| BUSINESS SEGMENTS |
9. BUSINESS SEGMENTS The Company has two reportable business segments: the wholesale distribution of consumer products (the Wholesale Segment), and the retail sale of health and natural food products (the Retail Segment). The Company’s chief operating decision maker (“CODM”) is the chief executive officer, who utilizes operating income (loss) to evaluate the Company’s business operations and allocate the Company’s resources to these business segments, which are aggregated based on a range of considerations including, but not limited to, the characteristics of each business, similarities in the nature and type of products sold, customer classes, methods used to sell the products and economic profiles. Included in the “Other” column are intercompany eliminations and assets held, charges incurred and income earned by our holding company. | | | | | | | | | | | | | | | Wholesale | | Retail | | | | | | | Segment | | Segment | | Other | | Consolidated | THREE MONTHS ENDED JUNE 2026 | | | | | | | | | | | | | External revenue: | | | | | | | | | | | | | Cigarettes | | $ | 536,626,746 | | $ | — | | $ | — | | $ | 536,626,746 | Tobacco | | | 150,098,380 | | | — | | | — | | | 150,098,380 | Confectionery | | | 52,221,227 | | | — | | | — | | | 52,221,227 | Health food | | | — | | | 10,684,609 | | | — | | | 10,684,609 | Foodservice & other | | | 85,709,223 | | | — | | | — | | | 85,709,223 | Total external revenue | | | 824,655,576 | | | 10,684,609 | | | — | | | 835,340,185 | Cost of sales | | | 778,659,407 | | | 6,876,358 | | | — | | | 785,535,765 | Selling, general and administrative expenses | | | 36,506,008 | | | 3,795,291 | | | 2,712,104 | | | 43,013,403 | Depreciation | | | 2,003,618 | | | 218,887 | | | — | | | 2,222,505 | Amortization | | | 115,926 | | | — | | | — | | | 115,926 | Gain on sales of real estate | | | (1,796,723) | | | — | | | — | | | (1,796,723) | Operating income (loss) | | | 9,167,340 | | | (205,926) | | | (2,712,105) | | | 6,249,309 | Interest expense | | | — | | | — | | | 2,590,977 | | | 2,590,977 | Income (loss) from operations before taxes | | | 9,182,499 | | | (177,853) | | | (5,303,080) | | | 3,701,566 | Total assets | | | 380,806,059 | | | 17,573,899 | | | 945,425 | | | 399,325,383 | Capital expenditures | | | 2,088,452 | | | 144,955 | | | — | | | 2,233,407 |
| | | | | | | | | | | | | | | Wholesale | | Retail | | | | | | | Segment | | Segment | | Other | | Consolidated | THREE MONTHS ENDED JUNE 2025 | | | | | | | | | | | | | External revenue: | | | | | | | | | | | | | Cigarettes | | $ | 446,795,327 | | $ | — | | $ | — | | $ | 446,795,327 | Tobacco | | | 142,823,422 | | | — | | | — | | | 142,823,422 | Confectionery | | | 51,876,960 | | | — | | | — | | | 51,876,960 | Health food | | | — | | | 11,330,519 | | | — | | | 11,330,519 | Foodservice & other | | | 86,789,188 | | | — | | | — | | | 86,789,188 | Total external revenue | | | 728,284,897 | | | 11,330,519 | | | — | | | 739,615,416 | Cost of sales | | | 682,826,911 | | | 7,173,606 | | | — | | | 690,000,517 | Selling, general and administrative expenses | | | 35,768,823 | | | 3,806,777 | | | 2,953,518 | | | 42,529,118 | Depreciation | | | 1,857,491 | | | 242,654 | | | — | | | 2,100,145 | Amortization | | | 122,098 | | | — | | | — | | | 122,098 | Operating income (loss) | | | 7,341,098 | | | 107,482 | | | (2,585,042) | | | 4,863,538 | Interest expense | | | — | | | — | | | 2,671,004 | | | 2,671,004 | Income (loss) from operations before taxes | | | 7,235,357 | | | 129,237 | | | (5,256,047) | | | 2,108,547 | Total assets | | | 375,881,609 | | | 16,873,406 | | | 1,160,510 | | | 393,915,525 | Capital expenditures | | | 829,566 | | | 159,332 | | | — | | | 988,898 |
