Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENTS

v3.26.1
SEGMENTS
 12 Months Ended
Dec. 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 or loss and significant expenses by reporting segment:

 

                 
    Year Ended December 31, 2025  
    Starco Brands     Skylar     Soylent     Total  
Revenues, net   $ 4,705,790     $ 10,929,603     $ 21,679,434     $ 37,314,827  
Revenues, related parties, net     3,164,581       -       -       3,164,581  
Cost of revenues     751,439       4,725,418       16,100,543       21,577,400  
Cost of revenues, related parties     3,249,562       -       -       3,249,562  
Gross profit     3,869,370       6,204,185       5,578,891       15,652,446  
                                 
Compensation expense     3,254,087       1,661,684       2,272,836       7,188,607  
Professional fees     2,034,735       167,765       459,677       2,662,177  
Marketing, general and administrative     3,672,032       3,773,269       5,705,376       13,150,677  
Fair value share adjustment loss     -       -       (3,692,529 )     (3,692,529 )
Goodwill impairment     -       -       1,127,208       1,127,208  
Intangibles impairment     -       -       14,000,000       14,000,000  
Total operating expenses     8,960,854       5,602,718       19,872,568       34,436,140  
                                 
(Loss) income from operations   $ (5,091,484 )   $ 601,467     $ (14,293,677 )   $ (18,783,694 )

 

                 
    Year Ended December 31, 2024  
    Starco Brands     Skylar     Soylent     Total  
Revenues, net   $ 6,010,542     $ 10,460,347     $ 36,056,241     $ 52,527,130  
Revenues, related parties, net     6,140,172       -       -       6,140,172  
Cost of revenues     1,421,731       4,247,702       28,237,868       33,907,301  
Cost of revenues, related parties     3,896,551       -       -       3,896,551  
Gross profit     6,832,432       6,212,645       7,818,373       20,863,450  
                                 
Compensation expense     3,938,074       1,466,491       3,632,558       9,037,123  
Professional fees     2,269,402       206,839       1,056,811       3,533,052  
Marketing, general and administrative     6,398,254       4,521,725       7,970,759       18,890,738  
Fair value share adjustment loss     -       -       (10,544,263 )     (10,544,263 )
Goodwill impairment     2,944,871       -       11,383,000       14,327,871  
Intangibles impairment     13,304       -       -       13,304  
Total operating expenses     15,563,905       6,195,055       13,498,865       35,257,825  
                                 
(Loss) income from operations   $ (8,731,473 )   $ 17,590     $ (5,680,492 )   $ (14,394,375 )