       1,093,932       2,574,728  
Professional fees     838,356       123,038       234,724       1,196,118  
Marketing, general and administrative     1,821,850       1,011,633       2,482,470       5,315,953  
Fair value share adjustment loss     -       -       1,921,949       1,921,949  
Total operating expenses     3,694,681       1,580,992       5,733,075       11,008,748  
                                 
Loss from operations   $ (1,087,520 )   $ (348,935 )   $ (2,558,149 )   $ (3,994,604 )