| | | | | | | | | | | | | | | Wholesale | | Retail | | | | | | | Segment | | Segment | | Other | | Consolidated | NINE MONTHS ENDED JUNE 2026 | | | | | | | | | | | | | External revenue: | | | | | | | | | | | | | Cigarettes | | $ | 1,442,968,829 | | $ | — | | $ | — | | $ | 1,442,968,829 | Tobacco | | | 425,030,232 | | | — | | | — | | | 425,030,232 | Confectionery | | | 141,797,368 | | | — | | | — | | | 141,797,368 | Health food | | | — | | | 33,226,492 | | | — | | | 33,226,492 | Foodservice & other | | | 238,025,035 | | | — | | | — | | | 238,025,035 | Total external revenue | | | 2,247,821,464 | | | 33,226,492 | | | — | | | 2,281,047,956 | Cost of sales | | | 2,118,382,895 | | | 21,323,115 | | | — | | | 2,139,706,010 | Selling, general and administrative expenses | | | 106,351,108 | | | 11,578,769 | | | 8,058,635 | | | 125,988,512 | Depreciation | | | 6,324,858 | | | 670,038 | | | — | | | 6,994,896 | Amortization | | | 347,778 | | | — | | | — | | | 347,778 | Gain on sales of real estate | | | (1,796,723) | | | — | | | — | | | (1,796,723) | Operating income (loss) | | | 18,211,549 | | | (345,430) | | | (8,058,636) | | | 9,807,483 | Interest expense | | | — | | | — | | | 7,480,651 | | | 7,480,651 | Income (loss) from operations before taxes | | | 17,940,281 | | | (262,946) | | | (15,539,286) | | | 2,138,049 | Total assets | | | 380,806,059 | | | 17,573,899 | | | 945,425 | | | 399,325,383 | Capital expenditures (1) | | | 11,600,712 | | | 365,560 | | | — | | | 11,966,272 |
(1) Includes $8.0 million purchase of a distribution facility in Ohio. | | | | | | | | | | | | | | | Wholesale | | Retail | | | | | | | Segment | | Segment | | Other | | Consolidated | NINE MONTHS ENDED JUNE 2025 | | | | | | | | | | | | | External revenue: | | | | | | | | | | | | | Cigarettes | | $ | 1,259,158,450 | | $ | — | | $ | — | | $ | 1,259,158,450 | Tobacco | | | 400,560,151 | | | — | | | — | | | 400,560,151 | Confectionery | | | 135,675,489 | | | — | | | — | | | 135,675,489 | Health food | | | — | | | 33,758,378 | | | — | | | 33,758,378 | Foodservice & other | | | 241,239,292 | | | — | | | — | | | 241,239,292 | Total external revenue | | | 2,036,633,382 | | | 33,758,378 | | | — | | | 2,070,391,760 | Cost of sales | | | 1,909,515,118 | | | 21,340,306 | | | — | | | 1,930,855,424 | Selling, general and administrative expenses | | | 102,651,269 | | | 11,436,314 | | | 9,137,119 | | | 123,224,702 | Depreciation | | | 6,150,669 | | | 774,252 | | | — | | | 6,924,921 | Amortization | | | 390,950 | | | — | | | — | | | 390,950 | Operating income (loss) | | | 16,714,246 | | | 207,506 | | | (7,925,989) | | | 8,995,763 | Interest expense | | | — | | | — | | | 7,784,032 | | | 7,784,032 | Income (loss) from operations before taxes | | | 16,262,891 | | | 275,136 | | | (15,710,021) | | | 828,006 | Total assets | | | 375,881,609 | | | 16,873,406 | | | 1,160,510 | | | 393,915,525 | Capital expenditures | | | 6,798,565 | | | 466,176 | | | — | | | 7,264,741 |
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