Segment Information

3 Months Ended

Mar. 31, 2018

Note 3. SEGMENT INFORMATION

Management determines the reportable segments based on the internal reporting used by our Chief Operating Decision Makers to evaluate performance and to assess where to allocate resources. The Company evaluates segment performance based on the segment gross profit before corporate expenses.

Summarized below are the total net sales and segment operating loss for each reporting segment:

	Three Months Ended
	Net Sales				Segment Gross Profit
	March 31, 2018		March 31, 2017		March 31, 2018			March 31, 2017
Vapor sales, net	$	1,308,895	$	1,479,631	$	732,234		$	936,140
Grocery sales, net		2,298,511		2,091,053		912,233			874,180
Total sales	$	3,607,406	$	3,570,684		1,644,467			1,810,320
Operating expenses						3,135,491			3,566,220
Operating loss						(1,491,024	)		(1,755,900	)
Other income (expense), net						221,388			(17,790	)
Net loss from continuing operations						(1,269,636	)		(1,773,690	)
Net income (loss) from discontinued operations						-			(7,482	)
Net loss					$	(1,269,636	)	$	(1,781,172	)

For the three months ended March 31, 2018, depreciation and amortization was $15,526 and $69,357 for Vapor and Grocery, respectively. For the three months ended March 31, 2017, depreciation and amortization was $16,732 and $63,182 for Vapor and Grocery, respectively.