Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information

Note 17 – 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 three months ended March 31, 2025 and 2024, the Company generated $2,617 and $3,588 of revenue outside of the United States, respectively, primarily from franchise development fees and franchise royalty fees earned from master franchisees. As of March 31, 2025 and 2024, 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:

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Total revenue, net

 

$

76,883

 

 

$

79,693

 

Less:

 

 

 

 

 

Costs of product revenue

 

 

11,972

 

 

 

14,566

 

Costs of franchise and service revenue

 

 

4,097

 

 

 

5,047

 

Marketing and promotion

 

 

1,361

 

 

 

2,133

 

Salary and wages

 

 

11,472

 

 

 

11,199

 

Professional services (including legal and accounting)

 

 

22,830

 

 

 

5,757

 

Rent and occupancy

 

 

1,637

 

 

 

5,157

 

Marketing fund expense

 

 

9,357

 

 

 

6,515

 

Acquisition and transaction expenses (income)

 

 

(8,638

)

 

 

4,515

 

Other segment items(1)

 

 

6,048

 

 

 

9,041

 

Equity-based compensation

 

 

3,281

 

 

 

3,942

 

Depreciation and amortization

 

 

2,956

 

 

 

4,436

 

Impairment of goodwill and other noncurrent assets

 

 

1,915

 

 

 

-

 

Interest income

 

 

(619

)

 

 

(363

)

Interest expense

 

 

11,388

 

 

 

11,545

 

Income taxes (benefit)

 

 

485

 

 

 

(47

)

Segment net loss

 

$

(2,659

)

 

$

(3,750

)
(1)
Other segment items include restructuring expenses of $151 and $4,443 for the three months ended March 31, 2025 and 2024, respectively. Other segment items also include travel expenses, insurance expense, TRA expense, and other selling, general and administrative expenses.