Business Segment and Geographic Area Information

6 Months Ended

Nov. 30, 2022

Business Segment And Geographic Area Information

Business Segment and Geographic Area Information

Note 14 – Business Segment and Geographic Area Information

Business Segments

The Company, directly or through its subsidiaries, markets and sells its products and services directly to consumers and through its dealers. In June 2022, the Company acquired a hearing enhancement and hearing protection business. The Company’s determination of its reportable segments is based on how its chief operating decision makers manage the business.

The Company’s segment information is as follows:

	Three months ended November 30,					Six months ended November 30,
	2022		2021			2022		2021
Net Sales
Hair care and skin care	$	418,734	$	493,816		$	903,970	$	1,333,088
Hearing enhancement and protection		6,313,265		-			10,065,387		-
Total net sales	$	6,731,999	$	493,816		$	10,969,357	$	1,333,088
Operating earnings (loss)
Segment gross profit:
Hair care and skin care	$	316,326	$	381,016		$	640,431	$	856,392
Hearing enhancement and protection		4,722,709		-			7,681,257		-
Total segment gross profit		5,039,034		381,016			8,321,688		856,392
Selling and Marketing		3,098,898		269,051			5,076,874		620,673
General and Administrative		955,141		117,202			2,060,418		255,430
Consolidated operating income (loss)	$	984,995	$	(5,237	)	$	1,184,396	$	(19,711	)
Total Assets:
Hair care and skin care	$	1,018,083	$	1,060,400		$	1,018,083	$	1,060,400
Hearing enhancement and protection		9,038,537		-			9,038,537		-
Consolidated total assets	$	10,056,620	$	1,060,400		$	10,056,620	$	1,060,400
Payments for property and equipment
Hair care and skin care	$	-	$	-		$	-	$	-
Hearing enhancement and protection		54,400		-			54,400		-
Consolidated total payments for property and equipment	$	54,400	$	-		$	54,400	$	-
Depreciation and amortization
Hair care and skin care	$	1,418	$	2,128		$	2,841	$	4,475
Hearing enhancement and protection		21,928		-			40,174		-
Consolidated total depreciation and amortization	$	23,346	$	2,128		$	43,015	$	4,475

Geographic Area Information

During the three months ended November 30, 2022, approximately 95% of our consolidated net sales and, during the three months ended November 30, 2021, approximately 73% of our consolidated net sales were to customers located in the U.S. (based on the customer’s shipping address). During the six months ended November 30, 2022, approximately 94% of our consolidated net sales and, during the six months ended November 30, 2021, approximately 84% of our consolidated net sales were to customers located in the U.S. (based on the customer’s shipping address). All Company assets are located in the U.S.