Quarterly report [Sections 13 or 15(d)]

SEGMENTS

v3.25.3
SEGMENTS
 9 Months Ended
Sep. 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:

  

                 
    Three Months Ended September 30, 2025  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $

1,332,188

     $ 3,432,611     $ 6,148,121     $ 10,912,920  
Gross revenues, related parties     726,407       -       -       726,407  
Cost of goods sold     340,051       1,241,627       4,813,143       6,394,821  
Cost of goods sold, related parties     613,094       -       -       613,094  
Gross profit     1,105,450       2,190,984       1,334,978       4,631,412  
                                 
Compensation expense     987,987       717,583       401,843       2,107,413  
Professional fees     380,556       28,820       91,555       500,931  
Marketing, general and administrative     842,835       1,007,675       1,270,917       3,121,427  
Fair value share adjustment gain     -       -       -       -  
Total operating expenses     2,211,378       1,754,078       1,764,315       5,729,771  
                                 
(Loss) income from operations   $ (1,105,928 )   $ 436,906     $ (429,337 )   $ (1,098,359 )

 

                 
    Three Months Ended September 30, 2024  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 1,471,514     $ 3,171,243     $ 8,723,377     $ 13,366,134  
Gross revenues, related parties     1,480,007       -       -       1,480,007  
Cost of goods sold     137,522       1,281,373       6,071,905       7,490,800  
Cost of goods sold, related parties     968,934       -       -       968,934  
Gross profit     1,845,065       1,889,870       2,651,472       6,386,407  
                                 
Compensation expense     1,012,902       323,191       849,163       2,185,256  
Professional fees     264,170       (137,776 )     308,304       434,698  
Marketing, general and administrative     1,339,802       1,297,232       1,599,399       4,236,433  
Fair value share adjustment loss     -       -       5,105,535       5,105,535  
Total operating expenses     2,616,874       1,482,647       7,862,401       11,961,922  
                                 
Loss from operations   $ (771,809 )   $ 407,223     $ (5,210,929 )   $ (5,575,515 )

 

 

    Starco Brands     Skylar     Soylent     Total  
    Nine Months Ended September 30, 2025  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 3,868,919     $ 7,291,678     $ 20,157,201     $ 31,317,798  
Gross revenues, related parties     2,198,098       -       -       2,198,098  
Cost of goods sold     692,668       3,108,218       13,656,516       17,457,402  
Cost of goods sold, related parties     2,271,564       -       -       2,271,564  
Gross profit     3,102,785       4,183,460       6,500,685       13,786,930  
                                 
Compensation expense     2,736,876       1,154,203       1,614,493       5,505,572  
Professional fees     1,675,363       145,643       372,076       2,193,082  
Marketing, general and administrative     2,707,768       2,639,462       4,352,504       9,699,734  
Fair value share adjustment gain     -       -       (3,692,529 )     (3,692,529 )
Total operating expenses     7,120,007       3,939,308       2,646,544       13,705,859  
                                 
(Loss) income from operations   $ (4,017,222 )   $ 244,152     $ 3,854,141     $ 81,071  

 

                 
    Nine Months Ended September 30, 2024  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 4,288,376     $ 7,160,264     $ 28,856,392     $ 40,305,032  
Gross revenues, related parties     4,731,430       -       -       4,731,430  
Cost of goods sold     569,540       2,750,835       19,731,937       23,052,312  
Cost of goods sold, related parties     2,879,614       -       -       2,879,614  
Gross profit     5,570,652       4,409,429       9,124,455       19,104,536  
                                 
Compensation expense     3,048,387       1,173,292       2,974,253       7,195,932  
Professional fees     1,720,714       164,693       886,201       2,771,608  
Marketing, general and administrative     4,644,135       3,271,945       6,156,984       14,073,064  
Fair value share adjustment loss     -       -       15,703,049       15,703,049  
Total operating expenses     9,413,236       4,609,930       25,720,487       39,743,653  
                                 
Loss from operations   $ (3,842,584 )   $ (200,501 )   $ (16,596,032 )   $ (20,639,117 )