Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information

Note 20 – Segment Information

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) for purposes of making operating decisions, allocating resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined that it operates in one reportable and operating segment. The Company’s reportable segment is the Company’s franchise business of its health and wellness brands which require similar technology and operating strategies. The CODM evaluates the operating results through consolidated net income (loss). The CODM uses consolidated net income (loss) predominantly in the annual budget and forecasting process and to monitor budget-to-actual variances on a monthly basis in order to assess performance and allocate resources.

During the years ended December 31, 2024, 2023 and 2022, the Company generated $13,987, $13,361, and $12,249 of revenue outside of the United States, respectively, primarily from franchise development fees and franchise royalty fees earned from master franchisees. As of December 31, 2024 and 2023, the Company did not have material assets located outside of the United States.

The following table presents the financial information for the Company’s one reportable and operating segment:

 

 

Years ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Total revenue, net

 

$

320,346

 

 

$

317,937

 

 

$

243,199

 

Less:

 

 

 

 

 

 

 

Costs of product revenue

 

 

59,477

 

 

 

60,331

 

 

 

46,451

 

Costs of franchise and service revenue

 

 

21,806

 

 

 

15,985

 

 

 

18,447

 

Marketing and promotion

 

 

11,850

 

 

 

15,663

 

 

 

13,556

 

Salary and wages

 

 

43,132

 

 

 

55,400

 

 

 

36,415

 

Professional services (including legal and accounting)

 

 

53,837

 

 

 

29,642

 

 

 

27,960

 

Rent and occupancy

 

 

16,673

 

 

 

27,548

 

 

 

9,122

 

Marketing fund expense

 

 

26,673

 

 

 

22,683

 

 

 

17,290

 

Acquisition and transaction expenses (income)

 

 

8,886

 

 

 

(18,464

)

 

 

2,438

 

Other segment items(1)

 

 

36,894

 

 

 

25,806

 

 

 

10,704

 

Equity-based compensation

 

 

15,466

 

 

 

17,997

 

 

 

29,044

 

Depreciation and amortization

 

 

17,713

 

 

 

16,883

 

 

 

15,315

 

Impairment of goodwill and other assets

 

 

62,551

 

 

 

16,750

 

 

 

3,656

 

Interest income

 

 

(1,824

)

 

 

(1,611

)

 

 

(1,805

)

Interest expense

 

 

46,250

 

 

 

38,733

 

 

 

13,017

 

Income taxes

 

 

(342

)

 

 

1,034

 

 

 

488

 

Segment net income (loss)

 

$

(98,696

)

 

$

(6,443

)

 

$

1,101

 

 

(1)
Other segment items primarily include restructuring expenses of $14,915, $5,689 and $0 for the years ended December 31, 2024, 2023 and 2022, respectively. Other segment items also include travel expenses, TRA expense, and other selling, general and administrative expenses.