SEGMENTING REPORTING

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENTING REPORTING

22. SEGMENTING REPORTING

The Company’s principal operating segments coincide with the types of products to be sold. The products from which revenues are derived are consistent with the reporting structure of the Company’s internal organization. The Company’s two reportable segments for the three months ended March 31, 2024 were the Inventory Management Solutions segment and the Corrugated segment. The Company’s chief operating decision maker has been identified as the Chairman and CEO, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Segment information is presented based upon the Company’s management organization structure as of March 31, 2024 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to the reportable segments disclosed. There are no inter-segment revenue transactions and, therefore, revenues are only to external customers.

Segment operating profit is determined based upon internal performance measures used by the chief operating decision maker. The Company derives the segment results from its internal management reporting system. The accounting policies the Company uses to derive reportable segment results are the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics, including net revenues, gross profit and operating loss. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. The Company manages certain operating expenses separately at the corporate level and does not allocate such expenses to the segments. Segment income from operations excludes interest income/expense and other income or expenses and income taxes according to how a particular reportable segment’s management is measured. Management does not consider impairment charges, and unallocated costs in measuring the performance of the reportable segments.

Segment information available with respect to these reportable business segments for the three months ended March 31, 2024 and 2023 was as follows:

	For the Three Months Ended March 31,
	2024			2023
Revenues:
Inventory Management Solutions	$	7,958,697		$	13,948,341
Corrugated		1,661,123			1,941,374
Total segment and consolidated revenues	$	9,619,820		$	15,889,715
Cost of revenues:
Inventory Management Solutions	$	6,569,687		$	12,634,589
Corrugated		1,164,371			1,436,034
Total segment and consolidated cost of revenues	$	7,734,058		$	14,070,623
Gross profit:
Inventory Management Solutions	$	1,389,010		$	1,313,752
Corrugated		496,752			505,340
Total segment and consolidated gross profit	$	1,885,762		$	1,819,092
Income (loss) from operations:
Inventory Management Solutions	$	(794,053	)	$	(492,234	)
Corrugated		162,736			145,582
Corporate		(2,359,718	)		(3,183,687	)
Total segment and consolidated loss from operations	$	(2,991,035	)	$	(3,530,339	)
Depreciation and amortization:
Inventory Management Solutions	$	556,299		$	576,580
Corrugated		49,497			49,497
Total segment and consolidated depreciation and amortization	$	605,796		$	626,077
Revenues by geography:
North America	$	3,313,122		$	3,287,404
Europe		6,306,698			12,602,311
Total geography and consolidated revenues	$	9,619,820		$	15,889,715
Segment capital expenditures:
Inventory Management Solutions	$	-		$	-
Corrugated		-			36,308
Corporate		-			-
Total segment and consolidated capital expenditures	$	-		$	36,308
Segment total assets:
Inventory Management Solutions	$	45,452,208		$	50,777,175
Corrugated		1,881,212			2,494,147
Corporate		2,903,451			7,483,064
Total segment and consolidated assets	$	50,236,871		$	60,754,386