Segment Reporting

12 Months Ended

Aug. 31, 2025

Segment Reporting [Abstract]

Segment Reporting

Note 9. Segment Reporting (Topic 280, “Operating Segments”)

The Company applied the provisions of ASU 2023 07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, for the fiscal year ended August 31, 2025 and a retroactive implementation to fiscal 2024. The amendment enhances entities’ disclosures about operating segments, products and services, geographic areas and major customers.

Corporate Structure and Chief Operating Decision Maker (“CODM”)

Management determined that the CODM is Mr. Don Wagner, the President and Chief Operating Officer of Bisco Industries, Inc. The CODM reviews the consolidated results and allocates resources at the enterprise level. The Company’s operations are conducted through its wholly-owned industrial distribution business (Bisco Industries and its Canadian subsidiary), which operates across 51 sales offices and seven distribution centers and one sales office in the Philippines. Although the business is conducted across multiple sales offices and distribution centers, management concluded that the nature of the operations, the economic environment, and the way resources are managed and performance is evaluated support a single-segment determination.  Management considered the guidance in ASC 280-10-50-4 and determined that the single reportable segment is managed on a consolidated basis.  Because the CODM manages the business as a single integrated unit, the management has identified one operating segment and one reportable segment in accordance with ASC 280.

Measurement of Segment Financials

The CODM uses consolidated revenue, regional sales reports, sales forecasting, sales and administrative headcount reports, significant operating and selling expenses, financial fluctuation analysis, forecasted inventory usage, operating income and total assets to assess the Company’s performance and to allocate resources. As a result, segment amounts are equal to the Company’s consolidated amounts for those metrics.

Description of Reportable Segment

The Company’s sole reportable segment is the industrial distribution business conducted through Bisco Industries and its Canadian subsidiary. The Company’s revenues are primarily comprised of product sales of electronic components, cable components, and a large variety of fasteners and hardware. There have been no changes to the internal segment reporting structure during fiscal 2025.

Segment Information

The Company operates as one reportable segment. The CODM reviews consolidated results to assess performance and allocate resources. Accordingly, the accompanying consolidated financial statements reflect the results of the single operating segment.

Significant Judgments and Estimate

The identification of the CODM and determination that there is a single operating and reportable segment required management judgment. Changes in the operational structure, management reporting practices or resource allocation methods could result in multiple reportable segments in future periods.

Impact of the Standard

The adoption and application of ASU 2023-07 did not change the Company’s determination of operating or reportable segments, its performance measures or the way resource allocation decisions are made. Accordingly, the application of the standard had no material effect on the Company’s consolidated financial statements or the presentation of segment information.