Quarterly report [Sections 13 or 15(d)]

SEGMENTS

v3.25.2
SEGMENTS
 6 Months Ended
Jun. 30, 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 June 30, 2025  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 1,386,506     $ 2,445,134     $ 6,754,481     $ 10,586,121  
Gross revenues, related parties     421,379       -       -       421,379  
Cost of goods sold     139,234       1,307,609       4,387,889       5,834,732  
Cost of goods sold, related parties     760,488       -       -       760,488  
Gross profit     908,163       1,137,525       2,366,592       4,412,280  
                                 
Compensation expense     874,404       216,221       571,346       1,661,971  
Professional fees     682,938       62,591       166,398       911,927  
Marketing, general and administrative     956,520       772,298       1,465,071       3,193,889  
Fair value share adjustment gain     -       -       -       -  
Total operating expenses     2,513,862       1,051,110       2,202,815       5,767,787  
                                 
(Loss) income from operations   $ (1,605,699 )   $ 86,415     $ 163,777   $ (1,355,507 )

 

    Starco Brands     Skylar     Soylent     Total  
    Three Months Ended June 30, 2024  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 1,142,972     $ 1,913,896     $ 10,952,839     $ 14,009,707  
Gross revenues, related parties     941,227       -       -       941,227  
Cost of goods sold     207,101       626,394       7,654,782       8,488,277  
Cost of goods sold, related parties     758,672       -       -       758,672  
Gross profit     1,118,426       1,287,502       3,298,057       5,703,985  
                                 
Compensation expense     1,001,010       403,780       1,031,158       2,435,948  
Professional fees     618,188       179,431       343,173       1,140,792  
Marketing, general and administrative     1,482,483       963,080       2,075,115       4,520,678  
Fair value share adjustment loss     -       -       8,675,565       8,675,565  
Total operating expenses     3,101,681       1,546,291       12,125,011       16,772,983  
                                 
Loss from operations   $ (1,983,255 )   $ (258,789 )   $ (8,826,954 )   $ (11,068,998 )

 

 

    Starco Brands     Skylar     Soylent     Total  
    Six Months Ended June 30, 2025  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 2,536,731     $ 3,859,067     $ 14,009,080     $ 20,404,878  
Gross revenues, related parties     1,471,691       -       -       1,471,691  
Cost of goods sold     352,617       1,866,591       8,843,373       11,062,581  
Cost of goods sold, related parties     1,658,470       -       -       1,658,470  
Gross profit     1,997,335       1,992,476       5,165,707       9,155,518  
                                 
Compensation expense     1,748,889       436,620       1,212,650       3,398,159  
Professional fees     1,294,807       116,823       280,521       1,692,151  
Marketing, general and administrative     1,864,933       1,631,787       3,081,587       6,578,307  
Fair value share adjustment gain     -       -       (3,692,529 )     (3,692,529 )
Total operating expenses     4,908,629       2,185,230       882,229       7,976,088  
                                 
(Loss) income from operations   $ (2,911,294 )   $ (192,754 )   $ 4,283,478     $ 1,179,430  

 

    Starco Brands     Skylar     Soylent     Total  
    Six Months Ended June 30, 2024  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 2,816,862     $ 3,989,021     $ 20,133,015     $ 26,938,898  
Gross revenues, related parties     3,251,423       -       -       3,251,423  
Cost of goods sold     432,018       1,469,462       13,660,032       15,561,512  
Cost of goods sold, related parties     1,910,680       -       -       1,910,680  
Gross profit     3,725,587       2,519,559       6,472,983       12,718,129  
                                 
Compensation expense     2,035,485       850,101       2,125,090       5,010,676  
Professional fees     1,456,544       302,469       577,897       2,336,910  
Marketing, general and administrative     3,304,333       1,974,713       4,557,585       9,836,631  
Fair value share adjustment loss     -       -       10,597,514       10,597,514  
Total operating expenses     6,796,362       3,127,283       17,858,086       27,781,731  
                                 
Loss from operations   $ (3,070,775 )   $ (607,724 )   $ (11,385,103 )   $ (15,063,602 )