SEGMENT REPORTING

3 Months Ended

Mar. 31, 2023

SEGMENT REPORTING

SEGMENT REPORTING

14. SEGMENT REPORTING

FASB Codification Topic 280, Segment Reporting, establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has two reportable segments: sale of branded alcoholic beverages and specialty packaging. The segments are determined based on several factors, including the nature of products and services, the nature of production processes, customer base, delivery channels and similar economic characteristics.

An operating segment’s performance is evaluated based on its pre-tax operating contribution, or segment income. Segment income is defined as net sales less cost of sales, segment selling, general and administrative expenses, research and development costs and stock-based compensation. It does not include other charges (income), net and interest and other, net.

	Branded Beverages			Specialty Packaging (TopPop)			Corporate			Total
Balance sheet at March 31, 2023
Assets	$	2,574,510		$	14,627,810		$	-		$	17,202,320
Liabilities	$	9,729,512		$	9,441,467		$	-		$	19,170,979
Balance sheet at December 31, 2022
Assets	$	3,460,100		$	14,898,648		$	-		$	18,358,748
Liabilities	$	8,961,870		$	9,036,636		$	-		$	17,998,506
Income Statement for the three months ended March 31, 2023:	Branded Beverages			Specialty Packaging			Corporate			Total
Net Sales	$	1,081,231		$	933,688		$	-		$	2,014,919
Cost of sales	$	402,792		$	721,331		$	-		$	1,124,123
Total operating expenses	$	1,142,178		$	1,694,028		$	449,370		$	3,285,576
Loss from operations	$	(463,739	)	$	(1,481,671	)	$	(449,370	)	$	(2,394,780	)
Interest expense	$	-		$	171,040		$	-		$	171,040
Depreciation and amortization	$	4,436		$	235,930		$	-		$	240,366
Income Statement for the three months ended March 31, 2022:
Net Sales	$	533,095		$	3,513,702		$			$	4,046,797
Cost of Goods Sold	$	214,341		$	1,990,698		$			$	2,205,039
Total operating expenses	$	1,457,271		$	2,834,905		$	518,188		$	4,810,364
Loss from operations	$	(1,138,517	)	$	(1,311,901	)	$	(518,188	)	$	(2,968,606	)
Interest expense		-			183,134						183,134
Depreciation and amortization	$	1,141		$	77,207		$			$	78,348