Business Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Business Segment Information

5. Business Segment Information

As of September 30, 2024, the Company’s internal management financial reporting consisted of Bridgetown and corporate. The Bridgetown brands span several alcoholic beverage categories, including whiskey, vodka, rum, and tequila and are sold on a wholesale basis to distributors in open states, and to brokers in control states. The Company’s principal area of operation is in the U.S. It has one Bridgetown customer that represents 67% of its revenue. Corporate consists of key executive and accounting personnel and corporate expenses such as public company and board costs, as well as interest on debt.

The measure of profitability reviewed are condensed statements of operations and gross margins. These business segments reflect how operations are managed, operating performance is evaluated and the structure of internal financial reporting. Total asset information by segment is not provided to, or reviewed by, the chief operating decision maker (“CODM”) as it is not used to make strategic decisions, allocate resources or assess performance. The accounting policies of the segments are the same as those described for the Company in the Summary of Significant Accounting Policies in Note 3.

Segment information was as follows for the nine months ended September 30:

(Dollars in thousands)	2024			2023
Bridgetown
Sales	$	2,106		$	3,080
Net sales		1,977			2,939
Cost of sales		1,476			1,940
Gross profit		501			999
Total operating expenses		698			1,183
Net loss		(162	)		(130	)
Gross margin		25	%		34	%
Depreciation and amortization		99			114
Corporate
Total operating expenses	$	1,149		$	1,287
Net loss		(2,112	)		(3,455	)
Interest expense		965			850
Significant noncash items:
Stock compensation		-			98