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

SEGMENTS

v3.25.1
SEGMENTS
 12 Months Ended
Dec. 31, 2024
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:

 

    Starco Brands     Skylar     Soylent     Total  
    Year Ended December 31, 2024  
    Starco Brands     Skylar     Soylent     Total  
Gross revenues   $ 6,010,542     $ 10,460,347     $ 36,056,241     $ 52,527,130  
Gross revenues, related parties     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 )

 

    Starco Brands     Skylar     Soylent(1)     Total  
    Year Ended December 31, 2023  
    Starco Brands     Skylar     Soylent(1)     Total  
Gross revenues   $ 4,625,452     $ 10,670,620     $ 36,652,661     $ 51,948,733  
Gross revenues, related parties     11,696,722       -       -       11,696,722  
Cost of revenues     1,240,973       4,570,452       29,180,057       34,991,482  
Cost of revenues, related parties     2,688,160       -       -       2,688,160  
Gross profit     12,393,041       6,100,168       7,472,604       25,965,813  
                                 
Compensation expense     11,019,955       1,446,834       3,432,703       15,899,492  
Professional fees     3,707,516       827,399       1,326,734       5,861,649  
Marketing, general and administrative     7,198,459       4,672,343       7,958,783       19,829,585  
Fair value share adjustment loss     -       -       215,531       215,531  
Goodwill impairment     9,145,000       -       20,467,700       29,612,700  
Total operating expenses     31,070,930       6,946,576       33,401,451       71,418,957  
                                 
Loss from operations   $ (18,677,889 )   $ (846,408 )   $ (25,928,847 )   $ (45,453,144 )

 

1 The Company does not report results for Soylent prior to the date of acquisition, February 15, 2023, as Soylent was not yet a subsidiary of the Company.